MIRA
INFORM REPORT
|
Report Date : |
15th
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
KOTAK
MAHINDRA BANK LIMITED |
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Formerly
known as: |
Kotak Mahindra Finance (KMFL) |
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Registered Office : |
36-38
A, Nariman Bhavan 227, Nariman Point, Mumbai – 400021, Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
22.11.1985 |
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Company Reg. No. : |
11-038137 |
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CIN No.: [Company
Identification No.] |
L99999MH1985PLC038137 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMK01323A |
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PAN No.: [Permanent
Account No.] |
AAACK4409J |
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Legal Form : |
A
public limited liability company. The Bank is listed on the Stock Exchange. |
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Line of Business : |
Banking
Activities |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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Maximum Credit Limit : |
USD
30000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is an established bank in Private sector. It has been Promoted by well –
known banker Mr. Uday Kotak and well-known industrial house Mahindra and
Mahindra (automobile giant). Available information indicates high financial
responsibility of the Bank. Financial position is very good. Trade relations
are fair. Payments are correct and as per commitments. Subject
can be regarded as a promising business partner for any normal business
dealings. |
LOCATIONS
|
Registered Office : |
36-38
A, Nariman Bhavan 227, Nariman Point, Mumbai – 400021, Maharashtra, India |
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Tel. No.: |
91-22-5658 1100 |
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Fax No.: |
91-22-2285 5577 |
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Website : |
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Branches
: |
Located At: Ahmedabad, Ankleshwar, Amritsar, Bangalore, Bardoli, Chandigarh, Chennai, Coimbatore, Delhi, Goa, Himmatnagar, Hyderabad, Indore, Jaipur, Jalandhar, Kadi, Kanpur, Kapurthala, Kochi, Kolkata, Lucknow, Ludhiana, Mehsana, Mohali, Morbi, Mumbai, Nagpur, Namakkal, Navsari, Panchkula, Phagwara, Pune, Rajkot, Sankari, Surat, Unjha, Vadodara, Vallabh Vidya Nagar, Valsad, Vapi, Visnagar |
DIRECTORS
|
Name : |
Mr. K. M. Gherda |
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Designation : |
Chairman |
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Name : |
Mr. Uday Kotak |
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Designation : |
Executive Vice Chairman & Managing
Director |
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Name : |
Mr. Anand Mahindra |
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Designation : |
Director
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Name : |
Mr. Cyril Shroff |
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Designation : |
Director
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Name : |
Mr. Pradeep N. Kotak |
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Designation : |
Director
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Name : |
Dr. Shankar Acharya |
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Designation : |
Director
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Name : |
Mr. Shivaji Dam |
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Designation : |
Director
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Name : |
Mr. Ajay Sondhi |
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Designation : |
Director
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Name : |
Mr. C. Jayaram |
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Designation : |
Executive Director |
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Name : |
Mr. Dipak Gupta |
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Designation : |
Executive Director |
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Name : |
Ms. Bina Chandarana |
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Designation : |
Company Secretary and Sr. Vice President |
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MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters' Holding Promoters |
7,24,49,996 |
58.75 % |
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Non-Promoters' Holding 1. Institutional Investors |
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Mutual Funds & DTI |
30,36,002 |
2.47 % |
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Banks, Financial Institutions, Insurance
Companies (State/Central Govt. Institutions) |
17,060 |
0.01 % |
|
Foreign Institutional Investors |
2,70,62,105 |
21.94 % |
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Private Corporate Bodies |
11,94,930 |
0.97 % |
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Indian Public including Directors & relatives |
1,77,54,161 |
14.40 % |
|
NRIs/OCBs |
18,00,765 |
1.46 % |
|
NSDL Transit |
8,481 |
— |
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Total |
12,33,23,500 |
100.00 % |
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BUSINESS DETAILS
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Line of Business : |
Banking
Activities |
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GENERAL
INFORMATION
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No. of Employees : |
4400 |
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Bankers : |
Reserve
Bank of India |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
S. B. Billimoria and Company Chartered Accountants 12, Dr. Annie Besant Road Opp. Shiv Sagar Estate, Worli Mumbai 400 018 |
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Subsidiaries : |
v
Kotak Mahindra Primus Limited v
Kotak Securities Limited v
Kotak Mahindra Capital Company Limited v
Kotak Mahindra Securities Limited v
Kotak Mahindra (International) Limited v
Kotak Mahindra (UK) Limited v
Kotak Mahindra Inc. v
Global Investment Opportunities Fund Ltd. v
Kotak Mahindra Old Mutual Life Insurance
Limited v
(Previously OM Kotak Mahindra Life Insurance
Company Limited). v
Kotak Mahindra Asset Management Company
Limited v
Kotak Mahindra Trustee Company Limited v
Kotak Mahindra Private Equity Trustee Limited v
Kotak Forex Brokerage Limited v
Kotak Mahindra Investments Limited |
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Associates : |
v
Ford Credit Kotak Mahindra Limited v
India Car Private Limited v
Business Standard Limited v
Pranavaditya Spinning Mills Limited v
Kotak Mahindra Asset Reconstruction Company
Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
20,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs. 2000.000 millions |
|
|
|
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Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
12,33,23,500 |
Equity Shares |
Rs.10/- each |
Rs. 1233.235 millions |
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|
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FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
|
|
|
|
|
Share
Capital |
1233.235 |
595.328 |
592.100 |
|
Reserves
& Surplus |
6275.502 |
5461.282 |
4822.400 |
|
Employees' Stock
Options (Grants) Outstanding |
60.643 |
6.513 |
0.000 |
|
Deposits |
42995.371 |
44593.376 |
2568.100 |
|
Borrowing
|
9855.080 |
5116.318 |
11403.600 |
|
Other Liabilities & Provisions |
4708.862 |
2396.577 |
2241.700 |
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TOTAL
|
65128.693 |
58169.394 |
21627.900 |
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Cash & Balances
with RBI
|
2387.309 |
1268.462 |
587.400 |
Balances with Banks
& money at Call & Short Notice
|
1816.636 |
5515.723 |
176.700 |
Investments
|
18269.732 |
28827.729 |
7066.600 |
Advances
|
40171.422 |
20970.230 |
12405.800 |
Fixed Assets
|
971.001 |
852.621 |
797.900 |
Other Assets
|
1512.593 |
734.629 |
593.500 |
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|
|
|
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TOTAL
|
65128.693 |
58169.394 |
21627.900 |
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other
income]
|
5523.823 |
3931.390 |
2533.200 |
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|
|
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Net Profit for the year |
848.904 |
787.276 |
449.600 |
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Total Expenditure
|
4674.919 |
3044.114 |
2083.600 |
SUMMARISED
RESULTS
|
PARTICULARS |
|
|
31.03.2006 (Full
Year) |
|
Sales Turnover |
|
|
6940.200 |
|
Other Income |
|
|
2429.300 |
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Total Income |
|
|
9369.500 |
|
Total Expenditure |
|
|
4242.700 |
|
Operating Profit |
|
|
5126.800 |
|
Interest |
|
|
3390.800 |
|
Gross Profit |
|
|
1736.000 |
|
Depreciation |
|
|
00.000 |
|
Tax |
|
|
553.700 |
|
Reported PAT |
|
|
1182.300 |
|
Dividend (%) |
|
|
60.000 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2004 |
31.03.2003 |
|
Credit Deposit Ratio |
|
70.77 |
517.92 |
|
Investment Deposit Ratio |
|
76.11 |
240.61 |
|
Cash Deposit Ratio |
|
3.93 |
13.68 |
|
Interest Expended/Interest Earned |
|
40.74 |
47.92 |
|
Other Income/Total Income |
|
25.41 |
28.48 |
|
Operating Expense/Total Income |
|
36.88 |
30.36 |
|
Interest Income/Total Funds |
|
7.22 |
9.99 |
|
Interest Expended /Total Funds |
|
2.94 |
4.79 |
|
Net Interest Income/Total Funds |
|
4.28 |
5.20 |
|
Non Interest Income/Total Funds |
|
2.46 |
3.98 |
|
Operating Expense/Total Income |
|
3.57 |
4.24 |
|
Profit Before Provisions/Total Funds |
|
3.17 |
4.94 |
|
Net Profit/Total Funds |
|
1.97 |
2.48 |
|
Return On Net Worth(%) |
|
13.73 |
8.55 |
STOCK PRICES
|
Face
Value |
Rs.
10.00/- |
|
High |
Rs.
249.90/- |
|
Low |
Rs.
234.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Kotak
Mahindra Bank formerly knowns as Kotak Mahindra Finance (KMFL) was originally
promoted in 1985 by Uday S Kotak and Sidnery A
Pinto along with Kotak & Company under the name Kotak Capital
Management Finance. The promoters were joined by Harish Mahindra and Anand
Mahindra of Mahindra & Mahindra in 1986 and the company was renamed Kotak
Mahindra Finance. Since then it's been a steady and confident journey to growth
and success.
The company has established itself as one of India's leading Financial
Institutions. From Corporate Finance to Capital Market Financing to Asset
Reconstruction to Commercial Vehicle Finance to Consumer Finance to Technology
Finance to Car Finance to Investment Banking to Mutual Fund to Life Insurance,
Kotak Mahindra offers finance solutions that encompass every sphere of life for
individual as well as a corporate giant.
It also have international partnerships with Goldman Sachs (one of the
world's largest investment banks and brokerage firms), Ford Credit one of the
world's largest dedicated automobile financiers) and Old Mutual (a large
insurance, banking and asset management conglomerate) through joint ventures
and subsidiary companies.
The company came out with a public issue in 1993 at a premimum of Rs 140
aggregating to Rs 44.1 millions. This was followed by bonus issue in a ratio of
1:1 in 1995. Further during 2000, the company came out with a rights issue of
91,82,500 equity shares of Rs 10 each at a premium of Rs 90 per share
aggregating to Rs 918.2 cr. In 2001 the company received the approval for
merger Pannier Trading Company Pvt (PTCPL) subsequently 17,00,000 shares held
by PTCPL in the company were cancelled and in terms of scheme 1,50,00,250
shares were allotted to the holders of shares in the erstwhile PTCPL. The
issued share capital of the company stands increased from Rs 459.1 millions to
Rs 592.1 millions as on March 2001.
The company has got the approval from IRDA to enter the life insurance
business and sell insurance products. For this the company has forged a Rs 1500
millions joint venture with UK based Old Mutual Plc, a UK based Financial
Services group. Moreover the Board has approved the foray into commercial
banking, and resolved to make an application to the Reserve Bank of
India.
The company has approved the amalgamation of Kotak Mahindra Investments
Ltd., a wholly owned subsidiary of the company with Hamko Financial Services
Ltd. another wholly owned subsidiary of the company.
During the year 2003, inorder to carry out the banking business the
company was converted into a banking company in the name of Kotak Mahindra Bank
Ltd.
Currently the bank is having 42 full fledged branches at 25 locations,
offering most of the latest technology products like net banking, phone
banking, ATM cum Debit Cards etc. Apart from this the bank is also providing
personal loans, home loans and also commenced corporate banking business.
Further the bank as plan to open 65-70 branches by March 2006 and 90-100 by March
2007.
During the bank launched India Growth Fund, a private equity fund; Easy
Mutual Funds; Kotak Flexi Home Loan and Kotak FD-linked Home loan. Further the
bank has launched Direct Pay bill payment facility on net banking and mobile
banking and alerts facility.
During August 2005 the bank has issued bonus equity shares to its
shareholders in the ratio of 3:2.
As on March 31, 2005, the Bank along
with its subsidiaries employed more than 4,400 people at various locations in
India and abroad, an addition of around 1,400 employees over 2003-04.
FINANCIAL
HIGHLIGHTS:
In line with Accounting Standard 21 (AS 21) issued by the Institute of Chartered Accountants of India, the consolidated financial results of the Bank along with its subsidiaries for the year ended 31st March 2005 are attached to this Report. After adjusting for minority interest, the consolidated profit after tax for the year was Rs.1709.100 millions and the combined net worth of Kotak Mahindra Group was Rs.1,8255.700 millions (including the minority interest share).
DIVIDEND:
Keeping in mind the overall performance and the outlook for the Bank, the
Directors recommend a dividend of Rs.1.25 per share on the increased share
capital of the Bank following a 1:1 bonus issue in August 2004 (Previous year
Rs.2.40 per share prior to issue of bonus shares in the ratio of one share for
every one share held), entailing a payout of Rs.154.200 millions (previous year
Rs.142.900 millions). The corporate dividend tax amounts to Rs.21.600 millions
(previous year Rs.18.300 millions).
CAPITAL:
Tier-I Capital:
Pursuant to the approval granted by the Members at an Extraordinary
General Meeting held on 27th December 2004 and receipt of other necessary
approvals, the Bank has allotted 33,00,000 equity shares in the aggregate to
M/s. Madison Holding Ltd. and M/s. Melany Holdings Limited, registered
sub-accounts of M/s. Warburg Pincus International LLC (a Foreign Institutional
Investor registered as such with Securities and Exchange Board of India (SEBI)
on a preferential allotment basis at an issue price of Rs.230/- per share. The
issue of above shares has resulted in the increase in the networth of the Bank
by Rs.759.000 millions.
During the year, the Bank has also allotted 9,58,000 shares arising out
of the exercise of Employees Stock Options granted to the employees and
Executive Directors of the Bank and its subsidiaries.
Tier-II Capital:
During the year, the Bank has issued Unsecured Redeemable Non-Convertible
Subordinated Bonds in the form of Promissory Notes (Bonds) through private
placement for an amount aggregating to Rs.83.70 millions to augment the Tier II
capital to meet the growth in Risk Weighted Assets of the Bank and to enhance
the Capital Adequacy Ratio. These Bonds have been listed by the Bank on the
Wholesale Debt Market segment of the National Stock Exchange of India Limited.
The Bank has appointed IDBI Trusteeship Services Ltd., 10th Floor,
Nariman Bhavan, 227, Nariman Point, Mumbai-400 021, as the Trustees for the
Bonds issued, as aforesaid.
OPERATIONS:
The Bank has completed the second year of being a fully operational Bank
and it has been offering a full range of banking products including savings and
current accounts, term deposits, depository services and investment advice.
Since its launch, the Bank opened 38 full fledged branches at 25
locations (as on 31st March 2005) and 42 full fledged branches at 25 locations
as on date. The Bank offers most of the latest technology products including net
banking, phone banking, ATM cum Debit Cards, etc. Besides providing facilities
like Atpar cheque, Electronic Fund Transfer and free access at all VISA ATMs
for its customers, the Bank has introduced a revolutionary new service for its
customers which allows its customers to transfer money online from their bank
account to any valid VISA Debit or Credit card issued by any bank in India. The
Bank is one of the only 6 other banks in India to offer this service to their
customers.
The year saw a surge in credit demand from the corporate and SME business
segments both for working capital and term facilities. The Bank was able to tap
this opportunity by offering both vanilla and structured products to meet this
demand. The Bank was also able to offer customized solutions on derivatives,
foreign exchange & transaction banking to its customers.
The Bank continued to strengthen its presence as a 'collection banker' in
a number of the IPOs garnering significant market share.
During the year, the Bank has launched an asset-backed funding product
called 'Saral' that is based on non-parameterized credit parameters,
tailor-made to suit customer requirements. This product is essentially targeted
at customer segments where organized credit does not reach easily and this
product tries to optimize risk-reward benefits.
Personal Loans under the 'Jaldi Loans' branding continued to be an area
of focus for the asset finance business and it broadened its reach to a total
of 27 branches all over India from 10 branches in the last financial year. The
focus of the business continues to be across all segments of customers
including salaried, self employed professionals as well as businessmen.
During the year, which saw a booming real estate market, the Bank consolidated
its presence in the Home Finance Business (launched in the previous year)
through additional product variants and a wider reach. The reach now extends
into some of the fastest growing cities like Mumbai, Bangalore, Hyderabad,
Pune, Ahmedabad, Chennai, Surat and Vadodra.
Commercial Vehicles division succeeded in capitalising buoyancy in terms
of economic growth and achieved 35% growth in disbursements during the year.
Backed by rapid development in infrastructure sector, the construction
equipment segment (which is a part of the Commercial Vehicles division) crossed
Rs.2500 millions of disbursements in 2004-05 (which is more than 55% growth in
that segment). Robust risk management practices facilitated the division in
maintaining the portfolio quality level which is comparable to the best in the
industry. The division succeeded in maintaining the delinquency at March 2004
levels in spite of growth of around 40% in book size. During the year
Commercial Vehicles division has successfully launched a working capital
product for transporters.
The Bank offers a wide range of deposit, insurance and investment
products and a team of highly skilled professionals are dedicated to help the
customer meet his/her short and long term goals. The Bank gains advantages and
competitive edge in wealth management from nearly two decades of experience in
providing tailor-made financial solutions to meet the needs of existing
customers, an easily accessible treasury platform for innovative products,
insurance advisory services to protect the family and a comprehensive fund
evaluation process that aligns with the needs of the customer to provide
independent and objective guidance on investment fund selection.
During the year, the private equity division of the Bank co-sponsored
Kotak SEAF India Fund, which has been set up as a Trust and registered with
SEBI as a Venture Capital Fund. India Growth Fund (the Fund) was set up as a
unit scheme of Kotak SEAF India Fund. The private equity division has an
experienced investment management team with a successful track record in the
venture capital industry. The Fund has obtained all the requisite approvals and
had its initial closing during the financial year with committed contributions
of around Rs.3200 millions from domestic as well as international investors.
The Asset Reconstruction business in India is slowly gathering momentum.
The public sector banks have started selling their NPAs to Asset Reconstruction
companies. ARCIL, the first asset reconstruction company in India, has
purchased Rs.15,0000 millions of NPAs from banks and institutions. Financial
Year 2004-05 saw a quantum jump in the performance of Asset Recovery Division
of the Bank. This division purchased NPA portfolios from private sector and
foreign banks. With the acquisition of the NPA portfolios with a face value of
approximately Rs.1,0000 millions the division has become a significant player
in the Asset Recovery Business. Besides the buy-out of portfolios, the division
ventured into advisory services for distress companies and this activity would
generate steady stream of fee based income.
The directors are pleased to inform you that the Bank has been ranked
amongst the top 10 banks by the 'Business Today - KPMG Best Banks 2004 survey'.
As at the end of the year, the Bank's capital adequacy was 12.8% and the
net NPAs were 0.37% of advances.
FUTURE OUTLOOK:
The Bank plans to increase the total number of its full fledged branches
to 90-100 by March 2007 spread out across 45 to 50 cities thereby covering
major banking centres across the country.
Given the overall improvement in economic activity in the country coupled
with launch of major infrastructure projects, the buoyancy in the Commercial
Vehicles and Construction Equipment market is expected to continue and the Bank
will try to capitalize on the same. However, stagnant freight prices alongwith
increasing fuel prices, may temper the growth to some extent.
The real estate market is expected to maintain a high growth rate. The Bank
expects to increase its market share in the mortgages market.
The Bank continues its endeavor in the personal loan portfolio by
offering a variety of 'Jaldi Loans' catering to different customer and market
segments.
Outlook for the Corporate Banking business for the next year shows a
positive trend with signs of credit demand pick up in line with growth in the
economy. The Bank will strive to increasingly synergise the corporate and
investment banking relationships to constantly expand its customer base and
evolve new products and services to fully meet requirements of customers.
There has been a distinct pick up in credit demand from the SME segment
and the Bank will endeavtheir to capitalize on the same through a judicious
strategy of products, tie-ups and comprehensive banking services. The Bank
proposes to expand its geographical coverage of this business in the coming
year.
SUBSIDIARIES:
The Bank along with its subsidiaries offers complete financial solutions
to its customers. The key business segments where the subsidiaries operate
include investment banking, stock broking, car finance, mutual funds and life
insurance.
The various activities of the subsidiaries are outlined in the Management
Discussion and Analysis section appended to this Report. During the year, the
name of OM Kotak Mahindra Life Insurance Company Limited was changed to Kotak
Mahindra Old Mutual Life Insurance Limited.
In terms of the approval grante d by the Central Government vide their
letter dated 7th June 2005 under Section 212(8) of the Companies Act, 1956,
abridged Annual Report which consists of the financial statements of the Bank
on standalone basis as well as consolidated financial statements of the group
for the year ended 31st March 2005, are being sent to all the members of the
Bank. It does not contain Annual Reports of the Bank's subsidiary companies.
The Bank will make available full Annual Report (including the Annual Reports
of all subsidiaries) upon request by any Investor/Member of the Bank. These
documents will be available on Bank's website and will also be available for
inspection by any member at the Registered Office of the Bank.
CORPORATE
GOVERNANCE:
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges,
a separate section entitled 'Corporate Governance' has been included in this
Annual Report.
OUTLOOK:
Stability and confidence was witnessed in the Indian financial markets in
2004-05. The robust performance of the banking industry in 2004-05 indicates a
further acceleration of the Indian economy. With the interest rates having
hardened and gains on trading of government securities and bonds having eroded,
the focus has now shifted to core banking activities. In addition, there are
concerns over the impact of the weakness of the US Dollar and rising crude oil
prices.
In spite of the threats and shortfalls, Kotak Mahindra group believes
that it will be able to sustain the robust financial performance. The group is
confident that with its integrated business model it shall be able to take
advantage of the significant growth opportunities in the coming years.
Segment Revenues
v
Retail Lending
v
Corporate Banking
v
Retail liabilities & branch
banking
v
Treasury
v
Corporate Centre
v
Inter-segment revenue
v Un-allocable revenue
KOTAK MAHINDRA BANK ANNOUNCES RESULTS FOR FY06
Consolidated net profit (before
extraordinary item)
up 100% to Rs. 3425.00 millions
The Board of Directors of Kotak Mahindra Bank took on record the unaudited consolidated a nd audited stand-alone results for FY06, at a board meeting held in Mumbai, today.
Unaudited
consolidated results
Consolidated profit after tax (PAT) for Q4FY06 was up 104% to Rs. 1308.00
millions as compared to Rs. 643.00 millions (quarter ended March 31, 2005).
The above PAT excludes the Bank ’s
consolidated share of profit after tax of Rs. 3873.00 millions on sale of 3.2%
effective economic interest in Hutchison Essar Limited (Hutch) by the Bank ’s
subsidiaries and associates in March 2006. Consolidated PAT (including stake
sale in Hutch) for Q4FY06 was Rs. 5181 millions.
Consolidated PAT (excluding stake
sale in Hutch) for FY06 was up 100% to Rs. 3425 millions vis-ŕ-vis Rs. 1709
millions for FY05. Consolidated PAT (including stake sale in Hutch) for FY06
was Rs. 7298 millions.
Consolidated total income for FY06
(excluding stake sale in Hutch) was up 67% to Rs. 2,8541 millions as compared
to Rs. 1,7115 millions in FY05. Consolidated total income for FY06 (including
stake sale in Hutch) was Rs. 2,9807 millions.
During FY06, consolidated fee
income (including life insurance premium) increased 71% to Rs. 1,4717 millions
from Rs. 8590 millions in FY05. Significant contributors to the growth in
revenues were securities broking income, fees from investment banking, fees on
distribution of financial products and premium income from life insurance
business.
Consolidated advances were up 46%
to Rs. 10,4214 millions as on March 31, 2006 (Rs. 7,1447 millions as on March
31, 2005) with retail loans comprising 87% of the portfolio. Consolidated net
NPAs as on March 31, 2006 were 0.23% of consolidated net advances (0.28% as on
March 31, 2005).
Consolidated net interest margins
for FY06 were 5.1% (5.3% in FY05).
Consolidated book value per share
as on March 31, 2006 was Rs. 72.7 (Rs. 47.6 as on March 31, 2005) after
adjusting for the 3:2 bonus issue in August 2005.
In April 2006, the Bank
successfully raised Rs. 450.0 millions (approximately US$ 100 million) through
issue of 1,50,00,000 Global Depository Shares (GDS). Each GDS represents one
underlying equity share of Rs. 10 each. The GDS issue will increase the
consolidated book value per share by Rs. 10.5 to Rs. 83.2.
Announcing the results, Uday
Kotak, Executive Vice Chairman & Managing Director, Kotak Mahindra Bank
said, “We have completed three years as a commercial bank. Their results
reflect the strength of an integrated business model. Strong foundations are in
place to build a world class financial institution from India .”
Audited Bank
stand-alone results
The PAT of Kotak Mahindra Bank on
a stand-alone basis for Q4FY06 grew by 50% to Rs 347 millions as compared to
Rs. 231 millions in Q4FY05. PAT for FY06 was Rs. 1182 millions, up 39% from Rs.
849 millions in FY05.
Net Interest Income (NII) of the
Bank for Q4FY06 was Rs. 1082 millions, up 61% from Rs. 673 millions in Q4FY05.
Other income of the Bank for Q4FY06 increased by 75% YoY to Rs. 85.10 millions
.
NII of the Bank for FY06 was Rs.
3549 millions, up 57% from Rs. 2255 millions in FY05. Other income of the Bank
for FY06 was Rs. 2429 millions as compared to Rs. 1324 millions in FY05.
The Bank had 65 full-fledged
branches across 43 towns and cities in India as on March 31, 2006. The Bank
proposes to have around 110 branches by March 2007 across 65 towns and cities.
As on March 31, 2006, the deposits
of the Bank were Rs. 6,5659 millions up 53% as compared to Rs. 4,2995 millions
as on March 31, 2005. The Bank had around 1,68,200 deposit accounts as on March
31, 2006 (66,400 deposit accounts as on March 31, 2005).
Advances of the Bank grew by 58%
YoY to Rs. 6,348.5 millions as on March 31, 2006.
Capital adequacy ratio of the Bank
as on March 31, 2006 was 11.27% (12.80% as on March 31, 2005).
The Board has declared a dividend
of 6% for 2005-06 on the expanded capital post the 3:2 bonus issue in August
2005 and the GDS issue in April 2006 (equivalent to 5% in the previous year
after adjusting for the bonus issue in August 2005).
Business highlights
Kotak
Investment Banking was ranked no. 1 in the league table s for Book Runners/
Lead Managers in public equity offerings on the basis of value of transactions
during 2005-06 as per PRIME Database. It also topped the Bloomberg M&A
league tables for calendar year 2005.
Kotak
Securities with a market share of 8.5% in FY06 (6.3% in FY05), clocked average
daily volumes of over Rs. 2,4000 millions during FY06 (Rs. 1,0600 millions in
FY05).
Total
assets managed/ advised by the Group were Rs. 18,6500 millions (Rs. 9,7400
millions as on March 31, 2005).
Kotak
Life Insurance total premium income was Rs. 6219 millions in FY06 (Rs. 4662
millions in FY05). First year premium income adjusted for single premium at
1/10 th up 82% to Rs. 351.0 millions.
The
group employee strength was over 6,700 as on March 31, 2006 (around 4,400
employees as on March 31, 2005).
On
March 15, 2006, Kotak Mahindra Group agreed to buy 25% stake held by Goldman
Sachs Mauritius LLC in Kotak Mahindra Capital Company Limited (KMCC) and Kotak
Securities Limited (KS) for an aggregate consideration of Rs. 333 millions.
Kotak Mahindra Bank raises US$ 100 mn through GDS issue
(Mumbai, April 23, 2006)
Kotak Mahindra
Bank has successfully raised approximately US$ 100 million through issue of
15,000,000 Global Depository Shares (GDS). The Bank had launched the issue in
the afternoon on Wednesday, April 19, 2006 and the issue was closed on the
morning of Saturday, April 22, 2006.
Each GDS represents one underlying equity share of Rs 10 each.
Each GDS was priced at US$ 6.66 i.e. approximately Rs 300 per equity share,
which is at a premium of 4.5% to the closing market price of Kotak Mahindra
Bank’s equity shares on April 19, 2006 – the date the issue was launched. The
issue was oversubscribed by over 4 times at the issue price. The issue received
a good response from investors in all geographical regions including United
States, Europe and Asia.
The GDS will be listed on the Luxemburg Stock Exchange and
underlying equity shares shall be listed on the Bombay Stock Exchange Ltd and
the National Stock Exchange of India Ltd.
Kotak Investment
Banking and Citigroup acted as Joint Global Co-ordinators, Joint Book Runners
and Joint Lead Managers for the offering.
List of Top 10 Shareholders of Kotak
Mahindra Bank Limited as on 31st March 2005
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mr. Uday Kotak |
6,12,52,710 |
49.67 % |
|
Kotak Trustee Co. Pvt. Ltd. |
53,79,412 |
4.36 % |
|
Mrs. Anuradha Mahindra |
34,47,820 |
2.80 % |
|
T Rowe Price International Inc. A/c T-Rowe Price New Asia Fund |
26,67,334 |
2.16 % |
|
J.P. Morgan Fleming Asset
Management (Europe) S.A.R.L. A/c Flagship Indian Investment Company
(Mauritius) |
22,58,934 |
1.83 % |
|
Fidelity Management and Research
Company A/c Fidelity Investment Trust Fidelity International
Small Cap Fund |
19,67,121 |
1.60 % |
|
Melany Holdings Limited |
18,55,500 |
1.50 % |
|
Madison Holding Ltd. |
18,55,500 |
1.50 % |
|
Small Cap World Fund Inc. |
16,58,000 |
1.32 % |
|
T Rowe Price International Inc. A/c T-Rowe Price International Inc., Emerging
Markets Equity Trust |
15,43,348 |
1.25 % |
|
|
|
|
About Us : Overview
Creating
banking history
Established in 1984, The Kotak Mahindra group has long been one of India's most
reputed financial organizations. In February 2003, Kotak Mahindra Finance Ltd,
the group's flagship company was given the license to carry on banking business
by the Reserve Bank of India (RBI). This approval creates banking history since
Kotak Mahindra Finance Ltd. is the first company in India to convert to a bank
.
The
complete bank
At Kotak Mahindra Bank, they address the entire spectrum of financial needs for
individuals and corporates. From Retail Finance to Equities, Mutual Funds to
Life Insurance and Investment Banking, they have the products, the experience,
the infrastructure and most importantly the commitment to deliver pragmatic,
end-to-end solutions that really work.
* A license authorising the bank to carry on banking business has
been obtained from the Reserve Bank of India in terms of Section 22 if the
Banking Regulation Act, 1949. It must be distinctly understood, however, that
in issuing the license, the Reserve Bank of India does not undertake any
responsibility for the financial soundness of the bank or the correctness of
any of the statements made or opinion expressed in this connection.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 45.92 |
|
UK Pound |
1 |
Rs. 84.76 |
|
Euro |
1 |
Rs. 57.95 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |