Kotak Mahindra Bank Ltd. reported a steady rise in quarterly profit in the October-December period, meeting street expectations. Standalone net profit rose 4.3% to Rs 3,446 crore, compared to Rs 3,305 crore in the year-ago period, according to a stock exchange filing on Saturday. Analysts' consensus estimates compiled by Bloomberg projected Rs 3,536 crore.
Net interest income, the difference between interest earned on advances and interest paid on deposits, also met estimates. Margin contracted to 4.54% from 4.93% last year but remained flat on a sequential basis. Asset quality improved compared to the previous quarter.
Kotak Mahindra Bank Q3 Results (Standalone, YoY)
- Net interest income up 5% at Rs 7,565 crore versus Rs 7,196 crore (Bloomberg estimate: Rs 7,640 crore)
- Net interest margin at 4.54% versus 4.93% (Bloomberg estimate: 4.61%)
- Profit up 4.3% at Rs 3,446 crore versus Rs 3,305 crore (Bloomberg estimate: Rs 3,536 crore)
- Operating profit up 3.8% at Rs 5,380 crore versus Rs 5,181 crore
- Gross NPA at 1.3% versus 1.39% (QoQ)
- Net NPA at 0.31% versus 0.32% (QoQ)
Provisions rose to Rs 810 crore from Rs 794 crore in Q3FY25, but declined on a sequential basis. Provision Coverage Ratio stood at 76%. Credit cost (annualised) dipped both on a year-on-year and quarter-on-quarter basis to 0.63%.
Net advances increased 16% year-on-year to Rs 4.81 lakh crore as at Dec. 31, 2025. Total period-end deposits rose 15% to Rs 5.42 lakh crore.
The board approved a proposal to raise funds by way of issuance of unsecured, redeemable, non-convertible debentures, on a private placement basis, for an amount up to Rs 15,000 crore in one or more tranches during the next financial year.
Shares of Kotak Mahindra Bank settled lower at Rs 422.20 on the BSE on Friday, compared to a 0.9% fall in the benchmark Sensex. The stock is up 12% on a 12-month basis.
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