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

4. The Board of Directors of the Bank at its meeting held on 7th June 2005, approved the issue of bonus shares in the ratio of three equity shares for every two shares held subject to the approval of the shareholders at the Annual General Meeting to be held later today. The earnings per share (basic and diluted) under para 7 (iii) and (iv) above is not adjusted for these bonus shares to be issued.

5. The Board of Directors of the Bank at its meeting held on 7th June 2005, approved the dividend of 12.5% for the year ended 31st March 2005, subject to the approval of the shareholders at the AGM to be held later today.

6. During the quarter, the Bank granted 10,12,500 equity shares to employees under the employee stock option scheme. As on 30th June 2005, the stock options outstanding are 18,06,700. These do not include 1,00,000 stock options granted during the quarter to the Directors of the Bank, the approval of which from the Reserve Bank of India has been received on 20th July, 2005. These options would be considered in the quarter July to September 05 for calculation of diluted earnings per share.

7. 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 has been established to arrive at interest cost on the borrowings of the segments.

8. During the quarter April to June 2005, the Bank has raised Rs. 6,630 lakhs of Bonds eligible to be classified as Tier II Capital. As on 30th June 2005, the Bank has raised Rs. 15,000 lakhs 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 June 2005.

9. Till 31st March, 2005 interest expenses on Tier II Capital and the said borrowing by the Bank was considered as part of Treasury. From 1st April 2005, based on the transfer pricing arrived at, the Borrowing has been considered as part of Corporate Centre activities. Consequent to this, for the current quarter under review, interest expenses amounting to Rs.195.27 lakhs have been considered under Corporate Centre. Had the said classification been applied for the reporting periods, Corporate Centre results would have been lower by Rs. 252.15 lakhs for the year April to March 2005 with no change for the quarter April to June 2004 (since no Tier II Bonds were raised during the said period).

10. Status of shareholder complaints received during the quarter ended 30th June 2005 :

11. Mr. Ajay Sondhi, a Director of the Bank, resigned from the Board of Directors of the Bank with effect from 7th June 2005.

12. The Bank’s investments in an associate, Ford Credit Kotak Mahindra Limited (FCKM), will be sold to the joint venture partner, Ford Credit International, consequent to the terms agreed with them. The transaction proposed has been approved by the FIPB and is awaiting approval from the Reserve Bank of India. Consequently, FCKM has not been considered as an associate for the quarter ended June 30, 2005

13. The Bank has acquired stressed assets from other Banks/ NBFCs/ Financial Institutions in the past. The Reserve Bank of India has come out with Guidelines on purchase/ sale of non performing assets vide circular dated 13th July 2005. The Bank is seeking clarifications from the Reserve Bank of India on some aspects of the Guidelines in respect of purchases made upto the year 31st March 2005. Consequent to the receipt of clarifications from the Reserve Bank of India, appropriate accounting adjustment, if any, for such assets would be made in the subsequent reporting periods.

14. The Bank (standalone) has discontinued its policy of encashment of leave unavailed by the employees. No provision for leave encashment has therefore been made for the current year. Further, the balance accumulated provision for leave encashment made as at 31st March, 2005 amounting to Rs. 152.38 lakhs has been written back to the profit and loss account during the quarter April to June 2005.

15. Provision for taxes for the quarter April to June 05, include Fringe benefit tax provision of Rs. 45 lakhs (standalone) and Rs.111.40 lakhs (consolidated).

16. The above results for the quarter ended June 2005 (of the standalone entity), have been subjected to a “ limited review” by the statutory auditors of the Bank.

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

18. The above results were taken on record at the Audit Committee meeting and at the meeting of the Board of Directors held on 26th July 2005.