Kotak Mahindra Bank Q3 Net Profit Up 4%, Below Estimates; Asset Quality Improves

• Kotak Mahindra Bank reported a consolidated net profit of ₹3,446 crore for Q3 FY26, a 4.3% increase year-on-year, but slightly below CNBC-TV18 poll estimates.
• Operating profit rose 4% YoY to ₹5,380 crore, driven by a 5% increase in net interest income (NII) to ₹7,565 crore.
• Asset quality showed improvement, with gross NPA at 1.30% (down from 1.39% QoQ) and net NPA at 0.31% (down from 0.32% QoQ).
• Consolidated customer assets grew 15% YoY to ₹598,780 crore, and domestic mutual fund AUM increased 20% YoY.
• The bank's board approved raising up to ₹15,000 crore through unsecured, redeemable, non-convertible debentures (NCDs) in FY 2026-27.

Why It Matters: Kotak Mahindra Bank's Q3 profit grew 4% below estimates, but strong asset quality and customer asset growth noted.