KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED)

Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021

UNAUDITED FINANCIAL RESULTS FOR THE PERIOD APRIL TO JUNE, 2009

Rs lakhs
Sr No Particulars Quarter Ended Year Ended
June-09
(Unaudited) 		June-08
(Unaudited) 		March-09
(Audited)
1 Interest earned (a+b+c+d) 106,273.13 104,190.41 436,656.34
  (a) Interest/discount on advances/bills 83,036.39 81,827.86 350,545.90
  (b) Income on investments 22,168.48 19,040.74 75,957.73
  (c) Interest on balances with RBI & other banks 221.32 1,944.09 5,621.68
  (d) Others 846.94 1,377.72 4,531.03
2 Other income (a+b) 128,252.36 44,534.31 288,261.42
  (a) Profit/(Loss) on sale of investments including revaluation (insurance business) 41,623.36 (25,547.04) (51,812.66)
  (b) Other income (see Notes 1 and 5) 86,629.00 70,081.35 340,074.08
3 Total income (1+2) 234,525.49 148,724.72 724,917.76
4 Interest expended 43,767.43 46,582.56 199,239.47
5 Operating expenses (a+b+c) 133,721.04 74,755.49 391,078.64
  (a) Payments to and provisions for employees 28,266.26 31,868.02 119,251.05
  (b) Policy holders’ reserves, surrender expense and claims 76,070.89 4,457.54 113,946.90
  (c) Other operating expenses (see Note 2 and 5) 29,383.89 38,429.93 157,880.69
6 Total expenditure (4+5) (excluding provisions and contingencies) 177,488.47 121,338.05 590,318.11
7 Operating Profit before provisions and contingencies (3-6) 57,037.02 27,386.67 134,599.65
8 Provisions (other than tax) and contingencies (see Note 3) 19,079.76 4,124.71 32,979.46
9 Exceptional items - - -
10 Profit from ordinary activities before tax (7-8-9) 37,957.26 23,261.96 101,620.19
11 Tax expense 10,699.49 9,329.78 36,352.98
12 Profit from ordinary activities after tax before Minority Interest (10 – 11) 27,257.77 13,932.18 65,267.21
13 Extraordinary items (net of tax expense) - - -
14 Profit from ordinary activities after tax before Minority Interest (12 – 13) 27,257.77 13,932.18 65,267.21
15 Less: Share of Minority Interest 28.99 (1,034.06) 372.83
16 Add: Share in Profit of associates (1,500.15) 18.67 344.25
17 Profit after tax (14-15+16) 25,728.63 14,984.91 65,238.63
18 Paid Up Equity Capital - (Face Value of Rs. 10 per share) 34,629.83 34,504.77 34,566.89
19 Group Reserves (excluding Minority Interest)     617,687.52
20 Minority Interest     6,286.02
21 Analytical Ratios      
  (i) Earnings per Share (before and after extraordinary items)      
  (a) Basic (not annualized) Rs. 7.44 4.35 18.9
  (b) Diluted (not annualized) Rs. 7.41 4.29 18.87
  (ii) NPA Ratios      
  (a) Gross NPA 108,447.80 65,398.10 83,208.43
  (b) Net NPA 66,791.12 40,520.10 45,430.59
  (c) % of Gross NPA/ Gross Advances 4.58 2.79 3.64
  (d) % of Net NPA/ Net Advances 2.87 1.75 2.02
  (e) % of Gross NPA/ Gross Advances (excluding NPAs acquired from other banks/ NBFCs) 3.41 1.15 2.44
  (f) % of Net NPA/ Net Advances (excluding NPAs acquired from other banks/ NBFCs) 2.07 0.47 1.18
  (iii) Return on Assets (average) (not annualised) 0.61 0.37 1.61

NOTES:

1. Details of other income forming part of the Consolidated unaudited results are as follows:

Rs lakhs
Particulars Quarter Ended Year Ended
June-09
(Unaudited) 		June-08
(Unaudited) 		March-09
(Audited)
Commission, fees, exchange and brokerage 29,985.33 28,913.82 103,406.75
Premium on insurance business 42,682.85 39,243.43 230,709.63
Profit on sale of investments incl. revaluation (other than insurance business) 10,353.93 3,876.55 (8,011.18)
Others 3,606.89 9,244.33 13,968.88
Total – Other income 86,629.00 70,081.35 340,074.08

2. Details of other expenditure forming part of Consolidated unaudited results are as follows:

Rs lakhs
Particulars Quarter Ended Year Ended
June-09
(Unaudited) 		June-08
(Unaudited) 		March-09
(Audited)
Brokerage 3,794.02 6,537.76 28,244.66
Depreciation 3,320.06 2,928.08 12,593.23
Rent, taxes and lighting 5,765.39 5,158.69 22,085.27
Others 16,504.42 23,805.40 94,957.53
Total – Other operating expenses 29,383.89 38,429.93 157,880.69

3. Provisions and contingencies are net of recoveries made against accounts which have been written off as bad in the previous year/s.

4. The consolidated financial results are prepared in accordance with Accounting Standard – 21, “Consolidated Financial Statements “ and ( AS ) - 23 “ Accounting for investment in associates in consolidated financial statement “ issued by The Institute of Chartered Accountants of India.

5. Other income in the consolidated results for the reporting periods is net of sub-brokerage paid in the broking subsidiary amounting to Rs. 1,520.76 lakhs for the quarter ended 30th June, 2009 (Rs. 1,089.68 lakhs for the quarter ended 30th June, 2008), for year ended 31st March, 2009 Rs. 3,772.46 lakhs.

6. Figures for the previous period/ year have been regrouped wherever necessary to conform to current period / year presentation.

KOTAK MAHINDRA BANK LIMITED (STANDALONE)

Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021

Unaudited Financial result for the period ended 30 June 2009

Rs lakhs
Sr No Particulars Quarter Ended Year Ended
Jun-09
(Unaudited) 		Jun-08
(Unaudited) 		Mar-09
(Audited)
1 Interest earned (a+b+c+d) 76,730.23 71,246.77 306,514.40
  (a) Interest/ discount on advances/ bills 60,973.56 56,444.10 249,372.58
  (b) Income on investments 15,718.70 14,511.02 55,840.38
  (c) Interest on balances with RBI & other banks 20.42 250.08 1,172.35
  (d) Others 17.55 41.57 129.09
2 Other income 12,692.90 8,312.61 35,786.26
3 Total income (1+2) 89,423.13 79,559.38 342,300.66
4 Interest expended 35,832.13 36,000.07 154,659.75
5 Operating expenses (a+b) 25,161.63 31,200.96 119,642.29
  (a) Payments to and provisions for employees 12,120.11 15,206.21 55,683.48
  (b) Other Operating expenses 13,041.52 15,994.75 63,958.81
6 Total expenditure before provisions & contingencies (4+5) 60,993.76 67,201.03 274,302.04
7 Operating Profit (3-6) 28,429.37 12,358.35 67,998.62
8 Other provisions & contingencies (See Note 1) 15,741.72 4,169.85 25,392.88
9 Exceptional items - - -
10 Profit / Loss from ordinary activities before tax (7-8-9) 12,687.65 8,188.50 42,605.74
11 Provision for taxes 3,656.54 2,735.34 14,996.02
12 Net Profit / Loss from Ordinary Activities after tax (10-11) 9,031.11 5,453.16 27,609.72
13 Extraordinary items (net of tax expense) - - -
14 Net Profit / Loss for the Period (12-13) 9,031.11 5,453.16 27,609.72
15 Paid Up Equity Capital - (Face Value Rs. 10 per share) 34,629.83 34,504.77 34,566.89
16 Reserves excluding revaluation reserves     346,794.90
17 Analytical Ratios      
  (i) % of shares held by Govt. of India - - -
  (ii) % Capital adequacy ratio (See Note 3) 18.57 18.58 20.01
  (iii) Earnings Per Share (EPS) for the period      
  - Basic Rs. 2.61 1.58 8
- Diluted Rs. 2.6 1.56 7.99
  (iv) NPA Ratios      
  (a) Gross NPA 86,996.71 52,659.43 73,071.09
  (b) Net NPA 52,910.20 31,637.34 39,684.20
  (c) % of Gross NPA to Gross Advances 4.95 3.17 4.31
  (d) % of Net NPA to net Advances 3.07 1.93 2.39
  (e) % of Gross NPA to Gross Advances (excluding NPAs acquired from other banks and NBFCs) 3.38 1.34 2.7
  (f) % of Net NPA to net Advances (excluding NPAs acquired from other banks and NBFCs) 1.98 0.57 1.26
  (g) Return on Assets %(average) - Not Annualized 0.3 0.21 1.03
18 Public Shareholding      
  (i) No. of shares 178,445,597 161,642,329 164,556,059
  (ii) % of shareholding 51.54 46.85 47.62
19 Promoters and promoter group shareholding      
  a) Pledged/encumbered      
  - Number of shares 50,000   50,000
  - Percentage of shares (as a % of the total shareholding of promoter and promoter group) 0.03%   0.03%
  - Percentage of shares (as a% of the total share capital of the company) 0.01%   0.01%
  b) Non-encumbered      
  - Number of shares 167,793,544   181,053,669
  - Percentage of shares (as a% of the total shareholding of promoter and promoter group) 99.97%   99.97%
  - Percentage of shares (as a % of the total share capital of the company) 48.45%   52.38%

Segment Results

The reportable segments of the bank are as under:

Segment Principal activity
Treasury and BMU Money market, forex market, derivatives, investments and primary dealership of government securities and Balance Sheet Management Unit (BMU) responsible for Asset Liability Management.
Retail Banking Includes lending, deposit taking and other services/ products including credit cards.
Corporate/Wholesale Banking Wholesale borrowings and lendings and other related services to the corporate sector which are not included under retail banking.
Rs lakhs
Sr No Particulars Quarter Ended Year Ended
30th June, 2009
(Unaudited)		 30th June, 2008
(Unaudited)		 31st March, 2009
(Audited)
1 Segment Revenue      
  a. Treasury and BMU 25,272.74 18,310.81 91,744.55
  b. Corporate/ Wholesale Banking 22,658.08 24,225.83 88,793.21
  c. Retail Banking 67,390.57 62,755.65 275,219.05
  Sub-total 115,321.39 105,292.29 455,756.81
  Less : Inter-segmental revenue 25,898.26 25,732.91 113,471.09
  Add : Unallocated Income - - 14.94
  Total 89,423.13 79,559.38 342,300.66
2 Segment Results      
  a. Treasury and BMU 8,852.67 275.58 12,928.58
  b. Corporate/ Wholesale Banking 5,698.61 7,021.70 22,534.32
  c. Retail Banking (1,863.63) 891.22 7,127.90
  Sub-total 12,687.65 8,188.50 42,590.80
  Add : Unallocated Income - - 14.94
  Total Profit Before Tax 12,687.65 8,188.50 42,605.74
3 Capital employed (Segmental Assets less Segmental Liabilities)      
  a. Treasury and BMU 147,730.22 128,259.35 124,493.33
  b. Corporate/ Wholesale Banking 86,502.28 84,869.46 98,696.41
  c. Retail Banking 153,683.43 142,564.11 152,686.44
  d. Unallocated 5,619.29 4,348.22 5,485.61
  Sub-total 393,535.22 360,041.14 381,361.79

Notes

1. Provisions and contingencies are net of recoveries made against accounts which have been written off as bad in the previous period/ year.

2. Stock options aggregating to 6.29 lakhs were exercised by the employees during the quarter and 110.35 lakhs stock options were outstanding with employees of the Bank and its subsidiaries as at 30th June, 2009.

3. The Bank has adopted Basel II framework as of 31st March 2009. Accordingly the Capital Adequacy Ratio (CAR) as at 30th June, 2009 and as at 31st March, 2009 is as per Basel II framework and as at 30th June, 2008 is as per the Basel I framework.

4. The Bank had no outstanding shareholder complaints as at 31st March, 2009. During the quarter the Bank received 12 complaints from shareholders. All shareholder complaints have been resolved and there are no pending complaints as at 30th June, 2009.

5. Figures for the previous period/year have been regrouped wherever necessary to conform to current period / year presentation.

6. There has been no change in significant accounting policies during the quarter.

7. The results for the quarter ended 30th June 2009 have been subjected to a “limited review” by the statutory auditors of the bank.

 

By order of the Board of Directors
 

For Kotak Mahindra Bank Limited
   
   
 

Dipak Gupta

Mumbai, 28 th July, 2009

Executive Director