Mumbai: Kotak Mahindra Bank reported a strong performance for the first quarter of FY27, with net profit rising 26 per cent year-on-year to ₹4,123 crore, supported by steady growth in net interest income and higher operating profit.
The lender’s earnings exceeded market expectations, with net profit surpassing the Bloomberg consensus estimate of ₹3,975 crore.
Net interest income records healthy growth
Net interest income (NII), which represents the difference between interest earned and interest paid, increased 9.2 per cent year-on-year to ₹7,928 crore, up from ₹7,260 crore in the corresponding quarter last year. However, the figure was marginally below analysts’ estimate of ₹8,002 crore.
Operating profit rose 10.2 per cent to ₹6,131 crore, compared with ₹5,564 crore a year earlier, exceeding market expectations of ₹6,015 crore.
Asset quality remains stable
Kotak Mahindra Bank maintained stable asset quality during the quarter.
Gross non-performing assets (GNPA) improved slightly to 1.18 per cent of total advances from 1.20 per cent in the previous quarter, in line with analysts’ expectations.
Net non-performing assets (NNPA) stood at 0.27 per cent, compared with 0.25 per cent in the March quarter.
Provisions decline sharply year-on-year
The bank’s provisions increased sequentially to ₹668 crore from ₹516 crore in the previous quarter. However, on a year-on-year basis, provisions declined significantly from ₹1,208 crore, reflecting an improvement in overall credit costs.
The reduction in provisions, along with growth in core banking income, contributed to the bank’s robust profitability during the quarter.
Positive start to FY27
The latest results indicate a healthy start to the financial year for Kotak Mahindra Bank, with strong earnings growth, resilient operating performance and stable asset quality despite a challenging banking environment.
Investors will now closely monitor the bank’s loan growth, deposit mobilisation and margin outlook in the coming quarters.