KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED)
Registered Office: 36-38A, Nariman
Bhavan, 227, Nariman Point, Mumbai 400 021
UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER AND HALF YEAR ENDED SEPTEMBER 2006
| Sr
No |
Particulars |
Quarter Ended |
Half Year Ended |
Year Ended |
| Sep-06
(Unaudited) |
Sep-05
(Unaudited) |
Sep-06
(Unaudited) |
Sep-05
(Unaudited) |
Mar-06
(Audited) |
| 1 |
Interest earned (a+b+c+d) |
43,373.51 |
28,288.18 |
83,134.63 |
52,684.67 |
118,447.68 |
| |
(a)
Interest/discount on advances/bills |
32,980.09 |
21,771.66 |
62,767.92 |
40,675.82 |
90,969.30 |
| |
(b)
Income on investments |
8,675.96 |
5,499.50 |
16,393.78 |
10,409.55 |
22,951.23 |
| |
(c)
Interest on balances with RBI & other banks |
1,215.34 |
386.48 |
1,997.02 |
667.85 |
2,004.06 |
| |
(d)
Others |
502.12 |
630.54 |
1,975.91 |
931.45 |
2,523.09 |
| 2 |
(a) Other income (other than
non recurring) (see Note 2 and 7) |
46,976.23 |
33,701.76 |
84,873.53 |
54,856.52 |
166,963.72 |
| |
(b) Other Income (non recurring) |
- |
- |
- |
- |
12,659.41 |
| 3 |
Total income (1+2) |
90,349.74 |
61,989.94 |
168,008.16 |
107,541.19 |
298,070.81 |
| 4 |
Interest expended |
21,372.84 |
11,962.19
|
40,131.83 |
22,667.89
|
51,956.74 |
| 5 |
Operating expenses (a+b) |
53,570.09 |
32,535.55 |
92,670.82 |
58,007.04
|
166,707.30 |
| |
(a)
Payments to and Provisions for employees (see Note 6) |
14,473.02 |
10,272.42 |
29,924.13 |
18,576.59 |
43,845.13 |
| |
(b)
Other operating expenses (see Note 3) |
39,097.07 |
22,263.13 |
62,746.69 |
39,430.45 |
122,862.17 |
| 6 |
Total expenditure (4+5) |
74,942.93 |
44,497.74 |
132,802.65 |
80,674.93 |
218,664.04 |
| |
|
|
|
|
|
|
| 7 |
Operating Profit (3-6) |
15,406.81 |
17,492.20 |
35,205.51 |
26,866.26 |
79,406.77 |
| 8 |
Other
provisions & contingencies (see Note 1) |
2,072.46 |
2,365.69 |
4,349.96 |
3,076.04 |
5,124.15 |
| 9 |
(a) Profit before tax (before non
recurring income) (7-8-2b) |
13,334.35 |
15,126.51 |
30,855.55 |
23,790.22 |
61,623.21 |
| |
(b) Profit before tax (non
recurring income) |
- |
- |
- |
- |
12,659.41 |
| 10 |
Provision
for taxes (see Note 8) |
4,843.14 |
5,406.59 |
11,122.89 |
8,746.08 |
21,300.19 |
| 11 |
(a) Profit after tax before Minority
Interest (before non recurring)
(9a – 10) |
8,491.21 |
9,719.92 |
19,732.66 |
15,044.14 |
40,323.02 |
| |
(b) Profit after tax before Minority
Interest (non recurring) |
- |
- |
- |
- |
12,659.41 |
| 12 |
(a)
Less: Share of Minority Interest (other than non recurring) |
(439.51) |
1,354.58 |
786.43 |
2,043.73 |
6,302.09 |
| |
(b)
Less: Share of Minority Interest (non recurring) |
- |
- |
- |
- |
3,166.12 |
| 13 |
a)
Add: Share in Profit of associates (other than non recurring) |
459.38 |
(29.21) |
887.24 |
(16.86) |
225.01 |
| |
(b)
Add: Share in Profit of associates (non recurring) |
- |
- |
-
- |
- |
29,235.67 |
| 14 |
Consolidated Profit after tax attributable
to the Group (other than non recurring) (11a-12a+13a) |
9,390.10 |
8,336.13 |
19,833.47 |
12,983.55 |
34,245.94 |
| 15 |
Consolidated Profit after tax attributable
to the Group ( non recurring) (11b-12b+13b) |
- |
- |
- |
- |
38,728.96 |
| 16 |
Consolidated Profit after tax attributable
to the Group ( including non recurring) (14+15) |
9,390.10 |
8,336.13 |
19,833.47 |
12,983.55 |
72,974.90 |
| |
|
|
|
|
|
|
| 17 |
Paid
Up Equity Capital - (Face Value of Rs. 10 per share) |
32,504.63 |
30,835.88 |
32,504.63 |
30,835.88 |
30,929.46 |
| 18 |
Group
Reserves (excluding Minority Interest) |
|
|
|
|
193,781.29 |
| 19 |
Minority
Interest |
|
|
|
|
27,086.50 |
| 20 |
Analytical Ratios |
|
|
|
|
|
| |
(i)
Earnings per Share Basic Rs. |
|
|
|
|
|
| |
Before
non recurring income |
2.89 |
2.70 |
6.15 |
4.21 |
11.09 |
| |
Non
recurring income |
- |
- |
- |
- |
12.55 |
| |
Earnings per Share Basic Rs. (Total) |
2.89 |
2.70 |
6.15 |
4.21 |
23.64 |
| |
(ii)
Earnings per Share Diluted Rs. |
|
|
|
|
|
| |
Before
non recurring income |
2.86 |
2.69 |
6.08 |
4.20 |
11.01 |
| |
Non
recurring income |
- |
- |
- |
- |
12.46 |
| |
Earnings per Share Diluted Rs. (Total) |
2.86 |
2.69 |
6.08 |
4.20 |
23.47 |
NOTES:
- Provisions and contingencies are
net of recoveries made against accounts which have been written
off as bad in the previous year/s.
- Details of other income forming
part of the Consolidated unaudited results are as follows:
| Particulars |
Quarter Ended |
Half Year Ended |
Year Ended |
| Sep-06
(Unaudited) |
Sep-05
(Unaudited) |
Sep-06
(Unaudited) |
Sep-05
(Unaudited) |
Mar-06
(Audited) |
| Commission, Fees, Exchange and brokerage |
19,263.23 |
19,136.62 |
44,038.85 |
33,214.31 |
86,699.42 |
| Premium on insurance business |
16,164.99 |
7,562.56 |
28,303.76 |
13,258.97 |
61,212.21 |
| Profit on sale of investments incl. revaluation (insurance
business) |
6,618.63 |
1,905.62 |
2,749.39 |
2,507.95 |
8,955.01 |
| Profit on sale of investments incl. revaluation others |
2,233.61 |
1,653.81 |
3,952.85 |
1,131.46 |
3,155.29 |
| Others |
2,695.77 |
3,443.15 |
5,828.68 |
4,743.83 |
6,941.79 |
| Total – Other income
(Other than non recurring) |
46,976.23 |
33,701.76 |
84,873.53 |
54,856.52 |
166,963.72 |
| Profit on sale of investments (non recurring) |
- |
- |
- |
- |
12,659.41 |
| Total – Other income |
46,976.23 |
33,701.76 |
84,873.53 |
54,856.52 |
179,623.13 |
- Details of other expenditure forming
part of Consolidated uanudited results are as follows:
| Particulars |
Quarter Ended |
Half Year Ended |
Year Ended |
| Sep-06
(Unaudited) |
Sep-05
(Unaudited) |
Sep-06
(Unaudited) |
Sep-05
(Unaudited) |
Mar-06
(Audited) |
| Policy holders’ reserves, surrender expense and claims |
19,347.70 |
8,008.79 |
25,547.61 |
13,306.37 |
59,162.93 |
| Brokerage |
3,920.04 |
2,834.37 |
7,247.58 |
5,062.07 |
13,083.46 |
| Depreciation |
1,760.42 |
1,523.55 |
3,418.57 |
2,850.59 |
6,071.17 |
| Rent, taxes and lighting |
1,962.15 |
1,462.07 |
3,748.58 |
2,701.20 |
5,716.73 |
| Others |
12,106.76 |
8,434.35 |
22,784.35 |
15,510.22 |
38,827.88 |
| Total – Other operating
expenses |
39,097.07 |
22,263.13 |
62,746.69 |
39,430.45 |
122,862.17 |
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 Institute of Chartered
Accountants of India.
5 On 15th March, 2006, Kotak Group agreed to buy 25.01% stake held by Goldman Sachs Mauritius LLC
(GS) in Kotak Mahindra Capital Limited (KMCC) and Kotak Securities
Limited (KS). The consideration for the acquisition of 25.01%
stake of GS is Rs. 333.00 crores. The transaction was consummated
on 31st May, 2006. KS bought the stake held by GS in KMCC while KMCC bought the stake held by
GS in KS. Subsequent to this KMCC and KS have become wholly owned
subsidiaries of the Bank. Consequent to the above, the consolidated
results for the period April to September 2006 include 100% share
of profits with effect from 31st May, 2006 (74.99% till 30th May, 2006) of KMCC, its subsidiaries, KS and incremental share in profits
of associate. The excess of the book value of the net assets acquired
over purchase consideration amounting to Rs. 28.15 crores has
been accounted as capital reserve.
6 Effective 1st April, 2006, Kotak Group adopted the revised Accounting Standard 15 (AS 15) on Employee
Benefits. Pursuant to its adoption, the additional obligations
of the Bank for the period up to 31st March, 2006 amounted to Rs.1,714.74 lakhs (net of deferred tax) and in accordance with
AS 15, the said additional obligation has been charged to the
opening reserves as at 1st April, 2006. The figures for the previous periods have not been recast. The payments to
and provisions for employees for the quarter ended 30th
September, 2006 include provision for employee benefits of Rs.
646.67 lakhs and Rs. 1,461.28 lakhs for the half year ended 30th
September, 2006.
7
Other income in the consolidated results for the reporting
periods is net of sub-brokerage paid in the broking subsidiary
amounting to Rs. 1,086.18 lakhs for the quarter ended 30th September, 2006 and for half year ended
30th September, 2006
Rs. 2,598.50 lakhs (for the quarter ended 30th September, 2005 Rs.
1,592.15 lakhs; half year ended 30th September, 2005 Rs. 2,455.42 lakhs and for the year
ended 31st March, 2006 Rs. 5,406.17 lakhs).
8
Provision for taxes (net of deferred tax) for the quarter ended
30th September, 2006, includes Fringe Benefit Tax provision
amounting to Rs. 164.57 lakhs and for half year ended 30th
September, 2006 Rs. 372.74 lakhs (for the quarter ended 30th
September, 2005 Rs. 144.35 lakhs and half year ended 30th
September, 2005 Rs. 255.75 lakhs and for the year ended 31st
March, 2006 Rs. 250.00 lakhs).
9
Figures for the previous period/ year have been regrouped wherever
necessary to conform to current period’s presentation.
10
The above results were taken on record at the Audit Committee
meeting and at the meeting of the Board of Directors held on 19th
October, 2006.
KOTAK MAHINDRA BANK LIMITED (STANDALONE)
Registered Office: 36-38A, Nariman
Bhavan, 227, Nariman Point, Mumbai 400 021
UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER AND HALF YEAR ENDED SEPTEMBER 2006
| Sr
No |
Particulars |
Quarter Ended |
Half Year Ended |
Year Ended |
| Sep-06
(Unaudited) |
Sep-05
(Unaudited) |
Sep-06
(Reviewed) |
Sep-05
(Reviewed) |
Mar-06
(Audited) |
| 1 |
Interest earned (a+b+c+d) |
29,517.29 |
16,279.33 |
53,740.56 |
30,349.89 |
69,402.26 |
| |
(a)
Interest/discount on advances/ bills |
22,985.48 |
12,606.29 |
41,790.61 |
23,836.47 |
53,904.79 |
| |
(b)
Income on investments |
5,741.20 |
3,460.35 |
10,785.61 |
6,188.10 |
14,354.95 |
| |
(c)
Interest on balances with RBI & other banks |
762.37 |
206.90 |
1,106.30 |
313.17 |
1,053.03 |
| |
(d)
Others |
28.24 |
5.79 |
58.04 |
12.15 |
89.49 |
| 2 |
Other income |
6,246.63 |
7,305.90 |
12,675.40 |
10,908.73 |
24,293.15
|
| 3
|
(A) Total income (1+2) |
35,763.92 |
23,585.23 |
66,415.96 |
41,258.62 |
93,695.41 |
| |
|
|
|
|
|
|
| 4 |
Interest expended |
15,389.52 |
7,664.53 |
28,472.24 |
14,805.48 |
33,908.86 |
| 5
4 |
Operating expenses (e+f) |
13,503.13 |
9,151.53
|
25,886.89 |
16,166.29
|
38,730.24
|
| |
(e)
Payments to and Provisions for employees (see Note 5) |
6,017.91 |
3,566.47 |
11,826.74 |
6,127.84 |
15,382.33 |
| |
(f)
Other operating expenses |
7,485.22 |
5,585.06 |
14,060.15 |
10,038.45 |
23,347.91 |
| 6 |
(B) Total expenditure (4+5) |
28,892.65 |
16,816.06 |
54,359.13 |
30,971.77 |
72,639.10 |
| 7 |
Operating Profit (A-B) |
6,871.27 |
6,769.17 |
12,056.83 |
10,286.85 |
21,056.31 |
| 8 |
Other
provisions & contingencies (see Notes 1, 6 and 11) |
1,743.32 |
2,035.65 |
3,213.19 |
2,480.38 |
3,696.76 |
| 9 |
Profit before tax |
5,127.95 |
4,733.52 |
8,843.64 |
7,806.47 |
17,359.55 |
| 10 |
Provision
for taxes (see Note 9) |
1,648.00 |
1,616.00 |
2,973.00 |
2,721.00 |
5,536.50 |
| 11 |
Profit after tax (9-10) |
3,479.95 |
3,117.52 |
5,870.64 |
5,085.47 |
11,823.05 |
| |
|
|
|
|
|
|
| 12 |
Paid Up Equity Capital - (Face Value
Rs. 10 per share) |
32,504.63 |
30,835.88 |
32,504.63 |
30,835.88 |
30,929.46 |
| 13 |
Reserves excluding revaluation reserves
(See Note 2) |
|
|
|
|
54,345.21 |
| |
|
|
|
|
|
|
| 14 |
Analytical Ratios |
|
|
|
|
|
| |
(i)
% of shares held by Govt. of India |
Nil |
Nil |
Nil |
Nil |
Nil |
| |
(ii)
% Capital adequacy ratio (see Notes 12 and 13) |
12.38% |
11.16% |
12.38% |
11.16% |
11.27% |
| |
(iii)
Earnings per Share Basic Rs. (see Note 14) |
1.07 |
1.01 |
1.82 |
1.65 |
3.83 |
| |
(iv)
Earnings per Share Diluted Rs. (see Note 14) |
1.06 |
1.00 |
1.80 |
1.64 |
3.80 |
| |
|
|
|
|
|
|
| 15 |
Public Shareholding (see Note 15) |
|
|
|
|
|
| |
(i)
No. of shares |
143,760,048 |
127,249,200 |
143,760,048 |
127,249,200 |
128,216,169 |
| |
(ii)
% of shareholding |
44.23% |
41.27% |
44.23% |
41.27% |
41.45% |
KOTAK MAHINDRA BANK LIMITED (STANDALONE)
Registered Office: 36-38A, Nariman
Bhavan, 227, Nariman Point, Mumbai 400 021
SEGMENT RESULTS
|
Sr
No |
Particulars |
Quarter Ended |
Half Year Ended |
Year
Ended |
| Sep-06
(Unaudited) |
Sep-05
(Unaudited) |
Sep-06
(Reviewed) |
Sep-05
(Reviewed) |
Mar-06
(Audited) |
| 1 |
Segment Revenue (see Note 3) |
|
|
|
|
|
| |
Lending
|
19,647.35 |
12,707.04 |
35,887.54 |
22,776.11 |
49,280.26 |
| |
Corporate
Banking |
8,074.55 |
4,097.29 |
16,405.69 |
7,248.75 |
18,169.89 |
| |
Treasury
and Investments |
9,924.61 |
5,255.70 |
16,444.52 |
10,056.72 |
18,841.34 |
| |
Retail
Liabilities |
7,430.33 |
4,116.57 |
14,799.80 |
6,178.97 |
20,198.39 |
| |
Venture
Fund Management |
506.89 |
348.06 |
948.79 |
547.67 |
1,767.59 |
| |
Corporate
Centre |
- |
1,598.09 |
- |
2,991.31 |
5,478.05 |
| |
Total |
45,583.73 |
28,122.75 |
84,486.34 |
49,799.53 |
113,735.52 |
| |
Less:
Inter segment revenue |
9,819.81 |
4,537.52 |
18,070.38 |
8,540.91 |
20,062.82 |
| |
Add:
Unallocable revenue |
- |
- |
- |
- |
22.71 |
| |
Total Revenue |
35,763.92 |
23,585.23 |
66,415.96 |
41,258.62 |
93,695.41 |
| 2 |
Segment Results (see Note 3) |
|
|
|
|
|
| |
Lending
|
2,979.61 |
2,830.69 |
4,566.13 |
5,603.77 |
11,461.36 |
| |
Corporate
Banking |
2,026.53 |
1,051.44 |
3,968.83 |
1,653.39 |
3,866.03 |
| |
Treasury
and Investments |
872.07 |
92.88 |
1,099.90 |
(70.35) |
(1,738.56) |
| |
Retail
Liabilities |
(939.84) |
(245.84) |
(1,215.10) |
(1,607.49) |
178.42 |
| |
Venture
Fund Management |
189.58 |
122.12 |
423.88 |
233.63 |
863.77 |
| |
Corporate
Centre |
- |
882.23 |
- |
1,993.52 |
2,705.82 |
| |
Total |
5,127.95 |
4,733.52 |
8,843.64 |
7,806.47 |
17,336.84 |
| |
Add:
Unallocable revenue |
- |
- |
- |
|
22.71 |
| |
Profit Before Tax |
5,127.95 |
4,733.52 |
8,843.64 |
7,806.47 |
17,359.55 |
| 3 |
Segment Assets (see Note 3) |
|
|
|
|
|
| |
Lending
|
647,695.93 |
379,855.02 |
647,695.93 |
379,855.02 |
496,089.22 |
| |
Corporate
Banking |
318,382.80 |
219,261.55 |
318,382.80 |
219,261.55 |
283,622.61 |
| |
Treasury
and Investments |
567,680.14 |
322,959.19 |
567,680.14 |
322,959.19 |
361,271.68 |
| |
Retail
Liabilities |
370,261.41 |
148,403.07 |
370,261.41 |
148,403.07 |
255,993.09 |
| |
Venture
Fund Management |
- |
- |
- |
- |
- |
| |
Corporate
Centre |
- |
53,386.14 |
- |
53,386.14 |
35,117.57 |
| |
Total |
1,904,020.28 |
1,123,864.97 |
1,904,020.28 |
1,123,864.97 |
1,432,094.17 |
| |
Less:
Inter segment assets |
551,855.21 |
321,896.88 |
551,855.21 |
321,896.88 |
417,111.76 |
| |
Total Assets |
1,352,165.07 |
801,968.09 |
1,352,165.07 |
801,968.09 |
1,014,982.41 |
| 4 |
Segment Liabilities (see Note 3) |
|
|
|
|
|
| |
Lending |
583,979.95 |
338,457.39 |
583,979.95 |
338,457.39 |
438,634.63 |
| |
Corporate
Banking |
297,841.86 |
204,766.71 |
297,841.86 |
204,766.71 |
261,269.35 |
| |
Treasury
and Investments |
517,469.78 |
318,908.14 |
517,469.78 |
318,908.14 |
356,429.02 |
| |
Retail
Liabilities |
371,784.82 |
151,722.62 |
371,784.82 |
151,722.62 |
258,063.10 |
| |
Venture
Fund Management |
- |
- |
- |
- |
- |
| |
Corporate
Centre |
- |
29,343.76 |
- |
29,343.76 |
31,549.25 |
| |
Total |
1,771,076.41 |
1,043,198.62 |
1,771,076.41 |
1,043,198.62 |
1,345,945.35 |
| |
Less:
Inter segment liabilities |
551,855.21 |
321,896.88 |
551,855.21 |
321,896.88 |
417,111.76 |
| |
Total Liabilities |
1,219,221.20 |
721,301.74 |
1,219,221.20 |
721,301.74 |
928,833.59 |
| 5 |
Unallocated
Assets/(Liabilities)– (net) |
2,205.88 |
(516.72) |
2,205.88 |
(516.72) |
(874.15) |
Notes:-
1. Provisions and contingencies are
net of recoveries made against accounts which have been written
off as bad in the previous year/s.
2. The Board of Directors of the Bank at its meeting held
on 15th May, 2006, approved the dividend @ 6.00% for the year ended 31st March, 2006, which has been approved by the shareholders at the Annual General Meeting.
Subsequent to 31st March, 2006, the Bank has issued
15,000,000 Global Depository Shares (GDS) representing 15,000,000
underlying equity shares and allotted 435,578 equity shares pursuant
to exercise of employee stock options up to the date of book closure.
Out of the above the audited results for the year ended 31st March, 2006 include dividend proposed on 15,005,625 equity shares allotted up to the
date of completion of audit. The Bank has paid dividend on the
remaining 429,953 equity shares as they rank pari-passu with existing
equity shares for dividend.
3. Till 31st March, 2006, the Bank had classified Corporate
Centre, whose principal activity consisted of strategic and portfolio
investments and group activities as a separate segment. Consequent
to cessation of a significant part of revenues in the aforesaid
segment, effective 1st April, 2006, Corporate Centre
ceases to be a segment. Accordingly, the Bank has changed its
business segments. Consequent to the same, the segment results
for the reporting period are strictly not comparable with those
of the previous period. The revised business segments and their
principal activities are as under :
| Segment |
Principal activity |
| Corporate Banking |
Wholesale borrowings and lendings
and services to corporate sector |
| Lending |
Commercial vehicle finance, personal
loans, home loans, agriculture finance and other loans/services. |
| Retail
liabilities |
Retail borrowings covering savings
and current accounts and banking branch network and services. |
| Treasury and Investments |
Money market, forex market, derivatives
and investments |
| Venture Fund Management |
Management of venture capital and
private equity fund |
The above segments
have been identified based on the organisation structure, the
customer segment, products and services offered and its relation
to risk and reward, and the internal reporting process.
A transfer pricing
mechanism between all the above segments has been established
to arrive at interest cost on the borrowings of the segments.
4. Status of shareholder complaints
received during the quarter ended 30th September, 2006
:
| Total
complaints pending as at 30th June, 2006 |
NIL |
| Total
complaints received during the quarter ended 30th
September, 2006 |
37 |
| Total
complaints resolved during the quarter ended 30th
September, 2006 |
37 |
| Total
complaints pending as at 30th September, 2006 |
NIL |
5. Effective 1st April, 2006, the Bank adopted the revised Accounting Standard 15 (AS 15) on Employee
Benefits. Pursuant to its adoption, the additional obligations
of the Bank for the period up to 31st March, 2006 amounted to Rs.1,023.28 lakhs (net of deferred tax) and in accordance
with AS 15, the said additional obligation has been charged to
the opening reserves as at 1st April, 2006. The figures for the previous periods have not been recast. The
payments to and provisions for employees include provision for
employee benefits of Rs. 251.02 lakhs for the quarter ended 30th
September, 2006 and Rs. 757.08 lakhs for the half year ended 30th
September, 2006.
6. Upto 31st May, 2006,
in accordance with the RBI guidelines on purchase of non-performing
assets, the Bank was recognising income at individual asset level.
The Bank had also created a floating provision towards such assets,
equivalent to the income recognised on individual accounts under
a portfolio, wherever, the total collection was less than the
cost paid for that portfolio. Vide circular dated 22nd June, 2006, the RBI has mandated specific
conditions for creation and utilisation of floating provisions.
Consequent to the same, the Bank has discontinued its policy of
creating floating provisions for a portfolio and continues to
recognise income at the asset level. Consequent to a clarification
received from the RBI, the Bank has written back floating provision
amounting to Rs. 158.88 lakhs on those assets which have been
fully realised.
7. The Board of Directors of the Bank has approved the scheme
of merger of the Trading and Principal (including primary dealership)
division of Kotak Mahindra Capital Company Ltd. (KMCC) into the
Bank. Further, in order to meet a license condition of the RBI,
the Bank has invested Rs. 234.19 lakhs in Kotak Mahindra Securities
Limited during the quarter ended 30th September, 2006
and Rs.1,376.44 lakhs subsequent to quarter ended 30th
September, 2006 as additional capital in four indirect subsidiaries,
which has made them direct subsidiaries of the Bank.
8. During the half year ended 30th September, 2006, the Bank raised Rs. 450.05 crores
on issue of 15,000,000 GDS representing 15,000,000 underlying
equity shares of Rs. 10/- each. The net issue expenses amounting
to Rs. 9.27 crores related to the aforesaid issue have been charged
to the securities premium account as allowed under Section 78
of the Companies Act, 1956.
9. Provision for taxes (net of deferred tax) for the quarter ended
30th September, 2006, includes fringe benefit tax provision
amounting to Rs. 54.00 lakhs, for half year ended 30th
September, 2006 Rs. 129.00 lakhs (for the quarter ended 30th
September, 2005 Rs. 60.00 lakhs and half year ended 30th
September, 2005 Rs.105.00 lakhs) and for the year ended 31st
March, 2006 Rs. 250.00 lakhs.
10. During
the quarter ended 30th September, 2006, the Bank has
subscribed to the rights issue of equity shares of its subsidiary,
Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life)
amounting to Rs. 12.28 crores and Rs. 22.67 crores for the half year ended 30th September,
2006. The total investment made by the Bank in Kotak Life as on 30th September, 2006 is Rs. 147.42 crores.
11. During the half year ended 30th
September, 2006, the RBI vide circular DBODNo.BP.BC.21/21.04.085/2005-2006
has increased provisioning requirements on standard assets in
respect of personal loans, loans and advances qualifying as capital
market exposure, residential housing loans beyond Rs. 20 lakhs
and commercial real estate loans from 0.40% to 1.00%. Further,
vide its circular DBODNo. BP.BC.21/21.04.048/2006-2007, the RBI
has permitted the Banks to phase out the provisioning requirement
over four quarters. The Bank has increased its provision on standard
assets from 0.50% to 0.75% during the half year ended 30th
September, 2006 in respect of personal loans and from 0.40% to
0.70% in respect of loans and advances qualifying as capital market
exposure, residential housing loans beyond Rs. 20 lakhs and commercial
real estate loans. This has resulted in increase in provisions
and contingencies by Rs. 427.15 lakhs during the quarter ended
30th September, 2006 and Rs. 722.70 lakhs during the
half year ended 30th September, 2006.
12. The capital adequacy as on 30th September, 2006 is after considering the audited
financial results up to 31st March, 2006, and also the increased capital on account of GDS issue (Note 8 above)
in line with the RBI guidelines. The capital adequacy ratio has
also been adjusted for the impact on reserves consequent to implementation
of AS 15 (Note 5 above).
13.
As on 30th
September, 2006, the Bank has raised Rs. 272.90 crores of Bonds eligible to be classified
as Tier II Capital and the same has been considered for arriving
at the capital adequacy as on 30th September, 2006.
14.
During
the quarter ended 30th September,
2006, 316,108 options were exercised by the employees and 751,686
for the half year ended 30th September, 2006. The stock
options outstanding as at 30th September, 2006 are
5,388,639.
15.
Public shareholding as
at 30th September, 2006 has been computed
in accordance with the definition of promoters as defined in SEBI
(Substantial Acquisition of Shares and Takeovers) Regulations,1997
as amended on 26th May, 2006.
16. Figures for the previous period/ year have been regrouped
wherever necessary to conform to current period’s presentation.
17. The above results were taken on
record at the Audit Committee meeting and at the meeting of the
Board of Directors held on 19th October, 2006. The
results for the half year ended 30th September, 2006
have been subjected to limited review by the Statutory Auditors.
| |
By
order of the Board of Directors |
| |
For Kotak Mahindra Bank Limited |
| |
|
| |
Dipak Gupta |
| Mumbai, 19th October, 2006 |
Executive Director |
| |