Kotak Mahindra Bank Q3 Business Update: Credit Growth Outpaces Deposits, Lending Momentum Picks Up
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- Last Updated: 06 Jan 2026 at 12:21 PM IST
Kotak Mahindra Bank’s provisional business update for the third quarter of fiscal 2025-26 showed solid expansion in both lending and deposit books. Net advances for the quarter ending December 31 rose sharply, as the lender maintained its focus on retail and corporate credit segments.
Climb in Net Advances
According to the numbers released on Monday, net advances climbed 16% year-on-year to ₹4.8 lakh crores from ₹4.13 lakh crores in the same quarter a year ago. Total deposits also registered a strong gain, increasing by about 15% to ₹5.43 lakh crores over the year.
Market participants noted that the bank’s credit growth outpaced deposit growth in the December quarter, a trend that nudged the bank’s credit-to-deposit ratio higher than in the previous year. Analysts said the rise suggested robust demand for loans, even as competitive pressures and rate dynamics shaped deposit mobilisation.
CASA Growth and Funding Mix
Kotak’s current account and savings account (CASA) balances also showed healthy growth, climbing nearly 12% year-on-year to ₹2.24 lakh crores. Sequentially, CASA levels were largely flat, reflecting a broader industry trend of stable low-cost funding amid competitive deposit pricing.
Despite the modest quarter-on-quarter change in CASA, the year-on-year improvement was in line with expectations, given the sustained focus on core deposits.
Quarterly Performance and Market Reaction
The bank is yet to schedule the board meeting to officially approve and announce detailed Q3 results. Still, investors have already taken note of the provisional metrics.
On Monday, the bank’s shares finished slightly lower on the National Stock Exchange, but they have gained around 19% in the last 12 months, underscoring resilience amid a strong sectoral backdrop. Shares of Kotak Mahindra Bank closed at ₹2192.30 on Monday, slipping ₹2.80, or 0.13%, from the previous session’s close. Despite the mild decline, the stock continues to trade above its 50-day and 200-day simple moving averages of ₹2136 and ₹2103, respectively.
Equity analysts said the advance figures, especially the pace of loan growth, would be a key talking point when the bank reports full quarterly results.
Analysts’ Take on Bank’s Trajectory
Industry watchers said the results reflected Kotak Mahindra Bank’s long-term strategy of balanced growth. They feel that the bank’s advance growth outstripping deposit accumulation suggests that it is capitalising on credit demand while maintaining discipline on pricing. They added that asset quality indicators would be another focus once the full results are out.
Going ahead, the bank is expected to remain vigilant on both sides of the balance sheet. Credit growth momentum is a positive signal for net interest income prospects, while deposit trends and funding mixes will determine margin pressures. Brokers expect the bank to provide further clarity with its detailed Q3 earnings release in the coming weeks.
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