However, total income rose 2.12% year on year (YoY) to Rs 16,238.59 crore in Q2 FY26.
Profit from ordinary activities before tax in Q2 FY26 stood at Rs 4,320.85 crore, down by 2.65% from Rs 4,438.86 crore in Q2 FY25.
As of 30 September 2025, net advances increased by 16% YoY to Rs 462,688 crore, up from Rs 399,522 crore as of 30 September 2024.
Average total deposits grew by 14% YoY to Rs 510,538 crore, driven by growth across deposit segments. Average current deposits rose 14% YoY to Rs 70,220 crore, average fixed rate savings deposits increased 8% YoY to Rs 113,894 crore, and average term deposits surged 20% YoY to Rs 311,889 crore.
The CASA ratio stood at 42.3%, and activ money grew 10% YoY to Rs 57,768 crore, while the credit-to-deposit ratio was 87.5%. The bank served 5.2 crore customers as of 30 September 2025.
Net interest income (NII) for Q2 FY26 rose 4% YoY to Rs 7,311 crore, with a net interest margin (NIM) of 4.54% and a cost of funds of 4.70%.
Fees and services income increased by 4% YoY to Rs 2,415 crore in Q2 FY26, while operating expenses rose slightly by 1% YoY to Rs 4,632 crore.
Operating profit for Q2 FY26 grew 3% YoY to Rs 5,268 crore, compared to Rs 5,099 crore in Q2 FY25.
As of 30 September 2025, the bank’s gross non-performing assets (GNPA) stood at 1.39%, while net non-performing assets (NNPA) were 0.32%, improving from 1.49% GNPA and 0.43% NNPA as of 30 September 2024. The provision coverage ratio (PCR) was 77%.
The bank reported a standalone return on assets (ROA) of 1.88% (annualized) and a return on equity (ROE) of 10.38% (annualized) for Q2 FY26. The capital adequacy ratio (CAR) under Basel III was 22.1%, with a CET1 ratio of 20.9% (including unaudited profits), reflecting a strong capital position.
On a consolidated basis, the bank’s net profit tanked 11.41% to Rs 4,468.27 crore on 7.36% decline in total income to Rs 24,901.39 crore in Q2 FY26 over Q2 FY25.
Kotak Mahindra Bank is the flagship company of the Kotak Group and has diversified operations covering commercial vehicle financing, consumer loans, corporate finance, and asset reconstruction. Through its subsidiaries, the bank is engaged in investment banking, equity broking, securities-based lending, and car finance.