Kotak Mahindra Bank Q4 FY26 Results: Net Profit Jumps 13%, Strong Loan Growth — Full Analysis

By Kaushik Brahmakshatriya

Published on 10 May 2026.

Kotak Mahindra Bank Q4 FY26 Results

Kotak Mahindra Bank, one of India’s leading private sector lenders, announced its financial results for the fourth quarter of fiscal year 2025–26 (Q4 FY26) on Saturday, May 2, 2026. The results painted an encouraging picture — double-digit growth in net profit, steady expansion in net interest income, improved asset quality, and a board-approved dividend announcement.

Whether you are a retail investor tracking your portfolio, an analyst studying private banking trends, or simply a curious reader wanting to understand what these numbers mean — this detailed breakdown gives you everything you need.

Q4 FY26 at a Glance: Headline Numbers

Kotak Mahindra Bank delivered a strong operational performance in Q4 FY26. Here is a quick snapshot of the key standalone financial metrics for the quarter ended March 31, 2026:

Financial Metric	Q4 FY26	Q4 FY25	YoY Growth
Net Profit (PAT)	₹4,027 crore	₹3,552 crore	+13.4%
Net Interest Income (NII)	₹7,876 crore	₹7,284 crore	+8.1%
Total Income (Standalone)	₹17,291 crore	₹16,712 crore	+3.5%
Interest Earned	₹14,175 crore	₹13,530 crore	+4.8%
Net Interest Margin (NIM)	4.67%	4.97%	-30 bps
Provisions & Contingencies	₹516 crore	₹909 crore	-43.2%
Fees & Services Income	₹2,767 crore	₹2,616 crore	+6%

The bank’s PAT also saw a healthy 17% quarter-on-quarter (QoQ) jump when compared to Q3 FY26’s ₹3,446 crore — indicating strong sequential momentum.

Net Interest Income and Margin Analysis

Net Interest Income (NII), the difference between interest earned on loans and interest paid on deposits, grew 8% year-on-year to ₹7,876 crore in Q4 FY26, up from ₹7,284 crore in the same period last year. This growth was driven by higher loan disbursements and an expanding credit portfolio.

The Net Interest Margin (NIM) stood at 4.67% for Q4 FY26, compared to 4.97% in Q4 FY25. While margin contracted year-on-year — largely due to a lower interest rate environment and RBI rate cuts — it improved 13 basis points sequentially from Q3 FY26’s 4.54%, making Kotak the best NIM performer among the top four private sector banks in sequential margin improvement, according to analyst notes from Bernstein.

The cost of funds for Q4 FY26 dropped sharply to 4.45%, down from 5.09% in Q4 FY25, reflecting better liability management and the benefit of falling deposit rates.

Advances and Deposits: Robust Growth Across the Board

The bank’s balance sheet expansion remained healthy in Q4 FY26, with strong momentum in both lending and deposits.

Balance Sheet Metric	March 31, 2026	March 31, 2025	YoY Growth
Net Advances	₹4,96,009 crore	₹4,26,909 crore	+16%
Total Deposits (Period-End)	₹5,72,456 crore	₹4,99,055 crore	+15%
Average Total Deposits	₹5,38,301 crore	₹4,68,486 crore	+15%
Average Current Deposits	₹77,058 crore	₹65,427 crore	+18%
Average Fixed-Rate Savings Deposits	₹1,22,364 crore	₹1,04,379 crore+17%	+17%
Customer Assets Under Management	₹7,47,613 crore	₹6,67,163 crore	+12%
Domestic MF AUM	₹5,55,230 crore	₹4,78,451 crore (approx.)	+16%

Net Advances grew 16% YoY, clearly demonstrating that loan demand remained robust even in a competitive banking landscape. Customer Assets — which include advances and credit substitutes — reached ₹5,45,716 crore, up 14% YoY.

Asset Quality: Significant Improvement in NPAs

One of the most positive highlights of Kotak Mahindra Bank’s Q4 FY26 results was a notable improvement in asset quality. Non-Performing Assets (NPAs) fell both in percentage and absolute terms.

Asset Quality Metric	Q4 FY26	Q4 FY25
Gross NPA (%)	1.20%	1.42%
Gross NPA (Absolute)	₹6,018 crore	₹6,134 crore
Gross NPA (Absolute)	0.25%	0.31%
Net NPA (Absolute)	₹1,263 crore	₹1,343 crore
Credit Cost (Q4)	0.39%	0.64%

Gross NPA ratio improved from 1.42% to 1.20%, and Net NPA declined from 0.31% to 0.25% — both meaningful improvements. Credit cost normalized sharply to 0.39% from 0.64% in Q4 FY25, down 25 basis points YoY, supported by broad-based asset quality recovery across retail, SME, and corporate segments.

Return Ratios and Capital Adequacy

* Return on Equity (ROE): 11.92% for Q4 FY26 (annualized); 11.28% for full FY26

* Consolidated Capital Adequacy Ratio (Basel III): 23.0%

* CET-1 Ratio: Healthy and well above regulatory requirements

* Average Liquidity Coverage Ratio (LCR): 134% for Q4 FY26

The bank’s capital position remains among the strongest in Indian private banking, giving it the financial headroom to pursue growth without dilution risk.

Dividend Announcement and Stock Split Update

The Board of Directors proposed a dividend of ₹0.65 per share (face value ₹1) for FY 2025–26. This comes after Kotak Mahindra Bank completed a stock split effective January 14, 2026, where each equity share of face value ₹5 was subdivided into five shares of ₹1 each. The Book Value per Share rose to ₹182 as of March 31, 2026, a 15% YoY increase from ₹158 in the prior year.

FY26 Full-Year Performance

For the full financial year FY26:

* Standalone PAT: ₹14,008 crore, up 2% YoY from ₹13,720 crore in FY25

* NII for FY26: ₹30,010 crore, up 6% YoY

* Consolidated Net Worth: ₹1,81,113 crore as of March 31, 2026

While the full-year PAT growth appears modest at 2%, this needs to be viewed in context — FY25 figures included one-time gains from asset divestments, making year-on-year comparison slightly elevated.

What Analysts Are Saying

Market watchers responded cautiously optimistic to the results, though the bank’s stock dipped about 5% post-announcement — partly due to broader market conditions and some concerns around NIM compression on a YoY basis.

Analysts at Bernstein noted that Kotak closed FY26 on a strong note with beats across most operating metrics, particularly praising the 13 bps sequential NIM expansion — the highest among the top four private sector banks.

UBS observed that the Q4 profit beat was driven by higher pre-provision operating profit and lower credit costs. The brokerage also noted that at current valuations, the risk-reward profile appears attractive compared to private sector peers.

Question & Answer Section: Kotak Mahindra Bank Q4 FY26

Q1. What was Kotak Mahindra Bank’s net profit in Q4 FY26?

Kotak Mahindra Bank reported a standalone net profit of ₹4,027 crore in Q4 FY26, a 13.4% increase YoY from ₹3,552 crore in Q4 FY25. On a quarterly basis, profit grew 17% compared to Q3 FY26.

Q2. What is the Net Interest Margin (NIM) of Kotak Bank for Q4 FY26?

The NIM for Q4 FY26 stood at 4.67%, compared to 4.97% in Q4 FY25. While this reflects a 30 bps YoY decline due to the lower interest rate cycle, it improved 13 bps sequentially from Q3 FY26 (4.54%), the best among top private banks in sequential NIM improvement.

Q3. How did Kotak Mahindra Bank’s loan book grow in Q4 FY26?

Net Advances grew 16% year-on-year to ₹4,96,009 crore as of March 31, 2026, from ₹4,26,909 crore a year ago. On a quarterly basis, advances grew 3.2% over December 2025 levels.

Q4. Did Kotak Mahindra Bank declare a dividend for FY26?

Yes. The Board proposed a dividend of ₹0.65 per share (face value ₹1) for FY 2025–26. This follows the bank’s stock split that took effect on January 14, 2026.

Q5. How did Kotak Bank’s asset quality perform in Q4 FY26?

Asset quality showed strong improvement. Gross NPA fell to 1.20% from 1.42% in Q4 FY25. Net NPA also eased to 0.25% from 0.31%. Credit costs dropped to 0.39%, down 25 bps YoY, reflecting broad-based recovery in loan quality.

Conclusion: A Quarter of Steady Progress

Kotak Mahindra Bank’s Q4 FY26 results reflect a bank in solid operational shape. While headline numbers on NIM and full-year PAT growth may look modest on the surface, the underlying story is stronger — improving credit quality, robust loan book expansion, a well-capitalised balance sheet, and disciplined cost management.

For long-term investors, the bank’s fundamentals remain attractive. With improving asset quality, a strong CASA franchise, and momentum building in non-lending businesses like wealth management and insurance, Kotak Mahindra Bank is well-positioned as India’s financial system continues to deepen into FY27.

Disclaimer

This blog does not provide financial, investment, or trading advice. All content is for educational and informational purposes only. Please consult a certified financial advisor before making any investment decisions. The author will not be responsible for any financial losses incurred