Kotak Bank Q1FY27 PAT rises 23% to ₹5,480 crore
Kotak Mahindra Bank reported a 23% YoY increase in consolidated net profit to ₹5,480 crore for Q1FY27, driven by a 16% rise in customer assets to ₹570,901 crore and a 9% growth in net interest income. ROA improved to 2.18% while provisions fell 45%. The bank's consolidated Customer AUM reached ₹805,531 crore.
*this image is generated using AI for illustrative purposes only.
Kotak Mahindra Bank Limited reported a consolidated net profit of ₹5,480 crore for the quarter ended June 30, 2026, an increase of 23% from ₹4,472 crore in the corresponding quarter of the previous year. The bank's standalone net profit for Q1FY27 was ₹4,123 crore, up 26% year-on-year. The strong performance was driven by a 16% year-on-year growth in customer assets to ₹570,901 crore and a 9% rise in net interest income to ₹7,928 crore. The consolidated Customer Assets Under Management (AUM) reached ₹805,531 crore, growing 8% YoY.
Key Financial Metrics (Consolidated)
The following table summarises the key consolidated financial metrics for the quarter:
| Particulars | Q1FY27 (Unaudited) | Q1FY26 (Unaudited) |
|---|---|---|
| Total Income | ₹30,068.60 crore | ₹26,703.92 crore |
| Interest Earned | ₹18,354.57 crore | ₹17,248.31 crore |
| Other Income | ₹11,714.03 crore | ₹9,455.61 crore |
| Net Profit | ₹5,480.46 crore | ₹4,472.18 crore |
Business Performance
The bank's operating profit for the quarter was ₹6,131 crore, while provisions and contingencies decreased 45% to ₹668 crore. The earnings per share (EPS) on a basic and diluted basis was ₹5.51. The bank's Return on Assets (ROA) improved to 2.18%, and Return on Equity (ROE) stood at 11.90%. The cost-to-income ratio was 45.6%.
Asset Quality
Asset quality metrics showed mixed trends on a sequential basis. The following table captures the NPA movement:
| Metric | Q1FY27 | Q4FY26 (QoQ) | Q1FY26 (YoY) |
|---|---|---|---|
| Gross NPA Ratio | 1.18% | 1.20% | 1.48% |
| Net NPA Ratio | 0.27% | 0.25% | 0.34% |
The capital adequacy ratio under Basel III norms remained robust at 22.9%, with a CET1 ratio of 22.6%. The consolidated average liquidity coverage ratio for Q1FY27 was 144%.
Strategic Developments
During the quarter, Kotak Mahindra Investments Limited, a wholly-owned subsidiary, ceased sanctioning new loans from April 1, 2026. Loan assets aggregating to ₹9,587 crore were assigned by the subsidiary to the bank effective July 1, 2026. Additionally, the bank executed a Business Transfer Agreement with Deutsche Bank Aktiengesellschaft on June 30, 2026, to acquire its retail banking, private banking, and wealth management business in India. The transaction, valued at approximately ₹29,000 crore in advances, is subject to regulatory approvals.
Historical Stock Returns for Kotak Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.24% | +0.66% | -5.22% | -9.59% | -11.98% | +11.63% |
How will the acquisition of Deutsche Bank's Indian retail and wealth business impact Kotak's market share in the premium banking segment?
What is the expected timeline for regulatory approval of the Deutsche Bank acquisition, and are there potential integration risks?
Will the cessation of new loans by Kotak Mahindra Investments Limited significantly affect the bank's consolidated loan growth in the coming quarters?
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