Kotak Mahindra Bank Q2 Results: Higher Provisioning Drags Profit

Kotak Mahindra Bank's net interest income or NII for the second quarter grew by 4% year-over-year, rising to Rs 7,311 crore from Rs 7,020 crore in the same period last year.

The bank's operating profit also saw a modest increase of 3.3%, reaching Rs 5,268 crore compared to Rs 5,099 crore previously. However, the bank’s provisions saw a sharp increase, jumping by 43.5% year-on-year to Rs 947 crore from Rs 660 crore.

Consequently, the bank reported a Net Profit of Rs 3,253 crore, which was a decline of 2.7% compared to Rs 3,344 crore in the year-ago quarter.

The bank’s total deposits increased by 14.5% to stand at Rs 5.28 lakh crore. The CASA or the Current Account Savings Account ratio for the quarter was 42.3%. This showed a growth compared to 40.9% in the preceding quarter.

Further, Kotak Bank's Net Interest Margin NIM for the period was 4.54%, a slight contraction from 4.65% recorded in the previous quarter.

Kotak Mahindra Bank Q2 Highlights (YoY)

• Net Interest Income up 4% to Rs 7,311 crore versus Rs 7,020 crore.

• Operating Profit up 3.3% to Rs 5,268 crore versus Rs 5,099 crore.

• Provisions up 43.5% to Rs 947 crore versus Rs 660 crore.

Kotak Mahindra Bank Q2 Asset Quality (QoQ)

• Gross NPA at 1.39% versus 1.48%.

• Net NPA at 0.32% versus 0.34%.

• Net profit down 2.7% to Rs 3,253 crore versus Rs 3,344 crore.

In terms of asset quality, the bank showed improvement quarter-over-quarter. The bank's reported Gross NPA decreased to 1.39% from 1.48%, and the Net NPA improved to 0.32% from 0.34% during the second quarter.

Fresh slippages during the quarter were Rs 1,629 crore, compared with Rs 1,812 crore in June. Recoveries and upgrades were at Rs 688 crore in the second quarter, up 25% quarter-on-quarter.

Supporting its balance sheet growth, the bank's Net Advances grew by 16% year on year to Rs 4.63 lakh crore, while Total Deposits increased by 14% year on year to Rs 5.28 lakh crore.

Low cost current account savings account or CASA deposits constituted 42.3% of total deposits as of September 2025, compared with 40.9% in the June quarter.

Among loan products, the credit card portfolio declined 14% year-on-year to Rs 12,444 crore. Retail microcredit too dipped 41% from a year ago to Rs 5,725 crore. The bank's home loan and loans against property business rose 18% year-on-year to Rs 1.38 lakh crore. Corporate banking loans also rose 18% to Rs 1.09 lakh crore. Business banking assets were up 20% from last year to Rs 47,825 crore.