Kotak Bank FY26 net profit falls 14.8% to ₹14,007.70 crore
Kotak Mahindra Bank reported a 14.8% decline in net profit to ₹14,007.70 crore for FY26, with total income slightly lower at ₹67,187.26 crore. Total deposits grew 14.7% to ₹5,72,456.13 crore, and advances increased to ₹4,96,009.16 crore. Gross NPAs improved to 1.20%, and the bank proposed a dividend of ₹0.65 per share.
*this image is generated using AI for illustrative purposes only.
Kotak Mahindra Bank reported a 14.8% decline in net profit to ₹14,007.70 crore for the financial year ended March 31, 2026, compared to ₹16,450.08 crore in the previous year. The bank’s total income for the year stood at ₹67,187.26 crore, slightly lower than ₹67,880.86 crore in FY25. Operating profit decreased to ₹18,585.72 crore from ₹21,584.11 crore in the prior year.
Total deposits grew by 14.7% to ₹5,72,456.13 crore as of March 31, 2026, up from ₹4,99,055.13 crore a year ago. Advances increased to ₹4,96,009.16 crore from ₹4,26,909.20 crore. The bank’s gross non-performing assets (NPAs) improved to 1.20% of gross advances, down from 1.42% in the previous year. Net NPAs were not explicitly stated in the provided summary but the bank maintained a liquidity coverage ratio of 124.18% for the quarter ended March 31, 2026.
The Board of Directors has proposed a dividend of ₹0.65 per share for the year ended March 31, 2026, subject to shareholder approval at the Annual General Meeting. This is an increase from the ₹0.50 per share dividend paid in the previous year. Earnings per share (EPS) for the year declined to ₹14.09 from ₹16.55 in FY25.
Financial Performance
| Particulars | FY26 (₹ in crore) | FY25 (₹ in crore) |
|---|---|---|
| Net Profit | 14,007.70 | 16,450.08 |
| Total Income | 67,187.26 | 67,880.86 |
| Operating Profit | 18,585.72 | 21,584.11 |
| Total Deposits | 5,72,456.13 | 4,99,055.13 |
| Advances | 4,96,009.16 | 4,26,909.20 |
| Gross NPAs (%) | 1.20% | 1.42% |
| Basic EPS | 14.09 | 16.55 |
Asset Quality and Liquidity
The bank’s asset quality improved during the year, with gross NPAs as a percentage of total advances decreasing to 1.20%. The bank reported 95 fraud cases involving amounts of ₹1 lakh and above during the year, amounting to ₹97.04 crore, compared to 306 cases amounting to ₹69.96 crore in the previous year. The bank has recovered or provided for the entire amount in these cases.
The Liquidity Coverage Ratio (LCR) for the quarter ended March 31, 2026, was 124.18%, well above the regulatory requirement of 100%. The average Level 1 HQLA constituted 93.22% of the total HQLA for the quarter.
Historical Stock Returns for Kotak Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.92% | +1.50% | +1.90% | -7.78% | -6.38% | +13.39% |
What strategic initiatives will Kotak Mahindra Bank implement to reverse the decline in operating profit given the growth in advances?
Will the bank maintain the increased dividend payout ratio in FY27, or will earnings volatility necessitate a more conservative approach?
How does the bank plan to deploy the significant 14.7% growth in deposits to improve net interest margins in the coming fiscal year?
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