Kotak Mahindra Bank has reported a 4% increase in standalone net profit to Rs 3,446 crore for the third quarter ended December 2025, compared to Rs 3,305 crore in the same period last year. The bank’s total income rose to Rs 16,741 crore from Rs 16,050 crore, with interest income growing to Rs 13,903 crore from Rs 13,428 crore. Net Interest Income (NII) increased to Rs 7,565 crore from Rs 7,196 crore, but Net Interest Margin (NIM) declined to 4.54% from 4.93% due to increased competition and market conditions.
The bank’s asset quality showed improvement, with the gross non-performing asset (NPA) ratio decreasing to 1.30% from 1.50% and net NPA easing to 0.31% from 0.41%. However, provisions rose to Rs 810 crore from Rs 794 crore. The bank’s capital adequacy ratio moderated slightly to 22.63% from 22.79%. On a consolidated basis, the bank’s profit rose 5% to Rs 4,924 crore, including an estimated incremental cost of Rs 98 crore due to the new Labour Code.
Kotak Mahindra Bank’s Total Customer Assets Under Management grew to Rs 7,87,950 crore from Rs 6,85,134 crore, while the consolidated net worth was Rs 1,75,251 crore. The bank’s performance was driven by growth in its retail and corporate banking segments. The decline in NIM was a concern, but the improvement in asset quality and increase in customer assets were positive developments. Overall, the bank’s results were in line with expectations, and it remains one of the well-managed private sector banks in India.
The bank’s management will likely focus on maintaining its asset quality and improving its NIM in the coming quarters. The new Labour Code is expected to have a minimal impact on the bank’s operations, and the bank is well-positioned to take advantage of the growing demand for banking services in India. With its strong balance sheet and diversified business mix, Kotak Mahindra Bank is expected to continue to deliver steady growth and profitability in the future. The bank’s results were a testament to its ability to navigate challenging market conditions and maintain its position as a leading player in the Indian banking sector.