Kotak Mahindra Bank's Q1 profit rises 22.5% to ₹5,480cr
What's the story
Kotak Mahindra Bank has posted a consolidated net profit of ₹5,480.46 crore for the June quarter (Q1 FY27), marking a 22.5% year-on-year growth. The bank's total income for the quarter stood at ₹30,068.60 crore, while its standalone net profit was at ₹4,122.96 crore. The results were announced today by the Mumbai-based lender and are in line with analysts' expectations.
Financial performance
NII slightly below expected figure
Kotak Mahindra Bank's net interest income (NII) for the quarter was ₹7,928 crore, a 9.2% increase from last year.
However, it was slightly below the expected figure of ₹8,058 crore.
The bank also reported stable asset quality with gross NPA at 1.18%, down from 1.2% in March and net NPA at 0.27%, up from 0.25% in the previous quarter.
Financial metrics
Provisions and net interest margins
The bank's provisions for the quarter rose by ₹150 crore from March to ₹668 crore, but were lower than last year's ₹1,208 crore.
Kotak Mahindra Bank's net interest margins (NIMs) for the quarter were 4.53%, a contraction of 12 basis points from last year and 14 basis points sequentially from the March quarter.
The lender's margins were also expected to contract by this amount sequentially.
Growth indicators
Net advances and deposits
Kotak Mahindra Bank's net advances for the quarter were ₹5.12 lakh crore, a 15% increase from last year.
The bank's deposits at the end of the quarter stood at ₹5.72 lakh crore, a 12% growth on a year-on-year basis.
Average current deposits also rose by 15% year-on-year while fixed-rate savings deposits grew by 16%.