Kotak Mahindra Bank: advances up 16%, deposits 15%

Why Kotak’s latest balance-sheet update matters

Kotak Mahindra Bank has reported sustained mid-teens growth in its loan book and deposits across multiple provisional business updates released over recent quarters. The bank’s net advances growth has been described as driven mainly by retail and corporate lending, alongside a steady rise in deposits. For investors, these data points help frame the pace of balance-sheet expansion, funding mix trends such as CASA growth, and early signals on asset-quality metrics like provisions and gross NPAs.

The figures span different reporting dates, including updates as of March 31 and the quarter ended September 30, 2025, along with additional disclosures for June 30, 2025 and Dec. 31, 2025. Taken together, they indicate consistent momentum in advances and deposits, while some credit-cost and profit-related indicators remain in focus.

Provisional numbers as of March 31: advances and deposits rise

As of March 31, Kotak Mahindra Bank’s net advances rose 16.2% year-on-year to INR 4.96 trillion, based on provisional figures released by the bank. On a sequential basis, net advances increased 3.2% from INR 4.81 trillion at the end of Dec. 31.

On the liabilities side, total deposits were INR 5.73 trillion as of March 31. This represented a 14.7% year-on-year rise and a 5.5% quarter-on-quarter increase. The deposit growth is important because it supports loan expansion without over-reliance on higher-cost wholesale funding.

CASA growth stands out in the March-quarter snapshot

Within deposits, current account savings account (CASA) deposits rose 15.5% year-on-year to INR 2.48 trillion as of March 31. Sequentially, CASA deposits were up 10.5%. A rising CASA base generally supports funding stability, since CASA balances tend to be a relatively lower-cost and stickier source of funds compared with term deposits.

The data in the update did not provide a CASA ratio for March 31, but it did show that CASA growth outpaced total deposit growth on a quarter-on-quarter basis.

Asset quality indicators: provisions and gross NPAs

The March 31 provisional update also included credit-cost and asset-quality datapoints. Credit provisions on advances and receivables, net, rose 3% year-on-year to INR 0.00817 trillion (Rs 817 crore). Gross non-performing assets stood at INR 0.06320 trillion (Rs 6,320 crore), compared with INR 0.06266 trillion (Rs 6,266 crore) a year earlier.

While the gross NPA number was broadly stable year-on-year, provisions moving up is a metric investors typically track alongside loan growth, particularly when the mix of lending shifts.

September 30, 2025 quarter: another mid-teens growth print

In a separate set of provisional numbers for the quarter ended September 30, 2025, Kotak reported net advances of INR 4.62552 trillion, up 15.8% year-on-year. Sequentially, net advances were up 4% from INR 4.44 trillion.

Total deposits for the same period were INR 5.28776 trillion, up 14.6% year-on-year from INR 4.61454 trillion. On a sequential basis, the bank reported a 3.1% rise from INR 5.12 trillion.

CASA deposits in that quarter were INR 2.23791 trillion, up 11.2% year-on-year and 6.7% quarter-on-quarter. The disclosure also mentioned a CASA ratio of 42.3%.

June 30, 2025 update: 14% YoY advances growth

For the period ending June 30, 2025, the bank reported standalone net advances of INR 4.44823 trillion, up 14% year-on-year from INR 3.89957 trillion. In the same set of disclosures, total deposits were stated at INR 5.12838 trillion for Q1 FY26, up 15% year-on-year.

The bank also disclosed that average total deposits for Q1 FY26 were INR 4.91998 trillion, up 13% year-on-year from INR 4.35603 trillion. Additional business scale indicators included total customer assets (consolidated) of INR 5.57369 trillion (up 13% year-on-year) and total assets under management of INR 7.50143 trillion (up 18% year-on-year).

December 31, 2025 snapshot: outstanding advances and deposits

Another data point in the provided information indicated that outstanding deposits were INR 5.42638 trillion as of Dec. 31, 2025, up from INR 4.73497 trillion a year earlier. Outstanding advances, net, were INR 4.80673 trillion, up 16% year-on-year.

These figures add to the broader picture of sustained balance-sheet growth through FY26, with sequential and year-on-year growth trends appearing consistent across disclosures.

Profit, margins, and other operating indicators mentioned

Beyond balance-sheet growth, the material also referenced profitability and margin indicators around the June-quarter earnings cycle. A Bloomberg poll was cited indicating the bank was likely to report standalone net profit of INR 0.0349676 trillion (Rs 3,496.76 crore), down 44% year-on-year.

In the same context, net interest margin was stated at 4.65%, with the decline attributed to a repo rate cut. The bank also disclosed that the share of unsecured advances reduced from 11.6% to 9.7% during the year, as underwriting was tightened for unsecured business. It also mentioned current account and fixed deposit growth of 16% and 9% year-on-year, respectively.

Key figures table (provisional disclosures)

Market impact: what investors typically track from these updates

For the market, the core takeaway from the provisional data is the bank’s ability to grow advances and deposits in the mid-teens range across multiple quarters. The fact that CASA also grew year-on-year in the cited periods, along with a disclosed CASA ratio of 42.3% for the September 2025 quarter, provides an additional lens on funding quality.

At the same time, the references to provisions, gross NPAs, net interest margin (4.65%), and expected profit movement (per the Bloomberg poll) highlight why investors tend to read business updates alongside earnings commentary. Growth in advances is often assessed against credit cost trends and changes in mix, including the disclosed reduction in unsecured advances share from 11.6% to 9.7%.

Analysis: linking loan growth, funding, and risk signals

Across the disclosed periods, Kotak’s loan growth appears to be supported by deposit expansion, rather than lagging it. That matters because deposit growth influences liquidity and the ability to maintain margins, particularly when interest rates shift.

Another important thread is mix and risk management. The bank’s statement that it tightened underwriting for unsecured lending, and reduced unsecured advances share to 9.7%, is relevant when evaluating whether rapid growth is being pursued with conservative risk filters. The March 31 figures showing gross NPAs close to the prior year level, alongside a 3% rise in credit provisions to INR 0.00817 trillion, provide additional context for how asset quality is trending.

Conclusion: steady balance-sheet growth, earnings in focus

Kotak Mahindra Bank’s provisional updates show net advances rising around 14% to 16% year-on-year across recent periods, with deposits up about 15% and CASA balances also expanding. The March 31 snapshot also pointed to higher provisions and broadly stable gross NPAs compared with the prior year.

The next key datapoints for investors will come from the bank’s detailed quarterly results and management commentary, including clarity on margins, provisioning trajectory, and the sustainability of retail and corporate-led advances growth.