KOTAK MAHINDRA BANK ANNOUNCES RESULTS

Bank PAT for Q1FY17 Rs. 742 cr

Consolidated PAT for Q1FY17 Rs. 1,067 cr

Mumbai, July 21, 2016: The Board of Directors of Kotak Mahindra Bank (‘Kotak Bank’) took on record the unaudited standalone and consolidated results for Q1FY17, at the board meeting held in Mumbai, today.

Kotak Mahindra Bank standalone results

Bank PAT for Q1FY17 increased to Rs.742 cr from Rs. 190 cr in Q1FY16

Net Interest Income (NII) for Q1FY17 up 20% to Rs.1,919 cr from Rs.1,598 cr in Q1FY16

Net Interest Margin (NIM) for Q1FY17 at 4.37% from 4.18% in Q1FY16

Advances as on June 30, 2016 were up 17% YOY to Rs. 120,765 cr (Rs. 103,614 cr as on June 30, 2015).

Deposits as on June 30, 2016 were up 20% YOY to Rs. 140,028 cr (Rs. 116,812 cr as on June 30, 2015). Average Savings deposits for Q1FY17 grew by 35% to Rs. 28,523 cr from Rs. 21,189 cr in Q1FY16. Average Current Account deposits for Q1FY17 grew by 32% to Rs. 18,575 cr from Rs. 14,021 cr in Q1FY16. CASA as on June 30, 2016 stood at 37.4%. TD Sweep deposits as on June 30, 2016 were 6.2% of the total deposits.

Capital adequacy ratio of the Bank including unaudited profits as per Basel III as on June 30, 2016 is 16.8% and Tier I ratio is 15.8%

As on June 30, 2016, the Bank has a network of 1,333 full-fledged branches and 2,034 ATMs affording it the capacity and means to serve its customers through its wide presence. The merged network will help the Bank to leverage business opportunities.

As on June 30, 2016, the branch footprint was as under

Zone
West	31%
North	29%
South	34%
East	6%
Total	1,333

As on June 30, 2016, GNPA was 2.50% & NNPA was 1.21%. As on June 30, 2016, restructured loans considered standard were down to Rs. 160 cr i.e. 0.13% of net advances as against Rs. 305 cr i.e. 0.26% of net advances as on March 31, 2016. As on June 30, 2016, SMA2 outstanding was Rs. 474 cr (0.39% of net advances).

Integration

Technology integration across all platforms, channels and systems has been completed as of June 2016. The Bank is focussed on providing a uniform customer experience across its entire network. The Bank achieved smooth migration of data from one core banking platform to another with limited down-time and minimal impact. The People and Process integration is largely completed as of June 16; within 15 months from RBI approval. The Bank has identified combinational synergy levers, on cost and revenue side, which have been put into action. For this year, the Bank has planned relocation of more than 70 branches, primarily in metro cities.

Digital Update

Digital remains an area of focus for the Group. Bank and other subsidiaries like Securities, Life Insurance and Mutual Fund are gaining significant traction and market share. The Bank has setup an Innovation lab in Bangalore, which will play a critical role in our digital growth. Monthly transactions for the Bank on Mobile platform have crossed Rs. 3,000 cr in June 16. The share of digital transactions for the Bank in overall Fund transfer is ~ 60%. On a Year on Year basis, mobile payments have grown ~38% in terms of volume and ~68% in terms of value. Also, the average transaction size is up by 21%.

Kotak Securities mobile transaction volumes crossed over Rs. 6,000 cr per month with number of trades crossing over 4.5 lacs per month. 35% of sales of Kotak Life Insurance policies in Q1FY17 were through Genie - Tablet based end to end sales solution.

Consolidated results at a glance

Consolidated PAT for Q1FY17 increased to Rs. 1,067 cr from Rs. 517 cr in Q1FY16

Consolidated advances up 17% to Rs. 147,004 cr as on June 30, 2016 from Rs. 125,522 cr as on June 30, 2015.

Consolidated NIM for Q1FY17 stood at 4.38% (Q1FY16 – 4.29%)

Consolidated capital adequacy ratio (CAR) including unaudited profits as per Basel III as on June 30, 2016 is 17.3%. Tier 1 ratio is 16.5%

Total assets managed / advised by the Group as on June 30, 2016 are Rs. 110,926 cr (Rs. 94,242 cr as on June 30, 2015)

Consolidated Networth as on June 30, 2016 was Rs. 34,443 cr (Rs. 30,226 cr as on June 30, 2015)

Other major subsidiaries profit after tax are as under:

Rs. cr	Q1FY17
Kotak Mahindra Prime	120
Kotak Mahindra Investments	40
Kotak Mahindra Old Mutual Life Insurance	71
Kotak Securities	60