Bank’s net interest income (NII) grew 8.1% YoY to ₹7,876 crore from ₹7,284 crore, reflecting stable core lending growth during the quarter.
The company’s asset quality improved sequentially, with gross non-performing assets (NPA) easing to 1.20% from 1.30% in the previous quarter, while net NPA declined to 0.25% from 0.31% QoQ, according to its exchange filing.
However, margins remained under pressure. Net interest margin (NIM) stood at 4.67% in Q4, lower than 4.97% a year ago, though higher than 4.54% in the December quarter. For the full year FY26, NIM came in at 4.60%, compared with 4.96% in FY25.
Funding costs moderated during the period, with cost of funds declining to 4.45% from 5.09% YoY and 4.54% QoQ. On a full-year basis, cost of funds stood at 4.67% in FY26, down from 5.10% in FY25.
Provisioning also saw a sharp decline, coming in at ₹516.4 crore for the quarter, compared with ₹809.6 crore in Q3 and ₹909.4 crore in the year-ago period, supporting the bank’s bottom line.
The bank’s board has recommended a dividend of ₹0.65 per equity share of face value ₹1 for FY26, subject to shareholder approval at the upcoming annual general meeting. The record date and payout timeline will be announced in due course, stated the bank.
During the year, the bank also accounted for regulatory changes following the government’s rollout of the new labour codes. It recognised an incremental provision of ₹125.75 crore for FY26 under employee costs, based on actuarial estimates, the filing noted.
In a key transaction, the bank’s wholly owned subsidiary, Kotak Mahindra Capital Company, divested a 30.99% stake in Infina Finance for ₹1,293.91 crore on March 24, 2026. The deal resulted in a pre-tax gain of ₹367.79 crore, which has been classified as an exceptional item in the consolidated results, as per the filing. Following the stake sale, Infina ceased to be an associate of the bank.
Shares of Kotak Mahindra Bank ended marginally higher on Thursday, April 30, by 0.46% at ₹383.75 on the NSE.
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