The net interest income (NII) for Q2FY26 increased to Rs 7,311 crore, up 4% YoY from Rs 7,020 crore in Q2FY25.
The bank reported a Net Interest Margin (NIM) of 4.54% for Q2FY26, with a cost of funds of 4.70% during the same period. Its operating profit for Q2FY26 rose to Rs 5,268 crore, marking a 3% year-on-year increase from Rs 5,099 crore in Q2FY25, it said in an exchange filing on October 25.
Net Advances increased 16% YoY to Rs 462,688 crore during the quarter under review from Rs 399,522 crore reported in the same quarter of the previous fiscal year.
As of September 30, 2025, the bank’s Gross Non-Performing Assets (GNPA) stood at 1.39% and Net Non-Performing Assets (NNPA) at 0.32%, improving from 1.49% and 0.43%, respectively, from Q2FY25. The Provision Coverage Ratio was 77% as of the same date. Under Basel III norms, the bank reported a Capital Adequacy Ratio of 22.1% and a CET1 ratio of 20.9%, including unaudited profits.
The bank’s average total deposits rose to Rs 510,538 crore in Q2FY26, up 14% year-on-year from Rs 446,110 crore in Q2FY25. Average current deposits increased to Rs 70,220 crore, a 14% YoY growth from Rs 61,853 crore, while average fixed-rate savings deposits grew 8% YoY to Rs 113,894 crore from Rs 105,584 crore. Average term deposits saw the highest growth, rising 20% YoY to Rs 311,889 crore from Rs 259,434 crore. The CASA ratio stood at 42.3% as of September 30, 2025, While Kotak’s credit-to-deposit ratio was 87.5% as of the same date.As of September 30, 2025, the bank served 5.2 crore customers. Fees and services income for Q2FY26 rose 4% year-on-year to Rs 2,415 crore from Rs 2,312 crore in Q2FY25. Operating expenses increased slightly to Rs 4,632 crore, up 1% YoY from Rs 4,605 crore. The annualized credit cost for Q2FY26 stood at 0.79%, improving from 0.93% in Q1FY26. The bank reported a standalone annualized Return on Assets (ROA) of 1.88% and a Return on Equity (ROE) of 10.38% for the quarter.
Shares of the lender ended the Friday session at Rs 2,192 per share, down 1.5% from the last close on the NSE. Kotak Bank shares are up 23% on a year-to-date basis.