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 30, 2009

Rs lakhs
Sr No Particulars Quarter Ended Half Year Ended Year Ended
Sep-09 (Unaudited) Sep-08 (Unaudited) Sep-09 (Unaudited) Sep-08 (Unaudited) Mar-09
(Audited)
1 Interest earned (a+b+c+d) 110,597.33 109,289.79 216,870.46 213,480.20 436,656.34
  (a) Interest/discount on advances/bills 83,286.88 88,096.82 166,323.27 169,924.68 350,545.90
  (b) Income on investments 25,789.79 17,998.68 47,958.27 37,039.42 75,957.73
  (c) Interest on balances with RBI & other banks 215.66 1,871.46 436.98 3,815.55 5,621.68
  (d) Others 1,305.00 1,322.83 2,151.94 2,700.55 4,531.03
2 Other income 120,693.97 75,661.84 248,946.33 119,196.15 288,261.42
  a) Profit/(Loss) on sale of investments including revaluation (insurance business) 24,637.07 (5,856.58) 66,260.43 (31,403.62) (51,812.66)
  b) Other income (see Notes 2 and 5) 96,056.90 81,518.42 182,685.90 150,599.77 340,074.08
3 Total income (1+2) 231,291.30 184,951.63 465,816.79 332,676.35 724,917.76
4 Interest expended 42,641.62 51,074.24 86,409.05 97,656.80 199,239.47
5 Operating expenses (a+b+c) 138,277.43 102,236.45 271,998.47 176,991.94 391,078.64
  (a) Payments to and Provisions for employees 30,609.91 31,708.98 58,876.17 63,577.00 119,251.05
  (b) Policy holders’ reserves, surrender expense and claims 72,198.20 24,385.33 148,269.09 28,842.87 113,946.90
  (c) Other operating expenses (see Note 3 and 5) 35,469.32 46,142.14 64,853.21 84,572.07 157,880.69
6 Total expenditure (4+5) (excluding provisions and contingencies) 180,919.05 153,310.69 358,407.52 274,648.74 590,318.11
7 Operating Profit before Provisions and Contingencies (3-6) 50,372.25 31,640.94 107,409.27 58,027.61 134,599.65
8 Provisions (other than tax) and Contingencies (see Note 1) 8,060.05 6,595.43 27,139.81 9,720.14 32,979.46
9 Exceptional Items - - - - -
10 Profit from Ordinary Activities before tax (7-8-9) 42,312.20 25,045.51 80,269.46 48,307.47 101,620.19
11 Tax expense 12,720.91 8,927.48 23,420.40 18,257.26 36,352.98
12 Profit from Ordinary activities after tax before Minority Interest (10 – 11) 29,591.29 16,118.03 56,849.06 30,050.21 65,267.21
13 Extraordinary items (net of tax expense) - - - - -
14 Profit from Ordinary activities after tax before Minority Interest (12 – 13) 29,591.29 16,118.03 56,849.06 30,050.21 65,267.21
15 Less: Share of Minority Interest 113.43 132.4 142.42 (901.66) 372.83
16 Add: Share in Profit of associates 498.82 111.43 (1,001.33) 130.1 344.25
17 Consolidated Profit after tax attributable to the Group (14-15+16) 29,976.68 16,097.06 55,705.31 31,081.97 65,238.63
18 Paid Up Equity Capital - (Face Value of Rs. 10 per share) 34,677.74 34,534.13 34,677.74 34,534.13 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. 8.65 4.66 16.09 9.01 18.9
  (b) Diluted (not annualized) Rs. 8.57 4.62 15.94 8.93 18.87
  (ii) NPA Ratios          
  (a) Gross NPA 107,156.06 66,350.54 107,156.06 66,350.54 79,058.59
  (b) Net NPA 64,032.21 41,596.08 64,032.21 41,596.08 45,430.59
  (c) % of Gross NPA/ Gross Advances 3.94 2.73 3.94 2.73 3.46
  (d) % of Net NPA/ Net Advances 2.39 1.73 2.39 1.73 2.02
  (e) % of Gross NPA/ Gross Advances (excluding NPAs acquired from other banks/ NBFCs) 2.93 1.15 2.93 1.15 2.26
  (f) % of Net NPA/ Net Advances (excluding NPAs acquired from other banks/ NBFCs) 1.72 0.53 1.72 0.53 1.18
  (iii) Return on Assets (average) (not annualised) 0.65 0.41 1.26 0.78 1.61

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

Rs lakhs
Particulars Quarter Ended Half Year Ended Year Ended
Sep-09 (Unaudited) Sep-08 (Unaudited) Sep-09 (Unaudited) Sep-08 (Unaudited) Mar-09
(Audited)
Commission, Fees, Exchange and brokerage 34,631.47 29,635.08 64,616.80 58,548.90 103,406.75
Premium on insurance business 57,925.99 51,433.33 100,608.84 90,676.76 230,709.63
Profit on sale of investments incl. revaluation (other than insurance business) 1,130.29 1,426.64 11,484.22 (5,893.59) (8,011.18)
Others 2,369.15 (976.63) 5,976.04 7,267.70 13,968.88
Total – Other income 96,056.90 81,518.42 182,685.90 150,599.77 340,074.08

3. Details of other expenditure forming part of Consolidated unanudited results are as follows:

Rs lakhs
Particulars Quarter Ended Half Year Ended Year Ended
Sep-09 (Unaudited) Sep-08 (Unaudited) Sep-09 (Unaudited) Sep-08 (Unaudited) Mar-09
(Audited)
Brokerage 4,972.68 9,540.86 8,766.70 16,078.62 28,244.66
Depreciation 3,822.24 3,169.99 7,142.30 6,098.07 12,593.23
Rent, taxes and lighting 6,655.42 5,389.38 12,420.81 10,548.07 22,085.27
Others 20,018.98 28,041.91 36,523.40 51,847.31 94,957.53
Total – Other operating expenses 35,469.32 46,142.14 64,853.21 84,572.07 157,880.69

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” notified under the Companies (Accounting Standard) Rules, 2006.

5 Other income in the consolidated results for the reporting periods is net of sub-brokerage paid in the broking subsidiary amounting to Rs. 2,270.44 lakhs for the quarter ended 30th September, 2009 and for half year ended 30th September, 2009 Rs. 3,791.20 lakhs (for the quarter ended 30th September, 2008 Rs. 1,518.15 lakhs, half year ended 30th September, 2008 Rs. 2,607.84 lakhs and for the year ended 31st March, 2009 Rs. 3,772.46 lakhs).

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

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

KOTAK MAHINDRA BANK LIMITED (STANDALONE)

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

Rs lakhs
Sr No Particulars Quarter Ended Half Year Ended Year Ended
Sep-09 (Unaudited) Sep-08 (Unaudited) Sep-09 (Unaudited) Sep-08 (Unaudited) Mar-09
(Audited)
1 Interest earned (a+b+c+d) 77,514.80 74,612.82 154,245.03 145,859.59 306,514.40
  (a) Interest/ discount on advances/ bills 59,035.87 61,382.84 120,009.43 117,826.94 249,372.58
  (b) Income on investments 18,452.99 12,620.16 34,171.69 27,131.18 55,840.38
  (c) Interest on balances with RBI & other banks 19.58 584.87 40 834.95 1,172.35
  (d) Others 6.36 24.95 23.91 66.52 129.09
2 Other Income 10,904.19 6,064.41 23,597.09 13,377.02 35,786.26
3 Total income (1+2) 88,418.99 80,677.23 177,842.12 159,236.61 342,300.66
4 Interest expended 33,867.91 38,059.22 69,700.04 74,059.29 154,659.75
5 Operating expenses (a+b) 30,128.30 31,369.20 55,289.93 62,570.16 119,642.29
  (a) Payments to and Provisions for employees 12,798.39 14,131.36 24,918.50 29,337.57 55,683.48
  (b) Other Operating expenses 17,329.91 17,237.84 30,371.43 33,232.59 63,958.81
6 Total expenditure (4+5) ) (excluding provisions and contingencies) 63,996.21 69,428.42 124,989.97 136,629.45 274,302.04
7 Operating Profit (3-6) 24,422.78 11,248.81 52,852.15 22,607.16 67,998.62
8 Other provisions & contingencies (Refer Note 1) 7,726.77 3,781.46 23,468.49 6,951.31 25,392.88
9 Exceptional items - - - - -
10 Profit / Loss from Ordinary Activities before tax (7-8-9) 16,696.01 7,467.35 29,383.66 15,655.85 42,605.74
11 Provision for taxes 4,105.08 2,680.82 7,761.62 5,416.16 14,996.02
12 Net Profit / Loss from Ordinary Activities after tax (10-11) 12,590.93 4,786.53 21,622.04 10,239.69 27,609.72
13 Extraordinary items (net of tax expense) - - - - -
14 Net Profit / Loss for the Period (12-13) 12,590.93 4,786.53 21,622.04 10,239.69 27,609.72
15 Paid Up Equity Capital - (Face Value Rs. 10 per share) 34,677.74 34,534.13 34,677.74 34,534.13 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 (Refer Note 3) 17.72 17.22 17.72 17.22 20.01
  (iii) Earnings Per Share (EPS) for the period          
  - Basic Rs. 3.63 1.39 6.24 2.97 8
  - Diluted Rs. 3.6 1.37 6.19 2.94 7.99
  (iv) NPA Ratios          
  a) Gross Non-performing assets 86,753.38 52,412.82 86,753.38 52,412.82 68,920.68
  b) Net Non-performing assets 51,572.64 32,886.08 51,572.64 32,886.08 39,684.20
  c) % of Gross NPA to Gross Advances 4.33 3.04 4.33 3.04 4.07
  d) % of Net NPA to net Advances 2.62 1.93 2.62 1.93 2.39
  e) % of Gross NPA to Gross Advances (excluding NPAs acquired from other banks and NBFCs) 2.97 1.3 2.97 1.3 2.46
  f) % of Net NPA to net Advances (excluding NPAs acquired from other banks and NBFCs) 1.71 0.63 1.71 0.63 1.26
  g) Return on Assets %(Average) – Not Annualized 0.42 0.18 0.72 0.39 1.03
18 Public Shareholding          
  (i) No. of shares 178,924,704 164,186,068 178,924,704 164,186,068 164,556,059
  (ii) % of shareholding 51.6 47.55 51.6 47.55 47.62
19 Promoters and promoter group Shareholding          
  a) Pledged/Encumbered          
  - Number of shares 50,000 N.A. 50,000 N.A. 50,000
  - Percentage of shares (as a % of the total shareholding of promoter and promoter group) 0.03%   0.03%   0.03%
  - Percentage of shares (as a% of the total share capital of the company) 0.01%   0.01%   0.01%
  b) Non-encumbered          
  - Number of Shares 167,793,544   167,793,544   181,053,669
  - Percentage of shares (as a% of the total shareholding of promoter and promoter group) 99.97%   99.97%   99.97%
  - Percentage of shares (as a % of the total share capital of the company) 48.39%   48.39%   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 Half Year Ended Year Ended
Sep-09 (Unaudited) Sep-08 (Unaudited) Sep-09 (Unaudited) Sep-08 (Unaudited) Mar-09
(Audited)
1 Segment Revenue          
  a. Treasury and BMU 25,644.41 20,789.81 50,917.15 38,100.62 91,744.55
  b. Corporate/ Wholesale Banking 24,405.16 19,381.44 47,063.24 43,607.28 88,793.21
  c. Retail Banking 62,287.12 69,507.89 129,677.69 132,263.54 275,219.05
  Sub-total 112,336.69 109,679.14 227,658.08 213,971.44 455,756.81
  Less : Inter-segmental revenue 23,917.70 29,010.16 49,815.96 54,743.08 113,471.09
  Add : Unallocated Income - 8.25 - 8.25 14.94
  Total 88,418.99 80,677.23 177,842.12 159,236.61 342,300.66
2 Segment Results          
  a. Treasury and BMU 7,065.86 1,048.47 15,918.52 1,324.05 12,928.58
  b. Corporate/ Wholesale Banking 10,260.69 5,464.69 15,959.30 12,486.39 22,534.32
  c. Retail Banking (630.54) 945.94 (2,494.16) 1,837.16 7,127.90
  Sub-total 16,696.01 7,459.10 29,383.66 15,647.60 42,590.80
  Add : Unallocated Income - 8.25 - 8.25 14.94
  Total Profit Before Tax 16,696.01 7,467.35 29,383.66 15,655.85 42,605.74
3 Capital employed (Segmental Assets less Segmental Liabilities)          
  a. Treasury and BMU 149,310.32 122,903.33 149,310.32 122,903.33 124,493.33
  b. Corporate/ Wholesale Banking 95,640.53 89,941.87 95,640.53 89,941.87 98,696.41
  c. Retail Banking 154,175.34 143,902.32 154,175.34 143,902.32 152,686.44
  d. Unallocated 10,134.34 9,090.56 10,134.34 9,090.56 5,485.61
  Sub-total 409,260.53 365,838.08 409,260.53 365,838.08 381,361.79

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 During the quarter, the Bank has granted 70,500 options under employee stock option scheme. Stock options aggregating to 479,107 were exercised during the quarter and 10,567,999 stock options were outstanding with employees of the Bank and its subsidiaries as at 30th September, 2009.

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

4 In accordance with RBI guidelines under reference DBOD.No.BP.BC.46/21.04.048/2009-10 dated September 24, 2009, gross advances and gross NPAs exclude interest not collected in respect of NPA accounts.

5 The Bank had no outstanding shareholder complaints as at 30th June, 2009. During the quarter the Bank received 16 complaints from shareholders. All shareholder complaints have been resolved and there are no pending complaints as at 30th September, 2009.

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

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

8 The results for the quarter ended 30th September 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, 27 th October, 2009

Executive Director