Mumbai (Maharashtra) [India], October 24 (ANI): Kotak Mahindra Bank on Saturday reported a 29 per cent year-on-year rise in standalone net profit to Rs 4,212 crore for the July-September quarter of FY27, compared with Rs 3,253 crore in the corresponding period last year, even as its net interest margin declined during the quarter.

According to the bank's unaudited financial results filed with the stock exchanges, consolidated profit after tax rose 26 per cent to Rs 5,645 crore from Rs 4,468 crore a year earlier.

Net interest income (NII), the difference between interest earned and interest paid, increased 16 per cent year-on-year to Rs 8,459 crore from Rs 7,311 crore.

However, the bank's net interest margin (NIM), a key indicator of lending profitability, narrowed to 4.31 per cent from 4.54 per cent in the year-ago quarter and 4.53 per cent in the preceding quarter.

'The moderation in NIM was largely on account of FCNR(B) mobilisation during the quarter,' the bank said in its earnings release.

During the quarter, the bank mobilised approximately Rs 55,344 crore in Foreign Currency Non-Resident (Bank) deposits and provided loans aggregating to around Rs 16,110 crore through its international branches.

The large foreign currency deposit inflows also contributed to the bank's headline growth in advances and deposits.

Net advances increased 25 per cent year-on-year to Rs 5,77,295 crore as of September 30, 2026. However, excluding loans against FCNR(B) deposits and the loan portfolio acquired from Kotak Mahindra Investments, advances grew 19 per cent.

Similarly, total deposits rose 23 per cent to Rs 6,51,491 crore, but growth stood at 13 per cent excluding FCNR(B) deposits.

The bank's current account and savings account (CASA) ratio declined to 38.2 per cent from 42.3 per cent a year ago. Excluding FCNR(B) deposits, the ratio stood at 41.8 per cent.

On asset quality, the bank reported an improvement, with gross non-performing assets (GNPA) declining to 1.04 per cent from 1.39 per cent a year earlier, while net NPA fell to 0.24 per cent from 0.32 per cent.

Slippages declined 24 per cent year-on-year to Rs 1,230 crore, while provisions fell 15 per cent to Rs 803 crore.

The bank's operating profit increased 21 per cent year-on-year to Rs 6,382 crore, supported by higher interest income and a 21 per cent rise in fees and services income to Rs 2,926 crore.

The results indicate stronger earnings and improved asset quality, although the moderation in lending margins and the difference between reported and adjusted balance-sheet growth remain important indicators to watch in the coming quarters. (ANI)