Kotak Mahindra Bank reports strong Q2 growth

reported strong provisional business growth for Q2 FY27. Total deposits rose 23.2% YoY to ₹6.51 lakh crore, while increasing 13.7% sequentially. Net advances grew 24.7% YoY to ₹5.77 lakh crore and 12.7% QoQ, indicating strong credit expansion. CASA deposits increased 11.3% YoY to ₹2.49 lakh crore and 7.8% sequentially. The bank also mobilised US$5.78 billion in FCNR(B) deposits as of September 30, 2026, using the RBI swap window. The latest business update follows a strong Q1 FY27, when net profit rose 26% YoY to ₹4,123 crore. Asset quality was also stable in Q1, with Gross NPA at 1.18% and Net NPA at 0.27%. My View: The update is positive for Kotak Mahindra Bank. Strong deposit and advance growth, along with healthy CASA expansion, points to improving business momentum. The FCNR(B) mobilisation also strengthens funding visibility. What to watch: Track Q2 FY27 net interest income, margins, asset quality, deposit mix and credit costs to assess whether strong business growth translates into sustained earnings growth. Stance: KOTAKBANK – HIGHLY POSITIVE (9/10)