Kotak Mahindra Bank Reports Q4 PAT Surge of 13% to Rs 4,026.55 Crore, NII Increases by 8%.

Kotak Mahindra Bank has demonstrated solid financial performance for the March quarter of FY26, reporting a net profit of Rs 4,026.55 crore, reflecting a 13.3% year-on-year increase from Rs 3,552 crore in the same quarter last year. The bank’s net interest income (NII) also rose by 8.1%, reaching Rs 7,876 crore compared to Rs 7,284 crore a year earlier. The board has recommended a dividend of Rs 0.65 per equity share for FY26, pending shareholder approval at the upcoming Annual General Meeting, with details on the record date and payout timeline to follow.

Asset quality metrics revealed notable improvement, with gross non-performing assets (NPAs) decreasing to 1.20% from 1.30% quarter-on-quarter and 1.42% year-on-year. Furthermore, net NPAs eased to 0.25% from 0.31% QoQ, indicating effective management of asset quality risks. The bank reported moderating provisions of Rs 516.4 crore in Q4FY26, down from Rs 809.6 crore in the previous quarter and Rs 909.4 crore a year ago. Operating profit saw a 7% increase YoY to Rs 5,855 crore, demonstrating robust operational efficiency during the period.

In terms of profitability, Kotak Mahindra Bank maintained steady performance indicators, with a return on assets (ROA) of 2.14% and return on equity (ROE) at 12.27% for Q4FY26. Furthermore, net advances grew by 16% YoY, reaching Rs 4,96,009 crore as of March 31, 2026. This growth underscores the bank’s ability to expand its lending portfolio while effectively managing credit risk. The improvement in the provision coverage ratio to 79% from 78% further highlights healthy risk mitigation practices within the bank’s operations. Overall, Kotak Mahindra Bank’s financial results for FY26 reflect strong growth and efficient management of asset quality, setting a positive outlook for the upcoming fiscal year.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)