Kotak Mahindra Bank reported a 26% year-on-year increase in standalone net profit to ₹4,123 crore for the first quarter of FY27, supported by lower credit provisions, healthy loan growth and higher fee income. The bank’s consolidated net profit rose 23% to ₹5,480 crore during the April-June quarter, according to its unaudited financial results approved by the board on July 18.
Net interest income (NII) grew 9% year-on-year to ₹7,928 crore, while operating profit increased 10% to ₹6,131 crore. Fee and services income rose 11% to ₹2,500 crore. Provisions declined sharply by 45% to ₹668 crore, helping improve profitability despite a marginal decline in net interest margin (NIM) to 4.53% from 4.65% a year earlier.
The bank’s asset quality strengthened during the quarter, with gross non-performing assets (GNPA) improving to 1.18% from 1.48% a year ago and net NPA falling to 0.27%. Net advances expanded 15% year-on-year to ₹5.12 lakh crore, while total deposits increased 12% to ₹5.73 lakh crore. Kotak Mahindra Bank’s customer base also reached 5 crore as of June 30, 2026, while its capital adequacy ratio remained strong at 22.8%.
The robust quarterly performance is expected to reinforce confidence in the banking and financial services sector across Kolkata, where demand for retail lending, MSME financing and wealth management services has been steadily rising. Analysts believe stronger balance sheets and improved asset quality at leading private lenders such as Kotak Mahindra Bank could support higher credit flow to businesses and consumers in eastern India, benefiting the region’s expanding manufacturing, trading and services ecosystem.