Kotak Bank deposits rise 23% in Q2 for FY27

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Kotak Mahindra Bank Limited (

) reported 24.7% year-on-year growth in net advances to ₹5.77 lakh crore as of September 30, 2026. Total deposits increased 23.2% to ₹6.51 lakh crore. What happened? Net advances increased 12.7% sequentially from ₹5.12 lakh crore in June 2026. Deposits rose 13.7% from ₹5.73 lakh crore. CASA deposits increased 11.3% year on year to ₹2.49 lakh crore and 7.8% sequentially. The September-end deposit figure included $5.78 billion of FCNR(B) deposits mobilised through the RBI's swap facility. The figures are provisional and subject to limited review. Why does it matter? Strong deposit growth provides funding for the bank's expanding loan book. CASA growth also remains positive, although it is slower than overall deposit growth. The FCNR(B) deposits are important to separate from the underlying deposit trend because they came through a specific RBI swap facility and may not represent the same recurring customer deposit mobilisation. My view The balance-sheet growth is strong, with advances and deposits growing at broadly similar rates. However, the quality and sustainability of funding will matter more than the headline deposit growth. The bank will need to maintain a healthy CASA base and manage the cost of deposits as credit expands. What I am watching next I would track underlying deposit growth excluding the FCNR(B) component, CASA ratio, cost of deposits and net interest margin. Asset quality and loan growth will also indicate whether the rapid balance-sheet expansion is translating into sustainable profitability. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Kotak Mahindra Bank Limited.