24-Oct-2026 22:45:17
KOTAK MAHINDRA BANK Q2 FY27 : LOAN GROWTH TARGETED AT 1.5–2× NOMINAL GDP, ₹55,344 CR FCNR-B FUNDING TO SUPPORT EXPANSION & NIM RECOVERY EXPECTED FROM Q4
• MANAGEMENT TARGETS LONG-TERM LOAN GROWTH AT 1.5–2 TIMES NOMINAL GDP GROWTH • CORE ADVANCES UP 19% YOY, EXCLUDING FCNR-BACKED LOANS & KMIL PORTFOLIO TRANSFER • BANK MOBILIZED ₹55,344 CR THROUGH FCNR-B DEPOSITS, WITH REMAINING LIQUIDITY TO BE DEPLOYED OVER COMING QUARTERS • NIM DECLINED TO 4.31% FROM 4.53% QOQ, WITH APPROXIMATELY 15 BPS DRAG FROM FCNR-B-RELATED TRANSACTIONS • MANAGEMENT EXPECTS LOAN REPRICING & LIQUIDITY DEPLOYMENT TO SUPPORT NIM RECOVERY, WITH GREATER BENEFITS EXPECTED IN Q4 • APPROXIMATELY 65–70% OF LOAN PORTFOLIO IS FLOATING-RATE, SUPPORTING REPRICING BENEFITS • CREDIT COST DECLINED TO 35 BPS FROM 46 BPS QOQ, WITH MANAGEMENT MAINTAINING DISCIPLINED UNDERWRITING • GROSS NPA IMPROVED TO 1.04% FROM 1.18% QOQ, WHILE NET NPA DECLINED TO 0.24% • CASA RATIO EXCLUDING FCNR-B IMPROVED TO 41.8% FROM 40.3% QOQ • SME ADVANCES UP 27% YOY TO APPROXIMATELY ₹1.4 LAKH CR, WITH SME LENDING REMAINING A KEY GROWTH PRIORITY • CORPORATE BANKING ADVANCES UP 25% YOY, WHILE CORPORATE BANKING FEE INCOME GREW 36% • MANAGEMENT PLANS GRADUAL EXPANSION OF UNSECURED RETAIL LENDING, WITH FOCUS ON EXISTING CUSTOMERS & CREDIT QUALITY • TECHNOLOGY SPENDING EXPECTED TO REMAIN AROUND 13% OF OPERATING EXPENSES, WITH FOCUS ON AI, AUTOMATION & COST EFFICIENCY • ECL TRANSITION EXPECTED TO HAVE ONE-TIME IMPACT BELOW 2% OF NET WORTH; EARLIER ESTIMATE INDICATED 12–15 BPS ADDITIONAL RECURRING CREDIT COST, SUBJECT TO REGULATORY CLARITY • FCNR-B LIQUIDITY DEPLOYMENT, NIM PRESSURE, RURAL CREDIT RISKS, ECL TRANSITION & CAPITAL MARKET VOLATILITY REMAIN KEY RISKS
KOTAK MAHINDRA BANK LTD