Q4FY2026 - Kotak Mahindra Bank

• NIM for Q4 was 4.67% up 13 bps QoQ, however, adjusted NIM was actually flat sequentially at 4.54%. Impact of repo rate cuts was countered by repricing its deposits and growing low-cost deposits.
• Benefits of investment in tech and focus on digitization lead to improvement in operating leverage for the bank as cost to assets declined to 2.73% versus 3.09% YoY. This lead to healthy PPOP (up 8.8% QoQ and 3.4% above estimates)
• Credit costs saw a significant sequential improvement dropping to 0.39% from 0.63% QoQ. Management attributed this Q4 reduction to lower overall delinquencies, lower slippages, and improved collection efficiencies across granular retail segments.
• Stable margins, improved operating leverage and lower credit cost lead to 13.4% YoY and 16.8% QoQ growth in PAT at Rs4027 crore (11.1% above estimates)
• GNPA and NNPA declined 10 bps and 6 bps QoQ to 1.2% and 0.25% respectively, this was mainly owing to meaningful improvement in stress, better flow rates and collections in unsecured retail.
• Loan growth was respectable at 16.2% YoY at Rs4.96 lakh crore in which Mortgage was up 18% YoY, Business banking and Corporate SME was up 24% and 17% YoY, MFI book gained momentum with 8% QoQ rise. Deposits were up 14.7% YoY to Rs5.72 lakh crore, CASA ratio improved ~200 bps QoQ to 43.3%.Overall good quarter for the bank.

Result table