Kotak Mahindra Bank lifts Q2 profit 29%, beating analyst estimates
Kotak Mahindra Bank's standalone net profit rose 29% in the July-September quarter and topped expectations, according to Reuters citing LSEG data.
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what happened
India's Kotak Mahindra Bank reported quarterly profit above forecasts, helped by stronger loan demand and lower provisions for bad loans. Standalone net profit for the three months to September reached 42.11 billion rupees ($443.5 million), up from 32.53 billion rupees a year earlier. Analysts polled by LSEG had expected 41.04 billion rupees, Reuters reported.
Net interest income climbed 16% to 84.6 billion rupees, supported by a 25% rise in domestic loans and 23% deposit growth. The net interest margin, however, narrowed to 4.31% from 4.53% three months earlier, due to FCNR deposit mobilisation. The gross non-performing asset ratio improved to 1.04% from 1.18%.
why it matters
Solid profit growth and better asset quality support India's banking sector, but the margin squeeze from FCNR deposits shows the cost of the Reserve Bank of India's measures to attract foreign currency. For USD/INR traders, these measures are already reshaping how banks fund lending.
market impact
Indian banks: strong profit and asset quality support the sector, while FCNR-driven margin pressure weighs on returns
tags
instruments
sources
- India's Kotak Bank Q2 profit rises 29%, beats estimates — Reuters, 24 October 2026 at 08:58 UTC
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