Private sector lender Kotak Mahindra Bank on Saturday reported a 26 per cent year-on-year (y-o-y) rise in standalone net profit to ₹4,123 crore for the quarter ended June 30, driven by healthy growth in net interest income (NII) and lower credit costs, even as net interest margins came under pressure.On a consolidated basis, net profit increased 22.6 per cent to ₹5,480.46 crore from ₹4,472.18 crore in the year-ago quarter.The bank's net interest income, the difference between interest earned and interest expended, rose 9.2 per cent y-o-y to ₹7,928 crore from ₹7,259 crore a year earlier. Other income increased 8.4 per cent to ₹3,338 crore.However, the net interest margin (NIM) narrowed to 4.53 per cent during the quarter from 4.65 per cent a year ago and 4.67 per cent in the March quarter, reflecting the impact of the easing interest rate environment."In the current environment, we have prioritised stability, profitability and efficiency without any compromise to our overarching strategy around the four focus customer segments," said Ashok Vaswani, Managing Director and CEO of Kotak Mahindra Bank."We've calibrated growth in the low-ROE businesses and businesses potentially affected by the geopolitical crisis. At the same time, we have taken advantage of better spreads in the corporate segment and volatility in the treasury markets," he said.The bank's total deposits grew 14 per cent y-o-y to ₹5.72 lakh crore from ₹5.02 lakh crore a year earlier, while current account deposits increased 15 per cent to ₹78,107 crore.Advances rose 15 per cent to ₹5.27 lakh crore from ₹4.59 lakh crore in the corresponding quarter last year.Asset quality improved marginally during the quarter, with the gross non-performing asset (GNPA) ratio easing to 1.18 per cent from 1.20 per cent in the preceding quarter.Fee and services income increased 11 per cent y-o-y to ₹2,500 crore from ₹2,249 crore, although it declined sequentially.Credit cost stood at 46 basis points during the quarter compared with 39 basis points in the March quarter, largely due to the commercial vehicle and tractor finance portfolio.The bank also said its proposed acquisition of Deutsche Bank's retail banking, private banking and wealth management businesses in India is a strong strategic fit with Kotak's affluent and SME franchise. It expects the transaction to be return-on-equity accretive and create additional cross-selling opportunities.Published on July 18, 2026