Kotak Q2 FY27 slides: profit jumps 26% as asset quality improves

Kotak Mahindra Bank reported a 26% increase in consolidated profit after tax to ₹5,645 crore in Q2 FY27, while standalone bank profit rose 29% to ₹4,212 crore. The bank's strategic framework, titled "Transforming for Scale," emphasizes customer segments, independent product businesses, and technology-enabled digital infrastructure.

Shares traded at $430.50, down 1.49% from the previous close, near the 52-week high of $453.10. Key metrics demonstrated broad-based improvement in profitability and asset quality. Return on assets increased to 2.10% from 1.97%, and return on equity expanded to 11.70% from 10.65%, as customer assets under management grew 8% to ₹814,118 crore.

Credit cost declined significantly to 0.35%, while net interest income grew 16% to ₹8,459 crore. Asset quality metrics showed continued improvement, with gross non-performing assets decreasing to 1.04% of advances. The bank's lending portfolio grew across retail, institutional, and independent product businesses. Unsecured retail advances increased by ₹1,730 crore but represented 8.1% of net advances. Management highlighted disciplined growth in higher-risk segments.