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 :

3. The Bank, upto the financial year ended 31st March 2003, accounted for brokerage expenses and service charges received in respect of advances by using the internal rate of return method to provide a constant periodic rate of return over the period of the advance. The Bank changed its method of accounting for the financial year ended 31st March 2004 (in the quarter January 2004 to March 2004), wherein service charges received on such transactions are recognized as revenue when due and brokerage expenses due on such transactions are charged to revenue when due. Had the said change been effected for the quarter April 2003 to June 2003, the profit after tax for the said quarter would have been lower by Rs. 8.92 lakhs.

4. During the quarter, the Bank has subscribed to the rights issue of equity shares of its subsidiary, Kotak Mahindra Old Mutual Life Insurance Company Limited amounting to Rs. 2238.61 lakhs.

5. The Board of Directors of the Bank at its meeting held on 25th May 2004, approved the issue of bonus shares in the ratio of one equity share for every share held subject to the approval of the shareholders at the Annual General Meeting. The earnings per share (basic and diluted) under para 7 (iii) and (iv) above is not adjusted for the bonus shares to be issued.

6. The Bank's business has been segregated into the following segments whose principal activities are as under :

The above segments have been identified based on the organization 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 have been established to arrive at interest cost on the borrowings of the segments.

7. Status of shareholder complaints received during the quarter ended 30th June 2004 :

8. Pursuant to Clause 5.2 of the Securities and Exchange Board of India (Delisting of Securities Guidelines, 2003), the Bank’s equity shares have been voluntarily delisted from the Madras Stock Exchange Ltd. effective 21st June 2004. The equity shares continue to be listed at the Bombay Stock Exchange and the National Stock Exchange.

9. The above results for the quarter ended June 2004 (of the standalone entity), have been subjected to a “limited review” by the statutory auditors of the Bank.

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

11. The above results were taken on record at the Audit Committee meeting held on 23rd July 2004 and at the meeting of the Board of Directors held on 26th July 2004.