KOTAK BANK vs AU SMALL FINANCE BANK: WHO WON?..READ NOW!

One brings scale and improving asset quality. The other brings faster growth and a sharp jump in profitability. Kotak Mahindra Bank and AU Small Finance Bank have delivered strong Q2 FY27 headline numbers. But a closer look reveals two different growth stories — and investors should look beyond net profit to understand the quality of earnings. ---> Kotak Mahindra Bank: Strong Core Earnings, Better Asset Quality Kotak Mahindra Bank reported a 29% year-on-year rise in net profit to ₹4,212 crore, supported by higher core interest income and lower provisions. Key positives: NII increased 16% YoY to ₹8,459 crore, indicating healthy growth in core lending income. PPOP rose 21% YoY to ₹6,382 crore, reflecting stronger operating profitability before provisions and taxes. Provisions declined 15% YoY to ₹804 crore. GNPA improved to approximately 1.0%, compared with 1.4% a year ago. --->AU Small Finance Bank: Faster Growth, Stronger Profit Momentum

reported a 53% YoY increase in net profit to ₹858 crore, alongside robust growth in interest income and its balance sheet. Key positives: NII climbed 32% YoY to ₹2,820 crore. PPOP grew 25% YoY to ₹1,514 crore. Provisions declined 25% YoY to ₹359 crore and 3% sequentially. Advances increased 28% YoY to ₹1,48,508 crore. Deposits grew 29% YoY to ₹1,70,450 crore. GNPA improved to 2.0%, versus 2.4% a year ago. --->Stocks to Keep on the Banking Radar Kotak Mahindra Bank (KOTAKBANK): NII growth, NIM and asset quality. AU Small Finance Bank (AUBANK): Loan growth, deposit growth and credit costs. HDFC Bank (HDFCBANK): Deposit mobilisation and margin trajectory. ICICI Bank (ICICIBANK): Loan growth, profitability and asset quality. Federal Bank (FEDERALBNK): Deposit franchise and operating performance. Ujjivan Small Finance Bank (UJJIVANSFB): Small-finance-bank growth and asset-quality trends. These are sector-watchlist names, not buy recommendations.