Kotak Mahindra Bank reported a 13% year-on-year rise in standalone net profit for the quarter ended March 31, 2026, supported by steady loan growth and a sharp decline in provisions.

The bank posted a net profit of ₹4,027 crore in Q4FY26, compared with ₹3,552 crore in the same period last year. Net interest income (NII) grew 8% year-on-year to ₹7,876 crore.

For the full year FY26, net profit stood at ₹14,008 crore, up 2% from the previous year, while excluding gain on ZKGI divestment.

Asset quality improves, provisions decline

The bank’s asset quality strengthened during the quarter, with gross non-performing assets (GNPA) declining to 1.20% from 1.42% a year ago. Net NPA stood at 0.25%, compared with 0.31% in the year-ago period.

Provisions and contingencies saw a sharp decline, coming in significantly lower than both the previous quarter and the same period last year, aiding profitability. Provisions for Q4FY26 decreased to ₹516 crore, down 43% YoY from ₹909 crore in Q4FY25 (down 36% QoQ from ₹810 crore in Q3FY26) and for FY26 was ₹3,481 crore (₹2,942 crore for FY25). Credit cost (annualised) for Q4FY26 stood at 0.39% (0.64% for Q4FY25 and 0.63% for Q3FY26) and for FY26 stood at 0.65% (0.60% for FY25).

Advances grew 16% year-on-year, while deposits rose 15%, indicating balanced balance sheet expansion.

Margins under pressure

Net interest margin (NIM) for the quarter stood at 4.67%, compared with 4.97% a year ago, reflecting some pressure from funding costs. The bank noted that it remains focused on maintaining a prudent approach to growth while navigating a competitive environment.

Consolidated performance remains steady

On a consolidated basis, Kotak Mahindra Bank reported consolidated PAT for Q4FY26 stood at ₹5,423 crore, up 10% YoY from ₹4,933 crore in Q4FY25 (up 10% QoQ from ₹4,924 crore in Q3FY26) and for FY26 stood at ₹19,288 crore. Excluding gain of ₹185 crore on Infina Finance Private Limited divestment after considering its carrying value in consolidated financials, PAT for Q4FY26 stood at ₹5,238 crore, up 6% YoY and 6% QoQ and for FY26 stood at ₹19,103 crore (₹19,113 crore in FY25 excluding gain on ZKGI divestment). 

The bank’s board has recommended a dividend of ₹0.65 per equity share for FY26.