KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED)
Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2009

Rs lakhs
Sr No Particulars Quarter Ended Nine Months Ended Year Ended
Dec-09 (Unaudited) Dec-08 (Unaudited) Dec-09 Unaudited) Dec-08 (Unaudited) Mar-09 (Audited)
1 Interest earned (a+b+c+d) 118470.06 112730.95 335340.52 326211.15 436656.34
(a) Interest/discount on advances/bills 90440.47 91297.31 256763.74 261221.99 350545.90
(b) Income on investments 26525.33 18988.17 74483.60 56027.59 75957.73
(c) Interest on balances with RBI & other banks 110.14 1450.15 547.12 5265.70 5621.68
(d) Others 1394.12 995.32 3546.06 3695.87 4531.03
2 Other income (a+b) 122243.93 55743.60 371190.26 174939.75 288261.42
a) Profit/(Loss) on sale of investments including revaluation (insurance business) 10605.07 -16579.68 76865.50 -47983.30 -51812.66
b) Other income (see Notes 2 and 5) 111638.86 72323.28 294324.76 222923.05 340074.08
3 Total income (1+2) 240713.99 168474.55 706530.78 501150.90 724917.76
4 Interest expended 44491.57 53900.25 130900.62 151557.05 199239.47
5 Operating expenses (a+b+c) 133897.73 84502.84 405896.20 261494.78 391078.64
(a) Payments to and Provisions for employees 31226.87 29597.03 90103.04 93174.03 119251.05
(b) Policy holders’ reserves, surrender expense and claims 66319.96 18010.43 214589.05 46853.30 113946.90
(c) Other operating expenses (see Note 3 and 5) 36350.90 36895.38 101204.11 121467.45 157880.69
6 Total expenditure (4+5) (excluding provisions and contingencies) 178389.30 138403.09 536796.82 413051.83 590318.11
7 Operating Profit before Provisions and Contingencies (3-6) 62324.69 30071.46 169733.96 88099.07 134599.65
8 Provisions (other than tax) and Contingencies (see Note 1) 14228.07 9788.47 41367.88 19508.61 32979.46
9 Exceptional Items - - - -
10 Profit from Ordinary Activities before tax (7-8-9) 48096.62 20282.99 128366.08 68590.46 101620.19
11 Tax expense 14797.32 7153.56 38217.72 25410.82 36352.98
12 Profit from Ordinary activities after tax before Minority Interest (10 – 11) 33299.30 13129.43 90148.36 43179.64 65267.21
13 Extraordinary items (net of tax expense) - - - -
14 Profit from Ordinary activities after tax before Minority Interest (12 – 13) 33299.30 13129.43 90148.36 43179.64 65267.21
15 Less: Share of Minority Interest 502.46 243.14 644.88 -658.52 372.83
16 Add: Share in Profit of associates 342.8 203.9 -658.53 334 344.25
17 Profit after tax (14-15+16) 33139.64 13090.19 88844.95 44172.16 65238.63
18 Paid Up Equity Capital - (Face Value of Rs. 10 per share) 34769.59 34547.35 34769.59 34547.35 34566.89
19 Group Reserves (excluding Minority Interest) 617687.52
20 Minority Interest 6286.02
21 Analytical Ratios
(i) Earnings per Share (before and after extraordinary items)
(a) Basic (not annualized) Rs. 9.55 3.73 25.64 12.74 18.9
(b) Diluted (not annualized) Rs. 9.44 3.71 25.37 12.66 18.87
(ii) NPA Ratios
(a) Gross NPA 110864.85 86563.49 110864.85 86563.49 79058.59
(b) Net NPA 57254.08 56141.11 57254.08 56141.11 45430.59
(c) % of Gross NPA/ Gross Advances 3.71 3.58 3.71 3.58 3.46
(d) % of Net NPA/ Net Advances 1.95 2.35 1.95 2.35 2.02
(e) % of Gross NPA/ Gross Advances (excluding NPAs acquired from other banks/ NBFCs) 2.81 1.8 2.81 1.8 2.26
(f) % of Net NPA/ Net Advances (excluding NPAs acquired from other banks/ NBFCs) 1.46 1.01 1.46 1.01 1.18
(iii) Return on Assets (average) (not annualised) 0.67 0.33 1.93 1.09 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 Nine Months Ended Year Ended
Dec-09 (Unaudited) Dec-08 (Unaudited) Dec-09 Unaudited) Dec-08 (Unaudited) Mar-09 (Audited)
Commission, Fees, Exchange and brokerage 31756.97 23617.92 96373.77 82166.82 103406.75
Premium on insurance business 70586.66 50261.16 171195.50 140937.92 230709.63
Profit /(Loss) on sale of investments including revaluation (other than insurance business) 5234.87 -2804.42 16719.09 -8698.01 -8011.18
Others 4060.36 1248.62 10036.40 8516.32 13968.88
Total – Other income 111638.86 72323.28 294324.76 222923.05 340074.08

3. Details of other expenditure forming part of Consolidated unaudited results are as follows:
Rs lakhs
Particulars Quarter Ended Nine Months Ended Year Ended
Dec-09 (Unaudited) Dec-08 (Unaudited) Dec-09 Unaudited) Dec-08 (Unaudited) Mar-09 (Audited)
Brokerage 6288.10 6407.08 15054.80 22485.70 28244.66
Depreciation 3633.54 3486.29 10775.84 9584.36 12593.23
Rent, taxes and lighting 5487.78 5678.21 17908.59 16226.28 22085.27
Others 20941.48 21323.80 57464.88 73171.11 94957.53
Total – Other operating expenses 36350.90 36895.38 101204.11 121467.45 157880.69

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 “ 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. 1,329.65 lakhs for the quarter ended 31st December, 2009 and for nine months ended 31st December, 2009 Rs. 5,120.85 lakhs (for the quarter ended 31st December, 2008 Rs. 856.47 lakhs, nine months ended 31st December, 2008 Rs. 3,464.31 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 Nine Months Ended Year Ended
Dec-09 (Unaudited) Dec-08 (Unaudited) Dec-09 Unaudited) Dec-08 (Unaudited) Mar-09 (Audited)
1 Interest earned (a+b+c+d) 83241.85 80351.90 237486.88 226211.49 306514.40
(a) Interest/ discount on advances/ bills 64543.33 65914.25 184552.76 183741.19 249372.58
(b) Income on investments 18667.48 14.084.82 52839.17 41216.00 55840.38
(c) Interest on balances with RBI & other banks 13.3 324.37 53.3 1159.32 1172.35
(d) Others 17.74 28.46 41.65 94.98 129.09
2 Other Income 14478.67 10903.01 38075.76 24280.03 35786.26
3 Total income (1+2) 97720.52 91254.91 275562.64 250491.52 342300.66
4 Interest expended 34576.38 42096.88 104276.42 116156.17 154659.75
5 Operating expenses (a+b) 29454.90 29412.48 84744.83 91982.64 119642.29
(a) Payments to and Provisions for employees 13261.42 14300.06 38179.92 43637.63 55683.48
(b) Other Operating expenses 16193.48 15112.42 46564.91 48345.01 63958.81
6 Total expenditure (4+5) 64031.28 71509.36 189021.25 208138.81 274302.04
7 Operating Profit (3-6) 33689.24 19745.55 86541.39 42352.71 67998.62
8 Other provisions & contingencies (Refer Note 1) 12765.52 8812.76 36234.01 15764.07 25392.88
9 Exceptional items - - - - -
10 Profit / Loss from Ordinary Activities before tax (7-8-9) 20923.72 10932.79 50307.38 26588.64 42605.74
11 Provision for taxes 6685.31 3820.04 14446.93 9236.20 14996.02
12 Net Profit / Loss from Ordinary Activities after tax (10-11) 14238.41 7112.75 35860.45 17352.44 27609.72
13 Extraordinary items (net of tax expense) - - - - -
14 Net Profit / Loss for the Period (12-13) 14238.41 7112.75 35860.45 17352.44 27609.72
15 Paid Up Equity Capital - (Face Value Rs. 10 per share) 34769.59 34547.35 34769.59 34547.35 34566.89
16 Reserves excluding revaluation reserves 346794.90
17 Analytical Ratios
(i) % of shares held by Govt. of India -
(ii) % Capital adequacy ratio (Refer Note 3) 17.01 17.01 17.01 17.01 20.01
(iii) Earnings Per Share (EPS) for the period
- Basic Rs. 4.10 2.06 10.35 5.03 8.00
- Diluted Rs. 4.06 2.05 10.24 5.00 7.99
(iv) NPA Ratios
a) Gross Non-performing assets 92,823.99 70,568.50 92,823.99 70,568.50 68,920.68
b) Net Non-performing assets 46,751.57 47,007.30 46,751.57 47,007.30 39,684.20
c) % of Gross NPA to Gross Advances 4.25 3.94 4.25 3.94 4.07
d) % of Net NPA to net Advances 2.18 2.66 2.18 2.66 2.39
e) % of Gross NPA to Gross Advances (excluding NPAs acquired from other banks and NBFCs) 3.02 1.99 3.02 1.99 2.46
f) % of Net NPA to net Advances (excluding NPAs acquired from other banks and NBFCs) 1.50 1.22 1.50 1.22 1.26
g) Return on Assets %(Average) – Not Annualized 0.40 0.26 1.12 0.65 1.03
18 Public Shareholding
(i) No. of shares 179,841,650 164,391,859 179,841,650 164,391,859 164,556,059
(ii) % of shareholding 51.73 47.59 51.73 47.59 47.62
19 Promoters and promoter group 50,000 N.A 50,000 N.A 50,000
Shareholding
a) Pledged/Encumbered 0.03% 0.03% 0.03%
- Number of shares
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)
- 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 167,795,144 167,795,144 181,053,669
- 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) 48.26% 48.26% 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 Nine Months Ended Year Ended
Dec-08 (Unaudited) Dec-07 (Unaudited) Dec-08 Unaudited) Dec-07 (Unaudited) Mar-08 (Audited)
1  Segment Revenue
a. Treasury and BMU 31,539.01 28,751.70 82,456.16 66,852.32 91,744.55
b. Corporate/ Wholesale Banking 26,063.47 22,465.49 73,126.71 66,072.76 88,793.21
c. Retail Banking 62,883.32 71,171.66 192,561.01 203,435.20 275,219.05
Sub-total 120,485.80 122,388.85 348,143.88 336,360.28 455,756.81
Less : Inter-segmental revenue 22,765.28 31,133.94 72,581.24 85,877.01 113,471.09
Add : Unallocated Income - - - 8.25 14.94
Total 97,720.52 91,254.91 275,562.64 250,491.52 342,300.66
2 Segment Results
a. Treasury and BMU 10,631.11 6,756.95 26,549.63 8,081.00 12,928.58
b. Corporate/ Wholesale Banking 6,839.70 3,988.30 22,799.00 16,474.69 22,534.32
c. Retail Banking 3,452.91 187.54 958.75 2,024.70 7,127.90
Sub-total 20,923.72 10,932.79 50,307.38 26,580.39 42,590.80
Add : Unallocated Income - - - 8.25 14.94
Total Profit Before Tax 20,923.72 10,932.79 50,307.38 26,588.64 42,605.74
3 Capital employed (Segmental Assets less Segmental Liabilities)
a. Treasury and BMU 154,020.73 123,916.78 154,020.73 123,916.78 124,493.33
b. Corporate/ Wholesale Banking 101,018.96 93,371.20 101,018.96 93,371.20 98,696.41
c. Retail Banking 159,089.51 146,848.82 159,089.51 146,848.82 152,686.44
d. Unallocated 14,958.18 9,231.48 14,958.18 9,231.48 5,485.61
Sub-total 429,087.38 373,368.28 429,087.38 373,368.28 381,361.79


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 82,520 options under employee stock option scheme.  Stock options aggregating to 918,546 were exercised during the quarter and 9,568,958 stock options were outstanding with employees of the Bank and its subsidiaries as at 31st December, 2009.

3 The Bank has adopted Basel II framework as of 31st March 2009. Accordingly the Capital Adequacy Ratio (CAR) as at 31st December, 2009 and as at 31st March, 2009 is as per Basel II framework and as at 31st December, 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 September, 2009. During the quarter the Bank received 25 complaints from shareholders.  All shareholder complaints have been resolved and there are no pending complaints as at 31st December, 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 31st December, 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, 21st January, 2010

Executive Director