Post by : Bianca
Haleem
Kotak Mahindra Bank announced its financial results for Q2 of FY2025-26, revealing a slight downturn in profitability matched with positive trends in key financial areas. The private bank's net profit fell by 2.7% year-over-year to ₹3,253 crore for the quarter ending September 30, 2025, as opposed to ₹3,344 crore for the same quarter last year.
This report followed a drop in the bank's shares, which closed down 1.29% at ₹2,192.50 per share on Friday, October 24, just prior to the earnings release.
Despite the profit reduction, key performance metrics depicted stability. The Net Interest Income (NII) increased by 4% from the previous year to ₹7,311 crore, attributed to solid loan growth and consistent margins. The Net Interest Margin (NIM) was recorded at 4.54%, with the cost of funds at 4.70%.
Operating profit experienced a 3% rise year-over-year to ₹5,268 crore, while operating costs increased only 1% to ₹4,632 crore, showcasing effective cost management during growth.
On the lending side, Kotak's net advances surged 16% year-on-year, reaching ₹4,62,688 crore in Q2 FY26 compared to ₹3,99,522 crore in the same quarter of the previous fiscal year. Asset quality marked improvement, with Gross Non-Performing Assets (GNPA) decreasing to 1.39% and Net NPA to 0.32%, down from 1.49% and 0.43%, respectively, a year ago.
In the area of wealth and asset management, the bank also saw expansion. Total Assets Under Management (AUM) grew by 12% year-on-year to ₹7,60,598 crore as of September 30, 2025. Meanwhile, Domestic Mutual Fund Equity AUM climbed 14% to ₹3,62,694 crore.
This overall performance highlights Kotak Mahindra Bank’s solid operational grounding, navigating a competitive banking environment as it balances healthy advances and enhancing asset quality against a slight profit dip.
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