Kotak Mahindra Bank Q1 FY27 Results: Net Profit Jumps 26% to Rs 4,123 Crore
By Kaushik Brahmakshatriya
Published On 19 July 2026.
Kotak Mahindra Bank Q1 FY27 results
Kotak Mahindra Bank has kicked off FY27 on a strong note, posting a healthy set of numbers for the quarter ended June 30, 2026. The private lender’s standalone net profit climbed 26% year-on-year to Rs 4,123 crore, comfortably beating last year’s Rs 3,282 crore for the same period. The results, approved by the bank’s board on July 18, 2026, reflect steady loan growth, better asset quality, and a sharp fall in provisioning costs, even as margins came under some pressure.
Q1 FY27 Financial Highlights
Net Interest Income (NII), the core measure of a bank’s lending profitability, rose 9% year-on-year to Rs 7,928 crore from Rs 7,259 crore in the corresponding quarter last year. On a sequential basis, NII was up marginally from Rs 7,876 crore in the March 2026 quarter. However, Net Interest Margin (NIM) slipped to 4.53% in Q1 FY27 compared to 4.65% a year earlier, indicating that funding costs and competitive lending rates continue to squeeze core spreads across the banking sector.
One of the standout numbers this quarter was the sharp 45% year-on-year decline in provisions and contingencies, which fell to Rs 668 crore from Rs 1,208 crore in Q1 FY26. Lower credit costs, combined with steady loan growth, gave a strong boost to the bottom line even though core income growth was comparatively modest.
Loan Growth & Asset Quality
Net advances grew 15% year-on-year to Rs 5,12,249 crore as of June 30, 2026, up from Rs 4,44,823 crore a year earlier. The retail loan book expanded 12% YoY, while the institutional and corporate loan segments grew faster at 15-20%, showing a healthier mix of growth across business lines. Total deposits also grew 12% YoY to Rs 5,72,820 crore, giving the bank a stable funding base to support further lending expansion.
Asset quality showed clear improvement. Gross Non-Performing Assets (GNPA) fell to 1.18% at the end of June 2026, down from 1.20% in the previous quarter and 1.48% a year ago. Net NPA edged up marginally to 0.27%, a level that remains comfortably low for a bank of this size.
Quarterly Financial Overview
| Particulars (Standalone) | Q1 FY27 (Jun 2026) | Q1 FY26 (Jun 2025) | YoY Change |
| Net Profit (PAT) | Rs 4,123 crore | Rs 3,282 crore | +26% |
| Net Interest Income (NII) | Rs 7,928 crore | Rs 7,259 crore | +9% |
| Net Interest Margin (NIM) | 4.53% | 4.65% | -12 bps |
| Provisions & Contingencies | Rs 668 crore | Rs 1,208 crore | -45% |
| Net Advances | Rs 5,12,249 crore | Rs 4,44,823 crore | +15% |
Overall Performance
On a consolidated basis, which includes subsidiaries like Kotak Mahindra Life Insurance and Kotak Securities, the picture was equally strong. Total income rose 12.6% YoY to Rs 30,068.60 crore, while consolidated net profit rose 23% YoY to Rs 5,480 crore, up from Rs 4,472 crore in the same quarter last year.
| Particulars (Consolidated) | Q1 FY27 | Q1 FY26 | YoY Change |
| Total Income | Rs 30,068.60 crore | Rs 26,703.92 crore | +12.6% |
| Net Profit | Rs 5,480 crore | Rs 4,472 crore | +23% |
Shares of Kotak Mahindra Bank reacted positively following the results, closing at Rs 389.95 on the NSE, up 3.39% from the previous session, reflecting market optimism around the bank’s earnings quality and improving asset book.
Business Outlook
While profit growth has clearly outpaced core interest income growth this quarter, the moderation in NIM is a trend worth watching in the sector broadly. Kotak Mahindra Bank’s improving asset quality, strong deposit growth, and disciplined cost management, however, suggest the bank remains well-placed to navigate a competitive lending environment in the coming quarters.
Frequently Asked Questions FAQ
Q1. What is Kotak Mahindra Bank’s net profit for Q1 FY27?
The bank’s standalone net profit for Q1 FY27 stood at Rs 4,123 crore, up 26% year-on-year.
Q2. How much did Kotak Mahindra Bank’s NII grow in Q1 FY27?
Net Interest Income rose 9% year-on-year to Rs 7,928 crore in Q1 FY27.
Q3. What is Kotak Mahindra Bank’s consolidated net profit for Q1 FY27?
On a consolidated basis, net profit rose 23% YoY to Rs 5,480 crore.
Q4. What is the current Gross NPA of Kotak Mahindra Bank?
Gross NPA improved to 1.18% as of June 30, 2026, from 1.48% a year earlier.
Q5. Why did provisions fall sharply in Q1 FY27?
Provisions and contingencies dropped 45% YoY to Rs 668 crore, reflecting improved asset quality and lower fresh slippages.
Q6. How did Kotak Mahindra Bank’s share price react to the Q1 FY27 results?
The stock closed at Rs 389.95 on the NSE, up 3.39%, following the results announcement.
Q7. When were Kotak Mahindra Bank’s Q1 FY27 results announced?
The board approved the results on July 18, 2026.
Disclaimer :
This is for informational purposes only and should not be considered investment advice. Please consult a certified financial advisor before making investment decisions.We are not responsible for any financial loss.
