Kotak Mahindra Bank Q2 FY27: Loan Growth Hits 24.7% Even as Stock Slips to Rs 416
Kotak Mahindra Bank has entered the second quarter results season with strong growth in both advances and deposits. The numbers suggest that credit demand and the bank’s funding base continued to expand through September.
The key question for investors now is whether this strong balance-sheet growth can translate into better earnings and support the stock in the coming quarters.
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Kotak Mahindra Bank Q2 FY27 advances rise sharply in September
According to an exchange filing dated October 5, Kotak Mahindra Bank’s net advances rose 24.7% year-on-year to ₹5.77 lakh crore as of September 30, 2026.
Growth was also strong on a sequential basis. Net advances increased 12.7% quarter-on-quarter from ₹5.12 lakh crore at the end of June.
Average net advances stood at ₹5.47 lakh crore, registering growth of 22.1% YoY and 10.5% QoQ.
The numbers point to continued momentum in lending, an important indicator for the bank’s future interest income.
Kotak Mahindra Bank Q2 FY27: Key Highlights
| Particular | September 30, 2026 | YoY growth | QoQ growth |
|---|---|---|---|
| Net advances | ₹5.77 lakh crore | 24.7% | 12.7% |
| Average net advances | ₹5.47 lakh crore | 22.1% | 10.5% |
| Total deposits | ₹6.51 lakh crore | 23.2% | 13.7% |
| Average deposits | ₹6.06 lakh crore | 18.8% | 8.5% |
| CASA deposits | ₹2.49 lakh crore | 11.3% | 7.8% |
| Average CASA | ₹2.26 lakh crore | 14.2% | 4.4% |
The bank’s net advances reached ₹5,77,094 crore, compared with ₹4,62,688 crore a year earlier and ₹5,12,249 crore at the end of June 2026. Total deposits rose to ₹6,51,491 crore, from ₹5,28,776 crore a year earlier and ₹5,72,820 crore in the previous quarter.
Quarter-on-Quarter (QoQ) Growth Breakdown
Kotak Mahindra Bank delivered strong sequential growth across advances, deposits and CASA during the September 2026 quarter.
- Net Advances: End-of-period net advances increased 12.7% QoQ to ₹5.77 lakh crore, compared with ₹5.12 lakh crore at the end of June 2026. Average net advances stood at ₹5.47 lakh crore, up 10.5% QoQ and 22.1% YoY.
- Total Deposits: Deposits rose 13.7% QoQ to ₹6.51 lakh crore, compared with ₹5.73 lakh crore in the previous quarter. Average deposits increased 8.5% QoQ and 18.8% YoY to ₹6.06 lakh crore.
- CASA Deposits: CASA deposits increased 7.8% QoQ to ₹2.49 lakh crore, from ₹2.31 lakh crore in June, while YoY growth stood at 11.3%. Average CASA increased 4.4% QoQ and 14.2% YoY to ₹2.26 lakh crore.
What the Q2 numbers indicate
The business update points to strong credit growth and deposit mobilisation during the September quarter. Net advances grew faster than deposits on a year-on-year basis, while the sequential increase in both advances and deposits was also substantial.
CASA deposits, which are important because they generally represent lower-cost funding for banks, increased 11.3% YoY to ₹2.49 lakh crore. Average CASA grew faster at 14.2% YoY to ₹2.26 lakh crore.
Deposits also show strong growth for Kotak Bank
Kotak Mahindra Bank’s total deposits reached ₹6.51 lakh crore at the end of September.
That represents a 23.2% YoY increase and a 13.7% rise from the previous quarter. Average deposits also increased 18.8% YoY and 8.5% QoQ to ₹6.06 lakh crore.
The strong deposit growth is significant because banks need a stable funding base to support sustained credit expansion.
CASA growth gives investors another positive signal
The bank’s CASA deposits stood at ₹2.49 lakh crore at the end of September, rising 11.3% YoY and 7.8% QoQ.
Average CASA increased 14.2% YoY and 4.4% QoQ to ₹2.26 lakh crore.
While CASA growth was slower than overall deposit growth, the increase still provides an important indicator of the bank’s deposit franchise and funding profile.
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FCNR deposits and overseas advances add to the picture
Kotak Mahindra Bank said September 30 balances included FCNR(B) deposits of $5.78 billion, equivalent to around ₹55,344 crore, under the Reserve Bank of India’s swap facility.
The bank’s international branches held advances of $1.68 billion, or approximately ₹16,110 crore, against these deposits.
The figures highlight the contribution of the bank’s international operations to its overall balance sheet.
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Kotak Mahindra Bank Q2 FY27: Business Update and Key Expectations
Kotak Mahindra Bank’s provisional Q2 FY27 business update showed strong balance-sheet expansion. Net advances increased 24.7% YoY to ₹5.77 lakh crore, while total deposits rose 23.2% YoY to ₹6.51 lakh crore as of September 30, 2026. The figures are provisional and subject to limited review by the statutory auditors.
Q2 FY27 Business Update Highlights
- Net advances: ₹5,77,094 crore, up 24.7% YoY and 12.7% QoQ.
- Average net advances: ₹5.47 lakh crore, up 22.1% YoY and 10.5% QoQ.
- Total deposits: ₹6,51,491 crore, up 23.2% YoY and 13.7% QoQ.
- Average deposits: ₹6.06 lakh crore, up 18.8% YoY and 8.5% QoQ.
- CASA deposits: ₹2,49,105 crore, up 11.3% YoY and 7.8% QoQ.
- Average CASA: ₹2.26 lakh crore, up 14.2% YoY and 4.4% QoQ.
- FCNR(B) deposits: $5.78 billion, or approximately ₹55,344 crore, mobilised under the RBI swap facility.
Overall Q2 FY27 Expectation
The business update is clearly strong, but the earnings outcome will depend on margins and credit costs.
| Q2 factor | Investor expectation |
|---|---|
| Loan growth | Strong/positive |
| Deposit growth | Strong/positive |
| CASA growth | Positive, but slower than total deposits |
| NII | Expected to benefit from loan growth |
| NIM | Key risk/watch point |
| Credit costs | Potential moderation |
| Asset quality | Expected to remain broadly stable |
| PAT | Growth supported by business expansion and provisions |
| Management outlook | Critical for stock reaction |
What Kotak Mahindra Bank investors should watch next
The strong Kotak Mahindra Bank Q2 update gives investors an encouraging starting point ahead of the earnings announcement.
However, the market will want to see whether rapid loan growth remains profitable and sustainable. Investors should closely track net interest margin, credit costs, asset quality, CASA trends and loan growth in the upcoming results.
Kotak Mahindra Bank also cautioned that the September 30 figures are provisional and subject to limited review by its statutory auditors. That means investors should treat the latest numbers as an initial business update rather than the bank’s final quarterly financial performance.
