Kotak Mahindra Bank Limited Q2 FY27 Financial Results Disclosure

Key Financial Figures - Consolidated Results

Quarter Ended September 30, 2026 (₹ crore):

  • Interest earned: ₹19,855.87
  • Interest/discount on advances/bills: ₹14,176.25
  • Income on investments: ₹4,623.75
  • Interest on balances with RBI & other interbank funds: ₹784.06
  • Others: ₹271.81
  • Other income: ₹9,571.01
  • Profit/(Loss) on sale of investments: (₹427.94)
  • Premium on Insurance Business: ₹5,251.43
  • Other income: ₹4,747.52
  • Total income: ₹29,426.88
  • Interest expended: ₹8,680.60
  • Operating expenses: ₹12,395.55
  • Employees Cost: ₹3,368.84
  • Policy holders' reserves, surrender expense and claims: ₹4,823.75
  • Other operating expenses: ₹4,202.96
  • Operating profit: ₹8,350.73
  • Provisions (other than tax) and contingencies: ₹820.43
  • Profit before tax: ₹7,530.30
  • Tax expense: ₹1,896.23
  • Net profit before minority interest: ₹5,634.07
  • Share in profit/(loss) of associates: ₹11.31
  • Net profit after tax: ₹5,645.38
  • Paid-up equity capital: ₹994.79 crore (face value ₹1 per share)
  • Basic EPS: ₹5.68 (not annualized)
  • Diluted EPS: ₹5.67 (not annualized)

Half-Year Ended September 30, 2026 (₹ crore):

  • Total income: ₹59,495.48
  • Net profit after tax: ₹11,125.84
  • Basic EPS: ₹11.19
  • Diluted EPS: ₹11.18

Key Financial Figures - Standalone Results

Quarter Ended September 30, 2026 (₹ crore):

  • Interest earned: ₹15,947.73
  • Other income: ₹3,193.56
  • Total income: ₹19,141.29
  • Interest expended: ₹7,488.76
  • Operating expenses: ₹5,270.33
  • Operating profit: ₹6,382.20
  • Provisions and contingencies: ₹803.56
  • Profit before tax: ₹5,578.64
  • Tax expense: ₹1,366.67
  • Net profit: ₹4,211.97
  • Paid-up equity capital: ₹994.79 crore
  • Basic EPS: ₹4.23
  • Diluted EPS: ₹4.23
  • Capital adequacy ratio (Basel III): 21.86%
  • Gross NPA: ₹6,080.97 crore (1.04% of gross advances)
  • Net NPA: ₹1,366.94 crore (0.24% of net advances)
  • Return on average assets: 0.48%

Half-Year Ended September 30, 2026 (₹ crore):

  • Total income: ₹36,956.98
  • Net profit: ₹8,334.93
  • Basic EPS: ₹8.38
  • Diluted EPS: ₹8.38

Segment Performance (Consolidated)

Quarter Ended September 30, 2026 (₹ crore):

  • Treasury, BMU and Corporate Centre: Revenue ₹3,828.45, Result ₹1,345.48
  • Retail Banking: Revenue ₹9,314.00, Result ₹1,987.05
  • Digital Banking: Revenue ₹731.44, Result ₹20.28
  • Other Retail Banking: Revenue ₹8,582.56, Result ₹1,966.77
  • Corporate/Wholesale Banking: Revenue ₹8,173.33, Result ₹2,430.64
  • Vehicle Financing: Revenue ₹1,124.76, Result ₹189.54
  • Other Lending Activities: Revenue ₹344.79, Result ₹170.78
  • Broking: Revenue ₹1,394.50, Result ₹408.32
  • Advisory and Transactional Services: Revenue ₹341.05, Result ₹129.01
  • Asset Management: Revenue ₹923.79, Result ₹548.10
  • Insurance: Revenue ₹6,361.33, Result ₹321.38

Regulatory Compliance and Auditor Review

The financial results were subjected to limited review by the joint statutory auditors M M NISSIM & CO LLP and Deloitte Haskins & Sells, who issued unmodified review reports. The review covered the financial results except for consolidated Pillar 3 disclosures (leverage ratio, liquidity coverage ratio, and net stable funding ratio) which will be disclosed on the Bank's website.

The auditors noted that they did not review interim financial results of 3 subsidiaries representing total assets of ₹68,669.41 crore and revenues of ₹2,194.69 crore for the quarter ended September 30, 2026. These were reviewed by other auditors whose reports were furnished by management.

Capital Structure Impact

The Bank's paid-up equity capital stood at ₹994.79 crore as of September 30, 2026, following a sub-division of shares effective January 14, 2026, where each existing equity share of face value ₹5 was split into 5 equity shares of face value ₹1 each.

During the quarter, the Bank allotted 1,172,125 equity shares pursuant to the exercise of options.

Significant Events and Transactions

  • On March 24, 2026, Kotak Mahindra Capital Company Limited divested 30.99% of its total stake in associate Infina Finance Private Limited for ₹1,293.91 crore, resulting in a pre-tax gain of ₹367.79 crore
  • On September 25, 2026, the Boards of Kotak Mahindra Investments Limited and Kotak Alternate Asset Managers Limited approved a merger scheme subject to regulatory approvals
  • Effective July 1, 2026, the Bank acquired loan assets aggregating ₹9,587.62 crore from Kotak Mahindra Investments Limited

Asset Quality and Provisions

Provisions and contingencies for the quarter stood at ₹820.43 crore (consolidated) and ₹803.56 crore (standalone), comprising provisions against loan accounts, investments, etc., net of recoveries against written-off accounts.

The change in valuation of liabilities for life policies was ₹2,441.45 crore for the quarter ended September 30, 2026.

Balance Sheet Highlights (Consolidated)

As of September 30, 2026 (₹ crore):

  • Total assets: ₹1,124,402.15
  • Deposits: ₹647,459.43
  • Borrowings: ₹123,119.51
  • Policyholder's Funds: ₹103,927.60
  • Capital: ₹994.79
  • Reserves and surplus: ₹193,710.91

Cash Flow Statement (Consolidated)

Half-Year Ended September 30, 2026 (₹ crore):

  • Net cash flow from operating activities: (₹15,569.11)
  • Net cash flow from investing activities: (₹12,693.60)
  • Net cash flow from financing activities: ₹27,129.49
  • Net decrease in cash and cash equivalents: (₹1,091.10)
  • Cash and cash equivalents at period end: ₹101,000.01

Governance and Compliance

The disclosure was signed by Avan Doomasia, President & Company Secretary, and the financial results were approved by the Board of Directors led by the Managing Director and Chief Executive Officer.