Kotak Mahindra Bank Latest Updates

Q3 FY26 Financial Performance Quarterly Earnings: For the quarter ended December 31, 2025, Kotak Mahindra Bank reported a standalone net profit of ₹3,446 crore, reflecting a 4% year-on-year (YoY) increase. Consolidated net profit for the group stood at ₹4,924 crore, up 5% YoY. Impact of New Labour Code: Profits were partially constrained by a one-time estimated incremental cost of approximately ₹96–₹98 crore (post-tax) due to the implementation of the new Labour Code. This led to a slight dip in the stock price following the announcement on January 24, 2026. Margins and Asset Quality: Net Interest Margins (NIM) remained flat sequentially at 4.54%. Asset quality showed improvement, with the Gross Non-Performing Asset (NPA) ratio moderating to 1.39% (down from 1.48% in the previous quarter), while the Net NPA ratio improved to 0.31%. Corporate Actions & Fundraising Stock Split: On January 14, 2026, the bank executed a 5-for-1 stock split. Each existing equity share with a face value of ₹5 was subdivided into five equity shares with a face value of ₹1 each. This move was intended to make the stock more accessible to retail investors and enhance market liquidity. ₹15,000 Crore Fundraise: On January 24, 2026, the Board of Directors approved a proposal to raise up to ₹15,000 crore during FY 2026-27. The capital will be raised through the issuance of unsecured, redeemable, non-convertible debentures via private placement in one or more tranches. Loan and Deposit Growth: The bank's net advances grew by 16% YoY to reach ₹4.8 lakh crore, while total deposits increased by 15% YoY to ₹5.43 lakh crore. Growth was primarily driven by strong traction in the SME, mortgage, and business banking segments.