Mumbai, October 24, 2026: Kotak Mahindra Bank reported a 26% year-on-year increase in its consolidated profit after tax (PAT) to ₹5,645 crore for the second quarter of the financial year 2026–27 (Q2 FY27), reflecting strong earnings growth.

The private sector lender had recorded a consolidated profit after tax of approximately ₹4,468 crore in the corresponding quarter of the previous financial year. The latest results highlight growth in the bank's core lending business and overall financial performance.

Net Interest Income Rises 16%

The bank's net interest income (NII), which represents the difference between interest earned on loans and interest paid on deposits, increased by approximately 16% year-on-year to ₹8,459 crore in Q2 FY27, compared with ₹7,311 crore in the same quarter last year.

On a standalone basis, the bank's net profit rose approximately 29% to ₹4,212 crore, up from ₹3,253 crore in the year-ago period.

The growth in net interest income indicates continued expansion in the bank's lending business, although its net interest margin moderated during the quarter.

Loan Growth and Deposits Support Performance

Kotak Mahindra Bank continued to expand its lending operations during the September quarter. Its net advances increased approximately 25% year-on-year to ₹5.77 lakh crore as of September 30, 2026.

Average total deposits also recorded growth, rising 19% year-on-year to ₹6.06 lakh crore during the quarter. These figures reflect an increase in lending activity and the bank's ability to mobilise deposits to support its operations.

However, the bank's net interest margin stood at 4.31% in Q2 FY27, compared with 4.54% in the corresponding quarter last year, reflecting pressure on the margin despite higher interest income.

Asset Quality Shows Improvement

The bank also reported an improvement in its asset quality. Its gross non-performing asset (GNPA) ratio declined to 1.04% in Q2 FY27, compared with 1.39% in the same quarter of the previous financial year.

Meanwhile, the net non-performing asset (NNPA) ratio fell to 0.24% from 0.32% a year earlier.

Lower non-performing asset ratios generally indicate that a smaller proportion of a bank's loans are classified as bad loans. This improvement could help support the lender's financial stability and future performance.

What the Q2 Results Mean for Investors

Kotak Mahindra Bank's latest quarterly results highlight strong year-on-year profit growth, rising net interest income and an improvement in asset quality. Growth in advances and deposits also points to continued expansion in its banking operations.

Nevertheless, the moderation in net interest margin remains an important factor to monitor, as it can influence the profitability of the bank's core lending business.

Investors will likely watch future loan growth, deposit mobilisation, margins and asset quality to assess whether the bank can sustain its earnings momentum in the coming quarters.