Financial Performance Overview

Kotak Mahindra Bank Limited reported strong financial results for FY 2025-26 with standalone net profit of ₹14,007.70 crore. The Bank achieved 16.19% advances growth to ₹496,009.16 crore and 14.71% deposit growth to ₹572,456.13 crore, maintaining a healthy CASA ratio of 43.27%. Net Interest Income stood at ₹30,010.07 crore with Net Interest Margin compressing to 4.60% from 4.96% in the previous year. Asset quality improved significantly with Gross NPA reducing to 1.20% (₹6,017.81 crore) and Net NPA at 0.25% (₹1,262.51 crore), supported by a provision coverage ratio of 80.49%. The Bank maintained robust capital adequacy with CRAR at 22.40% and CET-1 ratio at 21.34%.

Strategic Corporate Actions and Developments

The Bank completed several strategic initiatives including the divestment of 70% stake in Kotak Mahindra General Insurance to Zurich Insurance Company for ₹4,095.82 crore, with the entity ceasing to be a subsidiary effective June 18, 2024. Additionally, Kotak Mahindra Capital Company divested 30.99% stake in Infina Finance Private Limited for ₹1,293.91 crore, with Infina ceasing to be an associate effective March 24, 2026. The Bank also completed the 1:5 stock split effective January 14, 2026, reducing face value from ₹5 to ₹1 per share. The merger of BSS Sonata Microcredit Limited was completed with appointed date of April 1, 2025, and Kotak Mahindra Investments Limited business is being integrated departmentally within the Bank.

Governance and Board Structure

The Board comprised 12 Directors with appropriate blend of professionalism and experience, including Mr. C S Rajan as Non-Executive Independent Part-time Chairman and Mr. Ashok Vaswani as Managing Director & CEO. Key changes included appointment of Mr. Paritosh Kashyap as Whole-time Director effective September 1, 2025, Mr. Ramesh Iyer as Independent Director effective February 17, 2026, and Mr. Anup Kumar Saha as Whole-time Director effective March 6, 2026. The Bank maintained 15 committees including Audit, Nomination, Risk Management, and CSR & ESG, with 13 Board meetings held during the year and average attendance of 92%.

Annual General Meeting and Shareholder Matters

The 41st Annual General Meeting is scheduled for August 1, 2026, via video conference to seek shareholder approval for key resolutions including fixing joint statutory auditors' remuneration at up to ₹52.5 million for FY27 and approving non-executive director payments. The Board recommended a final dividend of ₹2.40 per share (₹0.65 per pre-split share) for FY26, subject to shareholder approval, with record date of July 17, 2026. The Bank conducted three postal ballot events during the year with resolutions passing with overwhelming majority support (98.87% to 99.9996% in favor).

Regulatory Compliance and Disclosures

The Bank submitted its Integrated Annual Report 2025-26 and AGM notice to exchanges pursuant to SEBI Regulation 34(1), containing comprehensive disclosures on standalone and consolidated financial performance, governance, risk, sustainability (BRSR), and ESG metrics assured by DNV. The report highlights 14.7% deposit growth, 16.2% advance growth, consolidated balance sheet crossing ₹10 lakh crore, and 27% subsidiary profit contribution. The Bank confirmed compliance with all applicable statutes including Companies Act, 2013, SEBI LODR Regulations, 2015, RBI guidelines, and Banking Regulation Act, 1949.

Subsidiaries and Consolidated Performance

Consolidated performance showed total income of ₹107,947.59 crore and Profit After Tax of ₹19,102.73 crore (excluding gain from Infina divestment). Customer Assets Under Management grew 12.06% YoY to ₹747,613.15 crore with consolidated ROE at 11.28%. Material subsidiaries included Kotak Mahindra Life Insurance Company (Gross written premium of ₹21,441.09 crore, 16.68% growth), Kotak Mahindra Prime Limited (customer assets of ₹44,933.18 crore), and Kotak Securities Limited ranked among top brokers in equity derivatives.

ESG and Corporate Social Responsibility

CSR expenditure totaled ₹329.20 crore for FY26 against requirement of ₹328.99 crore, focused on education initiatives through Kotak Education Foundation, livelihood programs, environmental sustainability, healthcare initiatives, and disaster relief. The Bank reported comprehensive ESG metrics including workforce of 74,054 employees with 26.4% female representation, energy consumption of 462,952 GJ (5.21% renewable), GHG emissions (Scope 1: 14,169.3 tCO2e, Scope 2: 82,654.1 tCO2e), and water withdrawal of 757,054.9 KL.

Technology and Digital Transformation

The Bank enhanced its digital capabilities with Kotak811 app integration driving strong engagement, unified onboarding platform with 99.5% uptime, and AI adoption across retail, institutional and private banking use cases. The core banking ecosystem processed ~10,000 transactions per second with 3.6 crore+ API calls daily and near-zero downtime across critical platforms. AI was applied across customers, colleagues, control, and technology functions including voice automation and Kompanion Agent Suite for employee productivity enhancement.