Kotak Mahindra Q1 FY 12 results presentation

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Kotak Mahindra Q1 FY 12 results presentation

  1. 1. This document contains the following reports – Analyst Presentation / Earnings Update Press Table
  2. 2. JULY 21 2011 1
  3. 3. 2
  4. 4. Geographical Presence Wide National Footprint … .. With Multiple Points of Presence Business Branches (Jun, 11) Banking 323 Car Finance 57 Life Insurance 202 Securities 1,442 Mutual Fund 84 Total 2,108 ~~International offices situated in London, New International offices situated in London, New York, California, Dubai, Abu Dhabi, Bahrain, York, California, Dubai, Abu Dhabi, Bahrain, Mauritius & Singapore Mauritius & Singapore 3
  5. 5. Group StructureNote:•All companies are fully owned subsidiaries excepting KM Old Mutual which is held74% 4
  6. 6. FINANCIAL SUMMARY
  7. 7. Consolidated Highlights (Q1 FY12) PAT Loans Net NIM 416 `cr (328 `cr) 44,699 `cr (32,978 `cr) NPA ** 5.0% Up 27% yoy Up 36% yoy 0.41% (0.95%) (5.4%) CAR Tier 1 * AUM 18.4% (16.9%) 16.9% (15.1%) 51,661 `cr (as per Basel II) (as per Basel II) (47,979 `cr) CASA 8,254 `cr (6,657 `cr) 27% of total deposits * Excluding unaudited profits ** Excluding acquired stressed assets • Figures in brackets are Q1FY11 numbers
  8. 8. Consolidated Revenues` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12Financing Activities 4,551 1,304 950 1,445Fee Income * 1,452 383 363 324Premium Income 2,940 1,063 546 500Treasury – Others ** 1,530 429 314 427Others 239 76 58 83Total Revenues 10,712 3,255 2,231 2,780 * Fee income is net of sub brokerage ** Excluding treasury (policyholders’) income 7
  9. 9. Consolidated Advances & Investments` cr FY11 Jun10 Jun11Commercial Vehicles & Construction Equipments 6,251 4,402 6,771Agriculture Finance 4,220 2,925 4,356Auto Loans 8,550 7,064 8,978Mortgage Loans 6,877 5,299 7,077Personal Loans 1,307 1,193 1,360Corporate Banking 10,916 9,325 12,630Others 3,121 2,770 3,527Total Advances 41,242 32,978 44,699Investments / Treasury Assets * 18,279 16,374 19,422Total Advances & Investments 59,521 49,352 64,121 * Does not include policy holders’ investments 8
  10. 10. Consolidated PAT` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12Kotak Mahindra Bank 818 249 187 252Kotak Mahindra Prime 318 87 76 94Kotak Securities 182 36 47 23Kotak Mahindra Capital Company 52 30 7 1Kotak Mahindra Old Mutual Life Insurance 101 71 (7) 46Kotak Mahindra AMC & Trustee Co 17 4 9 9International subsidiaries 51 15 16 (3)Kotak Investment Advisors 33 6 11 11Kotak Mahindra Investments 24 5 7 3Total 1,596 503 353 436Minority Interest, Equity Affiliates, Others (29) (12) (25) (20)Consolidated PAT 1,567 491 328 416 9
  11. 11. Consolidated PAT – Quarterly Trend 600 500 416 400 328(`cr ) 300 257 200 146 150 104 100 - 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 ` cr 2007 2008 2009 2010 2011 2012 Q1 104 146 150 257 328 416 Q2 94 242 161 300 364 Q3 170 364 131 331 384 Q4 170 240 211 419 491 10
  12. 12. Consolidated Profit (PBT) Mix`cr 1,883 2,273 711 504 619 6% 4% 4% 14% 4% 9% 7% 10% 4% 6% 15% 15% 14% 23% 83% 75% 72% 77% 59% -1% FY10 FY11 Q4FY11 Q1FY11 Q1FY12 Financing Capital Market Insurance Asset Management 11
  13. 13. Consolidated Key Financials` cr FY11 Q1 FY11 Q1 FY12Deposit 27,313 22,288 29,397Borrowings 22,073 19,241 24,620Advances 41,242 32,978 44,699Total Assets 73,681 61,776 78,542Networth 10,963 8,264 11,406AUM 47,850 47,979 51,661 12
  14. 14. Consolidated Key Ratios FY11 Q1 FY11 Q1 FY12Return on average assets (%, not annualised) 2.39 0.56 0.55Book value per share (`) 148.8 118.5 154.6NIM (% - YTD annualised) @ 5.2 5.4 5.0Group CAR (%) – $ excl. unaudited profits 19.5 16.9 $ 18.4 $Tier I(%) - $ excl. unaudited profits 18.1 15.1 $ 16.9 $RoE (%), annualised 16.4 16.2 14.9Gross NPA (` cr) excl. acquired stressed assets 469 671 479Gross NPA (%) excl. acquired stressed assets 1.1 2.0 1.1Net NPA (` cr) excl. acquired stressed assets 178 313 184Net NPA (%) excl. acquired stressed assets 0.4 1.0 0.4@ NIM for previous periods restated for processing fees. 13
  15. 15. BUSINESS OVERVIEW 14
  16. 16. Financing Business Advances Net Interest Income 44,699 3,000 41,242 40,000 2,500 32,978 29,724 2,000 2,233 30,000 (`cr) 1,500 (` cr) 2,680 20,000 1,000 10,000 500 725 614 742 - - FY10 FY11 Q4FY11 Q1FY11 Q1FY12 FY10 FY11 Q1FY11 Q1FY12 NII Net NPA PAT 2.5% 1,200 1,160 2.1% 2.0% 1,000 1.7% 1.5% 762 1.5% 800 1.2% 1.1% 1.0% 1.0% (` cr) 600 0.7% 0.5% 0.5% 0.4% 400 341 349 270 0.4% 0.0% 200 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 - FY10 FY11 Q4FY11 Q1FY11 Q1FY12 NNPA % is excl acquired stressed assets portfolio 15
  17. 17. Consumer Banking - Liabilities Number of Branches & ATMs500 Branches in CY13 350 710 725 800 300 552 700Increased cross sell of 250 492 600asset products 500 321 Branches 200 ATM s 323 400 150Added close to 1 lac. 249 262 300customer accounts 100 200 50 100Focus on affluent - 0segment FY10 FY11 Q1FY11 Q1FY12 CASA deposits*` cr 7,463 8,791 6,657 8,254 CASA % *` cr 31 30 28 27 * Excl IPO float 16
  18. 18. Consumer Financing Advances break upContinue focus on 3% 3% 3% 3%Auto Sector 10% 8% 8% 7%Focus on SENP 37% 39% 38% 40%Mortgage – healthygrowth over the years;present in 14 cities 50% 50% 51% 50%Unsecured loansdegrown in last 3 yrs;see opportunities in FY10 FY11 Q1FY11 Q1FY12select segments Car Mortgage PL Others ` cr 13,074 17,170 13,960 17,873 17
  19. 19. Commercial Financing Advances break upRenewed growth inCE/CV 5% 4% 7% 18% 15% 19% 13%Consistent growth in 34%Agri 32% 31% 31%Priority sector targetmet consistently 48% 48% 46% 49%Limited exposure toMFI, 0.08% of consol FY10 FY11 Q1FY11 Q1FY12advances CE/CV Agri Capital Market Others ` cr 9,168 12,988 9,543 13,982 18
  20. 20. Wholesale Financing Funded & Non funded `crLeverage on Grouprelationships 12,630 10,916Continued focus on 9,325Trade Finance & 7,325Transaction Banking 6,490 6,786 3,591Continue strong 3,232presence in debt capitalmarketsDeepen franchise of FY10 FY11 Q1FY11 Q1FY12large corporates & widen Funded Non Fundedmiddle markets 19
  21. 21. Bank – Profit and Loss` Cr FY11 Q4FY11 Q1FY11 Q1FY12Net Interest Income 2,097 565 483 568Other Income 781 248 162 229Net Total Income 2,878 813 645 797Employee Cost 751 218 166 206Other Operating 802Expenses 227 164 204Operating Expenditure 1,553 445 330 410Operating Profit 1,325 368 315 386Provisions & 137 (7) 56 22ContingenciesPBT 1,188 375 259 364Provision for Tax 370 126 72 112PAT 818 249 187 252 20
  22. 22. Bank Segment PerformanceSegmental PBT (`cr) FY11 Q4 FY11 Q1 FY11 Q1 FY12Corporate/Wholesale Banking 544 170 105 238Retail Banking 339 99 68 135 Treasury & BMU* 305 106 86 (9) Total 1,188 375 259 364 * Balance Sheet Management Unit 21
  23. 23. Bank Advances & Investments` cr FY11 Q1 FY11 Q1FY12Commercial Vehicles & Construction Equipments 6,251 4,402 6,771Agriculture Finance 4,220 2,925 4,356Mortgage Loans 6,877 5,247 7,077Personal Loans 1,305 1,170 1,359Corporate Banking 9,417 8,500 11,214Others 1,259 945 1,562Total Advances 29,329 23,189 32,339 Advances – as per segmental classificationRetail 17,672 13,604 17,906Corporate 11,657 9,585 14,433Total Advances 29,329 23,189 32,339Investment / Treasury Assets 17,121 15,613 17,925Total Advances and Investments 46,451 38,802 50,264 22
  24. 24. Bank Balance SheetLiabilities ` cr FY11 Q1 FY11 Q1 FY12Net Worth 6,796 4,693 7,077Deposits 29,261 24,058 31,047 CA 5,460 3,953 4,947 SA 3,331 2,704 3,307 Term Deposit 15,388 12,537 16,819 Certificate of Deposit 5,082 4,864 5,974Borrowings 11,724 11,126 13,863Other Liabilities and Provisions 3,070 3,068 3,086Total 50,851 42,945 55,073Assets ` crCash, Bank and Call 2,471 2,116 2,842Investments 17,121 15,613 17,925 Government Securities 13,198 12,977 14,331 Other Securities 3,923 2,636 3,594Advances 29,329 23,188 32,339Fixed Assets & other Assets 1,928 2,028 1,967Total 50,851 42,945 55,073 23
  25. 25. Bank Key Ratios` cr FY11 Q1 FY11 Q1 FY12CAR % – $ 19.9 16.8$ 18.2$Tier I (%) – $ 18.0 14.2$ 16.1$Gross NPA (` cr) * 362 514 377Gross NPA (%) * 1.2 2.2 1.2Net NPA (` cr) * 146 228 157Net NPA (%) * 0.5 1.0 0.5RoA (% - not annualised) 1.8 0.5 0.5 $ excl. unaudited profits * Excluding acquired stressed assets portfolio 24
  26. 26. Kotak Mahindra Prime` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12 Total Income 1,365 365 300 396 Profit before tax 482 129 115 141 Profit after tax 318 87 76 93` cr FY11 Q1 FY11 Q1 FY12 Total Advances 11,145 9,053 11,569 Car Advances 8,489 7,000 8,938 Net NPA$ 31 84 26 Car Business Net NPA 0.3 0.3 0.2 CAR (%) 15.5 12.7 16.0 ROA (%) (Not annualised) 3.1 0.8 0.8$excluding acquired stressed assets portfolio 25
  27. 27. Life Insurance Capital efficiency among Gross Premium `cr the highest in the industry Adjusting with the new Renewal product mix; Group 1,534 1,722 330 Single 346 FY12 as another year of 221 288 Individual consolidation; 188 280 Regular 62 60 17 conservatism has helped so 925 685 925 40 far 65 FY10 FY11 Q1FY11 Q1FY12 2,858 2,976 558 511 FY11 Q1 FY11 Q1 FY12Capital (` cr) 562 562 562Solvency ratio 2.67 2.69 2.85Gross Premium 2,976 558 511 Renewal 1,722 330 346 Individual Regular 685 149 65 Group 288 62 60 Single 280 17 40 26
  28. 28. Life Insurance Sum Assured AUM 9,000 8,270 8,692 138 129 7,500 6,797 6,461 120 103 6,000 92(`cr 000) (`cr) 80 4,500 3,000 40 1,500 - - FY10 FY11 Q1FY11 Q1FY12 FY10 FY11 Q1FY11 Q1FY12 Number of Branches PAT 250 214 214 202 202 110 101 200 69 150 70 (` Cr) (No.) 46 100 30 50 (10) 0 (7) FY10 FY11 Q1FY11 Q1FY12 FY10 FY11 Q1FY11 Q1FY12 27
  29. 29. Kotak Securities Market ADV ( ` 000 cr) ADV ` cr (KS) 4,800 4,648 4,600 78 4,400 89 35 56 4,200 3,925 4,000 (`cr) 3,800 38 3,582 39 37 3,600 30 3,400 23 19 18 14 3,200 FY10 FY11 Q1FY11 Q1FY12 3,000 Cash Future Option Mar-11 Jun-10 Jun-11` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12Total income 738 169 174 145Profit before tax 272 56 67 36Profit after tax 182 36 47 23 Market share (%) 3.4 2.9 3.7 2.7Kotak Securities services > 680,000 secondary market customers thru 1,442 branches & franchises. 28
  30. 30. Kotak Mahindra Capital Client Transaction Size (USD mn) Initial Public Offering 204 Initial Public Offering 169 Growth equity investment by KKR & IFC 97 Pre-IPO Placement to Avigo & Sabre 30 Joint Venture between Kokuyo and Camlin Limited 91 Open offer for Kemrock Industries and Exports Limited by 45 RPM International Inc. SBS Holdings Inc acquisition of 80% stake in Atlas Logistics ND Ltd Business Restructuring ND `cr FY11 Q4 FY11 Q1 FY11 Q1 FY12 Total income 154 60 34 23 Profit before tax 70 40 10 2 Profit after tax 52 30 7 1 29
  31. 31. Asset Management ` 47,979 cr ` 51,661cr Q1 FY11 Q1 FY12 PMS 5% Insurance PMS 14% 3% Domestic MF Insurance Domestic Debt 16% MF Debt 45% 50% Offshore Offshore Funds 15% Funds 14% Alternate Asset 11% Alternate Domestic MF Asset Equity 10% Domestic 10% MF Equity 7% 30
  32. 32. Mutual Fund Average Assets Under Management `crClose to 9.8 lac foliosRegulatory challenges84 Branches 34,880 34,482 34,167 30,472 FY10 FY11 QTDJUN10 QTDJUN11 ` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12 Total income 119 33 40 37 Profit before tax 25 5 13 13 Profit after tax 17 4 9 9 Average AUM (` bn) 305 323 345 342 Average AUM - Equity (` bn) 44 38 47 37 AMC & Trustee Co 31
  33. 33. Kotak Investment Advisors Realty Funds Private Equity Funds Corpus advised //managed –– Corpus advised managed  Corpus advised //managed –– Corpus advised managed ``2,894cr 2,894cr ``2,051 cr 2,051 cr Propose to launch $300 mn Infrastructure fund with SMBC and Brookfield Propose to launch $300 mn Infrastructure fund with SMBC and Brookfield KIREF IV Closing done on 14th July 2011 with Corpus Rs. 454 cr. KIREF IV Closing done on 14th July 2011 with Corpus Rs. 454 cr. ` cr FY11 Q4FY11 Q1FY11 Q1FY12 Total income 96 26 25 25 Profit before tax 49 10 16 15 Profit after tax 33 6 11 11 32
  34. 34. International Subsidiaries` cr FY11 Q4 FY11 Q1 FY11 Q1 FY12Total income 139 36 32 21Profit before tax 54 15 19 (5)Profit after tax 51 15 16 (3) As on Jun 30, 2011 assets managed / advised by international subsidiaries were USD 1.7 bn. 33
  35. 35. Bank Awards & Recognition Kotak Bank Annual Report 2010-11 was awarded Platinum - “Best among Banking, APAC” and Gold in the “Most Creative Report, APAC” in the LACP Vision Awards, USA Awarded Bronze in the “Best Local Trade Bank in India” category of Trade and Forfaiting Review Awards 2011 Awarded Hewitt Best Employers in India 2011 & 2009; only Bank to be in top 25 Ranked #2 in India for companies with “Best Corporate Governance Practices” – IR Global Rankings 2010 Ranked # 1 in 17 categories including range of investment products / advisory Award for Excellence services by Euromoney “The ingenious 100” Award by IDG India’s CIO Magazine for Storage Virtualization & Ingenious Technology Solutions Best Local Cash Management Bank Asia Money 2010 Best companies to work for 2010 & 2009 by Great places to work Institute India Best Private Bank by Finance Asia Country 34
  36. 36. Awards & Recognition Lipper Fund Award 2011 for Kotak Bond Regular – ‘Best Fund over 10 years Bond Indian Rupee’ Best Debt Fund House of the year 2009 Outlook Money NDTV Profit Awards 2009 & 2010 Best Broker in India 2010 Best Broker in India 2010 2011:Best Investment Bank in India (Sixth year in a row) 2011: Best Domestic Equity House Best Local Brokerage 2010 Best Local Brokerage 2010 2011: Best Equity House (Fourth year in a row) (Second year in a row) Award for Excellence 2010: Best Domestic Investment Bank 2010: Best Investment Bank in India 2010: Best Bank for Equity Finance in India (Fifth year in a row) (Real Estate) 2006: Best Equity House in India 35
  37. 37. Talent…Professional Entrepreneurs at work C. Jayaram  Joined Kotak in 1990; First charge | Vice President, Kotak Mahindra Finance  Current charge | Joint Managing Director, Kotak Mahindra Bank  On being a professional entrepreneur | When I joined Kotak, I didn’t really foresee that I would be running a business for the Group. As it turns out, I have been involved with building more than four businesses. Each one has presented its own set of challenges and opportunities. I can’t think of too many companies which offer their people this kind of a canvas. 36
  38. 38. Talent…Professional Entrepreneurs at work Gaurang Shah  Joined Kotak in 1996; First charge | Chief Operating Officer, Kotak Mahindra Primus;  Current charge | Head of Asset Management businesses across the mutual fund, PMS and life insurance  On being a professional entrepreneur | I came from a corporate finance background and joined Kotak’s Car Finance business. That was in 1996. I was totally new to retail finance. In 1999, I took over as Executive Director of Car Finance and by 2002, we had built one of India’s most profitable car finance companies. In 2002, I took over as head of Retail Assets and we added Home Loans, Subprime Lending in automobile financing and agricultural finance to our retail portfolio. In 2004, I moved into Life Insurance with my knowledge of insurance restricted to a single policy that I owned. Jaimin Bhatt  Joined Kotak in 1995; First charge | Proprietary Investments  Current charge | Group CFO  On being a professional entrepreneur | My initial work at Kotak was in the area of Proprietary Investments, where I worked with Narayan (S.A.). Around the time of the Ford JV, I was invited to be on the team structuring the JV and that was very exciting. I moved to the Investment Bank and handled M&A. I was involved in a number of exciting transactions. Thereafter my role grew into larger operational role at the Investment Bank and also included doing structuring work for the Group. What stands out for me is the freedom and sense of responsibility that one gets and this, in turn, instills a lot of self-confidence. As you grow and inculcate the same sense of self-confidence in those around you, it becomes a part of the culture. K.V.S. Manian  Joined Kotak in 1995; First charge | Compliance, Kotak Mahindra Capital Company;  Current charge | Group Head – Consumer Banking covering all liabilities and assets  On being a professional entrepreneur | After two years in Investment Banking, I moved into Corporate Finance. I was instrumental in turning around and building the Retail Asset Finance Division (including the early stages of the Commercial Vehicle and Personal Loans Businesses). When the Group restructured its business in preparation for the conversion to a bank, I managed the team working on viability, decision making and structuring of the banking business as a project. I now oversee the Personal customer segment comprising of the Home Finance Division, the Consumer Services Group, Credit Cards and the Auto Finance Business, in addition to the Branch Banking and Retail Liabilities business. It’s been a diverse set of responsibilities and looking back, I realize that I had no prior experience in any of the functions. 37
  39. 39. Talent…Professional Entrepreneurs at work Shanti Ekambaram  Joined Kotak in 1991; First charge | Senior Manager – Bill Discounting;  Current charge | Group Head – Corporate & Institutional Banking, Kotak Mahindra Bank  On being a professional entrepreneur | I joined Kotak from a foreign bank. Since financial services was still a new area I was apprehensive but here was a company that seemed young and hungry. In the back of my mind, I knew I could always go back to a MNC if things didn’t work out. That was 16 years ago and I’m still here and raring to go. I have run the Bill Discounting business, serviced FIIs and started the M&A desk. When we entered into a strategic alliance with Goldman Sachs, I moved to look after that business and we dominated the GDR and private placement markets. I subsequently moved into the domestic Investment Banking business to develop corporate relationships, then head Fixed Income. In 1998, I took over as the CEO of the Investment Bank and we went on to top the league tables. In 2003 when the bank project was launched I was given the opportunity to build the wholesale bank. I don’t think any MNC would give me so many opportunities for learning and growth. Mohan Shenoi  Joined Kotak in 2002;  Current charge | Treasurer, Kotak Mahindra Bank  On being a professional entrepreneur | Very few in the banking industry have the experience of starting a new bank. I had this rare privilege of associating with two banks right from their inception. The first was ICICI Bank and the second is Kotak Mahindra Bank. I was instrumental in setting up and managing the treasury in both banks. At Kotak, Treasury is one of the important contributors to the revenues of the Bank. Over a 29-year banking career, I have worked in branch banking, credit, recoveries, strategic planning and retail banking (apart from treasury). The environment at Kotak allows me to leverage this diversity of experience to the fullest. Narayan S.A.  Joined Kotak in 1992; First charge | Associate Vice President, Kotak Mahindra Finance (Operations);  Current charge | Head – Commercial Business, Kotak Mahindra Bank, also oversees the retail brokerage  On being a professional entrepreneur | In 1996, broking was largely seen as in institutional business. I believed that retail broking was an opportunity waiting to happen and took up the challenge of going retail. I always wanted to be an entrepreneur and Kotak gave me an opportunity to build a business that any entrepreneur would be proud of. 38
  40. 40. DisclaimerThis presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to thepurchase or sale of any security of Kotak Mahindra Bank Limited (the “Bank”) and no part of it shall form the basis of or be relied upon inconnection with any contract or commitment whatsoever. No offering of securities of the Bank will be made except by means of a statutoryoffering document containing detailed information about the Bank.This presentation is not a complete description of the Bank. Certain statements in the presentation contain words or phrases that areforward looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actualresults to differ materially from those contemplated by the relevant forward looking statement. Any opinion, estimate or projection hereinconstitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent withany such opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy is notguaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank. We do not have anyobligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of thispresentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.All information contained in this presentation has been prepared solely by the Bank. No information contained herein has beenindependently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility orliability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation orwarranty (expressed or implied) or omissions in this presentation. Neither the Bank nor anyone else accepts any liability whatsoever for anyloss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith. Thispresentation may not be used, reproduced, copied, distributed, shared, or disseminated in any other manner.The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentationcomes should inform themselves about, and observe, any such restrictions.ContactJaimin Bhatt / R SundarramanKotak Mahindra Bank LimitedTel: +91 22 6672 6000, Fax: +91 22 6672 6430E-mail: investor.relations@kotak.com 39
  41. 41. KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED)Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2011 ` lakhsSr Particulars Quarter Ended Year EndedNo June-11 June-10 March-11 (Unaudited) (Unaudited) (Audited)1 Interest earned (a+b+c+d) 186,960.88 127,866.93 597,311.23 (a) Interest/discount on advances/bills 143,191.55 94,929.51 454,252.54 (b) Income on investments 41,957.91 31,664.35 135,518.78 (c) Interest on balances with RBI & other banks 780.68 189.43 2,309.06 (d) Others 1,030.74 1,083.64 5,230.852 Other income (a+b+c) 84,003.82 105,000.73 502,431.75 (a) Profit/(Loss) on sale of investments including revaluation (insurance business) (7,058.80) 9,778.81 28,510.11 (b) Premium on Insurance Business 50,027.53 54,622.64 293,990.87 (c) Other income (see Notes 1 and 5) 41,035.09 40,599.28 179,930.773 Total income (1+2) 270,964.70 232,867.66 1,099,742.984 Interest expended 94,923.60 52,543.89 266,824.055 Operating expenses (a+b+c) 113,375.61 127,721.12 593,419.05 (a) Payments to and provisions for employees 38,481.48 35,188.48 152,234.49 (b) Policy holders’ reserves, surrender expense and claims 37,253.95 56,115.56 280,861.43 (c) Other operating expenses (see Note 2 and 5) 37,640.18 36,417.08 160,323.136 Total expenditure (4+5) (excluding provisions and contingencies) 208,299.21 180,265.01 860,243.107 Operating Profit (3-6) (Profit before provisions and contingencies) 62,665.49 52,602.65 239,499.888 Provisions & contingencies (Other than tax) (see Note 3) 2,416.20 5,529.04 14,759.97 9 Exceptional items - - -10 Profit from ordinary activities before tax (7-8-9) 60,249.29 47,073.61 224,739.9111 Tax expense 18,312.66 15,105.84 67,816.4112 Profit from Ordinary activities after tax before Minority Interest (10 – 11) 41,936.63 31,967.77 156,923.5013 Extraordinary items (net of tax expense) - - -14 Profit from ordinary activities after tax before Minority Interest (12 – 13) 41,936.63 31,967.77 156,923.5015 Less: Share of Minority Interest 1,203.44 (179.66) 2,635.2616 Add: Share in Profit of associates 876.91 621.91 2,386.2317 Profit after Tax (14-15+16) 41,610.10 32,769.34 156,674.4718 Paid Up Equity Capital - (Face Value of ` 5 per share) (see Note 6) 36,890.52 34,859.44 36,843.5819 Group Reserves (excluding Minority Interest) 1,059,450.5420 Minority Interest 10,721.1221 Analytical Ratios (i) Earnings per Share (before and after extraordinary items) (see Note 6) (a) Basic (not annualised) ` 5.64 4.71 21.73 (b) Diluted (not annualised) ` 5.61 4.66 21.60 (ii) NPA Ratios (a) Gross NPA 71,738.61 93,566.22 71,198.46 (b) Net NPA 24,066.96 39,301.32 24,267.10 (c) % of Gross NPA/ Gross Advances 1.59 2.79 1.71 (d) % of Net NPA/ Net Advances 0.54 1.19 0.59 (e) % of Gross NPA/ Gross Advances (excluding NPAs acquired from other banks/ NBFCs) 1.07 2.02 1.13 (f) % of Net NPA/ Net Advances (excluding NPAs acquired from other banks/ NBFCs) 0.41 0.95 0.43 (iii) Return on Assets (average) (not annualised) 0.55 0.56 2.39 1
  42. 42. NOTES: 1. Details of other income forming part of the Consolidated unaudited results are as follows: ` lakhsParticulars Quarter Ended Year Ended June-11 June-10 March-11 (Unaudited) (Unaudited) (Audited)Commission, fees, exchange and brokerage 32,418.46 36,319.25 145,149.48Profit on sale of investments (other than insurance business) 2,475.57 9.17 16,424.25Others 6,141.06 4,270.86 18,357.04Total – Other income 41,035.09 40,599.28 179,930.77 2. Details of other expenditure forming part of Consolidated unaudited results are as follows: ` lakhsParticulars Quarter Ended Year Ended June-11 June-10 March-11 (Unaudited) (Unaudited) (Audited)Brokerage 4,733.78 5,158.59 22,538.71Depreciation 3,778.44 3,669.82 15,234.62Rent, taxes and lighting 5,735.33 5,016.63 21,585.55Others 23,392.63 22,572.04 100,964.25Total – Other operating expenses 37,640.18 36,417.08 160,323.13 3. Provisions and contingencies are net of recoveries made against accounts which have been written off as bad in the previous year/s. 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 ` 2,099.36 lakhs for the quarter ended 30th June, 2011 (` 1,266.36 lakhs for the quarter ended 30th June, 2010), for year ended 31st March, 2011 ` 6,553.38 lakhs. 6 Each equity share of the Bank having face value of ` 10 fully paid-up was sub-divided into two equity shares of the face value of ` 5 each fully paid-up in September 2010. Accordingly, the number of shares in the previous periods has been restated to make them comparable. In accordance with Accounting Standard 20 “Earnings Per Share”, the Bank has given effect to the sub-division of shares in computing the earnings per share for the previous periods. 7 There has been no change in significant accounting policies during the quarter. 8 Figures for the previous period/ year have been regrouped wherever necessary to conform to current period’s presentation. 2
  43. 43. KOTAK MAHINDRA BANK LIMITED (STANDALONE)Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2011 ` lakhs Quarter Ended Year EndedSr June-11 June-10 March-11No Particulars (Unaudited) (Unaudited) (Audited) 1 Interest earned (a+b+c+d) 132,978.22 89,741.68 418,975.20 (a) Interest/ discount on advances/ bills 104,217.48 67,063.82 321,434.81 (b) Income on investments 28,635.93 22,547.93 95,717.85 (c) Interest on balances with RBI & other banks 88.24 124.83 1,718.84 (d) Others 36.57 5.10 103.70 2 Other Income (Refer Note 2) 22,866.21 16,262.25 78,053.49 3 Total income (1+2) 155,844.43 106,003.93 497,028.69 4 Interest expended 76,193.23 41,477.32 209,217.68 5 Operating expenses (a+b) 41,045.62 32,992.42 155,332.02 (a) Payments to and Provisions for employees 20,619.05 16,561.97 75,114.84 (b) Other Operating expenses 20,426.57 16,430.45 80,217.18 6 Total expenditure (4+5) (Excluding Provisions and Contingencies ) 117,238.85 74,469.74 364,549.70 7 Operating Profit (3-6) (Profit before Provisions and Contingencies) 38,605.58 31,534.19 132,478.99 8 Provisions & contingencies (Other than Tax) (Refer Note 1) 2,208.49 5,609.48 13,708.81 9 Exceptional items - - -10 Profit from Ordinary Activities before tax (7-8-9) 36,397.09 25,924.71 118,770.1811 Provision for taxes 11,193.60 7,234.38 36,951.9712 Net Profit from Ordinary Activities after tax (10-11) 25,203.49 18,690.33 81,818.2113 Extraordinary items (net of tax expense) - - -14 Net Profit for the Period (12-13) 25,203.49 18,690.33 81,818.2115 Paid Up Equity Capital - (Face Value ` 5 per share) 36,890.52 34,859.44 36,843.5816 Reserves excluding revaluation reserves 642,803.6217 Analytical Ratios (i) % of shares held by Govt. of India NA NA NA (ii) % Capital adequacy ratio ( Basel II ) 18.15 16.79 19.92 (iii) Earnings Per Share (EPS) for the period (Refer Note 3) - Basic (Not Annualised) ` 3.42 2.69 11.35 - Diluted (Not Annualised) ` 3.40 2.66 11.28 (iv) NPA Ratios a) Gross Non-performing assets 61,570.81 77,819.22 60,349.33 b) Net Non-performing assets 21,352.49 30,816.43 21,115.94 c) % of Gross NPA to Gross Advances 1.88 3.29 2.03 d) % of Net NPA to Net Advances 0.66 1.33 0.72 e) % of Gross NPA to Gross Advances (excluding NPAs acquired from other banks and NBFCs) 1.16 2.20 1.23 f) % of Net NPA to Net Advances (excluding NPAs acquired from other banks and NBFCs) 0.49 0.99 0.50 g) Return on Assets %(Average) – Not Annualised 0.47 0.45 1.7718 Public Shareholding (i) No. of shares 402,020,101 361,383,510 401,081,236 (ii) % of shareholding 54.49% 51.83% 54.43%19 Promoters and promoter group Shareholding a) Pledged/Encumbered - Number of shares - 100,000 100,000 3
  44. 44. Quarter Ended Year Ended Sr June-11 June-10 March-11 No Particulars (Unaudited) (Unaudited) (Audited) - Percentage of shares (as a % of the total shareholding of - 0.03% 0.03% promoter and promoter group) - Percentage of shares (as a% of the total share capital of the - 0.01% 0.01% company) b) Non-encumbered - Number of Shares 335,790,268 335,705,288 335,690,268 - Percentage of shares (as a% of the total shareholding of promoter and promoter group) 100% 99.97% 99.97% - Percentage of shares (as a % of the total share capital of the company) 45.51% 48.16% 45.56%Segment ResultsThe 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 Wholesale borrowings and lendings and other related services to the corporate sector which are not Banking included under retail banking ` lakhs Quarter Ended Year ended June -11 June-10 March- 11 (Unaudited) (Unaudited) (Audited)1 Segment Revenue a. Treasury and BMU 44,088.36 32,623.72 149,755.27 b. Corporate/ Wholesale Banking 55,235.52 31,488.25 160,386.97 c. Retail Banking 99,990.16 66,546.64 311,286.78 Sub-total 199,314.04 130,658.61 621,429.02 Less : Inter-segmental revenue 43,491.14 24,654.68 124,426.11 Add : Unallocated Income 21.53 - 25.78 Total 155,844.43 106,003.93 497,028.692 Segment Results a. Treasury and BMU (894.02) 8,590.72 30,483.36 b. Corporate/ Wholesale Banking 23,756.62 10,490.28 54,389.11 c. Retail Banking 13,513.02 6,843.71 33,871.93 Sub-total 36,375.62 25,924.71 118,744.40 Add : Unallocated Income /(expense) 21.47 - 25.78 Total Profit Before Tax 36,397.09 25,924.71 118,770.183 Capital employed (Segmental Assets less Segmental Liabilities) a. Treasury and BMU 129,647.44 73,988.07 189,618.97 b. Corporate/ Wholesale Banking 241,586.87 141,275.25 178,330.91 c. Retail Banking 329,083.57 242,463.85 299,226.15 d. Unallocated 7,335.09 11,586.83 12,471.17 Total 707,652.97 469,314.00 679,647.20 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. Other Income includes non fund based income such as commission earned from guarantees/letters of credit, financial advisory fees, selling of third party products, earnings from foreign exchange transactions and profit/loss from sale of securities. 3. Each equity share of the Bank having face value of ` 10 fully paid-up was sub-divided into two equity shares of the face value of ` 5 each fully paid-up in September 2010. Accordingly, the number of shares in the previous periods has been restated to make them comparable. In accordance with Accounting Standard 20 “Earnings per Share”, the Bank has given effect to the sub-division of shares in computing the earnings per share for the previous periods. 4. During the quarter, the Bank has granted 3,251,130 options under employee stock option scheme. Stock options aggregating to 938,865 (Post split) were exercised during the quarter and 15,241,958 (Post split) stock options were outstanding with employees of the Bank and its subsidiaries as at 30th June, 2011. 4
  45. 45. 5. The Bank had two outstanding shareholder complaints as at 31st March, 2011, which were subsequently resolved. During the quarter, the Bank received 12 complaints from shareholders out of which two complaints were pending as at 30th June, 2011, which have subsequently been resolved.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 above results have been approved by the Board of Directors of the Bank at its meeting held today. The same are subject to review by the statutory auditors of the Bank. By order of the Board of Directors For Kotak Mahindra Bank Limited Dipak Gupta stMumbai, 21 July, 2011 Executive Director 5

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