~ e kotak Kotak Mahindra Bank 23rd July 2019 The Manager The Manager Corporate Relationship, National Stock Exchange of India Ltd. BSE Limited, Exchange Plaza, 1st Floor, New Trading Ring, 5th Floor, Rotunda Buliding, Plot No.C/1, G Block, Phiroze J eej eebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai 400 001. Mumbai 400 051. Dear Sir, Please find enclosed herewith the presentation made to the shareholders at the Thirty Fourth Annual General Meeting (AGM) of the Bank held on Monday, 22nd July 2019 at Walchand Hirachand Hall of the Indian Merchants Chamber, 4th Floor, Churchgate, Mumbai, during the live web cast of AGM. Kindly acknowledge receipt. Kotak Mahindra Bank Limited Q_ u.._.t c:.. " ' ~ - C..4 Bina Chandarana Company Secretary & Sr.Executive Vice President Encl: a/a Kotak Mahin dr a Bank L td . C IN : L G5 11 0M H1 985 PL C 038137 R egister ed Office: 27 ll KC, C 27, G B l ocl<, Bandra Kurl a Complex, Sa ndr a ( E), Mum bai 400051, T +9 1 /.2 61660000 Mahar as ht ra, India. www.kota k. co m
34 th ANNUAL GENERAL MEETING 22 nd July, 2019 1
Global Developments Trade tensions have been weighing on global growth Global inflation remains muted Bond markets globally pricing a sharp slowdown Central banks turn dovish, markets expect more Lower oil prices key for India
India Prime Minister Modi’s vision - Making India a USD 5trn economy by 2025 Economic Survey ∞ FY20 GDP growth at 7% ∞ Government stands by the fiscal consolidation path ∞ Looking beyond the economics of equilibrium, survey makes case for investment- driven “virtuous cycle” to sustain growth at 8% ∞ Political stability should push the animal spirits of economy Budget FY20 ∞ Fiscal discipline - Reduced fiscal deficit target to 3.3% of GDP from 3.4% set in interim budget ∞ More powers with RBI to regulate NBFCs, HFC regulation to move from NHB ∞ Capital infusion in SOE banks of Rs. 700 bn ∞ Digital India – Aadhar support. Formal financial savings by disincentivising cash ∞ Foreign investment – recognition of global liquidity for funding India’s growth aspirations
At Kotak An Organisation Powered by Conviction and Driven by Constancy of Change ∞ 34 years of existence 19 subsidiaries spanning across financial services - 100% beneficially held by Bank ∞ Doubled customer base to 16 million by September 2018, within 18 months of launching 811 ∞ Well- capitalized bank with CAR at 17.5% & Tier 1 at 16.9% ∞ One of the highest CASA in the industry – 52.5% ∞ One of the biggest wealth managers in India Relationship Value of all the customers of Wealth and Priority Banking Offering ~ Rs. 270,000 cr as on March 31, 2019 All nos. pertain to FY19
At Kotak ∞ One of the lowest SMA2 (0.07% of net advances – FY19) ∞ Net NPA 0.75% as on 31st March, 2019 ∞ One of India’s largest domestic custodians ∞ Kotak Securities cash market share in FY19 – 9.1% ∞ Kotak Life Insurance & Asset Management have dramatically improved performance in the last year & have reported PAT of Rs. 507 cr & Rs. 255 cr respectively All nos. pertain to FY19
i~ l oyer e kotak Vision & Values The Global Indian Down-to-earth Financial Services and approachable Brand • • Mutua l respect • and transparent The Most Preferred in dealing ........... .. . Em~ • • F1nanc1al Serv1ces • ... Pass i onto ~ ........ achieve • . The Most Trusted · • • ........... Financial Services Company • Ethical with a • Value · . .......... . governance Creation • mindset
Basic Tenets of our Philosophy Low cost and stable liabilities Lower financial risk but high franchise value businesses Growing the risk book without diluting risk adjusted returns Embracing the new world of digital, analytics, AI and technology Culture of prudence, simplicity and humility continuing to reflect on our values Keeping the entire spectrum of customers at the center of our world
The Journey So far… Acquired Acquired Bill Investment Mutual Alternate Scheme of BSS Securities Discount Banking Fund Assets Pinebridge MF Microfinance 1985 1991 1998 2001 2004 2014 2017 1990 1993 2000 2003 2008 2015 BANK ARC ING Vysya IPO Life Auto Insurance Finance Merger Kotak Mahindra General Insurance 8
Concentrated India; Diversified Financial Services KOTAK MAHINDRA BANK Commercial Bank & Holding Company Kotak Kotak Mahindra Kotak Mahindra Kotak Investment Kotak Securities Mahindra Investments Advisors Capital Company Prime ∞ Car Finance ∞ Stock Broking ∞ Investment ∞ Investments ∞ Alternate Assets ∞ Other Lending ∞ E Broking ∞ Lending Banking ∞ Distribution Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Life Insurance General Insurance AMC Pension Fund Trustee Company ∞ Pension Fund ∞ Life Insurance ∞ General Insurance ∞ Mutual Fund ∞ Trustee Company Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Kotak Mahindra Asset Management International Financial Services Inc UK (Singapore) ∞ Distribution ∞ Asset Management ∞ Broker/Dealer ∞ Advisory Services ∞ Advisory Services ∞ Investments for Middle East Kotak Mahindra Kotak IVY Product BSS Microfinance Trusteeship Infrastructure Intermediaries Services Debt Fund ∞ Banking Correspondent ∞ Infrastructure Debt ∞ Distribution ∞ Trustee Company Fund Note: All subsidiaries are 100% owned beneficially by the Bank. 9
Kotak Uniqueness – Strengths An integrated Strong brand Strong Ability to Prudent risk and and governance identify and management diversified leadership in culture with capitalise on capabilities business various experienced opportunities model businesses management ∞ Balance sheet, ∞ Relative ∞ Numerous industry ∞ Group ∞ Guiding philosophy market and latecomers in accolades reflect Management 'return of capital is knowledge driven banking, but the governance Council comprises as much more businesses among the highest culture as well as professional important than CASA ratio in trust in our entrepreneurs return on capital’ ∞ Integrated Indian banking offerings business model ∞ 11/12 having 20+ ∞ Prudent risk space strengthened by ∞ Recognition to years’ experience management and cross-group ∞ Innovated product various businesses with our Group credit evaluation expertise and services for leadership / processes, coupled ∞ Key Leadership offerings to enter innovations with our ability to Team comprises of and compete in evaluate and 55 members with established appropriately significant segments price risk experience leading business verticals 10
Standalone Highlights FY19 LOANS NIM* P A T NET NPA 4.48% Rs. 4,865 cr Rs. 205,695 cr 0.75% [Rs. 4,084 cr] [Rs. 169,718 cr] [4.33%] [0.98%] CAR TOTAL CASA BRANCHES 17.5% ASSETS [18.2%] Tier I 1,500 52.5% Rs. 312,172 cr 16.9% [Rs. 264,933 cr] [1,388] [50.8%] [17.6%] Figures in [brackets] are FY18 numbers * Doesn’t include dividend income and interest on income -tax refund Balance Sheet crosses Rs. 300,000 cr; Net Advances crosses Rs. 200,000 cr 11
Consolidated Highlights FY19 CAR P A T LOANS BOOK VALUE 17.9% PER EQ. SHARE [18.4%] Tier I Rs. 7,204 cr Rs. 302.7 Rs. 243,462 cr 17.4% [Rs. 6,201 cr] [Rs. 205,997 cr] [Rs. 264.9] [17.8%] TOTAL NIM* NET NP A CAPITAL & ASSETS RESERVES 4.46% Rs. 58,280 cr 0.70% Rs. 395,171 cr [Rs. 50,486 cr] [Rs. 337,720 cr] [4.29%] [0.86%] Figures in [brackets] are FY18 numbers * Doesn’t include dividend income and interest on income -tax refund Financial results have been prepared under Indian Generally Accepted Accounting Principles 12
Consolidated PAT PAT NET WORTH Rs. cr FY19 FY18 FY19 FY18 4,865 4,084 42,898 37,482 Kotak Mahindra Bank Kotak Mahindra Prime 599 590 5,416 4,816 Kotak Mahindra Investments 207 245 1,590 1,382 452 531 3,979 3,527 Kotak Securities Kotak Mahindra Capital 63 65 572 559 Kotak Mahindra Life Insurance 507 413 2,745 2,238 255 115 583 333 Kotak AMC and TC International Subsidiaries 148 114 1,009 813 Others 67 13 1,025 914 7,163 6,170 59,817 52,064 Total Minority Interest - (57) (2,479) (2,436) Affiliates and Others 41 88 942 858 7,204 6,201 58,280 50,486 Consolidated PAT 13
Geographical Presence Branches 1,500 [No./%] 2 North 478/32% 10 82 10 East West 64 88/6% 463/31% 98 1 76 63 4 South 1 22 471/31% 1 9 142 45 39 Branch Classification 21 18 3 312 85 7 No of ATMs 107 161 2,352 86 32
Recommend
More recommend
