Kotak Mahindra Bank – Investor Presentation Summary

Key Operational Highlights

  • Customer Assets Under Management grew 23% YoY to ₹626,801 crore as of September 30, 2026
  • Net Advances increased 25% YoY to ₹577,295 crore
  • Deposits grew to ₹651,491 crore, with CASA ratio at 38.2%
  • Unsecured retail advances (including Retail Microcredit) increased by ₹1,730 crore during Q2FY27
  • UPI Overall Remitter Market Share of 3.8% (by value)
  • 13.3% of Kotak customers' UPI remitter transactions (by volume) are routed through Kotak apps

Key drivers of operational performance: Expansion through FCNR(B) deposits and lending, growth across all customer segments, and digital adoption.

Segment-wise Performance

Retail Banking: ₹228,029 crore, 22% YoY growth

  • Home Loans & LAP: ₹157,217 crore, 14% YoY growth
  • PL, BL and Consumer Durables: ₹26,548 crore, 9% YoY growth
  • Credit Cards: ₹13,264 crore, 7% YoY growth
  • Retail Microcredit: ₹6,779 crore, 18% YoY growth
  • Advances against FCNR(B): ₹16,110 crore (new segment)

Institutional Banking: ₹287,371 crore, 25% YoY growth

  • Corporate Banking: ₹139,786 crore, 25% YoY growth (includes ₹8,915 cr portfolio transferred from KMIL)
  • SME: ₹138,700 crore, 27% YoY growth

Independent Product Business: ₹67,455 crore, 9% YoY growth

  • CV/CE: ₹47,038 crore, 8% YoY growth
  • Tractor Finance: ₹20,417 crore, 11% YoY growth

Financial Highlights

Q2FY27 Standalone Performance:

  • Revenue: Net Interest Income ₹8,459 crore, Other Income ₹3,194 crore
  • EBITDA: Not explicitly specified
  • PAT: ₹4,212 crore, 29% YoY growth
  • EPS: Not explicitly specified
  • Margins: NIM 4.31%, Cost to Income 45.2%, ROE 11.65%, ROA 1.92%
  • YoY comparison: Net Total Income up 18%, Operating Profit up 21%

H1FY27 Standalone Performance:

  • PAT: ₹8,335 crore, 28% YoY growth
  • Net Interest Income: ₹16,387 crore, 12% YoY growth

Drivers of financial performance: Higher revenue growth, improved fee income, and lower provisions.

Geographical Revenue Split

Domestic vs International:

  • Domestic operations represent majority of business
  • International presence through branches in DIFC (Dubai) & GIFT City (Gujarat)
  • International subsidiaries have offices in New York, London, Mauritius, Dubai, Abu Dhabi and Singapore
  • Borrowings include ~₹15,800 cr raised during the quarter in Bank's international branches
  • Net Advances include loans against FCNR(B) deposits ~₹16,110 cr by Bank's international branches

Balance Sheet Snapshot

As of September 30, 2026:

  • Net Worth: ₹145,984 crore
  • Deposits: ₹651,491 crore (CASA ₹249,105 crore)
  • Borrowings: ₹55,223 crore
  • Investments: ₹202,035 crore
  • Net Advances: ₹577,295 crore
  • CD Ratio: 88.6%
  • CET-I Ratio: 21.4%

Financial Health Insights: Strong capital adequacy with CET-I at 21.4%, healthy liquidity position.

Capex & Cash Flow Health

  • Capital Expenditure: Not explicitly specified
  • Free Cash Flow: Not explicitly specified
  • Operating Cash Flow: Not explicitly specified

Investment Rationale: Focus on digital infrastructure, technology upgrades, and expanding distribution network.

Strategic & R&D Initiatives

Strategic Pillars:

1. Focus Customer Segment Propositions (HNI, Core India, SME, Institutional)

2. Independent Product businesses within the Bank (Tractor Finance, CV/CE)

3. Technology, Digital & AI

Technology Initiatives:

  • Core Banking ecosystem scaled to process ~10,000 transactions per second
  • Supports 3.6 crore+ API calls daily
  • AI implementation across customers ('Kompanion' AI productivity tool), colleagues, and control functions
  • 'Spark' AI-native software development Toolset

Expected impact on growth: Enhanced customer experience, greater operational efficiency, improved productivity and scalable growth.

Industry Trends & Business Environment

  • Growing digital adoption in banking services
  • Increased focus on segmented customer propositions
  • Regulatory environment supporting financial inclusion

Impact on Company: Driving digital transformation, segmented approach to customer service, and expansion of digital product offerings.

Management Commentary & Growth Outlook

Strategic Outlook: Focus on four customer segments - HNI (Private Banking + Solitaire), Core India (Kotak811), SME, and Institutional customers.

Performance Metrics:

  • Private Banking: 90.8K families with Relationship Value of ₹13.6 lakh crore
  • Kotak811: Monthly customer acquisition run rate of 321K, Kotak811 SA is 13.3% of Bank's total SA
  • SME Advances: ₹1.4 lakh crore, growing at 27% YoY

Market Positions:

  • Tractor Finance: 9.6% Market Share
  • CV/CE: 4.4% (CV) / 7.3% (CE) Market Share
  • Kotak Securities: 13.2% overall market share (excluding Proprietary segment)
  • Kotak AMC: 5th largest fund house in the country

Risks and Opportunities: Not specifically detailed in the presentation.

ESG Updates

  • Gender diversity improved to 27.9% as of Q2, advancing towards target of 30% by FY 2028-29
  • ~4.5 lakh+ saplings planted and 25+ lakes and ponds rejuvenated cumulatively under CSR
  • ₹8,900+ Crore Green asset book at the Bank
  • Serving 1.76 million active women microfinance borrowers
  • ISO 45001 certified offices for workplace safety
  • ISO/IEC 27001 certified Information security management system