Kotak Mahindra Bank granted 3,47,410 employee stock options (ESOPs) to eligible employees on August 17, 2026. The grant was approved by the Nomination and Remuneration Committee under Series 12 of the Kotak Mahindra Equity Option Scheme, 2023.

The options are structured with a four-year vesting schedule, releasing 25% of the total grant annually. This phased approach aligns long-term employee retention with the bank’s strategic objectives over the next four fiscal years.

Grant Structure and Vesting Schedule

Each option entitles the grantee to one equity share of face value Re. 1/-. The vesting and exercise terms are detailed below:

The initial tranche vests after approximately 13 months from the grant date, while subsequent tranches vest annually in June. Grantees have a one-year window to exercise their vested options from the respective vesting dates.

Regulatory Disclosure

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank confirmed that the intimation is available on its investor relations website for public dissemination.

Kotak Mahindra Bank Kotak Mahindra Bank reported a net profit of ₹4,123 crore for the first quarter of FY27, marking a 26% year-on-year increase from ₹3,282 crore in Q1FY26. The growth was underpinned by a 9% rise in net interest income (NII) to ₹7,928 crore and a 9% expansion in net total income to ₹11,266 crore. Operating profit climbed 10% to ₹6,131 crore, despite operating expenditure rising 8% to ₹5,135 crore.

The bank’s return on equity (ROE) improved to 11.98% in Q1FY27, up from 10.94% in the corresponding period last year. This performance reflects efficient capital utilization as the bank navigated a competitive interest rate environment. The cost-to-income ratio remained stable at 45.6% (derived from operating expenditure/net total income), indicating consistent operational efficiency.

Financial Performance Highlights

Provisions and contingencies fell sharply by 45% to ₹668 crore from ₹1,208 crore in Q1FY26, contributing significantly to the bottom-line improvement. This reduction in credit costs aligns with the bank’s improving asset quality metrics.

Asset Quality and Balance Sheet

Asset quality remained robust with gross NPAs (GNPA) at 1.18% and net NPAs (NNPA) at 0.27% as on June 30, 2026, compared to 1.48% and 0.34% respectively in June 2025. Slippages ratio declined to 1.03% from 1.63% year-ago, while the provision coverage ratio (PCR) stood at 78%. Credit cost decreased to 0.46% from 0.93% in the prior year quarter.

The consolidated balance sheet expanded by 12% to ₹775,073 crore, driven by a 15% growth in deposits to ₹512,249 crore and a 12% increase in customer assets to ₹443,339 crore. The loan-deposit ratio remained healthy at 86.6%, while the CASA ratio held steady at 43.3%.

What the Numbers Show

The divergence between revenue growth and provision trends reveals a strengthening risk profile. While net interest income grew 9%, provisions dropped 45%, suggesting that lower credit losses are now directly translating to higher profitability rather than being absorbed by provisioning needs. This shift indicates that the bank’s earlier conservative provisioning strategy is yielding returns as asset quality stabilizes.

Additionally, the 15% deposit growth outpacing the 12% balance sheet expansion suggests potential for future lending growth without immediate funding pressure. The stable CASA ratio amid this growth indicates no deterioration in deposit mix quality.