Kotak Mahindra Bank Q4 Results: PAT jumps 13% to Rs 4,026.55 crore, NII rises 8%

Kotak Mahindra Bank on Saturday reported a net profit of Rs 4,026.55 crore for the March quarter of FY26, marking a jump of 13.3% from Rs 3,552 crore posted in the corresponding quarter of the previous financial year.

Net interest income (NII) rose 8.1% year-on-year to Rs 7,876 crore, compared with Rs 7,284 crore in the same quarter last year.

Alongside Q4 results, the board has recommended a dividend of Rs 0.65 (65 paise) per equity share of face value Re 1 each for FY26, subject to shareholder approval at the upcoming Annual General Meeting.

The bank added that the record date, AGM date, and dividend payout timeline will be announced in due course.

Asset quality improved, with gross NPAs declining to 1.20% from 1.30% QoQ and 1.42% YoY, while net NPAs eased to 0.25% from 0.31% QoQ, the lender said in a regulatory filing on Saturday.

Provisions moderated to Rs 516.4 crore, compared with Rs 809.6 crore in the previous quarter and Rs 909.4 crore in the year-ago period.

The lender reported a net interest margin (NIM) of 4.67% for Q4FY26, compared with 4.97% in Q4FY25 and 4.54% in Q3FY26. For the full year FY26, NIM stood at 4.60%, down from 4.96% in FY25. Cost of funds improved to 4.45% in Q4FY26 versus 5.09% a year ago and 4.54% in the previous quarter, while for FY26 it came in at 4.67% compared with 5.10% in FY25.Operating profit for Q4FY26 rose 7% YoY to Rs 5,855 crore from Rs 5,472 crore, and was up 9% sequentially from Rs 5,380 crore in Q3FY26. For the full year, operating profit increased 5% YoY to Rs 22,067 crore from Rs 21,006 crore.

Net advances grew 16% YoY to Rs 4,96,009 crore as of March 31, 2026, compared with Rs 4,26,909 crore a year earlier.

Asset quality showed improvement, with slippages for Q4FY26 declining 32% YoY to Rs 1,018 crore from Rs 1,488 crore. As of March 31, 2026, gross NPAs stood at 1.20% and net NPAs at 0.25%, compared with 1.42% and 0.31% respectively a year ago. The provision coverage ratio improved to 79% from 78%.

Profitability metrics remained steady, with standalone return on assets (ROA) at 2.14% (annualised) for Q4FY26 and 1.97% for FY26. Return on equity (ROE) stood at 12.27% (annualised) for the quarter and 11.08% for the full year.