Kotak Mahindra Bank on Saturday reported a 3 per cent drop in standalone net profit for Q2FY26 on the back of higher provisions.

The bank’s net profit during the quarter was ₹3253 crore compared to ₹3344 crore in Q2FY25. Net interest income during the quarter was ₹7311 crore, up 4 per cent from ₹7020 crore in Q2FY25. Net interest margin (NIM) during the quarter was at 4.54 per cent compared to 4.91 per cent in Q2FY25.

On the asset quality side, gross NPA ratio stood at 1.39 per cent, a marginal improvement from 1.49 per cent in Q2FY25. However, the bank saw an increase in write-offs during the quarter at ₹1099 crore compared to ₹638 crore in Q2FY25, even as recoveries remained stable.

Provisions and contingencies during the quarter saw a 43 per cent rise to ₹947 crore compared to ₹660 crore in Q2FY25, as per investor disclosures.

“We expect the benefit of repricing of deposits to reflect in the NIM over the next two quarters, assuming no further rate cuts,” Ashok Vaswani, MD and CEO, Kotak Mahindra Bank, told analysts at the earnings call of the bank.

At the consolidated level, the Kotak Group’s net profit during Q2FY26 was ₹4468 crore, down 11 per cent from ₹5044 crore in Q2FY25.