Kotak Mahindra Bank Q1 FY27 Results: Profit Rises 26%, NII Up 9%

The June quarter was a good one for Kotak Mahindra Bank. Profit and net interest income (NII) both increased from the year-ago period. Growth in loans and deposits, along with lower provisions, added to the bank's performance.

Standalone net profit rose 26% year-on-year to ₹4,123 crore in Q1FY27 from ₹3,282 crore a year earlier. NII increased 9% to ₹7,928 crore from ₹7,259 crore in the corresponding quarter last year.

What Drove Kotak Mahindra's Q1 Performance?

The bank continued to grow its loan book in the June quarter. Net advances rose 15% year-on-year to ₹5.12 lakh crore as of 30 June 2026. Customer assets also increased 16% to ₹5.71 lakh crore.

Deposit growth also remained steady. Total deposits rose 12% year-on-year to ₹5.73 lakh crore, while average total deposits increased 14%. The bank also reported growth across average current deposits, fixed-rate savings deposits and term deposits, reflecting continued customer traction.

Fee and services income increased 11% year-on-year to ₹2,500 crore. Operating profit rose 10% to ₹6,131 crore, while operating expenses increased 8% during the quarter. The bank also reported an improvement in its cost-to-assets ratio to 2.66%.

Asset quality remained healthy. Gross non-performing assets (GNPA) improved to 1.18% from 1.48% a year earlier, while net non-performing assets (NNPA) declined to 0.27% from 0.34%. Provisions fell 45% year-on-year to ₹668 crore, helping support overall profitability.

Among the bank's major subsidiaries, Kotak Securities reported a quarterly profit of ₹533 crore. Kotak Asset Management & Trustee Company earned ₹399 crore during the same period.

Kotak Mahindra Prime also posted a higher profit than a year ago. Kotak Mahindra Life Insurance reported an increase in profit as well.

What Should Investors Watch Going Forward?

Kotak Mahindra Bank shares closed at ₹390.70 on 17 July 2026. This was the last trading session before the lender announced its Q1FY27 results.

Kotak Mahindra Group was founded in 1985. Today, it offers banking, stock broking, asset management, insurance and investment banking services. As of 30 June 2026, the bank had 2,301 branches and 2,734 ATMs across India. It also operates branches across multiple countries through its subsidiaries.

The June quarter marks the start of FY27 for Kotak Mahindra Bank. It also sets the benchmark for the rest of the financial year. Investors, meanwhile, will continue to watch how its performance unfolds through the remainder of FY27.

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