Earnings call transcript: Kotak Mahindra Bank posts strong Q2 2026 profit growth

Kotak Mahindra Bank reported a 26% year-on-year increase in consolidated net profit to INR 5,645 crores and a 29% rise in standalone bank profit to INR 4,212 crores in Q2 FY27. The shares closed at $430.50, down 1.49% from the previous day's close of $437, near the upper range of its 52-week trading band ($345.5 to $453.1). The bank's net interest margin declined to 4.31% from 4.53%, influenced by its significant FCNR deposit program.

Net NPA decreased to 0.24% from 0.27% last quarter. Advances rose by 25% year-on-year, driven by retail, SME, and corporate lending. The company's balance sheet expanded by 25% to approximately INR 9 lakh crore, with net advances growing by 25% and deposits increasing by 23%. Retail lending, SME advances, and corporate banking all expanded at a healthy rate.