Summary:
Kotak Mahindra Bank reported strong Q2 FY27 business growth, with net advances rising 24.7% and total deposits increasing 23.2% year-on-year. CASA deposits grew 11.3%, while shares gained nearly 4% after the update as investors awaited detailed quarterly financial results.
Kotak Mahindra Bank Ltd reported strong balance-sheet growth in its provisional Q2FY27 business update, with net advances rising 24.7% YoY to ₹5,77,094 Crore as of September 30, 2026. Total deposits increased 23.2% YoY to ₹6,51,491 Crore, while CASA deposits grew 11.3%.
The update, released after market hours on October 5, also showed a sharp sequential improvement in both loans and deposits, putting the bank’s growth trajectory in focus ahead of its detailed Q2FY27 financial results.
Net Advances Jump 24.7% YoY
Kotak Mahindra Bank’s period-end net advances increased to ₹5,77,094 Crore, compared with ₹4,62,688 Crore in Q2FY26.
Sequentially, advances rose 12.7% QoQ from ₹5,12,249 Crore as of June 30, 2026. Average net advances stood at ₹5,46,963 Crore, up 22.1% YoY and 10.5% QoQ.
The loan growth marks a noticeable acceleration compared with Q2FY26, when the bank had reported net advances of ₹4,62,688 Crore, representing growth of about 16% YoY at that time.
Q2FY27 Business Update
| Particulars | Sep 30, 2026 | YoY Growth | QoQ Growth |
| Net Advances | ₹5,77,094 Crore | +24.7% | +12.7% |
| Average Net Advances | ₹5,46,963 Crore | +22.1% | +10.5% |
| Total Deposits | ₹6,51,491 Crore | +23.2% | +13.7% |
| Average Deposits | ₹6,06,234 Crore | +18.8% | +8.5% |
| CASA Deposits | ₹2,49,105 Crore | +11.3% | +7.8% |
Deposits Keep Pace With Loan Growth
Deposit mobilisation also remained strong during the quarter.
Total period-end deposits climbed 23.2% YoY to ₹6,51,491 Crore, compared with ₹5,28,776 Crore as of September 30, 2025. Deposits increased 13.7% QoQ from ₹5,72,820 Crore at the end of June 2026.
Average total deposits stood at ₹6,06,234 Crore, up 18.8% YoY and 8.5% QoQ.
CASA deposits, comprising current account and savings account balances, reached ₹2,49,105 Crore, rising 11.3% YoY from ₹2,23,791 Crore. Average CASA deposits increased 14.2% YoY to ₹2,26,469 Crore.
The relatively faster growth in total deposits compared with CASA indicates that the composition of deposit growth will be important when the bank reports its detailed margins and funding costs.
FCNR(B) Deposits Boost Period-End Balances
The September quarter numbers also include deposits raised under the Reserve Bank of India’s FCNR(B) swap facility.
Kotak Mahindra Bank said period-end deposits included $5.78 bn, equivalent to approximately ₹55,344 Crore, of FCNR(B) deposits.
Against these deposits, the bank’s international branches had advances of $1.68 bn, or roughly ₹16,110 Crore, as of September 30, 2026.
The bank clarified that the Q2FY27 business figures are provisional and remain subject to limited review by its statutory auditors.
Shares Rise Nearly 4% After Business Update
Kotak Mahindra Bank shares reacted positively to the provisional numbers on October 6.
The stock rose nearly 4% in early trade to around ₹432.60 on the NSE, after closing at ₹416 in the previous session. It had touched around ₹431-₹434 during morning trade across exchanges.
The detailed Q2FY27 results will provide further clarity on net interest income, NIM, asset quality, credit costs and profitability. In Q2FY26, the bank had reported standalone NII of ₹7,311 Crore, NIM of 4.54%, GNPA of 1.39% and NNPA of 0.32%.
For now, the provisional update shows strong expansion on both sides of the balance sheet, with loan growth broadly accompanied by deposit mobilisation. The sustainability of this pace and its impact on margins will be key numbers to track when the full quarterly results are announced.
