Kotak Mahindra Bank Q1 Results: Net Profit Falls 7% To Rs 3,282 Crore, NII Up 6%

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Kotak Mahindra Bank Q1 Results: The cost-to-income ratio stayed elevated at 46.19%, and return on equity (ROE) moderated to 10.94% from 13.91% a year ago.
Kotak Mahindra Bank Q1 FY26 Results: Kotak Mahindra Bank on Saturday reported a 7% fall in its standalone net profit to Rs 3,282 crore for the first quarter ended June 30, 2025. Its net interest income (NII) increased 6 per cent year-on-year to Rs 7,259 crore, while the net interest margin (NIM) stood at a robust 4.65 per cent.
Its net profit had stood at Rs 3,520 crore in the corresponding quarter last year, according to a regulatory filing.
The dip in Q1 FY26 profit was mainly due to a sharp increase in provisions and contingencies, which surged 109% YoY to Rs 1,208 crore. Adjusted profit excludes a one-time gain from the sale of the bank's general insurance business. Including this exceptional gain, the unadjusted net profit stood much higher at Rs 6,250 crore.
However, the cost-to-income ratio stayed elevated at 46.19%, and return on equity (ROE) moderated to 10.94% from 13.91% a year ago.
Asset Quality and Operational Metrics
The bank's asset quality showed a slight weakening. Gross non-performing assets (GNPA) increased to 1.48% from 1.39%, while net NPA remained steady at 0.34%. The CASA ratio (Current and Savings Account) also declined to 40.9%, from 43.4% in Q1 FY25, indicating a shift in deposit mix.
Customer assets grew by 13% YoY to Rs 4,92,972 crore, and net advances rose by 14% to Rs 4,44,823 crore. The capital adequacy ratio (CAR) was strong at 23%, with a CET-I ratio of 22.4%, comfortably above regulatory norms.
On a consolidated level, Kotak Mahindra Group reported a 1% YoY rise in net profit (excluding the insurance divestment gain) to Rs 4,472 crore. The Group's ROE stood at 11.13%, and ROA at 2.03%. Total assets under management (AUM) for the group surged 18% year-on-year to Rs 7.5 lakh crore.
Subsidiary Highlights
Profit after tax soared 86% YoY to Rs 326 crore.
Average equity AUM grew 24% to Rs 3.33 lakh crore.
Total AUM reached Rs 5.25 lakh crore.
SIP inflows in June 2025 were robust at Rs 1,792 crore.
57% of individual investors contributed to MAAUM.
Kotak Mahindra Prime
PAT rose 17% YoY to Rs 272 crore.
Customer assets grew 16% to Rs 41,469 crore.
Maintained a healthy ROA of 2.4% and CAR of 23.5%.
Kotak Securities
Profit after tax grew 16% to Rs 465 crore.
Overall market share stood at 12.8%, including 10.1% in cash and 14.3% in derivatives.
Kotak Mahindra Life Insurance
PAT jumped 88% YoY to Rs 327 crore.
Gross written premium for Q1 stood at Rs 2,861 crore.
AUM increased 14.7% YoY to Rs 96,581 crore.
Solvency ratio remained solid at 2.40x.
63.1% of individual regular premiums came from traditional products.
Kotak's Q1 FY26 results reflect steady core performance despite provisioning pressures. The bank continues to maintain strong capital buffers, while its subsidiaries have delivered impressive growth across asset management, insurance, and brokerage businesses.
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Kotak Mahindra Bank Q1 results
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