Kotak Mahindra Bank Q2 Updates: Deposits Up 14.6%, Net Advances Rise Nearly 16%

Kotak Mahindra Bank’s net advances rose 15.8% year-on-year to Rs 4.62 lakh crore in the July-September quarter, according to provisional numbers disclosed by the lender on Monday. On a sequential basis, it advanced by 4% from Rs 4.44 lakh crore.

The bank's total deposits stood at Rs 5.28 lakh crore, up by 14.6% from Rs 4.61 lakh crore in the year-ago period. In the previous quarter the bank had reported its total deposits as Rs 5.12, marking a sequential rise of 3.1% for the current quarter.

The current account and savings account, or CASA, also saw an 11.2% rise year-on-year to Rs 2.23 lakh crore from Rs 2.01 lakh crore. The bank also noted a sequential rise of 6.7% as CASA in Q1 of FY26 stood at Rs 2.09 lakh crore.

Besides this, Kotak Mahindra Bank saw an uptick in the average net advances, average CASA, and average deposits as well.

Deterioration in asset quality and muted profitability led Kotak Mahindra Bank to report a standalone net profit of Rs 3,282 crore for the first quarter of FY26.

On a year-on-year basis, the bottom line was 47% lower, on account of one-time gains last year. Adjusting for these gains still, net profit is down 7% year-on-year for the bank. In the March quarter, net profit was at Rs 3,552 crore.

Provisions and contingencies of the bank jumped two-fold on the year to Rs 1,208 crore. In the March quarter, it was at Rs 909 crore. The rise in provisions was because of stress in retail commercial vehicle and microfinance institution business.

Asset quality of the bank worsened, with the gross non-performing assets ratio rising to 1.48% at the end of June as compared to 1.42% in the prior quarter. Net NPA also rose to 0.34% from 0.31% in the March quarter.

On Friday, shares of Kotak Mahindra Bank closed 1.80% higher at Rs 2100.50 apiece on the NSE.