KMB’s management expects margin to improve slightly in Q4 due to last quarter seasonality effect
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Fourth-largest private lender Kotak Mahindra Bank (KMB) on Saturday reported its Q3FY26 net profit at ₹3,446 crore, up 4 per cent year-on-year (y-o-y), led by modest growth in core income.
The bank’s net interest income (NII) was up 5 per cent y-o-y to ₹7,565 crore, while other income grew 8 per cent on-year to ₹2,838 crore. Net interest margin (NIM), a core indicator of bank’s profitability, stood at 4.54 per cent in Q3, flat quarter-on-quarter (q-o-q) but lower than 4.93 per cent a year ago.
KMB’s management expects margin to improve slightly in Q4 due to last quarter seasonality effect, but said they will need to monitor how margin pans out in the first quarter of next fiscal.
Core business
Net advances of the lender rose 16 per cent y-o-y and 4 per cent q-o-q to ₹4.80 lakh crore. Consumer banking loans, comprising home loans, credit cards, personal loans, among others formed 47 per cent of overall advances, while wholesale loans formed 31 per cent.The bank expects growth in credit card business to revive as it has revamped its business model. Credit card loans fell 13 per cent y-o-y during Q3, and stood at ₹12,322 crore. Micro loans was the other segment which saw a y-o-y de-growth of 30 per cent during Q3.
Overall deposits of the bank rose 15 per cent y-o-y to ₹5.26 lakh crore, and share of low-cost current and savings account (CASA) deposits fell further to 41.3 per cent in Q3FY26 from 42.3 per cent last quarter and in same period last year. Ashok Vaswani, MD & CEO, KMB said the lender will grow its deposits at the pace of 1.5-2 times the growth of nominal GDP. Advances growth will be based on how deposit growth shapes up, he added.
Fresh slippages of the bank stood at ₹1,605 crore in Q3, lower than ₹1,629 crore last quarter.Gross and net non-performing asset ratio (GNPA, NNPA) ratio fell to 1.30 per cent and 0.31 per cent in Q3, respectively, lower than 1.50 per cent and 0.41 per cent last year. The bank’s board has approved raising ₹15,000 crore via non-convertible debentures (NCDs) on a private placement basis in FY27.
Published on January 24, 2026
