Kotak Mahindra Bank announced its financial results for the quarter and half-year ending September 30, 2025, reporting a consolidated profit after tax (PAT) of ₹4,468 crore for Q2FY26, down from ₹5,044 crore a year earlier, according to the bank’s results approved by its Board of Directors today.

The standalone PAT of the bank for the quarter stood at ₹3,253 crore, slightly lower than ₹3,344 crore recorded in Q2FY25, according to the statement issued after the Board meeting.

The bank said consolidated customer assets, including advances and credit substitutes, reached ₹576,339 crore as of September 30, 2025, up 13% year on year from ₹510,598 crore, according to the bank's statement.

Kotak Mahindra Bank also highlighted growth in its assets under management (AUM). Total AUM increased by 12% year-on-year to ₹760,598 crore, while domestic mutual fund equity AUM rose by 14% to ₹362,694 crore, according to the quarterly disclosure.

The group's consolidated net worth rose to ₹167,935 crore during the period. Book value per share increased 14% year-on-year to ₹844 from ₹740, according to the report.

Profit contribution from major subsidiaries fluctuated during the quarter. Kotak Securities reported a PAT of ₹345 crore, compared to ₹444 crore in the same quarter last year. Kotak Asset Management & Trustee Company earned ₹258 crore, higher than ₹197 crore a year earlier, according to the results. Kotak Mahindra Prime posted ₹246 crore versus ₹269 crore previously, while Kotak Mahindra Investments recorded ₹120 crore against ₹141 crore in Q2FY25. Profit from Kotak Alternate Asset Managers surged to ₹104 crore from ₹22 crore last year, as per the statement.

Kotak Mahindra Capital Company generated ₹60 crore, compared with ₹90 crore last year. Meanwhile, Kotak Mahindra Life Insurance saw a significant drop in profit to ₹49 crore from ₹360 crore, according to the bank’s update.

Key financial ratios remained strong during the quarter. Consolidated return on assets (ROA) was 1.97%, and return on equity (ROE) was 10.65% on an annualised basis, according to the bank’s financial report.

Capital buffers remained healthy, with the consolidated capital adequacy ratio at 22.8% under Basel III norms — and Common Equity Tier-1 (CET1) at 21.8% including unaudited earnings — according to the results. The average liquidity coverage ratio stayed strong at 132% for Q2FY26.

On a standalone basis, net advances increased by 16% year-over-year to ₹462,688 crore. Deposits also expanded, with average total deposits rising 14% to ₹510,538 crore. Average current account balances grew 14% to ₹70,220 crore, and average fixed-rate savings deposits increased 8% to ₹113,894 crore, according to the bank’s disclosure.

Average term deposits increased by 20% to ₹311,889 crore, supporting the bank's credit-to-deposit ratio of 87.5% as of September 30, 2025, according to the statement.

Kotak Mahindra Bank noted that customer numbers have grown to 5.2 crore as of the end of the quarter, per the statement.

The bank earned ₹7,311 crore in net interest income (NII) for the quarter, an increase of 4% from ₹7,020 crore in the same quarter last year. Net interest margin (NIM) stayed at 4.54%, while the cost of funds was 4.70%, according to the statement.

Fee and service income increased by 4% to ₹2,415 crore for Q2FY26, while operating expenses grew slightly by 1% to ₹4,632 crore. Operating profit then rose to ₹5,268 crore, a 3% increase year-on-year, according to the published figures.

Asset quality continued to improve. Gross non-performing assets (GNPA) declined to 1.39%, and net NPA decreased to 0.32%, compared to 1.49% and 0.43% a year earlier. The provision coverage ratio remained at 77%, according to the disclosure.

Standalone ROA for Q2FY26 was 1.88%, and ROE was 10.38% on an annualised basis, according to the statement.

The bank also maintained strong capital strength on a standalone basis. The capital adequacy ratio was 22.1%, and the CET1 ratio was 20.9%, including unaudited profits, according to the results filed today.