- Kotak Mahindra Bank reported a 23% rise in net profit to Rs. 717.93 crore for the quarter ended September 2014, with a 52% increase in net total income to Rs. 3235.54 crore. - The bank saw a 19% year-on-year rise in consolidated advances to Rs. 81418 crore at the end of September 2014, driven by a 44% rise in corporate loans. - On a standalone basis, the bank reported business growth of 25% with total assets rising to Rs. 129051 crore and deposits growth accelerating to 29% for the quarter.

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KOTAK MAHINDRA BANK
STOCK DATA
BSE Code 500247
NSE Symbol KOTAKBANK
Reuters KTKM.BO
Bloomberg KMB IN
VALUE PARAMETERS
Price (`) 1083.15
52 W H/L( `
) 1092.00/630.80
Mkt. Cap.( `
Cr) 83547.10
Latest Equity(Subscribed) 385.67
Latest Reserve (cons.) 18690.85
Latest EPS (cons.) -Unit Curr. 34.63
Latest P/E Ratio -cons 31.28
Latest Bookvalue (cons.) -Unit Curr. 247.32
Latest P/BV - cons 4.38
Dividend Yield -% 0.08
Face Value 5.00
Sep
Consolidated Quarterly Performance
On the consolidated front, the bank has reported 23% growth in the Net Profit to 717.93 crore,
over 12% increase in NII at `1583.81 crore in the quarter ended September 2014. Non-interest
income shot up 132% to 1651.73 crore, helping Net Total Income to increase 52% to 3235.54
crore in the quarter ended September 2014. The expense ratio increased 10.43 percentages
yoy, while the tax rate was nearly steady in the quarter ended September 2014.
Kotak Prime has reported 5% yoy increase in the net total income at 278 crore for
Q2FY2015, while net profits was flat at Rs 125 crore. Total customer asset moved up 6% yoy to
18819 crore at end September 2014. Car advances constituting 74% of the total customer
assets increased 6% to 13946 crore. Asset quality was steady with %NNPA flat at 0.3% at end
September 2014. Capital Adequacy ratio was healthy at 17.7% at end September 2014.
Kotak Mahindra Life Insurance has reported 10% increase in the gross premium to 668
crore in Q2FY2015. PAT increased 18% to 52 crore in Q2FY2015. Solvency ratio eased to
2.98% in Q2FY2015, against 3.12% in Q2FY2014.
Kotak Securities has reported PAT at 66 crore in Q2FY2015 sharply higher than 40 crore in
Q2FY2014, with 47% surge in total income at 224 crore. Market share eased to 2.7% from
2.9% a quarter ago.
Kotak Mahindra Capital has reported a net loss of 7 crore against net loss of 2 crore in the
corresponding previous year with 8% decline in total income to 11 crore. AUM increased 9% to
65657 crore at end September 2014.
Kotak Mahindra AMC and Trustee Co reported 7% increase in Average AUM at 37763
crore in the quarter ended September 2014.
Kotak Investment Advisers has reported flat Net Profit to 4 crore with the total income at
19 crore for quarter ended September 2014.
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Consolidated Results
In Cr.
Particulars Qtr Ending Qtr Ending Var.
Sep 14 13 (%)
Interest Earned 3268.67 2982.59 10
Interest Expended 1684.86 1566.19 8
Net Interest Income 1583.81 1416.4 12
Other Income 1651.73 713.39 132
Net Total Income 3235.54 2129.79 52
Operating Expenses 2099.87 1160.09 81
Operating Profits 1135.67 969.7 17
Provisions & Contingencies 58.22 86.16 -32
Profit Before Tax 1077.45 883.54 22
Provision for Tax 357.99 289.53 24
PAT Before Minority Interest 719.46 594.01 21
Share of minority interest 13.6 11.33 20
Share in profits of associates 12.07 0.25 4728
PAT 717.93 582.93 23
EPS(`) 9.31 7.59
Current Price: `1083.15
SHARE HOLDING PATTERN (%)
Description as on % of Holding
30/09/2014
Foreign 42.64
Institutions 2.01
Non Promoter Corp. Hold. 3.67
Promoters 40.07
Public & Others 11.61
October 29, 2014

2. Consolidated Business Highlights
Growth accelerates: Total assets galloped 17% yoy to 134401 crore at end September
2014, showing acceleration in the pace of growth from 8% increase at end June 2014.
ŸConsolidated Advances grew 19% yoy to 81418 crore at end September 2014, showing
improvement in growth from 13% at end June 2014. The improvement in advances
growth was driven by 44% increase in corporate loans, while the CV&CE loans continued
to decline.
ŸPersonal loans improved 29% to 5344 crore, while mortgage and agriculture loan
increased 14% to 12894 crore and 28% to 10137 crore at end September 2014.
Margin improves: NIM improved to 5% in Q2FY2015 compared to 4.9% in the corresponding
quarter of last year.
Book value: Book Value per share stood at 266.47 per share at end September 2014 up from
232.58 per share at end September 2013, while adjusted book value (net of NNPA) stood at
257.65 per share at end September 2014 up from 225.45 per share at end September 2013.
Standalone Business Highlights
Business growth accelerates: Business growth of the bank improved to 25%, on yoy basis,
at Rs 129051 crore at end September 2014 compared to 15% growth at end June 2014 and 6%
increase at end December 2013. Deposits growth accelerated to 29%, while advances growth
also improved to 20% at end September 2014.
Corporate book boosts advances growth: The acceleration in the pace of advances
growth was mainly boosted by surge in the corporate loan book. The corporate advances
jumped 40% to Rs 36215 crore while improving its share in overall advance book to 59% from
51% a year earlier. Meanwhile, the retail loan book (exposure up to Rs 5 crore per account) was
flat at Rs 24733 crore at end September 2014, snapping decline for last two quarters.
ŸAdvances to agriculture division and corporate banking increased 28% and 43%,
respectively at end September 2014, mainly contributing to the overall advance growth.
The advances under home loans & LAP and personal loans continued to increase at
healthy pace at 14% in the quarter ended September 2014.
ŸCommercial vehicle & construction equipment (CV&CE) book of the bank continued to
narrow, while the pace of decline has eased.
ŸAdvance growth excluding CV&CE book was higher at 28% against actual overall advance
growth of 20% at end September 2014.
CASA ratio improves: Deposits of the bank surged 29% on yoy basis to 68103 crore at end
September 2014, driven by CASA deposit surging 37% to 21165 crore and Certificate of
Deposits (CDs) rebounding 3% to 4653 crore at end September 2014. Term deposit also
moved up 29% to 42285 crore at end September 2014. CASA ratio has improved to 31.1% at
end September 2014 from 31% a quarter ago and 29.2% a year ago.
Investment book of the bank surged 21% yoy to 27227 crore at end September 2014.
Network expansion: Bank has added 27 new branches and 36 ATM's in the quarter under
review, taking the branch and ATM count to 641 branches and 1159 ATMs spread across 363
cities at end September 2014.
Asset quality improves: The asset quality of the bank was stable, on consolidated as well as
standalone basis, in the quarter ended September 2014.
ŸOn standalone basis, GNPA as well as NNPA ratio's was steady at 1.89% and 1% at end
September 2014 on sequential basis, while decline from a year earlier level.
ŸOutstanding standard restructured assets rose to 161.5 crore (26 bps of advances) at end
September 2014 from 145 crore (26 bps of advances) at end June 2014.
ŸCapital Adequacy ratio under Basel III stood at 17.6% with the Tier I of 16.6% at end
September 2014.
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