This document contains the following reports

Transcription

1 This document contains the following reports Earnings Update Analyst Presentation Press Table

2 Earnings Update FY11 Results May 5, 2011

3 Performance Highlights Consolidated PAT for FY11 up 20% to ` 15,667 mn from ` 13,070 mn in FY10. Consolidated PAT for Q4FY11 ` 4,914 mn - up 17% from ` 4,186 mn in Q4FY10 and up 28% from ` 3,836 mn in Q3FY11. Highest PAT in the 25 year history, both for the year and for the quarter. Consolidated advances up 39% to ` 412 bn as on March 31, 2011 from ` 297 bn as on March 31, Consolidated NIM FY11 at 5.6%. (FY10 6.1%). Consolidated capital adequacy ratio as per Basel II as on March 31, 2011 is 19.5%. Tier 1 ratio 18.1%. Bank (Standalone) PAT for FY11 up 46% to ` 8,182 mn from ` 5,611 mn in FY10. Bank (Standalone) PAT for Q4FY11 ` 2,487 mn - up 23% from ` 2,025 mn in Q4FY10 and up 32% from ` 1,879 mn in Q3FY11. CASA deposits as on March 31, 2011 ` 87,905 mn, comprising 30% of total deposits. PAT of Kotak Life for FY11 up 46% to ` 1,014 mn from ` 692 mn in FY10. Total assets managed/ advised by the Group as on March 31, 2011 were ` 479 bn (March 31, 2010 ` 452 bn). Kotak Mahindra Bank was among the top 25 employers in India as per the Hewitt Best Employers in India study It is the only BFSI Company included in the top 25 employer category. 2

4 Consolidated Financials Revenues ` million Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) Financing activities 13,518 9,592 12,776 47,166 35,231 Fee Income* 3,340 3,199 3,017 12,832 12,837 Premium Income 10,630 11,374 6,044 29,399 28,493 Treasury Others 4,074 3,118 4,159 14,967 12,019 Others 772 1, ,422 3,241 Total Revenues** 32,333 29,101 26, ,786 91,821 *Fee income is net of sub brokerage. **exclude treasury (policyholders) income Analytical Ratios As on Mar 31, 2011 As on Dec 31, 2010 As on Mar 31, 2010 Networth (` mn) 109, ,024 79,109 Book value per share * (`) Face value ` Net Interest Margin (%) 5.6% $ 5.6% $ 6.1% ROA (excluding policyholders assets) (%) (Annualised) 3.0% 2.8% 3.3% Return on average Networth (%) (Annualised) 16.4% 15.6% 18.2% * Adjusted for split $ Normalised 3

5 Consolidated Financials Assets ` million Advances As on Mar 31, 2011 As on Mar 31, 2010 As on Dec 31, 2010 Commercial vehicles & Construction equipments 62,511 44,142 55,485 Auto loans 85,502 65,418 79,935 Mortgage Loans 68,765 47,650 66,261 Personal loans 13,068 13,540 12,268 Agriculture Finance 42,196 30,886 37,528 Corporate Banking 108,654 71, ,940 Others 31,725 23,663 33,547 Total Advances 412, , ,964 Investments/ Treasury Assets * 182, , ,690 Total Advances and Investments 595, , ,654 NPA (excluding acquired stressed assets) GNPA 4,686 6,468 6,031 GNPA (%) 1.13% 2.16% 1.49% NNPA 1,776 3,378 2,040 NNPA % 0.43% 1.14% 0.51% * Does not include policy holders investments. Consolidated Financials Liabilities ` million As on Mar 31, 2011 As on Mar 31, 2010 As on Dec 31, 2010 Deposits 273, , ,966 Borrowings 220, , ,805 4

6 Consolidated Financials Company-wise Profit after Tax ` million Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) Kotak Mahindra Bank (Standalone) 2, , , , ,611.1 Kotak Mahindra Prime , ,664.1 Kotak Securities , ,601.0 Kotak Mahindra Capital Company Kotak Mahindra Old Mutual Life Insurance , Kotak Mahindra AMC & Trustee Co International subsidiaries Kotak Investment Advisors Kotak Mahindra Investments Others (2.0) (2.0) (0.5) (3.0) (4.9) Total consolidated profit after tax 5, , , , ,074.4 Affiliates, minority interest & other adjustments PAT (after minority interest / adjustments) (115.9) (293.6) (4.4) 4, , , , ,

7 Bank Performance Highlights Bank (Standalone) PAT for FY11 up 46% to ` 8,182 mn from ` 5,611 mn in FY10. Bank (Standalone) PAT for Q4FY11 ` 2,487 mn - up 23% from ` 2,025 mn in Q4FY10 and up 32% from ` 1,879 mn in Q3FY11. Net Interest Income (NII) of the Bank (Standalone) for FY11 up 21% yoy to ` 22,451 mn vs. ` 18,581 mn in FY10. NII for Q4FY11 up 18% yoy to ` 6, 216 mn vs. ` 5,260 mn in Q4FY10 (Q3FY11 ` 5,715 mn). Advances up 41% to ` 293 bn as on March 31, 2011 from ` 208 bn as on March 31, Retail Banking profit for FY11 ` 3,387 mn against ` 611 mn in FY10, large contribution from lending activities. Corporate Banking profit for FY11 up 41% to ` 5,439 mn against ` 3,855 mn in FY10. CASA deposits comprised 30% of total deposits as on March 31, Capital adequacy ratio of the Bank as per Basel II as on March 31, 2011 is 19.9%. Tier 1 ratio 18.0%. As at March 31, 2011, excluding the acquired stressed assets, the gross non performing assets of the Bank stood at ` 3,618 mn (1.23% of advances) while the net non performing assets stood at ` 1,460 mn (0.5% of advances). As at March 31, 2011, the provision coverage ratio is 70.1%. As on March 31, 2011, the Bank had 321 full-fledged bank branches (249 branches as on March 31, 2010) across 182 locations and 710 ATMs. Kotak Mahindra Bank was awarded Best Private Bank by Euromoney The Bank also won 16 other awards by Euromoney in various categories. 6

8 Kotak Mahindra Bank Standalone ` million Revenues Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) Treasury & BMU* 4,135 3,057 3,896 14,639 11,262 Corporate/Wholesale Banking 4,947 4,251 4,154 16,039 11,564 Retail Banking 9,036 6,324 8,263 31,129 25,580 Sub-total 18,118 13,632 16,313 61,806 48,407 Unallocated income & inter-segment revenue (3,878) (2,310) (3,306) (12,440) (9,568) Total 14,239 11,323 13,007 49,366 38,839 ` million Segmental PBT Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) Treasury & BMU* 1,065 1, ,048 3,675 Corporate/Wholesale Banking 1,697 1,575 1,311 5,439 3,855 Retail Banking , Lending 1,768 1,354 1,817 6,650 3,775 Branch banking (664) (561) (818) (2,633) (1,890) Credit cards (114) (278) (161) (630) (1,274) Sub-total 3,751 3,109 2,721 11,874 8,140 Unallocated income & inter-segment revenue - (29) - 3 (29) Total 3,751 3,080 2,721 11,877 8,111 * Balance Sheet Management Unit 7

9 Kotak Mahindra Bank Standalone Assets ` million As on As on As on Advances Mar 31, 2011 Mar 31, 2010 Dec 31, 2010 Commercial vehicles & Construction equipments 62,511 44,142 55,485 Mortgage loans 68,765 47,116 66,261 Agriculture Finance 42,196 30,886 37,528 Corporate Banking 92,960 64, ,074 Personal loans 13,050 13,150 12,214 Others 13,812 7,695 13,287 Total Advances 293, , ,850 Advances as per segmental classification Retail 176, , ,943 Corporate 115,906 73, ,284 Others 663 1, Total Advances 293, , ,850 Investment / Treasury Assets 171, , ,867 Total Advances and Investments 464, , ,717 NPA (excluding acquired stressed assets) GNPA 3,618 4,983 4,844 GNPA (%) 1.23% 2.38% 1.66% NNPA 1,460 2,572 1,645 NNPA % 0.50% 1.25% 0.57% 8

10 Liabilities ` million As on Mar 31, 2011 As on Mar 31, 2010 As on Dec 31, 2010 CASA 87,905 74,631 78,682 Term Deposit 153, , ,843 Certificate of Deposit 50,816 43,860 60,355 Total Deposits 292, , ,880 Total Borrowings 117,239 77,029 97,030 Key Subsidiaries Highlights Kotak Mahindra Prime (KMP) car finance, other lending ` million Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) Total income 3,651 2,735 3,840 13,648 9,921 Profit before tax 1, ,417 4,819 2,589 Profit after tax ,179 1,664 Total advances as on March 31, 2011 are ` 111,450 mn (March 31, 2010 is ` 83,110 mn, December 31, 2010 ` 104,394 mn). Of above Car advances as on March 31, 2011 are ` 84,892 mn (March 31, 2010 is ` 64,673 mn, December 31, 2010 ` 79,489). Net NPA as on March 31, 2011 are ` 313 mn (March 31, 2010 is ` 806 mn, December 31, 2010 ` 392 mn). Car business net NPA ratio 0.27% as on March 31, 2011 (March 31, %, December 31, %). 9

11 Kotak Mahindra Old Mutual Life Insurance (KLI) - life insurance ` million Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) First year 2,389 4,457 1,581 8,570 10,838 Renewal 5,462 5,220 4,214 17,224 15,340 Single 2,871 1, ,962 2,502 Gross premium income 10,721 11,371 6,108 29,755 28,680 Individual 9,525 10,130 5,582 26,877 26,467 Group 1,196 1, ,878 2,213 Profit/ (Loss) , As on Mar 31, 2011 As on Mar 31, 2010 As on Dec 31, 2010 AUM (` bn) Sum assured - Individual (` bn) Sum assured - Group (` bn) Solvency ratio Individual policies nos 1,150,037 1,081,268 1,114,664 Group policies nos Branches Cities covered

12 Kotak Mahindra Capital Company (KMCC) investment banking ` million Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) Total income , Profit before tax Profit after tax Kotak Investment Banking was Book Running Lead Manager in the following issuances State Bank of India Lower Tier II bonds IPO ` 55 bn; Tata Steel FPO ` 35 bn; Mahindra and Mahindra Financial Services QIP ` 4 bn; IDFC Infrastructure Bonds IPO ` 8 bn Kotak Investment Banking acted as: Exclusive financial advisor to Ispat Industries for strategic stake sale to JSW Steel through a preferential issue of shares, US$ 2.6 bn Manager to the buyback offer by Piramal Healthcare Limited via tender offer route, US$ 551 mn Manager to the Open Offer for Patni Computer Systems by igate Corporation, US$ 303 mn Manager to the delisting offer by promoter group of Nirma Limited, US$ 174 mn Private Placement of 12.5% stake by Monnet Power Co to Blackstone Capital Partners (Mauritius) Limited, US$ 60 mn Manager to the Open Offer for Religare Enterprises Ltd. by RHC Financial Private Limited Manager to the Open Offer for ADC India Communications Limited by Tyco Electronics Limited Transaction Advisor and provider of Fairness Opinion for demerger of the agri and performance chemicals business from Jubilant Organosys Linited 11

13 During the year, Kotak Investment Banking received a number of prestigious awards including: Best Investment Bank in India by FinanceAsia 2010; Best Domestic Equity House by Asiamoney 2010; Best Equity House in India by FinanceAsia 2010; Best Bank for Equity Finance in India in the Euromoney Real Estate Poll 2010; Best Investment Bank in India by Global Finance 2010; Best Domestic Investment Bank by Asset Asian Awards Kotak Securities stock broking ` million Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) Total income 1,694 1,872 1,957 7,376 8,379 Profit before tax ,716 4,039 Profit after tax ,819 2,601 Kotak Securities clocked average daily volumes of around ` 46 bn during FY11 compared to around ` 39 bn during FY10. Kotak Securities accounted for 3.4% of total average daily market volumes for FY11. Kotak Securities has a network of over 1,413 offices (own & franchisees) across 454 cities and towns and services more than 661,000 secondary market customers. 12

14 Kotak Mahindra Asset Management Company and Trustee Company asset management ` million Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) Total income (AMC) ,081 1,755 Profit before tax (AMC) Profit after tax (AMC) Total income (Trustee Company) Profit before tax (Trustee Company) Profit after tax (Trustee Company) Average AUM (` bn) Average AUM - Equity (` bn) KMAMC has 82 branches and approximately 1 mn folios. International Subsidiaries ` million Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) Total Income ,391 1,591 Profit before tax Profit after tax As on March 31, 2011 assets managed / advised by international subsidiaries were USD 2 bn. 13

15 ` million Kotak Investment Advisors Limited (KIAL) alternate assets management/advisor Q4 FY11 Q4 FY10 Q3 FY11 FY11 FY10 (3 months) (3 months) (3 months) (12 months) (12 months) Total Income Profit before tax Profit after tax KIAL manages / advises private equity and realty funds with commitments aggregating to ` 50 bn. 14

16 Safe Harbor This document contains certain forward- looking statements based on current expectations of Kotak Mahindra management. Actual results may vary significantly from the forward- looking statements contained in this document due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India and outside India, volatility in interest rates and in the securities market, new regulations and Government policies that may impact the businesses of Kotak Mahindra Group as well as its ability to implement the strategy. Kotak Mahindra does not undertake to update these statements. This document does not constitute an offer or recommendation to buy or sell any securities of Kotak Mahindra Bank or any of its subsidiaries and associate companies. This document also does not constitute an offer or recommendation to buy or sell any financial products offered by Kotak Mahindra, including but not limited to units of its mutual fund and life insurance policies. All investments in mutual funds and securities are subject to market risks and the NAV of the schemes may go up or down depending upon the factors. and forces affecting the securities market. The performance of the sponsor, Kotak Mahindra Bank Limited, has no bearing on the expected performance of Kotak Mahindra Mutual Fund or any schemes there under. Figures for the previous period/ year have been regrouped wherever necessary to conform to current period s / year s presentation. Totals in some columns/ rows may not agree due to rounding off. Contact Jaimin Bhatt / R Sundarraman Kotak Mahindra Bank Limited Tel: Fax: investor.relations@kotak.com 15

17 Group Overview 2011

18 2

19 Geographical Presence Wide National Footprint with Multiple Points of Presence Business Branch Mar 11 Banking 321 Car Finance Life Insurance Securities 1,413 Mutual Fund 84 Total 2,077 ~ ~ mn mn customer customer accounts accounts ~ ~ 20,000 20,000 employees employees 3

20 Group Structure Note: All companies are fully owned subsidiaries excepting KM Old Mutual which is held 74% 4

21 25 yrs.. A snapshot PAT Advances 1,600 1,567 42,000 41,242 35,000 1,200 28,000 (` cr) (` cr) 21,000 14,000 15, FY 92 FY 97 FY 03 FY 07 FY 11 7,000-3, FY 92 FY 97 FY 03 FY 07 FY 11 Networth Market Capitalization 12,000 10,000 10,963 35,000 30,000 30,580 8,000 25,000 (` cr) 6,000 4,000 3,233 (` cr) 20,000 15,000 10,000 15,644 2,000-1, FY 92 FY 97 FY 03 FY 07 FY 11 5, FY 92 FY 97 FY 03 FY 07 FY 11 5

22 Financial Summary 6

23 Highlights Consolidated FY11 PAT for FY11 up 20% to ` 1,567 cr, 5 years CAGR of 36% Advances up 39% to ` 41,242 cr NIM at 5.6% Capital Adequacy 19.5% Net NPA 0.43%* Asset managed / advised at ` 47,850 cr * Excl acquired stressed assets 7

24 Consolidated PAT ` cr FY07 FY08 FY09 FY10 FY11 Kotak Mahindra Bank Kotak Mahindra Prime Kotak Mahindra Investments Kotak Securities Kotak Mahindra Capital Company Kotak Mahindra Old Mutual Life Insurance (58) (72) Kotak Mahindra AMC & Trustee Co International subsidiaries Kotak Investment Advisors Total ,307 1,596 Minority Interest, Equity Affiliates, others - 16 (17) - (29) Consolidated PAT ,307 1,567 8

25 Consolidated Profit Mix PBT Mix ` cr 773 1,424 1,033 1,883 2,274 11% 59% 10% 53% 13% 14% 2% 18% 23% 4% 6% 15% 4% 67% 59% 75% 37% 43% FY07-7% FY08-6% FY09 FY10 FY11 Financing Capital Market Insurance Asset Managem ent 9

26 Consolidated PAT - Quarterly ` cr Q4FY10 Q3FY11 Q4FY11 Kotak Mahindra 203 Bank Kotak Mahindra 58 Prime Kotak Mahindra 7 Investments 3 6 Kotak Securities Kotak Mahindra 13 Capital Company 8 30 Kotak Mahindra 44 Old Mutual 24 Life Insurance 71 Kotak Mahindra 15 AMC & Trustee 7 Company3 International 14 subsidiaries8 Kotak Investment 7 Advisors Total Minority Interest, 7 Equity0.5 Affiliates, others (12) Consolidated PAT

27 Consolidated - Ratios FY07 FY08 FY09 FY10 FY11 Advances (` cr) 15,573 21,985 22,498 29,724 41,242 Total Assets (` cr) 28,631 40,597 40,234 55,115 73,681 AUM (` cr) 23,570 36,507 33,909 45,224 47, % NIM 5.6% 6.1% 6.1% 5.6% `) 49.6 Book 84.5value per94.3 share ( Group CAR 15.6% 20.2% 22.8% 19.3% 19.5% 19.6% Return 22.3% on average 10.5% Networth 18.2% 16.4% Net NPA%* 0.17% 0.33% 1.18% 1.14% 0.43% * excl acquired stressed assets 11

28 Standalone Bank Highlights FY11 PAT for FY11 up 46% to ` 818 cr; 5 years CAGR of 47% NII up 21% to ` 2,245 cr Capital Adequacy 19.9% ; Tier I 18.0% Deposits up 23% at ` 29,261 cr; CASA at 30% Advances up 41% to ` 29,329 cr Net NPA 0.5% * Restructured assets ` 60 cr Provision Coverage 70% * (excl stressed assets) 12

29 Financial results Bank Standalone ` cr Q4FY10 Q4FY11 FY10 FY11 Net Interest Income ,858 2,245 Other Income Net Total Income ,486 2,878 Employee Cost Other Operating Expenses Operating Expenditure , Operating Profit ,297 1,325 Provisions & Contingencies 128 (7) PBT ,188 PAT

30 Standalone - Ratios FY07 FY08 FY09 FY10 FY11 Deposits (` cr) 11,000 16,424 15,644 23,886 29,261 Advances (` cr) 10,924 15,552 16,625 20,775 29,329 ` cr) 19,915 Total 28,312Assets 28,712 ( 37,436 50,850 CAR % 13.5% 18.7% 20.0% 18.4% 19.9% Tier I 8.8% 14.5% 16.1% 15.4% 18.0% Net NPA (%) * 0.18% 0.38% 1.26% 1.25% 0.50% RoA (%) 0.94% 1.10% 1.03% 1.72% 1.77% *excluding acquired stressed assets portfolio 14

31 Business Overview 15

32 Integrated Financial Services Financing Life Insurance Asset Management Capital Markets 16

33 Financing Business (` cr) 3,500 3,000 2,500 2,000 1,500 1, NII & NIM PAT CAGR 40% CAGR 47% Net NPA Advances 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% FY 07 FY 08 FY 09 FY 10 FY 11 *NNPA % is excluding acquired stressed assets portfolio 8.0% 6.0% 4.0% 2.0% 0.0% FY07 FY08 FY09 FY10 FY11 NII NIM (` cr) (` cr) 1,200 1, FY07 FY08 FY09 FY10 FY11 50,000 CAGR 32% 40,000 30,000 20,000 10,000 - FY07 FY08 FY09 FY10 FY11 Consumer Commercial Corporate 17

34 Consumer Banking - Advances ` cr 7,357 10,600 10,876 13,074 17,170 1% 1% 27% 29% 22% 24% 25% 30% 48% 45% 44% 4% 4% 10% 8% 36% 41% 50% 48% 3% Focus Focuson onsenp Continue ContinueFocus on onauto AutoSector Mortgage Mortgage-- healthy healthygrowth over overthe theyears; present presentin in13 13 cities cities Unsecured Unsecuredloans degrown degrownin inlast 3 years; years; see see opportunities opportunitiesin in select selectsegments segments FY07 FY08 FY09 FY10 FY11 Car Mortgage PL Others 18

35 Consumer Banking - Liabilities Number of Branches and ATMs Branches ATMs Branches BranchesininCY13 Increased Increasedcross crosssell sellof of asset assetproducts Added Addedclose closetoto 500, ,000 customer customeraccounts Focus Focuson onaffluent segment segment 0 Mar 07 Mar 08 Mar 09 Mar 10 Mar ,248 4,251 5,087 7,463 8,800 CASA Deposits * ` cr CASA %* Close Closetoto 22 22Lac Laccustomer customeraccounts * (excl IPO float) 19

36 Commercial Banking ` cr 3,900 6,992 7,028 9,168 12,988 6% 17% 77% 14% 8% 24% 34% 62% 58% 18% 34% 48% 14% 33% 53% Renewed Renewedgrowth in ince/cv Consistent Consistent growth growthininagri Agri Priority PrioritySector target targetmet met consistently consistently Limited Limited exposure exposuretoto MFI, MFI, 0.2% 0.2% of of advances advances FY07 FY08 FY09 FY10 FY11 CE/CV Agri Capital Market 20

37 Wholesale Banking Added > 250 Customers in FY11 Continued focus on Trade Finance and Transaction Banking Import/Export financing Foreign Exchange Cash Management Continue strong presence in debt capital markets Deepen franchise of large corporate & widen middle markets Leverage on Group relationships Funded and Non Funded ` cr 11,084 7,482 6,500 4,316 4,393 4,594 3,092 1,239 1, FY07 FY08 FY09 FY10 FY11 Funded Non Funded 21

38 Life Insurance Gross Premium ` cr 972 1,691 2,343 2,868 2, , , ,534 1, FY07 FY08 FY09 FY10 FY11 Individual Regular Single Group Renewal Capital Capitalefficiency among amongthe thehighest highestinin the theindustry AUM AUM ~ ``8,300 8,300cr cr Solvency Solvencyratio FY12 FY12another anotheryear yearof of consolidation consolidation Conservatism Conservatismhas has helped helpedso sofar far 22

39 Life Insurance Sum Assured PAT (` cr '000) (` Cr) (40) - FY 07 FY 08 FY 09 FY10 FY11 (80) FY 07 FY 08 FY 09 FY10 FY11 Number of Branches Capital (No.) (` Cr) FY 07 FY 08 FY 09 FY10 FY11 FY 07 FY 08 FY 09 FY10 FY11 23

40 Broking Market ADV ` cr ( 000) ADV ` cr (KS) FY07 FY08 FY09 FY10 FY11 Cash Future Option 5,300 4,600 3,700 3,900 3,300 FY07 FY08 FY09 FY10 FY11 Branches & Franchisee Market Market volume volume shift shift to to Options Options 6 6 lac lac secondary secondary market market customers customers ,113 1,413 FY07 FY08 FY09 FY10 FY11 24

41 Investment Banking #1 Book Running Lead Manager in Equity Offerings (IPOs + FPOs') between FY07 FY11 KOTAK 1, deals I-SEC ENAM CITIGROUP deals 17 deals 57 deals 21 deals No No 1 1 in in lead lead managing managing equity equity offerings offerings (IPO+FPO) (IPO+FPO) for for cumulative cumulative five five years years and and for for FY11 FY11 BAML (DSPML) deals ,000 1,200 (` bn) Kotak has led 17 of the 20 largest Indian Offerings from FY00 till FY11 (` bn) ^ ^ 53.7 Kotak Lead Managed Offerings COAL INDIA - IPO RELIANCE POWER - IPO Source: PRIME Database; ^ Kotak was Co-manager to Cairn & TCS IPOs ONGC - FPO ICICI BANK - FPO NMDC - FPO DLF INDIA - IPO NTPC LTD. - FPO POWER GRID - FPO NHPC - IPO CAIRN INDIA - IPO ICICI BANK - FPO TCS - IPO NTPC - IPO HDFC - QIP (NCD+Warrants) ADANI ENTERP. - QIP GMR - QIP REC - FPO TATA STEEL - FPO TATA MOTORS - QIP of DVR ICICI BANK - FPO 25

42 Investment Banking Client Transaction Size (USD mn) Coal India Limited Initial Public Offering 3,434 Lead Manager to Debt 1,444Issue Adani Enterprises Limited Qualified Institutional 870 Placement Follow-on Public Offering 766 Buyback of equity shares 551 Indian Depository Receipts 518 Initial Public Offering507 Ispat Industries Promoter Group Open Offer for Patni Computer Systems consequent to acquisition of controlling stake Private Placement of convertible shares to Temasek Holdings, the investment arm of Government of Singapore Exclusive Advisor to480 ISPAT Indust Open offer for Religare 465Enterprises Lead Manager to Debt 273Issue Manager to delisting174 offer by prom Qualified Institutional 115 Placement 26

43 Asset Management Segment Summary ` 47,850 cr of assets managed / advised through mutual funds, insurance, portfolio management, alternate assets & offshore funds FY10 ` 45,224 cr FY11 ` 47,850 cr Insurance 14% PMS 5% Dom estic MF Debt 42% Insurance 17% PMS 4% Domestic MF Debt 42% Offshore Funds 16% Offshore Funds 18% Alternate Asset 12% Dom estic MF Equity 11% Alternate Asset 10% Domestic MF Equity 9% 27

44 Mutual Fund Asset Under Management Industry - ` cr ( 000) Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Kotak MF - ` cr 24,071 24,455 Close Closetoto 10 10lac lacfolios 84 84branches Regulatory Regulatorychallenges 12,125 16,136 15,979 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 AUM is closing as on 31 st March 28

45 Alternate Assets Realty Funds Corpus Corpusmanaged managed--` `3,146 3,146cr cr KIREF KIREF- -I; I; first firstrealty realtyfund fundininindia Indiatoto return return100% of ofcapital capitaltoto investors investors 40 40Investments; 4 full fullexits, 9 partial partialexits Private Equity Funds Corpus Corpusmanaged managed--` `2,208 2,208cr cr 30 30Investments; 3 full fullexits, 1 partial partialexits Propose Proposetoto launch launch $300 $300mn mn Infrastructure Infrastructurefund fundwith withsmbc SMBCand and Brookfield Brookfield 29

46 Bank Awards & Recognition Award for Excellence Awarded Hewitt Best Employers in India 2011 & 2009, only Bank to be in top 25 Best companies to work for 2010 & 2009 by Great places to work Institute India Ranked No. 2 in India - companies with Best Corporate Governance Practices - IR Global Rankings 2010 Ranked no. 1 in Seventeen categories including range of investment products/ advisory services Euromoney The Ingenious 100 Award by IDG India s CIO Magazine for Storage Virtualization The ingenious 100 Award for ingenious technology solutions Best Local Cash Management Bank Asiamoney 2010 Best Private Bank by Finance Asia Country 30

47 Awards & Recognition Lipper Fund Award 2010 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 : Best Equity House & Best Investment Bank in India 2009: Best Investment Bank in India 2008: Best Equity House & Best Investment Bank in India 2007: Best Investment Bank in India 2006: Best Investment Bank in India 2010: Best Domestic Equity House 2009: Best Domestic Equity House 2008: Best Domestic Equity House 2004: Best Equity House in India Best Local Brokerage 2010 Award for Excellence 2010: Best Domestic Investment Bank 2009: Best Domestic Investment Bank 2008: Best Domestic Investment Bank 2007: Best Domestic Investment Bank 2006: Best Domestic Investment Bank & Best Equity House in India 2010: Best Investment Bank in India 2009: Best Investment Bank in India 2008: Best Investment Bank in India 2005: Best Investment Bank in India 2004: Best Investment Bank in India 2010: Best Bank for Equity Finance in India (Real Estate) 2005: Best Equity House in India 2004: Best Equity House in India 31

48 25 yrs.. A snapshot PAT Networth 1,800 1,600 1,400 1,567 12,000 10,000 11,004 (` cr) 1,200 1, FY 92 FY 97 FY 03 FY 07 FY 11 Market Capitalization (` cr) 8,000 6,000 4,000 2,000-3,233 1, FY 92 FY 97 FY 03 FY 07 FY 11 (` cr) 35,000 30,000 25,000 20,000 15,000 10,000 5,000-30,580 7, FY 92 FY 97 FY 03 FY 07 FY 11 ` 100,000 invested at atstartup (1985) now nowworth ` cr cr ` 100,000 invested at atipo IPOprice (1992) now nowworth ` 5 cr cr with subscription to subsequent rights issuances 32

49 33

50 Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase 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 in connection with any contract or commitment whatsoever. No offering of securities of the Bank will be made except by means of a statutory offering 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 are forward looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward looking statement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation 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 been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Bank nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith. This presentation 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 presentation comes should inform themselves about, and observe, any such restrictions. 34

51 KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED) Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2011 ` in lakhs Sr No Particulars Quarter Ended Year Ended Mar-11 (Unaudited) Mar-10 (Unaudited) Mar-11 (Audited) Mar-10 (Audited) 1 Interest earned (a+b+c+d) 172, , , , (a) Interest/discount on advances/bills 134, , , , (b) Income on investments 35, , , , (c) Interest on balances with RBI & other banks , (d) Others 1, , , , Other income (a+b+ c) 130, , , , (a) Profit/(Loss) on sale of investments including revaluation (insurance business) (20,555.88) 3, , , (b) Premium on Insurance Business 106, , , , (c) Other income (see Notes 1 and 5) 44, , , , Total income (1+2) 302, , ,096, , Interest expended 77, , , , Operating expenses (a+b+c) 154, , , , (a) Payments to and provisions for employees 40, , , , (b) Policy holders reserves, surrender expense and claims 71, , , , (c) Other operating expenses (see Note 2 and 5) 43, , , , Total expenditure (4+5) (excluding provisions and contingencies) 232, , , , Operating Profit before provisions and contingencies (3-6) 70, , , , Provisions (other than tax) and contingencies (see Note 3) (857.12) 12, , , Exceptional items Profit from ordinary activities before tax (7-8-9) 71, , , , Tax expense 20, , , , Profit from Ordinary activities after tax before Minority Interest (10 11) 50, , , , Extraordinary items (net of tax expense) Profit from ordinary activities after tax before Minority Interest (12 13) 50, , , , Less: Share of Minority Interest 1, , , , Add: Share in Profit of associates , (236.10) 17 Profit after tax ( ) 49, , , , Paid Up Equity Capital - (Face Value of ` 5 per share) (See Note 6) 36, , , , Group Reserves (excluding Minority Interest) 1,059, , Minority Interest 10, , Analytical Ratios (i) Earnings per Share (before and after extraordinary items) (See Note 6) (a) Basic (not annualized) ` (b) Diluted (not annualized) ` (ii) NPA Ratios (a) Gross NPA 71, , , , (b) Net NPA 24, , , , (c) % of Gross NPA/ Gross Advances (d) % of Net NPA/ Net Advances (e) % of Gross NPA/ Gross Advances (excluding NPAs acquired from other banks/ NBFCs) (f) % of Net NPA/ Net Advances (excluding NPAs acquired from other banks/ NBFCs) (iii) Return on Assets (average) (not annualised) (iv) Return on Assets (average) (not annualised) (excluding policyholder fund)

52 NOTES: 1. Details of other income forming part of the Consolidated unaudited results are as follows: Particulars Quarter Ended Year Ended ` lakhs Mar-11 (Unaudited) Mar-10 (Unaudited) Mar-11 (Audited) Mar-10 (Audited) Commission, fees, exchange and brokerage 33, , , , Profit on sale of investments (other than insurance business) 4, , , , Others 6, , , , Total Other income 44, , , , Details of other expenditure forming part of Consolidated unaudited results are as follows: ` lakhs Particulars Quarter Ended Year Ended Mar-11 (Unaudited) Mar-10 (Unaudited) Mar-11 (Audited) March-10 (Audited) Brokerage 5, , , , Depreciation 3, , , , Rent, taxes and lighting 5, , , , Others 27, , , , Total Other operating expenses 43, , , , 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 ` 1, lakhs for the quarter ended 31 st March, 2011 and year ended 31 st March, 2011 ` 6, lakhs (for the quarter ended 31 st March, 2010 ` 1, lakhs, year ended 31 st March, 2010 ` 6, 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 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 Pursuant to Reserve Bank of India s circular RBI/ /356 IDMD/4135/ / dated March 23, 2010 on Uniform Accounting for Repo/Reverse Repo Transactions, effective April 1, 2010, securities sold under agreements to repurchase (Repos) and securities purchased under agreements to resell (Reverse Repos) are treated and disclosed as collateralized borrowing and lending transactions respectively. For previous period, these transactions were recorded and disclosed as sale and purchase of investments respectively in line with then applicable regulatory requirements. There has been no other change in significant accounting policies during the year. 8 Figures for the previous periods/ year have been regrouped wherever necessary to conform to current period s presentation. 2

53 Sr No Particulars KOTAK MAHINDRA BANK LIMITED (STANDALONE) Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai Mar-11 (Unaudited) Quarter Ended Mar-10 (Unaudited) Mar-11 (Audited) Year Ended ` in lakhs Mar-10 (Audited) 1 Interest earned (a+b+c+d) 123, , , , (a) Interest/ discount on advances/ bills 97, , , , (b) Income on investments 24, , , , (c) Interest on balances with RBI & other banks , (d) Others Other Income 19, , , , Total income (1+2) 142, , , , Interest expended 61, , , , Operating expenses (a+b) 44, , , , (a) Payments to and Provisions for employees 21, , , , (b) Other Operating expenses 22, , , , Total expenditure (4+5) 105, , , , Operating Profit (3-6) 36, , , , Other provisions & contingencies (Refer Note 1) (717.29) 12, , , Exceptional items Profit / Loss from Ordinary Activities before tax (7-8-9) 37, , , , Provision for taxes 12, , , , Net Profit / Loss from Ordinary Activities after tax (10-11) 24, , , , Extraordinary items (net of tax expense) Net Profit / Loss for the Period (12-13) 24, , , , Paid Up Equity Capital - (Face Value ` 5 per share) (Refer Note 2) 36, , , , Reserves excluding revaluation reserves 642, , Analytical Ratios (i) % of shares held by Govt. of India (ii) % Capital adequacy ratio ( Basel II ) (iii) Earnings Per Share (EPS) for the period - Not Annualized - Basic ` Diluted ` (iv) NPA Ratios ` a) Gross Non-performing assets 60, , , , b) Net Non-performing assets 21, , , , c) % of Gross NPA to Gross Advances d) % of Net NPA to net Advances e) % of Gross NPA to Gross Advances (excluding NPAs acquired from other banks and NBFCs) f) % of Net NPA to net Advances (excluding NPAs acquired from other banks and NBFCs) g) Return on Assets %(Average) Not Annualized Public Shareholding (i) No. of shares 401,081, ,477, ,081, ,477,666 (ii) % of shareholding 54.43% 51.77% 54.43% 51.77% 3

54 Sr No 19 Particulars Mar-11 (Unaudited) Quarter Ended Mar-10 (Unaudited) Mar-11 (Audited) Year Ended Mar-10 (Audited) Promoters and promoter group Shareholding a) Pledged/Encumbered - Number of shares 100, , , ,000 - Percentage of shares (as a % of the total shareholding of promoter and promoter group) 0.03% 0.03% 0.03% 0.03% - Percentage of shares (as a% of the total share capital of the company) 0.01% 0.01% 0.01% 0.01% b) Non-encumbered - Number of Shares 335,690, ,705, ,690, ,705,288 - Percentage of shares (as a% of the total shareholding of promoter and promoter group) 99.97% 99.97% 99.97% 99.97% - Percentage of shares (as a % of the total 45.56% 45.56% 48.21% 48.21% share capital of the company) Segment Results The reportable segments of the bank are as under: Segment Treasury and BMU Retail Banking Corporate/Wholesale Banking Principal activity Money market, forex market, derivatives, investments and primary dealership of government securities and Balance Sheet Management Unit (BMU) responsible for Asset Liability Management. Includes lending, deposit taking and other services/ products including credit cards. Wholesale borrowings and lendings and other related services to the corporate sector which are not included under retail banking ` in lakhs Quarter Ended Year ended Mar-11 Mar-10 Mar- 11 Mar- 10 (Unaudited) (Unaudited) (Audited) (Audited) 1 Segment Revenue a. Treasury and BMU 41, , , , b. Corporate/ Wholesale Banking 49, , , , c. Retail Banking 90, , , , Sub-total 181, , , , Less : Inter-segmental revenue 38, , , , Add : Unallocated Income Total 142, , , , Segment Results a. Treasury and BMU 10, , , , b. Corporate/ Wholesale Banking 16, , , , c. Retail Banking 9, , , , Sub-total 37, , , , Add : Unallocated Income /(expense) - (287.27) (287.27) Total Profit Before Tax 37, , , , Capital employed (Segmental Assets less Segmental Liabilities) a. Treasury and BMU 189, , , , b. Corporate/ Wholesale Banking 178, , , , c. Retail Banking 299, , , , Sub-total 667, , , , Add: Unallocated 12, , , , Total Capital Employed 679, , , , 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. 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 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

55 3. During the quarter, the Bank has not granted any options under employee stock option scheme. Stock options aggregating to 570,174 (Post Split) were exercised during the quarter and 13,420,010 (Post Split) stock options were outstanding with employees of the Bank and its subsidiaries as at 31st March The Bank had one outstanding shareholder complaint as at 31st December 2010, which was subsequently resolved. During the quarter the Bank received 12 complaints from shareholders out of which two complaints were pending as at 31st March 2011, which has subsequently been resolved. 5. Figures for the previous period/year have been regrouped wherever necessary to conform to current period s presentation. 6. Pursuant to Reserve Bank of India s circular RBI/ /356 IDMD/4135/ / dated March 23, 2010 on Uniform Accounting for Repo/Reverse Repo Transactions, effective April 1, 2010, securities sold under agreements to repurchase (Repos) and securities purchased under agreements to resell (Reverse Repos) are treated and disclosed as collateralized borrowing and lending transactions respectively. For previous period, these transactions were recorded and disclosed as sale and purchase of investments respectively in line with then applicable regulatory requirements. There has been no other change in significant accounting policies during the year. 7. The Bank has declared a dividend of ` 0.50 per share having face value ` 5 for the year ended 31st March 2011 (Previous Year ` 0.85 per share having face value ` 10). The Bank is obliged to pay dividend to those shareholders whose names are appearing in the register of members as on the book closure date. The dividend will be paid after the approval of shareholders at the Annual General Meeting. 8. The above results were taken on record at the Audit Committee meeting and at the meeting of the Board of Directors held on 5th May The Summarized Balance Sheet of the Bank (Standalone) is given below: Summarized Balance Sheet As at 31 st March 2011 ` in lakhs As at 31 st March 2010 CAPITAL AND LIABILITIES Capital 36, , Reserves and Surplus 642, , Employees Stock Options (Grants) Outstanding 3, , Deposits 2,926, ,388, Borrowings 1,172, , Other Liabilities and Provisions 303, , TOTAL 5,085, ,743, ASSETS Cash and balances with Reserve Bank Of India 210, , Balances with Banks and Money at Call and Short Notice 36, , Investments 1,712, ,251, Advances 2,932, ,077, Fixed Assets 42, , Other Assets 150, , TOTAL 5,085, ,743, By order of the Board of Directors For Kotak Mahindra Bank Limited Mumbai, 5 th May, 2011 Dipak Gupta Executive Director 5