Kotak Mahindra Bank (KOTAKBANK) Q1 25/26 earnings summary

Executive summary

• Net advances and deposits grew 14% and 15% YoY, with a CASA ratio of 40.9% and NIM at 4.65%.

• PAT for the quarter was INR 3,282 crore (standalone) and INR 4,472 crore (consolidated), with ROE at 11.13% and ROA at 2.03%.

• Book value per share rose 17% YoY to INR 829; Group AUM increased 18% YoY to INR 7,50,143 crore.

• Subsidiaries delivered strong profit growth: Kotak AMC up 86% YoY, Kotak Securities up 16% YoY, Kotak Life up 88% YoY.

• Asset quality stress peaked in microfinance and retail commercial vehicles, with stabilization expected ahead.

Financial highlights

• Consolidated total income for Q1 FY26 was ₹26,703.92 crore, up from ₹25,075.87 crore YoY.

• Gross NPA at 1.48%, net NPA at 0.34%, and provision coverage ratio at 77%.

• Credit costs for the quarter at 90 bps, mainly due to microfinance and retail CV stress.

• Group net worth at ₹164,903 crore; consolidated customer assets at ₹557,369 crore, up 13% YoY.

• Operating profit (consolidated) before provisions was ₹7,374.57 crore, up from ₹6,782.03 crore YoY.

Outlook and guidance

• NIM expected to stabilize over the year as deposit repricing flows through.

• Credit costs in MFI and retail CV segments have peaked; improvement anticipated in H2.

• Focus on scaling digital offerings, ESG initiatives, and expanding customer reach.

• Unsecured retail book targeted to reach 15% of total assets over time, with cautious growth in MFI and personal loans.

• Basel III Pillar 3 disclosures available online; no change in significant accounting policies during the quarter.