Kotak Mahindra Bank, one of India's largest private-sector banks, reports its Q2 FY 2026-2027 numbers with provisional updates already showing net advances up 24.7% YoY and deposits up 23.2% YoY. The print will speak to whether net interest margin holds its 4.53-4.54% band amid a lagging CASA ratio, and how the bank frames its transition ahead of Anup Kumar Saha taking charge as MD & CEO on January 1, 2027.
| Results date | October 24, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Consolidated total income of Rs. 30,068.60 Cr (Q1 FY27) |
| Previous quarter PAT | Rs. 5,480.46 Cr consolidated (+23% YoY); standalone PAT Rs. 4,122.96 Cr (+26% YoY) |
| Previous quarter NIM | 4.53% (Q1 FY27) |
| Market cap | Rs. 445,068.21 Cr |
| CMP | Rs. 447.4 |
A board meeting is scheduled on October 24, 2026, to consider the Q2 and H1 FY27 financial results. The trading window was shut from October 1, 2026, and reopens 48 hours after the results are announced.
The quarter's central question is whether Kotak's net interest margin holds the 4.53-4.54% band it has occupied for four quarters, with the repo rate held at 5.25% through July-September — the exact 'no further repo cuts' condition management attached to its margin commentary — before a post-quarter 25 bps hike to 5.50% that would only aid loan repricing in H2. Growth is running well ahead of the system: provisional net advances of Rs. 5,77,094 Cr grew 24.7% YoY against system non-food credit growth of 18.8% YoY at the August 31 fortnight, and deposit growth of 23.2% YoY exceeds the system's 15.4%, consistent with the bank's stated philosophy of growing advances at 1.5x-2x nominal GDP. The swing factor is deposit mix — CASA grew just 11.3% YoY against overall deposit growth of 23.2% in the provisional update, with the CASA ratio already down 300 bps from Mar-26 to Jun-26 — while fresh term-deposit rates fell to 5.67% in August from 5.85% in July, offering funding-cost relief. Credit quality enters the print from a position of strength, with GNPA at a series-low 1.18% and credit cost at 46 bps in Q1 FY27, and management has said stress in MFI and unsecured lending is 'largely behind'. This is also the last call before the MD & CEO handover to Anup Kumar Saha on January 1, 2027, following RBI approval on October 1, 2026, with the Deutsche Bank India retail, private banking and wealth acquisition (Rs. 281 crore purchase price, expected close September 2027) progressing toward integration.
Performance vs guidance tracking: Where the bank stands against its standing guidance markers heading into the Q2 FY27 call.
CEO transition and strategic updates: The last call before the leadership handover on January 1, 2027.
CASA momentum and deposit mix: The margin swing factor this quarter.
Risks and headwinds to monitor: Management-flagged items analysts have followed across recent calls.
In the Q2 FY27 provisional update, CASA grew 11.3% YoY against total deposit growth of 23.2% YoY, and the CASA ratio fell 300 bps from Mar-26 to Jun-26. Management has framed this as a deliberate drive toward granular CASA with a focus on average balances, while system-wide term deposits are outgrowing savings deposits.
The deal, signed June 30, 2026, covers Deutsche Bank AG (India)'s retail banking, private banking and wealth management business — about Rs. 29,000 Cr advances, Rs. 16,000 Cr deposits and Rs. 10,500 Cr AUM, plus roughly 150,000 affluent and SME customers — for a purchase price of Rs. 281 crore. Management has said it will be ROE accretive and expects the transaction to close in September 2027.
On the Q1 FY27 call, management said, 'we would not like to provide any specific guidance on the NIM going forward,' after NIM stayed range-bound at 4.53-4.54% on an adjusted basis for four quarters. Earlier, it had framed any FY27 NIM reduction as 'far, far more gradual and lower than the current year', conditional on no further repo cuts.
The bank has guided to maintain cost-to-assets in the 2.5%-2.6% range, and Q1 FY27 came in at 2.66%, down from 2.83% in Q1 FY26. Management attributes the reduction to automation and digitization, with cost efficiencies named the primary focus for FY27.
The Directorate of Enforcement investigation into the Panchkula branch remains active, and the bank has said it is cooperating with authorities. Management has stated the bank maintains 'adequate overall provisions', and analysts sought updates again on the Q4 FY26 call.