Kotak Mahindra Bank Ltd. reported a 13% rise in standalone net profit for the March quarter, exceeding estimates, as provisions declined and asset quality improved. The lender also announced a dividend for FY26, subject to shareholder approval.
Profit to Rs 4,027 crore in Q4 FY26 from Rs 3,552 crore a year earlier., the lender said in an exchange filing on Saturday. Net interest income or the bank’s core income rose 8% to Rs 7,875 crore from Rs 7,284 crore. Operating profit increased 7% to Rs 5,855 crore.
The results indicate lower credit costs and stable income growth, while asset quality improved on a sequential basis.
Estimates Beat
The bank’s performance came in above Bloomberg estimates on key metrics. Net profit stood higher than the estimate of Rs 3,782 crore, while net interest income exceeded the estimate of Rs 7,634 crore.
Gross non-performing assets ratio was 1.20%, lower than the estimate of 1.25%. Net non-performing assets ratio came at 0.25%, below the estimate of 0.30%. Operating profit was marginally below the estimate of Rs 5,887 crore.
Asset Quality Improves
Asset quality improved from the previous quarter. Gross NPA ratio declined to 1.20% from 1.30%, while net NPA ratio fell to 0.25% from 0.31%.
Provisions dropped 43% year-on-year to Rs 516 crore from Rs 909 crore, supporting earnings growth.
Dividend Declared
The board proposed a dividend of Rs 0.65 per share of face value Re 1 for FY26. This compares with Rs 2.50 per share of face value Rs 5 in the previous year. The dividend is subject to approval at the annual general meeting.
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