Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
October 2006
Journey so far
Restructuring Ford & Goldman JVs
BANK
Life Insurance Old Mutual JV Mutual Fund Ford Credit JVs Goldman Sachs JVs IPO Investment Banking Auto Finance Trade Finance 1985 1986 1990 1991 1992 1995 1996 1998 2001 2003 2006 Dubai London New York Stock Broking
In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM) held by Kotak Group. In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities
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Group Structure
Wealth Management Retail branch banking Retail lending Corporate Banking Treasury
*100%
Kotak Mahindra Capital Company
*100%
Kotak Securities
100%
Kotak Mahindra Investments
Investment Lending
*100%
Kotak Mahindra Prime
Car Finance Consumer Finance
100%
Kotak Mahindra Asset Management Company
Mutual fund
100%
Kotak Mahindra Trustee Company
100%
Kotak Mahindra Private-Equity Trustee Trustee companies
100%
Kotak Forex Brokerage
*74%
Kotak Mahindra Old Mutual Life Insurance
IPOs Stock broking Private equity eBroking Project advisory Distribution M&A Primary Dealership
*100%
Kotak Mahindra Securities Kotak Mahindra *60% (International) Kotak Mahindra Inc.
100%
All companies are regulated Over 7,800 employees Presence in 264 cities and towns across India ~ Offices in New York, London, Dubai & Mauritius
100% 100%
100%
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Best Investment Bank in India 2006, 2004, 2003 Best Bond Fund House 2006 Kotak Bond Regular Plan was ranked the best debt fund over 3 years 2006 'Kotak Bond Regular Plan' was ranked ICRA-MFR1 and was the recipient of the Silver Award In the Annual Euromoney Private Banking Survey Poll for 2006 for India, Kotak Mahindra Bank was ranked no. 1 in six categories Topped the Bloomberg India M&A Financial Advisory League table (India announced deals) for the calendar year 2005 Topped the India Advisory Partners Indata League table for the calendar year 2005
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2003 2001
IFR Asia's India Equity House Award for the year 2004
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Consolidated Advances
Retail assets 87% of advances NIMs 5.3% (5.1% Q1FY06) Net NPA 0.26% (0.33% June 05) Stressed assets portfolio Rs 4.19 bn March 06; outstanding recoverable Rs 24 bn - March 06 potential for significant returns Target 30% growth in advances
Total Advances Growth
Corporate 14% CVs 19% PL 11%
Home 11%
14%
CVs PL Home Corporat e
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Retail Liabilities
Overview
65 full fledged bank branches across 43 cities Target around 110 branches across 65 cities by March 07 Focus primarily on HNI and mass affluent population Emphasis on personalised advisory solutions CASA ratio 16% (12% June 05) Significant contribution from distribution of financial products
No. of full fledged Bank branches
65 High Net-worth 50% of mass affluent reside in 6 cities Super Affluent Mass Affluent
Customer Focus
38
17 Mass Retail 1 Mar 2003 Mar 2004 Mar 2005 Mar 2006
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Wealth Management
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Wealth Management
Focus on HNI customers
~ Managing wealth of over 3,000 families
Presence in 14 cities with over 100 relationship managers Amongst top 3 distributors of equity products in India Winner in 33 categories in the Asiamoney Private Banking Poll 2006; including the Best Private Bank award in Southern Asia Awards in six categories in Euromoney Private Banking Poll 2006
~ Best Private Bank for ultra high net worth investors
Structured Products
IPO
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Asset Management
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Asset Management
Overview Around Rs 182.3 bn (US$ 4 bn) of assets managed / advised by the group Alternate asset classes added during FY06 ~ ~ Private equity India Growth Fund with commitments of Rs 7 bn Kotak Mahindra Realty Fund with commitments of over Rs 4.6 bn
International tranche launched
Debt
Tot al
Life Insurance
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Life Insurance
JV with Old Mutual Group synergies contribute to growth Continue investments to build a long-term stable business Focus on value creation while scaling size Q1FY07 premium income up 109%to Rs 1,237 mn
Total Premium Income (Rs mn)
Other Single Premium Total 4,662 6,219
3,510
950
1000
~ 2,120 employees
6,000 750
460 300
2,000
7,170 2,850
500
2,970
250
Geographical reach
~ 51 branches in 39 cities
LA recruit ment
Sales managers
Products
~ Full suite of products risk, saving and pension ~ 15 products Individual; 5 products Group; 1 product - Rural
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Investment Banking
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Investment Banking
Industry Awards & Rankings Best Equity House in India Best Equity House in India Best Investment Bank in India Best Equity House in India
2005,2004, 2003 2004, 2003 2006, 2004, 2003 2004
239 118 132 71 FY05 FY06 352 354
1,049
563
Topped league tables for book running equity offerings for last four years in a row Topped Bloomberg M&A league tables for CY2005
International Subsidiaries Kotak Mahindra (UK) Kotak Mahindra Inc Kotak Mahindra (International) Registered with FSA, SEBI, DFSA NASD FSC
FY03
FY04
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Securities
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Securities
Indias leading securities brokerage firm 8.5% market share in FY06 (6.3% in FY05) Strong presence in retail and institutional segments Institutional sales team in New York and London Network of 746 offices (own & franchisees) across 249 cities (515 offices in 181 cities June 05)
Best Broker 2005
2005 2004
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Securities
Strong research team Wide coverage
~ Institutional research 117 companies ~ Retail research 150 companies
Awarded Best Provider of Portfolio Management Equities by Euromoney Private Banking Poll 2006 Over 2,45,000 secondary market customers
KS PAT (Rs mn)
2,155
11 2
Mar 03 Mar 04 Mar 05 Mar 06
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Financials
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Consolidated Revenue
Rs mn Financing Fees # Insurance Premium Treasury (excluding Hutch) Others Total Revenue (excl Hutch) Q1 FY07 3,043 2,465 1,214 725 319 7,766 Q1 FY06 1,945 1,385 570 548 108 4,555 FY 06 9,404 8,595 6,121 3,700 721 28,541
2%
43%
32%
30%
Q1FY07 Rs 7,766 mn
# brokerage income is net of sub-brokerage
Financing
Fees
Consolidated PAT
Rs mn Kotak Mahindra Bank Kotak Mahindra Capital Company Kotak Securities Kotak Mahindra Prime Kotak Mahindra Life Insurance Kotak Mahindra AMC / Trustee Kotak Mahindra Investments International Subsidiaries Kotak Mahindra Securities Others Total Group Equity Affiliates Minority interest - Goldman JVs Balance MI and other adjustments Consolidated for the Group Q1 FY07 239.1 129.5 688.0 111.7 (137.5) 33.4 55.5 49.7 1.3 (0.4) 1,170.2 42.8 (158.4) (10.3) 1,044.3 Q1 FY06 196.8 34.4 340.0 13.3 (150.5) 19.3 48.1 0.7 35.7 (1.7) 536.2 1.2 (102.7) 30.1 464.7 FY06 1,182.3 565.7 2,155.4 208.8 (432.4) 76.3 278.0 133.3 70.3 (2.4) 4,235.3 22.5 (730.7) (102.6) 3,424.6
For FY06 all numbers are excluding profit on stake of sale in Hutch
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Consolidated Ratios
Key Parameters Net Worth after Minority Interest (Rs mn) Book Value per share (Rs) Earning per share diluted (Rs) Gross NPA (Rs mn) Net NPA (Rs mn) Net NPA (%) Net Interest Margin (%) Post tax return on avg. Net worth (%) Pre Tax return on avg. Net worth (%) (before Retail liabilities and Insurance) June 06 28,158 86.7 3.24 662 275 0.26% 5.3% 16.5% 30.2% June 05 15,138 49.1 1.50 492 255 0.33% 5.1% 12.5% 31.1% Mar 06 22,471 72.7 11.01 520 235 0.23% 5.1% 20.5% 39.3%
For FY06 all numbers are excluding profit on stake of sale in Hutch
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Q1FY07 Lending Corporate Banking Retail Liabilities Treasury and Investments Corporate Centre Venture Fund Management Less: Un-allocable expenditure Profit before tax Profit after tax 158.7 194.2 (27.5) 22.8 23.4 371.6 239.1
FY06 1,146.1 386.6 17.8 (173.9) 270.6 86.4 2.3 1,736.0 1,182.3
Numbers of the previous period are not comparable since the segments have been reclassified
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Summary
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Value Drivers
Build retail liabilities & distribution business 110 branches by Mar07 Focus on wealth management Retail and commercial lending with focus on NIMs Stress assets business Leadership in securities broking Integrated corporate & investment bank Thrust in asset management business across asset classes Life insurance a long term value creator New businesses bullion, custodial services International expansion Effective utilisation of surplus capital in subsidiaries
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Safe Harbour
This document contains certain forward-looking statements based on current expectations of Kotak Mahindra management. Actual results may vary significantly from the forward-looking statements contained in this document due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India and outside India, volatility in interest rates and in the securities market, new regulations and Government policies that may impact the businesses of Kotak Mahindra Group as well as its ability to implement the strategy. Kotak Mahindra does not undertake to update these statements. This document does not constitute an offer or recommendation to buy or sell any securities of Kotak Mahindra Bank or any of its subsidiaries and associate companies. This document also does not constitute an offer or recommendation to buy or sell any financial products offered by Kotak Mahindra, including but not limited to units of its mutual fund and life insurance policies. This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America unless they are registered or exempt from registration. Any public offering of securities to be made in the United States of America will be made by means of a prospectus that will contain detailed information about the Kotak Mahindra Group and management, as well as financial statements. All investments in mutual funds and securities are subject to market risks and the NAV of the schemes may go up or down depending upon the factors and forces affecting the securities market. The performance of the sponsor, Kotak Mahindra Bank Limited, has no bearing on the expected performance of Kotak Mahindra Mutual Fund or any schemes thereunder. Figures for the previous period/ year have been regrouped wherever necessary to conform to current periods/ years presentation. Totals in some columns/ rows may not agree due to rounding off.
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