Kotak bank has received board approval for a significant fund raising initiative, with directors approving a proposal to raise up to Rs 15,000 crore during the financial year 2026-27. The decision was taken at a board meeting held on January 24, 2026, marking a strategic move to strengthen the bank's capital position.

Fund Raising Structure and Mechanism

The approved proposal involves raising funds through the issuance of unsecured, redeemable, non-convertible debentures on a private placement basis. The fund raising structure provides flexibility in execution, allowing the bank to raise the amount in one or more tranches or series during FY 2026-27.

Regulatory Compliance and Approvals

The fund raising proposal is subject to approval from the bank's members and any other necessary regulatory approvals. The board's decision was made pursuant to Regulation 30 and Regulation 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Board Meeting Details

The board meeting commenced at 12:15 p.m. IST and concluded at 2:20 p.m. IST on January 24, 2026. The bank has disclosed this information in compliance with listing regulations and has made it available on its official website for investor access.

Market Presence and Trading Information

Kotak Mahindra Bank trades on major Indian stock exchanges with multiple scrip codes and symbols:

The fund raising initiative represents a significant capital market activity for the bank, providing enhanced financial flexibility for its operations and growth plans during the upcoming financial year.

Kotak Bank is expected to report a steady set of Q3FY26 numbers, with modest growth in profits and operating metrics, supported by healthy loan expansion, stable margins and benign asset quality trends. The earnings will be announced on Saturday, January 24, 2026.

Profit After Tax Projections

The private lender is likely to report a 1%-3% year-on-year rise in its December quarter net profit, with estimates varying across brokerages:

Net Interest Income Growth

Net interest income is likely to go up by up to 5% YoY to Rs 7,565 crore in the quarter under review, according to brokerage estimates:

Pre-Provision Operating Profit Outlook

While pre-provision operating profit growth is likely to remain moderate, estimates show consistent positive momentum:

Net Interest Margin Trends

Net interest margins are expected to face pressure with sequential moderation anticipated:

• Nuvama: 4.60%, down 33 bps YoY, up 6 bps QoQ
• Emkay Research: 4.5%, down 42 bps YoY and 3 bps QoQ
• YES Securities: Sequential moderation expected as yield compression outpaces deposit cost decline

Loan and Deposit Growth

The bank's balance sheet expansion is expected to continue with healthy growth rates:

Asset Quality and Credit Costs

Analysts expect controlled credit costs and improving GNPA/NNPA ratios to underpin earnings resilience:

Asset Quality Metrics:

• GNPA: Expected at 1.39% in Q3FY26 versus 1.45% in Q2FY26
• NNPA: Projected at 0.32% in Q3FY26 versus 0.37% in Q2FY26
• Provisions (Nuvama): Rs 880 crore, likely up 10.2% YoY and down 8% QoQ

Credit Cost Outlook:

• Nuvama: 0.73%, down 4 bps YoY and 9 bps QoQ
• Emkay Research: Lower loan loss provisions to support profitability
• YES Securities: Slight sequential moderation in credit costs expected

The brokerage estimates used in this preview include PL Capital, Nuvama, Emkay Research and YES Securities, providing a comprehensive view of the bank's expected performance across key financial metrics.