Kotak Mahindra Bank (KMB) reported a 47.5 per cent year-on-year (y-o-y) drop in first quarter (Q1 FY26) standalone net profit at ₹3,282 crore. This decline comes in the backdrop of the bottomline in the year ago period (Q1 FY25) getting buoyed by one-time gains from disinvestment of majority stake in Kotak General Insurance to Zurich Insurance company.
The private sector lender recorded a net profit of ₹6,250 crore, including net gain of ₹3,520 crore (pre-tax) from the above disinvestment transaction, in the year ago period.
Excluding the aforementioned disinvestment transaction in the year ago quarter, KMB reported a 7 per cent y-o-y decline in net profit in the reporting quarter against ₹3,520 crore in Q1 FY25.
The bottomline in the reporting quarter was weighed down by a 109 per cent jump in provisions and contingencies at ₹1,208 crore (₹578 crore in the year ago period).
Net interest income/ NII (difference between interest earned and interest expended) was up 6 per cent in the reporting quarter to ₹7,259 crore (₹6,842 crore in the year ago period).
Other Income, including non-fund based income such as commission earned from guarantees/ letters of credit, selling third party products, general banking fees, earnings from foreign exchange transactions, profit/ (loss) (including revaluation) from sale, income earned by way of dividend, etc. from Subsidiaries/Associates and revaluation of eligible category of investments, increased 5 per cent to ₹3,080 crore (₹2,929 crore).
Credit cost (annualised) rose to 0.93 per cent from 0.55 per cent. Tax provisions declined 7 per cent to ₹1,074 crore (₹1,156 crore).
Net interest margin (NIM) declined to 4.65 per cent in Q1 FY26 from 5.02 per cent in Q1 FY25.
GNPAs (gross non-performing assets) rose to 1.48 per cent of gross advances as at June-end 2025 against 1.39 per cent as at June-end 2024. Net NPAs position improved a shade to 0.34 per cent of net advances against 0.35 per cent.
Fresh slippages were higher at ₹1,812 crore (₹1,358 crore). Write-offs rose to ₹759 crore (₹570 crore).
Deposits were up 15 per cent y-o-y to ₹5,12,838 crore as at June-end 2025. Low-cost current account, savings account deposits declined to 40.90 per cent of deposits against 43.40 per cent in Q1 FY25.
Advances rose 13 per cent y-o-y to ₹4,58,950 crore as at June-end 2025. Customer Assets, comprising advances (including Inter Bank Participatory Certificates & Bill Re-Discounting Scheme) and credit substitutes, too were up 13 per cent y-o-y to ₹4,92,972 crore.
The Bank’s consolidated net profit (excluding the one-time gain from disinvestment) nudged up to ₹4,472 crore (₹4,435 crore).
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Published on July 26, 2025
