Kotak Bank’s quarterly profit jumps 29% as lending grows

Kotak Mahindra Bank posted a 29% growth in standalone net profit on year to September quarter, surpassing the estimates as loan growth and lower provisioning for defaults on bad loans improved profitability, Reuters reported.

The Indian state-run lender reported a net profit of 42.11 billion rupees ($443.5 million) for the three months ended June 30, for the fiscal year 2026-27, compared to 32.53 billion rupees a year ago, according to a report by Reuters.

Investment analysts on average forecast that the company will earn a profit of 41.04 billion rupees, based on the middle of the range shown in data compiled by LSEG.

Interest earned, or gross income, minus interest paid is net interest income and is 16% higher at 84.6 billion rupees backed by a 25% increase in domestic loans. Deposits increased 23% during the quarter.

Allowance for bad loans and other losses improved 15% to 8.04 billion rupees, contributing to the profit rise.

But the bank’s net interest margin, a critical indicator of lending profitability, dropped to 4.31% from 4.53% in the previous quarter, partly because the bank was pushing for fresh foreign-currency deposits from non-resident Indians.

Asset quality improved. Gross non-performing assets decreased to 1.04% of total advances from 1.18% as of three months ago.

These figures indicate that the strength of the corporate and retail lending market in India persists.