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Kotak Mahindra Bank delivered a mixed Q1FY27 performance

ICICIdirect Research 20 Jul 2026 DISCLAIMER

News: Kotak Mahindra Bank delivered a mixed Q1FY27 performance, with healthy earnings but flat margin, alongside softer deposit growth and seasonal pressure in select retail portfolios. Advances grew 15.1% YoY (3.2% QoQ), led by strong momentum in SME and corporate banking, while deposits increased 11.9% YoY (0.2% QoQ) with CASA moderating to 40.3% due to seasonal decline in current account balances. Adjusted NIM remained stable at 4.53% (flat QoQ), despite the repo rate transmission. Credit cost stood at 46 bps (vs 39 bps in Q4), reflecting seasonal stress in CV and tractor portfolios, while asset quality remained resilient (GNPA/NNPA: 1.18%/0.27%). PAT stood at ₹4,123 crore (26% YoY) with CET-1 at 22.2%. 

View: Credit growth was contributed by institutional business, overall business – advances (amid expected completion of acquisition of Deutsche assets) and deposits (amid focus on granular customer relationship) traction needs to pick up. Anticipation of steady margins and stable asset quality provides comfort. Anticipate smooth leadership transition, though the same remains monitorable. 

Impact: Neutral

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