Kotak Mahindra Bank is likely to report significant year-on-year growth in net profit for Q2FY27, with brokerages estimating profit after tax to rise between 27% and 31.9%. According to reports from The Economic Times, Motilal Oswal Financial Services (MOFSL) expects PAT to grow 31.9% YoY to ₹4,290 crore, while ICICI Securities and Dolat Capital project growth of 31.7% and 27% respectively. The strong profit growth is driven by robust net interest income expansion and healthy balance sheet growth.
Net interest income growth is expected to remain strong in Q2FY27, with estimates pointing to growth of 11.8-15% YoY. As reported by The Economic Times, ICICI Securities expects NII at ₹8,171.8 crore, an increase of 11.8% YoY and 3.1% quarter-on-quarter. Dolat Capital has the highest estimate at ₹8,370 crore, representing growth of 15% YoY and 6% sequentially. The continued growth in interest income demonstrates the bank's ability to maintain pricing power and expand its loan portfolio effectively.
Net interest margins are expected to face pressure from foreign currency non-resident (bank) deposit inflows, with MOFSL projecting NIMs to decline by 10 basis points QoQ to 4.43%. According to The Economic Times, MOFSL expects the changing funding mix to weigh on margins even as loan and deposit growth remain healthy. In contrast, ICICI Securities expects NIMs to remain unchanged sequentially at 4.53%, compared with 4.54% in Q2FY26 and 4.53% in Q1FY27. The divergence in estimates highlights uncertainty around near-term margin trajectory, with investors seeking clarity on deposit pricing and funding costs.
Loan and deposit growth are expected to remain healthy in Q2FY27, with MOFSL projecting advances to grow 7.9% QoQ and deposits to rise 8.4% sequentially. As reported by The Economic Times, ICICI Securities estimates advances at ₹5,55,225.1 crore, up 8.4% QoQ and 20% YoY. The expected expansion in advances and deposits points to healthy balance sheet growth, though the contribution of FCNR(B) inflows to deposit mobilisation will be important in assessing sustainability. Management commentary on the outlook for loan and deposit growth will be closely watched.
Operating profitability is expected to remain strong with pre-provision operating profit growth estimates ranging from 18% to 20.7%. According to The Economic Times, MOFSL expects PPoP at ₹6,360 crore, representing growth of 20.7% YoY. Credit costs are expected to decline marginally QoQ as the seasonal impact of the first quarter wears off, with ICICI Securities expecting slippages to rise 2.2% QoQ to ₹1,350 crore in Q2FY27. The expected moderation in credit costs could support earnings, though movement in fresh slippages will remain important in assessing asset quality sustainability.
