Important StoriesKotak Bank Q2 profit rises 29%, beats estimatesApple’s iPhone Duo hits stores in face of short supply and high demandBoeing supplier dispute has halted 777 freighter production for two months23 days after new RBI forex rules, individual service exporters still await clarity, banks lack SOPsIndia-US bond yield gap tops 250 bps as G-Sec yield hits 7.48%; FPI inflows uncertainFollow 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 Bank Q2 profit rises 29%, beats estimates Kotak Mahindra Bank ⁠posts a stand-alone net profit of ₹4,211 crore ($443.5 million) for the three months ended September By Reuters Updated - October 24, 2026 at 02:41 PM.×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/kotak-bank-q2-profit-rises-29-beats-estimates/article71619508.eceCopy Kotak Mahindra Bank reports higher-than-expected quarterly ​profit. | Photo Credit: ADNAN ABIDI

Kotak Mahindra Bank reported a higher-than-expected quarterly ​profit on Saturday, driven by stronger loan demand ‌and lower provisions for bad loans.

The country’s ​third-largest private lender by market capitalisation ⁠posted a stand-alone net profit of ₹4,211 crore ($443.5 million) for the three months ended September, ‌up from ₹3,253 crore for the same period last year.

Analysts had ‌expected a profit of ₹4,104 crore, according ⁠to data compiled by LSEG.

Indian ⁠banks experienced strong loan growth during the financial second quarter across both corporate and retail segments, with lending ​against foreign-currency non-resident deposits ‌also contributing to growth.

In June, the Reserve Bank of India introduced measures, including concessional hedging facilities and swap arrangements, to attract ‌foreign currency deposits.

Kotak Bank's net interest ​income rose 16 per cent to ₹8,460 crore, aided by a 25 per cent ⁠rise in domestic loans. Deposits grew 23 per cent.

Its net interest margin, a key measure of the ‌bank's profitability, fell to 4.31 per cent from 4.53 per cent three months earlier on account of FCNR deposit mobilisation during the quarter.

Funds kept aside for potential bad loans and other losses fell 15 per cent to ₹8,040 crore.

The ‌bank's other income, which includes income from ​bonds and other investments, rose 23 per cent year on year to ₹3,194 crore amid ⁠volatile currency and debt markets.

The Mumbai-based lender's ⁠asset quality improved marginally, with the gross non-performing asset ratio at 1.04 per cent ‌at the end of September, compared with 1.18 per cent in the prior three months.

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Terms & conditions | Institutional Subscriber