Kotak Bank Profit Jumps, Margin Squeezed by Deposits

reported its Q2 FY27 results today, Oct 24, with consolidated net profit up 26% to ₹5,645 crore and standalone profit up 29% to ₹4,212 crore. Net interest income rose 16% to ₹8,459 crore, ahead of Street estimates, while net interest margin fell to 4.31% on large FCNR(B) deposit inflows. The shares closed Friday at ₹430.50, down 1.49%, and will react when markets reopen on Monday, Oct 26. Overall the result looks positive, with strong growth and better asset quality, but the margin squeeze is the key thing to watch. Standalone Profit Rises 29 Percent to ₹4,212 Crore Profit was up from ₹3,253 crore a year ago, helped by lower provisions. Estimates varied by source (₹4,290 crore from Zee Business, ₹4,104 crore from LSEG), so the result was broadly in line. Net Interest Income Beats Estimates at ₹8,459 Crore NII grew 15.7% year-on-year and about 7% sequentially. Domestic net advances rose 25% to ₹5,77,295 crore. Net Interest Margin Slips to 4.31 Percent Margin was 4.54% a year ago and 4.53% in June. Total deposits rose 23% to ₹6.51 trillion, but only 13% excluding FCNR(B) deposits. Asset Quality Improves; Gross NPA Falls to 1.04% Gross NPA was 1.18% in the June quarter and net NPA fell to 0.24% from 0.27%. Capital adequacy is 22.4% and CET1 is 22.1%.