18 July,2026 04:03 PM IST | Mumbai | mid-day online correspondent
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Private lender Kotak Mahindra Bank on Saturday reported a 25.64 per cent increase in its net profit at Rs 4,122.96 crore in the in the first quarter of the financial year 2026-27.
The bank had posted a standalone net profit of Rs 3,281.68 crore in the year-ago period, it said in a regulatory filing.
The bank's net interest income rose 9 per cent year-on-year to Rs 7,928 crore in the reporting quarter, from Rs 7,259 crore in the same quarter a year ago. Net interest income is the difference between interest earned and interest paid, a key metric to understand a bank's financial stability.
Net interest margin, a key financial metric to understand a bank's profitability, stood at 4.53 per cent in the June quarter compared to 4.65 per cent in the year ago period.
Operating profit during the reporting quarter was Rs 6,131 crore compared to Rs 5,564 crore in the corresponding quarter last financial year.
The fee and services income for the bank rose 11 per cent to Rs 2,500 crore, from Rs 2,249 crore a year ago. Total deposits of the bank grew by 14 per cent year-on-year to Rs 5.59 lakh crore in Q1FY27, from Rs 4.92 lakh crore in Q1FY26.
In the reporting quarter, the bank's asset quality also improved, with gross non-performing asset (NPA) ratio at 1.18 per cent from 1.48 per cent as on June 30, 2025.
Gross NPAs stood at Rs 6,121.83 crore during the quarter under review from Rs 6,637.70 crore in the year ago period. It reported fresh slippages of 1,321 crore during the quarter as against Rs 1,812 crore in the same quarter previous year. Slippages refer to a loan being classified as non-performing asset is a borrower defaults it for over 90 days. Provision and contingencies declined 45 per cent to Rs 668 crore from Rs 1,208 crore in the previous year.
Total deposits of the lender increased to Rs 5.59 lakh crore in Q1FY27, from Rs 4.92 lakh crore in Q1FY26. The bank's current account deposit stood at Rs 78,107 crore, registering an increase of 15 per cent from the corresponding quarter last year. The share of current account and savings account (CASA) deposits in total deposits was at 40.3 per cent, as against 40.9 per cent in the June 2025 quarter.
Net advances grew 15 per cent on year to 5.28 lakh crore in the June quarter, from Rs 4.59 lakh crore in the same period a year ago.
The lender's capital adequacy ratio stood at 22.78 per cent in the June 2026 quarter against 23 per cent in the same quarter last year.
