Kotak Mahindra Bank’s net interest margin fell to 4.31 per cent in Q2 FY27 from 4.53 per cent in the previous quarter, with FCNR(B) deposits and related advances accounting for around 15 bps of the decline. The bank expects the full-quarter FCNR impact in Q3, while deployment of the Rs 55,344 crore FCNR pool and repricing of repo-linked loans could support margins.