Post by : Badri Ariffin

Kotak Mahindra Bank released its second-quarter results for FY2025-26 on Saturday, reporting a modest decline in profitability but steady improvement in key financial metrics. The private sector lender’s net profit slipped 2.7% year-on-year to ₹3,253 crore for the quarter ended September 30, 2025, compared to ₹3,344 crore in the same period last year.

The announcement came a day after the bank’s shares closed 1.29% lower at ₹2,192.50 apiece on Friday, October 24, ahead of the earnings report.

Despite the dip in profit, the bank showed resilience in its core performance indicators. Net Interest Income (NII) for the quarter rose 4% YoY to ₹7,311 crore from ₹7,020 crore in Q2FY25, driven by healthy loan growth and stable margins. The Net Interest Margin (NIM) stood at 4.54%, with the cost of funds reported at 4.70%.

Operating profit saw a 3% year-on-year rise to ₹5,268 crore, while operating expenses edged up just 1% to ₹4,632 crore, reflecting efficient cost management amid expansion.

On the lending front, Kotak’s net advances grew a strong 16% YoY, reaching ₹4,62,688 crore in Q2FY26 compared to ₹3,99,522 crore in the previous fiscal’s second quarter. Asset quality improved as well — Gross Non-Performing Assets (GNPA) fell to 1.39% and Net NPA to 0.32%, down from 1.49% and 0.43% a year earlier.

The bank also recorded growth in its wealth and asset management segment. Total Assets Under Management (AUM) rose 12% year-on-year to ₹7,60,598 crore as of September 30, 2025, while Domestic Mutual Fund Equity AUM climbed 14% to ₹3,62,694 crore.

The overall performance reflects Kotak Mahindra Bank’s steady operational footing amid a competitive and evolving banking landscape, with healthy advances and improving asset quality balancing a marginal dip in quarterly profit.

#News #AI,