Gross NPA
1.2%
-10bps QoQ
Improved from 1.3% in Q3, driven by lower slippages and better collections.
KOTAKMAHINDRABANK
Financial Services
18 Apr 2026
Kotak Mahindra Bank Ltd — Q4 FY26
Kotak Mahindra Bank reported a strong Q4 FY26 with consolidated PAT of ₹5,238 crore (+6% QoQ), driven by a sharp improvement in credit cost to 39 bps (from 63 bps in Q3) and stable NIM at 4.67% (4.54% adjusted for days).
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Kotak Mahindra Bank reported a strong Q4 FY26 with consolidated PAT of ₹5,238 crore (+6% QoQ), driven by a sharp improvement in credit cost to 39 bps (from 63 bps in Q3) and stable NIM at 4.67% (4.54% adjusted for days). Advances grew 16% YoY led by secured retail (mortgages +18%, tractor finance) and corporate banking (+22% YoY). Unsecured retail growth resumed sequentially (+₹1,200 crore) but mix remained at 8.9%. The bank maintained a healthy CASA ratio of 43.3% and capital adequacy of 22.4%. Management guided for gradual NIM compression in FY27, offset by improving fee income and cost efficiencies (cost-to-assets down 27 bps YoY). Key risks include geopolitical disruptions (West Asia crisis) and a below-normal monsoon impacting rural portfolios.
Key Numbers
CASA Ratio
43.3%
+23bps YoY
Supported by 23% YoY growth in current account and 18% in fixed-rate savings account.
Credit Cost
39 bps
-24bps QoQ
Progressive reduction from 93 bps in Q1; unsecured stress behind us.
811 Savings Account Contribution
12.2%
+32% YoY
Digital-first model adding 250-300k accounts monthly, low-cost granular deposits.
Management Guidance
NIM to decline gradually in FY27
Full-year NIM expected to be rangebound with gradual reduction, slower than FY26's 36 bps drop, due to longer-tenor TD repricing.
Management guidance marginsCredit cost to remain lower
Credit cost expected to sustain improvement as unsecured stress abates; watchful on CV and rural segments.
Management guidance marginsCost-to-assets to improve further
Focus on fixed cost reduction and operating leverage; cost-to-assets down 27 bps in FY26, further improvement targeted.
Management guidance marginsUnsecured retail growth to pick up
Sequential growth in unsecured advances (₹1,200 crore in Q4) expected to continue, with cards and personal loans gaining traction.
Management guidance growthKey Risks
Geopolitical disruption from West Asia crisis
Supply chain disruptions and oil price spikes could impact inflation and credit quality, especially at the lower end.
high · management_commentaryBelow-normal monsoon risk
IMD forecast of below-normal monsoon due to El Niño could stress rural income and tractor/agri loan portfolios.
medium · management_commentaryNIM compression from TD rate hikes
Management raised TD rates (6.8% for senior citizens) to lock in longer tenors, which may pressure NIMs in H2 FY27.
medium · analyst_questionPenchola branch fraud investigation
Enforcement Directorate investigating embezzlement involving bank officials; bank has adequate provisions but outcome uncertain.
medium · analyst_questionNotable Quotes
We are taking a watchful stance monitoring leading indicators particularly at the lower end of the spectrum and potential second and third order effects.
The kind of stress that we saw on the credit cost line during the first three quarters of the year is effectively behind us.
Our objective remains to transform the franchise for scale while building a responsible well-governed bank which generates return of equity at the high teens.
Frequently Asked Questions
What was Kotak Mahindra Bank's revenue in Q4 FY26?
Kotak Mahindra Bank reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Kotak Mahindra Bank management give for FY27?
NIM to decline gradually in FY27: Full-year NIM expected to be rangebound with gradual reduction, slower than FY26's 36 bps drop, due to longer-tenor TD repricing. Credit cost to remain lower: Credit cost expected to sustain improvement as unsecured stress abates; watchful on CV and rural segments. Cost-to-assets to improve further: Focus on fixed cost reduction and operating leverage; cost-to-assets down 27 bps in FY26, further improvement targeted. Unsecured retail growth to pick up: Sequential growth in unsecured advances (₹1,200 crore in Q4) expected to continue, with cards and personal loans gaining traction.
What are the key risks for Kotak Mahindra Bank in FY27?
Key risks include Geopolitical disruption from West Asia crisis — Supply chain disruptions and oil price spikes could impact inflation and credit quality, especially at the lower end.; Below-normal monsoon risk — IMD forecast of below-normal monsoon due to El Niño could stress rural income and tractor/agri loan portfolios.; NIM compression from TD rate hikes — Management raised TD rates (6.8% for senior citizens) to lock in longer tenors, which may pressure NIMs in H2 FY27.; Penchola branch fraud investigation — Enforcement Directorate investigating embezzlement involving bank officials; bank has adequate provisions but outcome uncertain..
Did Kotak Mahindra Bank meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Kotak Mahindra Bank Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.