Kotak Mahindra Bank : Financial Results Q1 FY18

Consolidated PAT for Q1FY18 ` 1,347 cr up 26% Bank PAT for Q1FY18 ` 913 cr up 23%

Consolidated PAT for Q1FY18 increased to ` 1,347 cr from ` 1,067 cr in Q1FY17 up 26%

Consolidated advances up 19% to ` 175,474 cr as on June 30, 2017 from ` 147,004 cr as on June 30, 2016. Consolidated customer assets (Advances + Investment Credit Substitutes) stood at ` 185,272 cr as on June 30, 2017 up by 21%.

Consolidated NIM for Q1FY18 stood at 4.4% (Q1FY17 - 4.4%)

Consolidated capital adequacy ratio (CAR), including unaudited profits as per Basel III, as on June 30, 2017 is 19.5%. Tier 1 ratio is 18.8%.

During the quarter, the Bank and the Group

• raised ` 5,803 cr through a QIP Issuance at ` 936 per share

• agreed to acquire Old Mutual 26% Stake in Kotak Life, awaiting regulatory approvals

• received regulatory approvals to acquire BSS Microfinance

• launched consumer durable financing business through KMP

• commenced operations of KIDF (Infra development fund)

Total assets managed / advised by the Group as on June 30, 2017 crossed ` 150,000 cr and are at

` 152,209 cr (` 110,926 cr as on June 30, 2016).

Consolidated Networth as on June 30, 2017 was ` 45,632 cr (` 34,443 cr as on June 30, 2016). Other major subsidiaries who contributed to profit after tax for Q1FY18 are Kotak Mahindra Prime

` 132 cr, Kotak Securities ` 125 cr, Kotak Mahindra Old Mutual Life Insurance ` 103 cr and Kotak Mahindra Investments ` 45 cr.

Bank PAT for Q1FY18 increased to ` 913 cr from ` 742 cr in Q1FY17, up by 23%

Net Interest Income (NII) for Q1FY18 up 17% to ` 2,246 cr from ` 1,919 cr in Q1FY17. During the quarter, the Bank spent ` 63 cr towards marketing and other expenses in relation to 811.

Net Interest Margin (NIM) for Q1FY18 at 4.5% up from 4.4% in Q1FY17.

Advances as on June 30, 2017 were up 18% YoY to ` 142,359 cr (` 120,765 cr as on June 30, 2016). Bank's customer assets (Advances + Investment Credit Substitutes) stood at ` 151,729 cr as on June 30, 2017 up by 20%.

Savings deposits grew by 44% to ` 44,026 cr as on June 30, 2017 compared to ` 30,564 cr as on June 30, 2016. Current Account deposits grew by 27% to ` 27,742 cr as on June 30, 2017

compared to ` 21,854 cr as on June 30, 2016. CASA as on June 30, 2017 stood at 43.9% compared to 37.4% as on June 30, 2016. Average CASA deposits grew by 33% to ` 62,452 cr for Q1FY18. TD Sweep deposits as on June 30, 2017 were 6.8% of the total deposits.

Capital adequacy ratio of the Bank, including unaudited profits as per Basel III, as per Basel III as on June 30, 2017 is 19.7% and Tier I ratio is 18.9%.

As on June 30, 2017, the Bank has a network of 1,362 full-fledged branches and 2,173 ATMs affording it the capacity and means to serve its customers through its wide presence.

As on June 30, 2017, the branch footprint was as under

As on June 30, 2017, GNPA was 2.6% & NNPA was 1.2%. As on June 30, 2017, restructured loans considered standard were down to ` 80 cr i.e. 0.06% of net advances. As on June 30, 2017, SMA2 outstanding was ` 305 cr (0.21% of net advances).

Digital Update

On March 29, 2017, the Bank launched 811 - a completely digital and paperless account opening experience. The Total customers of the Bank are in excess of 9 mn as on June 30, 2017.

Digital remains an area of focus for the Group. Bank and other subsidiaries like Securities, Insurance and Mutual Fund are gaining significant traction and market share. Monthly transactions for the Bank on Mobile platform are up 115% to ` 6,075 cr in June 17 vis a vis a year ago. During Q1FY18, the share of Recurring Deposits sourced digitally was 69% and that of Term Deposits was 59%. On a YoY basis, Total Payment Gateway transactions for the month of June 17 have

grown 89% in terms of value and Online Shopping Payment Gateway transactions from mobile have grown 97% in June 17.

Kotak Securities mobile transaction ADVs grew 107% in Q1FY18. 53% of the individual policies written by Kotak Life Insurance were sourced through Genie - Tablet based end to end sales solution. Further, 83% of the Banca channel sales in Q1FY18 were through Genie. In the case of Kotak General Insurance, more than 20% of new business sourced through digital channels.

Established in 1985, Kotak Mahindra Group is one of India's leading financial services conglomerate. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received banking license from the Reserve Bank of India (RBI), becoming the first nonbanking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd.

As on June 30, 2017, Kotak Mahindra Bank Ltd, has a national footprint of 1,362 branches spread across 689 locations and 2,173 ATMs. The consolidated net worth of the Group stands at ` 45,632 cr as on June 30, 2017. The Group offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The Group has a wide distribution network through branches and franchisees across India, an International Business Unit at GIFT city, Gujarat and international offices in London, New York, Texas, California, Dubai, Abu Dhabi, Mauritius and Singapore.

For more information, please visit the company's website at www.kotak.com

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