Kotak Mahindra Bank shares will be in focus following the private sector lender's strong operational update for Q3FY26, which showed robust growth across key banking metrics. The bank reported a 16% year-on-year rise in net advances, demonstrating continued momentum in its lending business.

Net Advances Outpace Deposit Growth

The bank's lending portfolio demonstrated robust momentum with net advances reaching ₹4.80 lakh crore as of December 31. This represents substantial year-on-year growth of 16.00% compared to ₹4.13 lakh crore in the corresponding period of the previous year, while total deposits grew at 15.00% to ₹5.43 lakh crore.

On a sequential basis, net advances increased by 4.00% from ₹4.63 lakh crore in Q2FY26. The faster pace of credit growth relative to deposits led to a rise in the bank's credit-deposit ratio, a key banking metric showing how much of a bank's deposits are lent out as loans.

CASA Deposits Show Steady Performance

Current Account Savings Account (CASA) deposits, a key indicator of low-cost funding, reached ₹2.24 lakh crore in Q3FY26. This marked a 12.00% year-on-year increase from ₹2.00 lakh crore, while remaining essentially flat on a quarterly basis with marginal 0.20% growth from Q2FY26 levels.

Previous Quarter Performance Context

The bank had reported a 2.70% year-on-year decline in its standalone net profit for Q2FY26 at ₹3,253 crore, compared to ₹3,344 crore in the year-ago period. The net interest income (NII) for Q2FY26 increased to ₹7,311 crore, up 4.00% year-on-year from ₹7,020 crore in Q2FY25.

Market Performance and Outlook

Shares of Kotak Mahindra Bank closed marginally lower at ₹2,190.90 on the BSE. The provisional numbers suggest continued momentum in both credit growth and deposit mobilisation, with detailed earnings yet to be released. The bank is expected to announce the date for the board meeting to consider and approve the detailed third quarter financial results.

Kotak Bank has reported strong financial performance for the quarter ended December 31, 2025, with significant growth across deposits and advances. The bank submitted its quarterly disclosure under SEBI Regulation 30, highlighting robust year-on-year expansion in key banking metrics.

Strong Deposit Growth Momentum

The bank's total deposits reached ₹5,42,638 crores as of December 31, 2025, representing a substantial 14.6% increase from ₹4,73,497 crores in the corresponding quarter of the previous year. On a quarter-on-quarter basis, deposits grew by 2.6% from ₹5,28,776 crores in September 2025.

Robust Advances Performance

Net advances demonstrated even stronger growth, reaching ₹4,80,229 crores at the end of December 2025, marking a 16.0% year-on-year increase from ₹4,13,839 crores. The quarter-on-quarter growth was 3.8% from ₹4,62,688 crores in the previous quarter. Average net advances for the quarter stood at ₹4,65,879 crores, showing a 16.2% annual growth and 4.0% sequential increase.

CASA Portfolio Stability

The bank's Current Account and Savings Account (CASA) deposits reached ₹2,24,199 crores, growing 11.9% year-on-year from ₹2,00,412 crores. While the quarter-on-quarter growth was modest at 0.2%, the average CASA deposits showed stronger sequential momentum with 4.9% growth to ₹2,07,955 crores.

Regulatory Compliance and Disclosure

Kotak Mahindra Bank submitted this disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The bank noted that the December 31, 2025 figures are provisional and subject to limited review by statutory auditors. The information has been made available on the bank's investor relations website for public access and transparency.