The operating profit rose by 4% YoY to ₹5,380 crore from ₹5,181 crore, bolstered by a 5% YoY increase in net interest income (NII) to ₹7,565 crore. Net interest income grew 5.1% YoY to ₹7,564 crore, slightly below the CNBC-TV18 poll forecast of ₹7,589 crore.
Quarter-on-quarter, asset quality saw improvement, with gross NPA at 1.30% compared to 1.39% in Q2 FY26 and net NPA at 0.31% versus 0.32% QoQ. In absolute terms, the net NPA was ₹1,497 crore, marginally up from ₹1,491 crore YoY, while gross NPA decreased to ₹6,320 crore from ₹6,479.5 crore in the prior year.
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Total consolidated customer assets, which include advances and credit substitutes, expanded by 15% YoY to ₹598,780 crore as of December 31, 2025. Total customer assets under management also grew 15% YoY to ₹787,950 crore, with domestic mutual fund AUM increasing by 20% YoY to ₹586,610 crore.
The consolidated net worth reached ₹175,251 crore, and the book value per share increased to ₹176 following the 1:5 share subdivision that took effect on January 14, 2026. For Q3 FY26, the consolidated return on assets (ROA) was 2.10% (annualised), while return on equity (ROE) was 11.39%.
On a standalone basis, net advances saw a 16% YoY rise to ₹480,673 crore, and customer assets climbed 15% to ₹529,455 crore. Period-end deposits grew 15% YoY to ₹542,638 crore, with a CASA ratio of 41.3%. The credit-to-deposit ratio stood at 88.6%, serving 5.1 crore customers. The average cost of funds decreased to 4.54% from 5.06% in Q3 FY25.
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Fee and service income experienced an 8% YoY rise to ₹2,549 crore, while operating expenses increased 8% YoY to ₹5,023 crore, which included an estimated ₹96 crore in additional costs due to the new Labour Code. Excluding this impact, operating expenses were ₹4,927 crore, resulting in a cost-to-income ratio of 47.4%.
Gross NPA and net NPA improved to 1.30% and 0.31%, respectively, from 1.50% and 0.41% a year earlier, with a provision coverage ratio of 76%. The annualised credit cost for Q3 FY26 was 0.63%. Standalone ROA (annualised) was 1.89%, while ROE was 10.68%.
Capital adequacy ratios remained robust, with a consolidated CAR of 23.3% and CET1 of 22.4%. Standalone CAR and CET1 stood at 22.6% and 21.5%, respectively, including unaudited profits. The average liquidity coverage ratio for the quarter was 135%.
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Fund Raising
The bank’s board of directors has approved raising up to ₹15,000 crore through the issuance of unsecured, redeemable, non-convertible debentures (NCDs) on a private placement basis for FY 2026-27. The issuance may occur in one or more tranches or series, contingent on shareholder approval and other necessary regulatory permissions.
Kotak Mahindra Bank Ltd shares closed at ₹422.20, a decline of ₹3.60, or 0.85%, on the BSE.
