Kotak Mahindra Bank reported robust growth in its provisional financial update for the second quarter of Fiscal Year 2026 (Q2 FY26), underscoring its continued operational strength and customer trust. The lender posted double-digit expansion in both deposits and advances, driving a positive investor response, with shares rising nearly 2% post-announcement.
Table of Contents
- Overview of Kotak Mahindra Bank's Q2 FY26 Update
- Key Financial Metrics: A Strong Performance
- How Did the Market React?
- Context: A Rebound from Q1 FY26
- Outlook for Kotak Mahindra Bank
- Frequently Asked Questions (FAQs)
Kotak Mahindra Bank’s provisional results for the quarter ended September 30, 2025, indicate steady and strong growth across major operational metrics. The bank recorded impressive momentum in both deposits and advances, signalling a healthy balance-sheet expansion and a solid rebound from the previous quarter.
The figures show an impressive 14-16% year-on-year growth across key parameters, complemented by healthy sequential improvement over the June quarter (Q1 FY26), demonstrating the bank's resilience in a competitive market.
The following table summarises Kotak Mahindra Bank’s key provisional financial indicators for Q2 FY26, highlighting strong year-on-year and sequential growth :
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Highlights of the Performance:
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Robust Deposit Growth: Total deposits climbed 14.6% YoY to ₹5.28 lakh crore, demonstrating consistent inflows from both retail and institutional clients and underscoring strong customer trust.
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Healthy Credit Expansion: Net advances grew by a strong 15.7% YoY to ₹4.62 lakh crore, supported by robust credit demand across retail, corporate, and SME segments.
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Strong CASA Foundation: The bank’s low-cost CASA (Current Account + Savings Account) balances rose 11.1% YoY to ₹2.23 lakh crore, reflecting a healthy and efficient funding base.
Following the release of the strong Q2 FY26 update, the Kotak Mahindra Bank share price rose nearly 2%, touching an intraday high of ₹2,149.90 on the NSE. The rally came amid renewed investor confidence in the bank’s operational performance and growth sustainability.
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Analysts attribute the positive sentiment to:
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Consistent double-digit growth in both deposits and advances.
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A strong rebound in business momentum after a muted first quarter.
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Continued improvement in the bank's liquidity and funding metrics.
The strong Q2 performance marks a significant turnaround from the first quarter of FY26. In Q1, Kotak Mahindra Bank had reported a 47% YoY drop in standalone net profit, largely due to one-time gains in the prior year and higher provisions. The sequential growth in deposits (+3.1%) and advances (+4.0%) in Q2 indicates a solid recovery in business volumes and a positive shift in momentum.
Kotak Mahindra Bank’s strong Q2 FY26 operational update paints a positive picture ahead of its detailed audited results. The consistent growth in core metrics, especially deposits and advances, suggests that the bank is well-positioned for sustainable earnings recovery in the coming quarters. The performance reinforces its position as a resilient and growth-oriented private sector lender.
1. How did Kotak Mahindra Bank perform in deposits and advances in Q2 FY26?
The bank reported strong double-digit growth, with total deposits reaching ₹5.28 lakh crore (up 14.6% YoY) and net advances growing to ₹4.62 lakh crore (up 15.7% YoY), reflecting robust operational performance.
2. How did the bank's CASA deposits perform in Q2 FY26?
CASA balances increased by 11.1% year-over-year to ₹2.23 lakh crore, indicating a solid low-cost funding base and strong retail customer traction.
3. How did the market react to Kotak Mahindra Bank's Q2 update?
The market reacted positively, with the share price rising nearly 2%. This reflects investor confidence in the bank’s strong operational growth and its rebound from a weaker first quarter.
4. What was the sequential growth compared to Q1 FY26?
Compared to the previous quarter (Q1 FY26), total deposits increased by 3.1% and net advances grew by 4.0%, signalling a healthy recovery in business momentum.