Kotak Mahindra Bank Q4 FY26 Results: Net Profit Rises 13.4% To ₹4,027 Crore

Kotak Mahindra Bank closed its financial year on a strong note. The private sector lender reported net profit of ₹4,026.55 crore for the March quarter, up 13.4% from a year earlier.

Net interest income grew 8.1% year-on-year (YoY) to ₹7,876 crore. Operating profit rose 7% to ₹5,855 crore.

Along with its Q4 results, the board has proposed a dividend of ₹0.65 per share for FY26. Each share has a face value of ₹1. Shareholders still need to approve it at the upcoming annual general meeting.

Important Q4 Numbers At A Glance

• Net profit: ₹4,026.55 crore, up 13.4% YoY, beat the estimate of ₹3,663 crore.

• Net interest income: ₹7,876 crore, up 8.1% YoY.

• Operating profit: ₹5,855 crore, up 7% YoY.

• Interest income: ₹14,175 crore, up 4.8% YoY.

• Interest expense: ₹6,299 crore, up 0.9% YoY.

• Other income: ₹3,116 crore, down 2.1% YoY.

• Net interest margin: 4.67% vs 4.97% YoY and 4.54% in Q3 FY26.

• Cost of funds: 4.45% vs 5.09% a year ago.

• Dividend: ₹0.65 per share.

Asset Quality Improves Across The Board

The credit metrics were the standout feature of the quarter. Gross non-performing assets improved to 1.20% from 1.30% in Q3 FY26. Net non-performing assets eased to 0.25% from 0.31% quarter-on-quarter. Slippages fell 32% year-on-year to ₹1,018 crore. Provisions dropped 36% quarter-on-quarter to ₹516 crore, flowing directly into the bottom line. The provision coverage ratio stood at 79%.

Balance Sheet Growing At Pace

• Net advances: ₹4.96 lakh crore, up 16% YoY

• Customer assets: ₹5.46 lakh crore, up 14% YoY

• Total deposits: ₹5.72 lakh crore, up 15% YoY

• Current account savings account ratio: 43.3%

Loan growth and deposit growth are almost in line. Loans rose 16%. Deposits grew 15%. That kind of balance works well for a bank.

The current account savings account ratio holding at 43.3% keeps the cost of deposit funding structurally lower than peers who have had to chase deposits at higher rates to fund credit growth.

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Margins Show Signs Of Recovery

Net interest margin at 4.67% remains below the 4.97% posted a year ago, but the sequential recovery from 4.54% in Q3 FY26 is the more relevant data point. Cost of funds has fallen sharply to 4.45% from 5.09% a year ago, giving the bank more room to defend spreads as the interest rate cycle turns.

Sources:

Moneycontrol

The Economic Times