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Kotak Mahindra Bank reported strong business growth in Q2FY27

ICICIdirect Research 06 Oct 2026 DISCLAIMER

News: Kotak Mahindra Bank reported strong business growth in Q2FY27, with net advances (EOP) rising to ₹5,77,094 crore, up 24.7% YoY (12.7% QoQ). Total deposits (EOP) increased to ₹6,51,491 crore, up 23.2% YoY (13.7% QoQ), while CASA deposits stood at ₹2,49,105 crore, up 11.3% YoY (7.8% QoQ). Consequently, the CASA ratio moderated to ~38.2% (vs ~40.3% in Q1FY27). The quarter also included ₹55,344 crore of FCNR(B) deposits, against which the bank deployed around ₹16,110 crore through its international branches.

View: Headline growth was strong on both sides of the balance sheet, with deposits marginally outpacing advances sequentially and helping the CD ratio improve to ~88.6% (vs ~89.4% in Q1FY27). However, part of the acceleration reflects FCNR(B) mobilisation, while CASA growth lagged overall deposits, resulting in moderation in the CASA mix. The underlying liability franchise remains comfortable, though the deposit mix and deployment of surplus FCNR(B) liquidity will be important monitorables.

Impact: Positive

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