Important StoriesSEBI plans Demat 2.0, graded compliance for brokersIndia's Finance Ministry pushes broking industry to shed family-firm model, build structural trustKotak Bank Q2 profit rises 29%, beats estimatesRamco Systems Q2 profit plunges on higher expensesCivil society group raises concerns over composition of expert committee on UCPMPFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. Kotak Mahindra Bank, IDFC First PAT rise; Marginal dip in NIM on FCNR (B) inflows Meanwhile AU Small Finance Bank registered a 53 per cent rise in profit to ₹858 crore as net interest income By Ashokamithran T Updated - October 24, 2026 at 08:22 PM. | Mumbai ×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/kotak-mahindra-bank-idfc-first-pat-rise-marginal-dip-in-nim-on-fcnr-b-inflows/article71620665.eceCopy IDFC FIRST Bank standalone net profit tripled to ₹1044.6 crore on higher net interest income | Photo Credit: Andrii Yalanskyi

Kotak Mahindra Bank’s (KMB) reported a net profit growth of 29.5 per cent to ₹4212 crore on higher other incomes in the quarter ended September 30 2026 as against ₹3253 crore in the corresponding period last fiscal. Sequentially the Bank’s PAT increased 2.16 per cent from ₹4123 crore in the previous quarter.

The robust bottomline growth was on back of a rise in other incomes, which surged 23.4 per cent to ₹3194 crore in the reporting quarter as against ₹2589 crore in the year-ago period.

The bank’s net interest income (NII), which is the difference between interest spent and interest earned, increased 15.7 per cent to ₹8459 crore in the reporting quarter as against ₹7311 crore in the year ago period. Sequentially, the NII increased 6.7 per cent from ₹7928.4 crore from the previous quarter.

“The bank core performance continues to strengthen with volume-led growth, growth in non-interest income, sustained cost discipline and continued improvement in asset quality,” said Devang Gheewalla, Group CFO at Kotak Mahindra Bank .

Bank’s loan book (advances) recorded a 25 per cent growth to ₹5.8 lakh crore in the second quarter of the fiscal 2026, as against ₹4.6 lakh crore in the same period last year. While the deposits jumped 23.2 per cent to ₹6.5 lakh crore (₹5.3 lakh crore) in the same period.

The bank mobilised ₹55,344 crore in FCNR(B) deposits and lent ₹16,111 crore on those deposits from their GIFT City operations. Without including the NRI inflows the net advances grew 19 per cent and total deposit grew 23 per cent on a y-o-y basis.

The bank’s net interest margin (NIM), reduced to 4.1 per cent in the reporting quarter, 44 basis points lower than 4.54 per cent in the year-ago period. The Q2 NIM is also lower by 43 basis points in comparison with previous quarter’s 4.53 per cent.

The bank asset quality also improved with the NPA declined 8 basis points to 0.24 per cent from 0.32 per cent in the year-ago period.

IDFC FIRST Bank standalone net profit tripled to ₹1044.6 crore on higher net interest income (NII) and increase in fee incomes in quarter ended September 30 2026 as against ₹352.3 crore in the corresponding period last fiscal.

NII increased 21 per cent to ₹6184 crore (₹5113 crore in Q2FY26). Sequentially, the PAT dipped 3 per cent from ₹1,075 crore in Q1FY27. The bank mobilised ₹34,390 crore in FCNR(B) deposits in the recently concluded quarter. NIM dips 32 basis points to 5.58 per cent from 5.90 per cent.

Meanwhile AU Small Finance Bank registered a 53 per cent rise in profit to ₹858 crore as net interest income (NII) increased 32 per cent in the quarter-ended in the year ago period.

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