Kotak Mahindra Bank on Saturday reported a 26 per cent rise in its consolidated net profit for the September quarter, at Rs. 5,645 crores. On a standalone basis, the private sector bank reported its profit after tax of Rs. 4,212 crore has registered a growth of 29 percent. Increase in core income and reduction in provisions contribute to this. The bank’s core net interest income rose 16 percent to Rs. 8,459 crores. This resulted in a jump of 25 per cent in net advances (loans granted), while net interest margin (NIM) also saw a decline of 0.23 per cent.

How did NIM decrease?

The bank said the reduction in NIM in the quarter under RBI’s concessional swap facility to Rs. 55,344 crore was due to increase in FCNR (B) deposits. The bank also said that under the FCNR (B) scheme a total of Rs. 16,110 crore of loans were disbursed. Under this scheme, facility of taking loan against deposit (leveraged borrowing) is also available. According to the bank, if the impact related to FCNR (B) is removed, loan growth would have been 19 per cent and deposit growth 13 per cent.

Fund raising under the FCNR(B) scheme has also affected the share of low-cost current account and savings account (CASA) deposits in the total deposit base, the bank said. The ratio fell to 38.2 percent by September, compared to 42.3 percent in the same period a year ago.

NPA ratio improved

From an asset quality perspective, slippage (new bad loans) declined in the quarter to Rs. 1,230 crore, while in the same period a year ago it was Rs. 1,629 crores. At the same time, the gross non-performing assets (NPA) ratio improved to 1.04 percent from 1.39 percent in the same period a year ago. The capital adequacy ratio as on September 30, 2026 was 21.9 percent, including a core common equity tier 1 (CET1) buffer of 21.4 percent.

On Friday, October 23, shares of Kotak Mahindra Bank fell 1.49% on the NSE to Rs. 430.50, up from Rs. 437 as compared to the closing price. According to NSE data, the bank’s shares have lost 2.94% so far this year. At the current market price, the market capitalization of the bank was Rs 4,28,256.29 crore.