Kotak Mahindra Bank on Saturday reported a 10 per cent rise in consolidated net profit to Rs 5,423 crore for the fourth quarter of 2025-26, on the back of lower provisions and better net interest income.
In the year-ago period, the profit stood at Rs 4,933 crore. On a standalone basis, it reported a 13 per cent year-on-year rise in net profit to Rs 4,027 crore.
Core net interest income of the bank increased 8 per cent to Rs 7,876 crore from Rs 7,284 crore a year ago.
1 May 2026
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Net interest margin (NIM) improved to 4.67 per cent from 4.54 per cent in the December quarter. However, it fell on a yearly basis, from 4.97 per cent in Q4FY25.
Devang Gheewalla, group chief financial officer of the bank expects margins to remain rangebound going ahead. "It (NIM) will be range-bound. It will not be as sharp as the current year, but will be more gradual in the next year," Gheewalla said during the post-policy press conference.
Net advances increased 16 per cent year-on-year to Rs 4.96 lakh crore as on March 31, 2026, from Rs 4.27 lakh crore in a similar period last year.
Customer Assets which comprise advances (including IBPC & BRDS) and credit substitutes grew to Rs 5.46 lakh crore as at March-end 2026 from Rs 4.78 lakh crore a year ago.
Total period-end deposits grew 15 per cent year-on-year to Rs 5.73 lakh crore in Q4FY26. Average total deposit too rose 15 per cent to Rs 5.38 lakh crore. Average current deposit was higher by 18 per cent at Rs 77,058 crore during the quarter.
The asset quality of the bank improved in the reporting quarter with gross non-performing assets (NPA) ratio falling to 1.20 per cent as on March 31, 2026, from 1.42 per cent as on March 31, 2025.
Provisions and contingencies of the lender fell by 43 per cent year-on-year to Rs 516 crore in Q4FY26, from Rs 909 crore in Q4FY25, according to the investor presentation.
Ashok Vaswani, managing director and chief executive officer of Kotak Mahindra Bank said that the valuation of the IDBI Bank was too high and it would have been a hard deal to swallow'.
"The bank evaluated every acquisition opportunity, including IDBI Bank, but found the valuation to be very, very high," Vaswani said during the post-earnings conference.
He noted that even the bids received by the government were below the reserve price, reflecting the gap between expectations and market appetite.
While the acquisition could have added scale, it was not a compelling or "slam dunk" strategic fit.
In February, the bank had clarified that it has not submitted a financial bid as part of disinvestment process relating to IDBI Bank. The central government, along with Life Insurance Corporation of India, plans to sell a combined 60.7 per cent stake in IDBI Bank as part of its privatisation drive.
Among the subsidiaries, Kotak Mahindra Life Insurance reported a 24 per cent year-on-year rise in its net profit to Rs 90 crore, and Kotak Securities reported a 15 per cent year-on-year rise in profit to Rs 400 crore.
However, Kotak Mahindra Prime reported 19 per cent year-on-year fall in its net profit to Rs 240 crore.
On April 30, shares of Kotak Mahindra Bank ended 0.28 per cent up at Rs 382.65 apiece.
