Kotak Mahindra Bank – Q2 Provisional Business Update

Executive SummaryKotak Mahindra Bank has released its provisional and unaudited business update for the quarter ended September 30, demonstrating robust momentum across its credit and liability franchises. The bank reported a ~25% year-on-year (YoY) expansion in net advances alongside a ~23% YoY growth in total deposits, reflecting strong execution capabilities and healthy systemic market demand. Credit and AdvancesNet advances for the quarter stood at ₹5.77 lakh crore, registering an impressive growth of 24.7% YoY and a strong sequential acceleration of 12.7% quarter-on-quarter (QoQ). Average net advances for the period were ₹5.47 lakh crore, up 22.1% YoY and 10.5% QoQ, highlighting consistent credit off-take throughout the quarter rather than just quarter-end spikes. Liability Franchise and Deposit MobilizationTotal deposits grew to ₹6.51 lakh crore, marking a 23.2% YoY increase and a 13.7% sequential rise. The Current Account Savings Account (CASA) portfolio—a vital metric for low-cost funding—expanded to ₹2.49 lakh crore, growing 11.3% YoY and 7.8% QoQ. Average total deposits reached ₹6.06 lakh crore (+18.8% YoY), while average CASA stood at ₹2.26 lakh crore (+14.2% YoY). Strategically, the end-of-period deposit balances were augmented by Foreign Currency Non-Resident (FCNR(B)) deposits amounting to $5.78 billion (approximately ₹55,344 crore), mobilized under the Reserve Bank of India’s swap facility. Context & Market OutlookThis top-line growth builds upon a resilient Q1 performance, where the bank delivered a net profit of ₹4,123 crore (up 25.6% YoY) and maintained stable asset quality with GNPA at 1.18% and Net NPA at 0.27%. Ahead of the update, the stock marginally corrected by 0.4% to close at ₹416.50. While the stock has seen a slight retracement—down approximately 6% year-to-date and 3% over the trailing twelve months—these strong provisional operating metrics signify aggressive market share capture and robust deposit mobilization.