This decline was excluding gains on KGI divestment, the company filing said. On June 18, 2024, ZKGI has ceased to be a wholly-owned subsidiary and became an associate of the Bank.
However, the net profit numbers came in after adjusting for the one-time gain from the sale of its general insurance business. Including the gain, the unadjusted net profit was significantly higher at Rs 6,250 crore in the year ago period.
Advances
Average advances for Q1FY26 grew at 14% YoY with Net Advances increasing 14% YoY to Rs 444,823 crore as at June 30, 2025 from Rs 389,957 crore as at June 30, 2024.
Bank’s unsecured retail advances including retail microcredit as a percentage of net advances stood at 9.7% as at June 30, 2025.
Deposits
Average total deposits grew to Rs 4,91,998 crore for Q1FY26, up 13% YoY from Rs 4,35,603 crore for Q1FY25. In this average current deposits grew to Rs 67,809 crore for Q1FY26, up 9% YoY from Rs 62,200 crore for Q1FY25.Average savings deposits grew to Rs 1,24,186 crore for Q1FY26, up 2% YoY from Rs 1,22,105 crore for Q1FY25 meanwhile average term deposits grew to Rs 3,00,003 crore for Q1FY26, up 19% YoY from Rs 2,51,298 crore for Q1FY25.CASA ratio as at June 30, 2025 stood at 40.9% while the TD sweep balance grew 23% YoY to Rs 59,098 crore.
Cost of funds was 5.01% at Q1FY26.
Credit to Deposit ratio as at June 30, 2025 stood at 86.7%.
Other key takeaways
— Kotak Bank‘s Net Interest Margin (NIM) was 4.65% for Q1FY26 versus 5.02% in the year ago period.
— Operating profit for Q1FY26 increased to Rs 5,564 crore, up 6% YoY from Rs 5,254 crore in Q1FY25.
— As at June 30, 2025, GNPA was 1.48% & NNPA was 0.34% versus 1.39% & NNPA was 0.35% at June 30, 2024.
— As at June 30, 2025, Provision Coverage Ratio (PCR) stood at 77%.
— Standalone Return on Assets (ROA) for Q1FY26 (annualized) was 1.94% while Return on Equity (ROE) for Q1FY26 (annualized) was 10.94%.
— Capital Adequacy Ratio of the Bank, as per Basel III, as at June 30, 2025 was 23.0% and CET1 ratio of 21.8% (including unaudited profits).