MIRA INFORM REPORT
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Report Date : |
17.09.2008 |
IDENTIFICATION DETAILS
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Name : |
KOTAK MAHINDRA BANK LIMITED |
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Formerly Known As : |
KOTAK MAHINDRA FINANCE LIMITED (KMFL) |
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Registered Office : |
36-38 A, Nariman
Bhavan 227, Nariman Point, Mumbai – 400021, Maharashtra. |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
22.11.1985 |
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Com. 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
bank. The Bank’s shares are listed on the Stock Exchanges. |
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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 |
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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 176774740 |
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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
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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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E-Mail : |
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Website : |
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Head Office : |
Vinay Bhavya Complex, 4th Floor, 159 – A, CST Road, Kalina,
Santacruz, Mumbai – 400098, Maharashtra, India |
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Tel. No.: |
91-22-66426666 / 66426300 |
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Fax No.: |
91-22-26542876 / 2824 |
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Name of the
Company : |
Kotac Mahindra (UK) Limited |
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Office : |
2nd Floor, Portsoken House, 155-157 Minories, London EC3N
1LS, United Kingdom |
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Tel. No.: |
+44 20 7977 6900 |
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Office : |
Singapore Office, 16 Raffles Quay #32-04, Hong Leong Building, Singapore - 048581 |
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Tel. No.: |
+65 6226 2787 |
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Fax No.: |
+65 6226 2348 |
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Office : |
Dubai Office – 1, Burjuman Office, Office # 307 - 308,
Sharafi Building, Opposite Ministry of Health, Karama, PO Box: 121753, Dubai,
UAE. |
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Tel. No.: |
+9714 396 9612 |
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Office : |
Dubai Office - 2, The Fairmont Dubai, Office # 515, Sheikh
Zayed Road, PO Box # 121753, Dubai, UAE |
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Tel. No.: |
91- 9714 332 9398 |
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Name of the
Company : |
Kotak Mahindra International Limited |
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Office : |
4th Floor, Les Cascades
Building, Edith Cavell Street, Port Louis, Mauritius |
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Tel. No.: |
+230 212 9800 |
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Office : |
Office No: 913-914, 9th Floor, Burjuman Business Tower,
P.O. Box 16498, Dubai |
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Tel. No.: |
+9714-3597555 |
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Fax No.: |
+9714-3597556 |
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Name of the
Company : |
Kotak Mahindra Incorporation |
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Office : |
50, Main Street, Suite
310, White Plains, NY 10606, USA |
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Tel. No.: |
+1 914 997 6120 |
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Office : |
One Embarcadero Center,
Suite 500, San Francisco, CA. 94111, USA |
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Tel. No.: |
+1 415 315 1572 |
SOLE PROPRIETOR/PARTNERS/DIRECTORS
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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. 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 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2007
|
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 % |
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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 % |
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NRIs/OCBs |
18,00,765 |
1.46 % |
|
NSDL Transit |
8,481 |
— |
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Total |
12,33,23,500 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Banking
Activities |
GENERAL INFORMATION
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No. of Employees : |
Over 6700 |
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Bankers : |
Reserve Bank of
India |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S. B. Billimoria and Company Chartered Accountants |
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Address : |
12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate, Worli, Mumbai 400
018 |
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Subsidiaries : |
·
Kotak Mahindra Primus Limited ·
Kotak Securities Limited ·
Kotak Mahindra Capital Company Limited ·
Kotak Mahindra Securities Limited ·
Kotak Mahindra (International) Limited ·
Kotak Mahindra (UK) Limited ·
Kotak Mahindra Inc. ·
Global Investment Opportunities Fund Ltd. ·
Kotak Mahindra Old Mutual Life Insurance Limited ·
(Previously OM Kotak Mahindra Life Insurance Company Limited). ·
Kotak Mahindra Asset Management Company Limited ·
Kotak Mahindra Trustee Company Limited ·
Kotak Mahindra Private Equity Trustee Limited ·
Kotak Forex Brokerage Limited · Kotak Mahindra
Investments Limited |
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Associate : |
·
Ford Credit Kotak Mahindra Limited ·
India Car Private Limited ·
Business Standard Limited ·
Pranavaditya Spinning Mills Limited ·
Kotak Mahindra Asset Reconstruction Company Limited |
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Name of Company : |
Kotac Mahindra Old Mutual Life Insurance Limited |
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Registered Office : |
9th floor, Godrej Coliseum, Behind Everard Nagar, Sion (E), Mumbai - 400 022 |
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Tel. No.: |
91-22-6621 599 |
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Fax No.: |
91-22- 6621 5757, 6621 5858 |
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Customer Service Center : |
8th floor, Godrej Coliseum, Behind Everard Nagar, Sion (E), Mumbai - 400 022 |
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Toll Free No.: |
1800 209 8800 |
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Fax No.: |
91-22- 6621 5353, 6621 5454 |
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Email : |
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Name of Company : |
Kotak Mahindra Asset Management Company Limited (KMAMC) |
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Registered Office : |
5A, 5th Floor, Bakhtawar, 229, Nariman Point, Mumbai - 400 021 |
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Tel. No.: |
6638 4444 |
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Fax No.: |
6638 4455 |
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Service Team Address : |
91-92, 9th Floor, Sakhar Bhavan, 230, Nariman Point, Mumbai - 400 021 |
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Tel. No.: |
91-22- 6638 4444 |
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Fax No.: |
91-22- 6638 4455 |
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Name of Company : |
Kotak Mahindra Prime Limited |
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Office : |
Vinay Bhavya Complex, 159-A, 1st floor, CST Road, Kalina, Santacruz [east], Mumbai - 400 098 |
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Tel. No.: |
91-22 - 6642 6666 / 6642 6300 |
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Fax No.: |
91-22 - 26542876 / 2824 |
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Customers Service Call Center : |
Call: (022) 6773-6000 (for Maharashtra and Goa) |
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Email : |
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Name of Company : |
Kotak Securities Limited |
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Registered Office : |
1st Floor, Bakhtawar, 229, Nariman Point, Mumbai - 400 021 |
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Tel. No.: |
91- 22 - 6634 1100 |
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Corporate Office : |
2nd Floor, Nirlon House, Near Passport Office, Dr. Annie Besant Road, Worli, Mumbai - 400 025 |
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Tel. No.: |
91- 22 - 6652 9191 |
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Registered Office : |
3rd Floor, Bakhtawar, 229, Nariman Point, Mumbai - 400 021. |
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Tel. No.: |
91-22-66341100 |
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Fax No.: |
91-22- 22826632 |
CAPITAL STRUCTURE
AS ON 31.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400000000 |
Equity Shares |
Rs. 10/- Each |
Rs.4000.000
Millions |
(31.03.2007: 350000000 Equity Share of Rs.10/- Each.)
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
344672842 |
Equity Shares |
Rs. 10/- Each |
Rs.3446.728 |
(31.03.2007: 184985250 Equity Share have been issued as bonus share by
capitalization of reserve.)
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
3446.728 |
3261.557 |
3092.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
31908.220 |
13073.427 |
5434.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
35354.948 |
16334.984 |
8527.400 |
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1] Secured Loans |
51192.532 |
50997.500 |
16092.300 |
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2] Unsecured Loans |
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TOTAL BORROWING |
51192.532 |
50997.500 |
16092.300 |
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Employees’ Stock Options (Grants) Outstanding |
582.140 |
284.264 |
0.000 |
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Deposits |
164236.456 |
110000.914 |
65659.200 |
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TOTAL |
251366.076 |
177617.682 |
90278.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2102.487 |
1410.871 |
1052.200 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
91419.885 |
68619.648 |
28555.300 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
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Inventories |
0.000 |
0.000 |
0.000 |
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Sundry Debtors |
0.000 |
0.000 |
0.000 |
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Cash & Bank Balances |
21494.666 |
12959.655 |
5925.100 |
|
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Other Current Assets |
12584.345 |
6923.323 |
2733.100 |
|
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Loans & Advances |
155522.232 |
109240.694 |
63485.400 |
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Total
Current Assets |
189601.243 |
129123.672 |
72143.600 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
|
31757.539 |
21536.509 |
11472.200 |
|
|
Provisions |
|
|
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Total
Current Liabilities |
31757.539 |
21536.509 |
11472.200 |
|
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Net Current Assets |
157843.704 |
107587.163 |
60671.400 |
|
|
|
|
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|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
251366.076 |
177617.682 |
90278.900 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
|
|
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Sales Turnover (Including Other
Income) |
29988.276 |
16377.586 |
9877.900 |
|
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|
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Net Profit for the year |
2939.328 |
1413.652 |
1182.300 |
|
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Total Expenditure |
27048.948 |
14963.934 |
8695.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
09.80 |
08.63 |
11.96
|
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Net Profit Margin (PBT/Sales) |
(%) |
09.80 |
08.63 |
11.96
|
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Return on Total Assets (PBT/Total Assets} |
(%) |
01.03 |
00.70 |
01.16
|
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Return on Investment (ROI) (PBT/Networth) |
|
08.31 |
08.65 |
38.22
|
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Debt Equity Ratio (Total Liability/Networth) |
|
2.34 |
4.44 |
8.91
|
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|
|
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|
Current Ratio (Current Asset/Current Liability) |
|
5.97 |
5.99 |
6.28
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject
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, Subject 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 9182.000 millions. 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
Limited, a wholly owned subsidiary of the company with Hamko Financial Services
Limited another wholly owned subsidiary of the company.
During the year 2003, in order to carry out the banking business the company
was converted into a banking company in the name of Kotak Mahindra Bank
Limited.
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.
FINANCIAL
HIGHLIGHTS:
During the year ended 31st
March, 2006, subsidiaries and associates of the Bank have sold their effective
economic interest in Hutchison Essar Limited. Non recurring represents profit
on such sale made by the Bank's subsidiaries and associates. The earning per
share basic (other than non recurring) and diluted (other than non recurring)
is before the profits attributable to the group on the aforesaid sale.
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, 2006 are attached to
this Report. After adjusting for minority interest, the consolidated profit
after tax for the year was Rs. 7297.500 millions and the combined net worth of
Kotak Mahindra Group was Rs. 2,5179.700 millions (including the minority
interest share).
DIRECTORS REPORT
CAPITAL
Tier - I Capital
During the year, the Bank raised Rs. 1,6150 Millions through issue of
1,70,00,000 equity shares to Qualified Institutional Buyers (QIBs) at an issue
price of Rs. 950/- per share.
Also, during the year, the Bank has allotted 15,17,134 shares arising out of
the exercise of Employees Stock Options granted to the employees, employees of
the subsidiaries and Executive Directors of the Bank.
Tier - II Capital
Subordinated debt:
During the year the Bank has issued Unsecured, Redeemable, Non-Convertible
Subordinated Debt Bonds in the form of Promissory Notes/Debentures through
private placement for an amount aggregating to Rs. 358.000 Millions to augment
the Tier-II capital to meet the growth in assets of the Bank and to enhance
overall Capital Adequacy Ratio. These Bonds were issued in demat and were
listed on the Wholesale Debt Market segment of the National Stock Exchange of
India Limited. The Bank has appointed IDBI Trusteeship Services Limited as the
Trustees for these Bonds, as aforesaid. Outstanding Unsecured, Redeemable Non-
Convertible, Subordinated Debt Bonds as at 31st March 2008 stood at Rs. 4657
Millions.
Hybrid debt capital instruments: Upper Tier - II Capital
During the year the Bank has issued and allotted Unsecured, Non Convertible, Redeemable
Debt Capital Instruments through private placement for an amount aggregating to
Rs. 1360 millions to augment the Upper Tier-II capital to meet the growth in
assets of the Bank and to enhance overall Capital Adequacy Ratio. These Bonds
were listed on the Wholesale Debt Market segment of the National Stock Exchange
of India Limited. The Bank has appointed IDBI Trusteeship Services Limited as
the Trustees for these Bonds, as aforesaid. Outstanding Unsecured,
Non-Convertible, Redeemable Debt Capital Instruments Upper Tier II as at 31st
March 2008 stood at Rs. 1360 millions.
During the year the Bank has not issued any Foreign Currency denominated
Subordinated Debt Bonds or Debt Capital Instruments Upper Tier-II to augment
the Tier-II capital of the bank.
OPERATIONS
The Branch Banking Business completed its fifth year of operations. The
network expansion momentum has significantly increased in the current year with
addition of 73 new full fledged branches and 179 new ATMs, taking the network
size to 178 branches and 314 ATMs in 107 locations. The momentum of expansion
will continue with addition of 80 -100 branches in the next year. The Branches
and ATMs have helped expand their reach and increase their brand presence in
the minds of customers. The pace of acquisition of customers and deposits from
the branch network continued to be very satisfactory and in line with the best
in the industry. Currently, the network acquires about 40000 deposit accounts
every month and has more or less doubled the account base from 3,50,000 last
year to around 7,00,000 this year. The penetration into Corporate Salary
segment of Customers has given a significant impetus to the customer
acquisition programme.
The Bank added new products and services like Gold debit card, Smart fee (a fee
solution for Educational Institutions), GPRS based mobile banking, Bill
presentment and payment facility, online term deposits etc. to meet the needs
of the customers. Several new initiatives were taken during the year to improve
the operations and service levels to customers, through mystery shopping,
customer feedback surveys and dedicated Control Unit. The customer response to
their service levels continues to be heartening. The Bank has won several
awards for high quality implementation of various technology aspects of the
business which help the Bank in delivering its proposition to customers in a
manner most secure and most desirable to them, yet keeping it cost efficient
for the Bank.
The distribution of third party products remains strong from the Branch
Network, contributing to a good mix of Fee Income to Net Interest Income.
Overall the progress of the business gives them the confidence to invest in
further network expansion.
The year saw a continued increase in coverage of top corporate and mid market
corporate clients and the bank widened and deepened its franchise in these
segments. The year continued to see a surge in credit demand from the corporate
and mid market business segments both for working capital and term facilities.
The Bank was able to tap this opportunity by offering a variety of products
from plain vanilla debt issuance to structured products and loan
syndication.
The year also saw an increase in demand for trade finance both domestic and
international and the Bank was able to tap this opportunity through structured
product offerings to customers. Volumes saw a significant increase.
The Bank increased its thrust in offering customized solutions on foreign
exchange, and cash management services across the spectrum of customers. The
Bank was also able to provide products and services to segments of financial
institutions group through customized credit and transaction banking offerings.
The Bank continued its presence as a 'collection banker' in a number of the
Initial Public Offers and New Fund Offers.
Disbursements in the Commercial Vehicles and Infrastructure Finance divisions
grew in line with the industry trends. Whereas the commercial vehicle sector
showed a marked tapering down of growth rates, the construction equipment
sector continued its robust growth. Keeping in view the opportunities in both
the sectors, in addition to traditional asset funding, the businesses focused
on growing its book on the transaction banking and non fund based products. The
thrust given on cross sell of other banking products also got further momentum
during the year. The businesses will continue to give focus on building
customer value, going forward. A risk control unit was established during the
year to supplement its robust risk management practices.
The Agri Business has further consolidated comprising short term and long term
loans, working capital facilities to farmers and other agri intermediaries.
Funding was extended for improved agriculture projects like horticulture,
poultry, floriculture, bee keeping and other allied activities. Working capital
facilities were extended to distinctive agri sectors like oils, cotton, agro
processors, rice millers and sugar. The division also has developed the
portfolio and expertise in funding against commodities. The agri division is
becoming the predominant vehicle for identifying and servicing the financial
requirements for agriculture and other rural segments.
The Home Finance business saw the continued growth rate it has witnessed since
inception as a result of the growth in the real estate market. Similarly the
Personal loan business grew significantly and the Bank improved its presence
across newer geographies.
Last year several auctions of the NPA portfolios by banks/NBFCs and
institutions failed due to pricing mismatch between the buyers and sellers. The
bank made an entry in purchasing retail assets by acquiring a portfolio, as
there is good opportunity in this space, moving forward. The bank resolved
several accounts resulting in good recoveries and continued to invest in
attractive single asset transactions with good turnaround prospects.
The Bank has an active proprietary desk trading in all products such as Fixed
Income, Money Markets, Derivatives, Foreign Exchange and Bullion. The treasury
plays an important role in balance sheet management and implementation of Funds
Transfer Price between various business units. In the area of Debt Capital
Markets (DCM) the Bank offered the following products: Securitisation, Loan and
Bond syndication, mezzanine financing, promoter funding and acquisition
financing. The Bank is one of the active players in the Securitisation market
particularly in Corporate Loan securitization.
In respect of forex derivatives transactions with corporate customers of the
Bank, as on May 8, 2008 customers of the Bank had negative MTM exposures
aggregating Rs. 6120 millions. As on March 31, 2008, Bank carries a provision
of Rs. 860 millions towards stressed cases.
After many months of market research and product development, the bank launched
the Credit Cards business on April 15th 2008. Kotak Cards has taken a fresh
approach to card design, and has introduced India's 1st vertical card. Kotak
Cards have been built on 30 millions tenets - Relevant benefits that reflect
what customers do most, Simplified credit that is easy to use and Transparent
communication of charges. The Credit Cards are available in 4 variants to cater
to the specific needs of distinct customer segments. With the launch of its
credit cards, the Bank now offers a complete range of retail financial
services.
As at the end of the year, the Bank's capital adequacy was 18.65% and the Tier
1 capital adequacy ratio was 14.46% and the net NPAs were at 0.38% of net advances
excluding stressed assets portfolio. The Net NPAs of the Bank including
stressed assets portfolio were at 1.78%.
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, asset management and life
insurance.
Kotak Mahindra Capital Company Limited and Kotak Securities Limited posted a
good financial performance on the back of strong capital markets and the robust
overall economic growth. The life insurance subsidiary, Kotak Mahindra Old
Mutual Life Insurance Limited continued its growth momentum in premium income.
The international subsidiaries have gained impetus and have now become gainful
contributors to the profits of the Group. Kotak Mahindra Asset Management
Company Limited, Kotak Mahindra Prime Limited and the other subsidiaries also
posted growth in profits and had a good year.
The various activities of the subsidiaries are outlined in the Management
Discussion and Analysis section appended to this Report.
In the year 2006-07 a petition was filed before the Hon'ble High Court of
Judicature at Bombay in respect of a Scheme of Arrangement between Kotak
Mahindra Securities Limited (KMSL), Kotak Mahindra Capital Company Limited
(KMCC) for demerger of undertaking comprising of the trading and clearing
operations and strategic investments of KMSL to KMCC. Upon receipt of all
necessary approvals, the demerger was completed on 3rd September, 2007 to take
effect from 31st March, 2007.
During
the year, the name of KMSL was changed to Kotak Investment Advisors Limited
(KIAL). With effect from 1st October, 2007, the alternate asset management
business i.e. management of private equity and realty funds of Kotak Mahindra
Group was assigned to KIAL.
In terms of the approval granted by the Central Government vide their letter
dated 14th January 2008 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 2008, have been 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 member of the Bank. These Annual
Reports will be available on Bank's website and will also be available for
inspection by any member at the Registered Office of the Bank.
ABOUT THEM
Kotak Mahindra is one of India's
leading financial conglomerates, offering complete financial solutions that
encompass every sphere of life. From commercial banking, to stock broking, to
mutual funds, to life insurance, to investment banking, the group caters to the
financial needs of individuals and corporates.
The group has a net worth of over
Rs. 5,997 crore, employs over 20,000 people in its various businesses and has a
distribution network of branches, franchisees, representative offices and
satellite offices across 370 cities and towns in India and offices in New York,
London, San Francisco, Dubai, Mauritius and Singapore. The Group services
around 5 million customer accounts.
Their Story
The Kotak Mahindra Group was born in
1985 as Kotak Capital Management Finance Limited. This company was promoted by
Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists Harish
Mahindra and Anand Mahindra took a stake in 1986, and that's when the company
changed its name to Kotak Mahindra Finance Limited.
Since then it's
been a steady and confident journey to growth and success.
|
1986 |
Kotak Mahindra Finance Limited starts the
activity of Bill Discounting |
|
1987 |
Kotak Mahindra Finance Limited enters the
Lease and Hire Purchase market |
|
1990 |
The Auto Finance division is started |
|
1991 |
The Investment Banking Division is
started. Takes over FICOM, one of India's largest financial retail marketing networks |
|
1992 |
Enters the Funds Syndication sector |
|
1995 |
Brokerage and Distribution businesses
incorporated into a separate company - Kotak Securities. Investment Banking
division incorporated into a separate company - Kotak Mahindra Capital Company
|
|
1996 |
The Auto Finance Business is hived off
into a separate company - Kotak Mahindra Prime Limited (formerly known as
Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford
Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of
Matrix Information Services Limited marks the Group's entry into information
distribution. |
|
1998 |
Enters the mutual fund market with the
launch of Kotak Mahindra Asset Management Company. |
|
2000 |
Kotak Mahindra ties up with Old Mutual
plc. for the Life Insurance business. |
|
2001 |
Matrix sold to Friday Corporation |
|
2003 |
Kotak Mahindra Finance Ltd. converts to a
commercial bank - the first Indian company to do so. |
|
2004 |
Launches India Growth Fund, a private equity
fund. |
|
2005 |
Kotak Group realigns joint venture in Ford
Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus
Limited) and sells Ford credit Kotak Mahindra. |
|
2006 |
Bought the 25% stake held by Goldman Sachs
in Kotak Mahindra Capital Company and Kotak Securities |
CAREERS
You'll find that working with Kotak is so much more than a job
It's
a place where you can contribute, innovate, work and grow with other
intelligent and motivated people. Everyone at every level in every function at
Kotak is encouraged to have original ideas and to share them - here, an
entrepreneurial bent of mind isn't just an asset, it's a prerequisite
FIXED ASSETS
· Premises
· Improvement to
Leasehold Premises
· Office Equipments
· Computers
· Furniture and
fixture
· Vehicles
· ATMs
· Software
(including development) expanditure
PRESS RELEASE
BANK (STAND-ALONE) PAT UP 14% YOY TO RS.
55CR AND NET INTEREST INCOME UP 73% YOY TO RS.
3520.000 MILLIONS
Mumbai, July 28,
2008: The Board of Directors of Kotak Mahindra Bank (‘The Bank’) took on
record unaudited consolidated and stand-alone results for Q1FY09, at a board
meeting held in Mumbai, today.
Consolidated results at a glance
|
Rs.
crore |
Q1FY09 |
Q1FY08
|
Growth
|
FY08
|
|
|
Total
income |
1,487 |
1,392 |
7% |
7,549 |
|
|
Interest
Income |
1,042 |
713 |
46% |
3,648 |
|
|
Profit
before tax |
233 |
202 |
15% |
1,408 |
|
|
Profit
after tax |
150 |
146 |
3% |
991 |
|
|
EPS Rs.
(diluted)# |
4.3 |
4.4 |
- |
29.2 |
|
# non annualised
Consolidated PBT
up 15% to Rs.2330.000 Millions in Q1FY09 from Rs.2020.000 Millions in Q1FY08.
Consolidated PAT Rs 1500.000 Millions in Q1FY09 from Rs 1460.000 Millions in
Q1FY08.
Consolidated
advances up 39% YoY to Rs 23,1690.000 Millions as on June 30, 2008, with retail
and commercial loans comprising over 85% of the portfolio. Consolidated NIM for
Q1FY09 at 5.9%.
Consolidated
book value per share as on June 30, 2008 was Rs. 173.8 (Rs. 103.5 as on June
30, 2007).
Total assets
managed/ advised by the Group (including alternate assets) as on June 30, 2008
were Rs 38,3060.000 Millions (Rs 32,3560.000 Millions as on June 30, 2007).
Kotak
Mahindra Bank stand-alone results
PAT of the Bank
(Standalone) up 14% to Rs 550.000 Millions in Q1FY09 from Rs 480 Millions in
Q1FY08.
Net Interest
Income (NII) of the Bank (Standalone) for Q1FY09 was up 73% YoY to Rs 3520
Millions from Rs 2040 Millions in Q1FY08.
Bank had 191
full-fledged bank branches (123 branches as on June 30, 2007) across 110
locations and 340 ATMs as on June 30, 2008.
Deposits of the
Bank grew by 43 % to Rs 16,3100 Millions (excluding temporary deposits held as
collection bankers to IPOs) as on June 30, 2008 from Rs 11,4200 Millions as on
June 30, 2007. CASA deposits (excluding temporary deposits held as collection
bankers to IPOs) comprised 28% of total deposits (22% as on June 30, 2007).
Total numbers of deposit accounts were 831,000 as on June 30, 2008 (433,000 as
on June 30, 2007).
Capital adequacy
ratio of the Bank as on June 30, 2008 was 18.6% (11.3 % as on June 30, 2007).
Tier I ratio was 15.1%.
Business
highlights
• In April 2008, Kotak Mahindra Bank launched its Credit Cards.
• Kotak Investment Banking was named “Best Investment Bank” and “Best
Equity House in India” by FinanceAsia Best Bank Awards 2008 and was named “Best
Domestic Equity House” by Asia Money Best Bank Awards 2008.
• Kotak Life Insurance (KLI) premium income grew 95% to Rs. 4000
Millions in Q1FY09 from Rs. 2050 Millions in Q1FY08.
Q First year regular premium grew 107% to Rs 2210 Millions in Q1FY09
from Rs 1060 Millions in Q1FY08.
ABOUT
KOTAK MAHINDRA
Kotak
Mahindra is one of India's leading financial conglomerates, offering a wide
range of financial services that encompass every sphere of life. From
commercial banking, to car finance, to stock broking, to asset management, to
life insurance, to investment banking, the group caters to the financial needs
of individuals and corporates.
The group has a
net worth of around Rs. 5,9970 millions and has a distribution network of more
than 1,310 branches, franchisees, representative offices and satellite offices
around 370 cities and towns in India and offices in New York, San Francisco,
London, Dubai, Mauritius and Singapore, servicing around 5 million customer
accounts.
For further
information, please contact: Aruna Balkarishna SIngh / Kunal Dutt
Genesis Burson-Marsteller
Tel: +91
9819686593 / +91 9820536572
aruna.singh@bm.com / kunal.dutt@bm.com
Jaimin Bhatt / R
Sundarraman
Kotak Mahindra
Bank
Tel: +91 22 6658
1100
jaimin.bhatt@kotak.com / sundar.raman@kotak.com
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.46.63 |
|
UK Pound |
1 |
Rs.83.76 |
|
Euro |
1 |
Rs.66.49 |
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. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|