Kotak Mahindra Bank Share Price Falls After Lackluster Q1 Results
Bank's gross non-performing assets rose to 1.48% from 1.42% in the previous quarter, while net NPA increased to 0.34% from 0.31%.
Kotak Mahindra Bank Ltd.'s share price declined 5.58% on Monday after bank reported weak first quarter results for financial year 2026 over the weekend.
The bank's results missed profit expectations and showed signs of asset quality deterioration. The bank reported a standalone net profit of Rs 3,282 crore, below Bloomberg’s consensus estimate of Rs 3,496.76 crore and down 47% year-on-year due to one-time gains last year. Even after adjusting for those gains, profit fell 7% YoY.
Provisions and contingencies surged to Rs 1,208 crore, more than double last year, driven by stress in retail commercial vehicle and microfinance segments. Gross non-performing assets rose to 1.48% from 1.42% in the previous quarter, while net NPA increased to 0.34% from 0.31%.
Fresh slippages climbed to Rs 1,812 crore in Q1 from Rs 1,488 crore in Q4, with intra-quarter upgrades at Rs 155 crore, up from Rs 135 crore.
Brokerages flagged Kotak Mahindra Bank’s Q1 FY26 results as disappointing, citing rising credit costs, deteriorating asset quality, and continued pressure on net interest margins. The spike in provisions and fresh slippages, particularly in retail and microfinance segments, has raised concerns about the bank’s ability to manage stress. Analysts noted Kotak is facing more headwinds than peers like HDFC and ICICI in unsecured retail lending, despite healthy loan growth.
