Kotak Mahindra Bank

“Strategically, we are managing the timing of the deployment of these deposits into customer assets to build the franchise and take advantage of the increasing rate cycle. We expect to deploy the remaining funds over the next few quarters.”

“So to that extent, yes, FCNR(B) liquidity is in addition to the core growth of the Bank, which will reflect going forward.”

“as these funds are deployed into customer assets to build a franchise, yes, there will be some improvement and NIM pick-up.”

“As of 30th September, the Bank managed a combined relationship value of INR 13.6 lakh crore across 90,000-plus families.”

“This differentiated proposition for mass-affluent has strengthened customer engagement, resulting in 34% YoY growth in savings balances and this now contributes 13.3% of the Bank’s total savings”

“mortgage portfolio grew at 14%YoY and 4% QoQ. We also launched our hybrid home loan on a timely basis,”

“Personal loans business, business loans grew 9% YoY, 4% QoQ.”

“as of September 2026, spends grew 8.9% YoY and 8.3% QoQ, while portfolio grew 7% YoY and 4% QoQ.”

“Investment banking had a strong quarter across ECM and advisory, and has a strong pipeline, too.”

“Net interest margin for the quarter was 4.31%, a drop of 22 bps on sequential basis. FCNR(B) deposits and related advances contributed 15 bps to this drop.”

“Going forward, NIM will reflect full-quarter impact of FCNR(B) mobilization, which will be offset by progressive deployment of FCNR(B) deposits in customer assets and repo rate transmission on floating-rate advances.”

“Our cost to asset for the quarter was at 2.40%, down from 2.66% in Q1FY27.”

“Cost to income was at 45.2%, a YoY reduction of 160 bps.”

“Of course, in the Q3, the full effect will not be there, but the repo transmission effect will also start from Q3, and I think the full impact will be felt in Q4.”

“In terms of balance sheet, our total average deposits grew 19% YoY.”

“Our CASA [excluding FCNR(B) Deposits] stood at 41.8%, up from 40.3%.”

“Cost of funds for Q2FY27 was 4.52%, which included impact of increase in share of term deposit on account of FCNR(B) mobilization.”

“And we gave loans of INR16,100 crore, which is about 3.1% of our net advances at June 30th against FCNR(B) deposits.”

“These deposits were deployed towards funding acquisition of KMIL loan, which is about INR 8,900 crore, and net repayment of IBPC amounting to INR 9,800 crore.”

“We believe that the FCNR(B) program is a one-off opportunity. We have raised USD 5.78 billion or INR55,000 crore through the program, significantly ahead of what our deposit market share would ordinarily imply.”

“As Ashok mentioned, we mobilized INR55,344 crore in deposits, which is almost 9.7% of our June total deposit base.”

“On capital markets, the key development was the rebranding of our retail broking business as Kotak Neo, a unified customer-facing brand for retail investing, trading, and wealth management within the legal entity Kotak Securities Limited.”

“KMIL currently is in the process of repaying its liabilities, and whatever capital is left, we will deal with it over a period of time. Right? So, there is no question of -- so KMIL will not be an operating entity going forward.”

“The operating expenses grew by 14% YoY and 3% on a QoQ basis. Excluding one-time costs relating to borrowing by the Bank's international branches, total operating expense grew by 11% YoY and flat on a QoQ basis.”

“Q1 FY27 non-interest income included dividend income from subsidiaries of INR 570 crore.”

“The unsecured portfolio continues to show improvement in credit cost, and delinquencies in retail CV have stabilized.”

“While we are seeing no visible impact on delinquency as on Q2FY27, we remain very watchful of the evolving weather condition. All of us know the rainfall deficit for this monsoon season has been about 13%.”

“Custody balances remained impacted by muted FII flows, although domestic traction was good.”

“The Q2 PAT was impacted by negative MTM on capital market-linked equity investments and movement in yields on our interest-bearing debt investments.”

“There was a form of business circular issued by the Reserve Bank of India where they said that you can't do the same business in multiple legal entities. As a result of that, we have said all activities will be done in the Bank, and therefore KMIL has transferred, one-time transfer of all the assets to the Bank.”

“For the quarter, the group delivered INR5,645 crore in profit after tax, a growth of 26% YoY.”

“The Bank delivered profit after tax of INR 4,212 crore, up 29% YoY.”

“Our advances grew 25% YoY and 13% QoQ.”

“Excluding both of these, our core net advances grew 19% YoY, in line with our philosophy of growing our advances at 1.5x to 2x nominal GDP growth.”

“Bank's balance sheet grew 25% YoY, and the total balance sheet size at 30th September is now almost INR 9 lakh crore.”