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Kotak Mahindra Bank Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤24th Jan 26

Summary : Kotak Mahindra Bank reports strong Q3 and 9M FY26 financial results with underlying profit growth, unmodified audit, and ongoing regulatory compliance.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Q3 FY26 Consolidated Interest Expended: ₹7,384.43 crore.
  2. Q3 FY26 Consolidated Operating Expenses: ₹12,993.43 crore.
  3. 9M FY26 Consolidated Employee Cost: ₹9,625.30 crore.
  4. Q3 FY26 Consolidated Interest Earned: ₹17,506.80 crore.
  5. Q3 FY26 Consolidated Other Income: ₹10,343.99 crore.
  6. 9M FY26 Consolidated Total Income: ₹79,456.10 crore.
  7. Strong growth in Retail Banking segment revenue.
  8. Provisions and contingencies for loan accounts.
  9. Incremental provision for new Labour Codes.
  10. Consolidated Total Assets (Dec 31, 2025): ₹944,074.37 crore.
  11. Standalone Gross NPA: 1.30%.
  12. Standalone Net NPA: 0.31%.
  13. Standalone Capital Adequacy Ratio: 22.63%.
  14. Both standalone and consolidated results presented.
  15. Separate auditor reviews for each set of results.

Corporate Overview

  1. Primarily India, with international subsidiaries in UK, Singapore, US.
  2. Assessing the full impact of new Labour Codes on employee costs.
  3. Wholesale and retail banking services.
  4. Treasury, asset management, and broking.
  5. Vehicle finance and other lending activities.
  6. Advisory and insurance services.
  7. Factual, compliant, and formal in reporting financial results.
  8. Corporate sector clients.
  9. Retail banking customers.
  10. Auto dealers for vehicle finance.
  11. Clients for market transactions and fund management.
  12. Corporate/Wholesale Banking
  13. Retail Banking (Digital Banking, Other Retail Banking)
  14. Treasury, BMU and Corporate Centre
  15. Vehicle Financing
  16. Other Lending Activities
  17. Broking
  18. Advisory and Transactional Services
  19. Asset Management
  20. Insurance

Risk Factors

  1. Unreviewed Basel III Pillar 3 disclosures.
  2. Reliance on other auditors' reports.
  3. Potential impact of new labor codes.
  4. Project finance resolution challenges.

Key Drivers

  1. Strong Q3 and 9M profit growth.
  2. Unmodified audit review conclusion.
  3. Expanding digital banking unit.
  4. Diversified revenue segment performance.

Auditor’s Report

  1. Unmodified review conclusion on financial results.
  2. Consolidated Pillar 3 disclosures not reviewed by auditors.
  3. Reliance on other auditors for subsidiary financial results.
  4. Actuarial valuation relied on Appointed Actuary's certificate.

Board Commentary

  1. Unreviewed consolidated Pillar 3 disclosures.
  2. Reliance on other auditors' reports for subsidiaries.
  3. Actuarial valuation of life policy liabilities.
  4. Impact of new Labour Codes on employee costs.
  5. Compliance with Listing Regulations and Companies Act.
  6. Adherence to RBI and IRDAI guidelines.
  7. Impact of new Labour Codes.
  8. Projects under implementation: ₹3,969.65 crore outstanding.

Corporate Governance

  1. Audit Committee recommended financial results to the Board.

Management Discussion & Analysis

Operational Focus Areas

  1. Compliance with RBI and SEBI regulations.
  2. Development of Digital Banking Units.

Performance Drivers

  1. Growth in interest earned.
  2. Increase in other income.
  3. Strong segment revenue performance.

Risk Control Measures

  1. Actuarial liabilities certified by Appointed Actuary.
  2. Incremental provision for new Labour Codes recognized.

Critical Risks

  1. Unreviewed consolidated Pillar 3 disclosures.
  2. Reliance on other auditors' reports for subsidiaries.
  3. Actuarial valuation of life policy liabilities.
  4. Impact of new Labour Codes on employee costs.