Subject: Q1 FY27 Earnings Performance Update – Kotak Mahindra Bank Ltd.

Executive Summary Kotak Mahindra Bank delivered a resilient financial performance for the first quarter of FY27, presenting a mixed bag relative to consensus street estimates. Strong bottom-line expansion, driven by robust non-interest income and moderated year-on-year provisioning, countered the expected compression in core net interest margins and a marginal sequential rise in fresh slippages. Financial & Operational Highlights (Q1 FY27) Profitability: Net profit grew 25.6% YoY to ₹4,123 crore, outperforming the CNBC-TV18 consensus poll of ₹3,910 crore. Earnings were significantly supported by non-interest income (other income), which expanded to ₹3,338.2 crore. Core Income & Margins: Net Interest Income (NII) grew 9.2% YoY to ₹7,928 crore, slightly below street expectations of ₹8,058 crore. Net Interest Margins (NIM) contracted 14 basis points sequentially to 4.53% (down 12 bps YoY), aligning precisely with analyst projections of sequential margin compression. Balance Sheet Momentum: Net advances increased by 15% YoY to ₹5.12 lakh crore, while total deposits registered a 12% YoY growth to ₹5.72 lakh crore. The Credit-to-Deposit (CD) ratio rose to 89.4% from 86.7% in the previous year. Asset Quality & Risk Metrics: Gross NPA stood stable at 1.18% (vs. 1.20% in March), while Net NPA ticked up marginally to 0.27% (vs. 0.25% in March). Fresh slippages saw a minor sequential increase to ₹1,321 crore compared to ₹1,018 crore in the preceding quarter. Quarterly provisions increased sequentially by ₹150 crore to ₹668 crore, though remaining substantially lower than the ₹1,208 crore reported in Q1 FY26. Market Reaction Demonstrating strong institutional buying interest ahead of the weekend results announcement, shares of Kotak Mahindra Bank closed 3.6% higher at ₹390.70 on Friday, July 17, 2026.