KOTAKBANK

's Q1FY26 performance and outlook

Fee Income Lagging Core Growth: Despite 14% year-on-year growth in advances and deposits of

, banking fees rose only 1%, suggesting reduced charges to attract customers. Net Interest Income (NII) growth of 6% lagged asset growth, and Net Interest Margin (NIM) fell 32 bps to 4.65%, with further dips expected. Expenses Rise, Provisions Double: Operating expenses outpaced core income growth, and provisions for bad loans doubled to ₹1,200 crore, primarily due to microfinance stress. Profit Before Tax Hit by Provisions: The sharp increase in loan provisions led to a 9% decline in profit before tax (excluding trading gains). Lower Return on Equity: At 11.5%, Kotak Bank's Return on Average Equity (RoAE) lagged behind top private bank peers.