Kotak Mahindra Bank : Financial Results Q3 FY21

MEDIA RELEASE

KOTAK MAHINDRA BANK ANNOUNCES RESULTS

Kotak Mahindra Bank Standalone PAT for Q3FY21 ` 1,854 crore, up 16% yoy;

Consolidated PAT ` 2,602 crore, up 11% yoy

Mumbai, 25th January, 2021: The Board of Directors of Kotak Mahindra Bank ("the Bank") approved the unaudited standalone and consolidated results for Q3FY21, at the Board meeting held in Mumbai, today.

Kotak Mahindra Bank standalone results

The Bank's pre tax profit for Q3FY21 was ` 2,484 crore, up 28% from ` 1,944 crore in Q3FY20.

The Bank's PAT for Q3FY21 increased to ` 1,854 crore from ` 1,596 crore in Q3FY20, up 16%. In Q3FY20, the provision for tax was lower due to some favourable tax orders.

Net Interest Income (NII) for Q3FY21 increased to ` 4,007 crore, from ` 3,430 crore in Q3FY20, up 17%. Net Interest Margin (NIM) for Q3FY21 was at 4.51%.

CASA ratio as at December 31, 2020 stood at 58.9% compared to 53.7% as at December 31, 2019.

Average Savings deposits grew by 29% to ` 107,363 crore for 9MFY21 compared to ` 83,049 crore for 9MFY20. Average Current Account deposits grew by 13% to ` 37,533 crore for 9MFY21 compared to ` 33,258 crore for 9MFY20.

CASA and TDs below ` 5 crore as at December 31, 2020, constituted 92% of total deposits (87% as at December 31, 2019). TD Sweep deposits as at December 31, 2020 were 8.1% of total deposits (7.4% as at December 31, 2019).

Advances as at December 31, 2020 were at ` 214,103 crore (` 204,845 crore as at September 30, 2020 and

• 216,774 crore as at December 31, 2019). Customer Assets, which includes Advances and Credit substitutes, were ` 228,809 crore as at December 31, 2020 (` 218,790 crore as at September 30, 2020 and
• 227,206 crore as at December 31, 2019).

Operating profit for Q3FY21 was ` 3,083 crore, up 29% from ` 2,388 crore in Q3FY20.

COVID related provisions as at December 31, 2020 stood at ` 1,279 crore. In accordance with the Resolution Framework for COVID-19 announced by RBI on August 6, 2020, as at December 31, 2020, the Bank has approved, for certain eligible borrowers, one-time restructuring of 0.28% of net advances.

As at December 31, 2020, GNPA was 2.26% & NNPA was 0.50%. The Bank has not classified any NPAs since August 31, 2020, basis the interim order of Hon. Supreme Court. Had the Bank classified the borrowers more than 90 days overdue on December 31, 2020 as NPA, GNPA would be 3.27% (September 30, 2020: 2.70%); NNPA would be 1.24% (September 30, 2020: 0.74%). The Bank has, however, made provision for such advances including towards interest accrued but not collected for the entire period, with moratorium.

Capital adequacy ratio of the Bank as per Basel III, as at December 31, 2020 was 21.5% and Tier I ratio was 20.9%.

Consolidated results at a glance

Consolidated PAT for Q3FY21 increased to ` 2,602 crore from ` 2,349 crore in Q3FY20 up 11%.

For Q3FY21, the Bank's contribution to the consolidated PAT was ` 1,854 crore. The subsidiaries & associates net contribution was 29% of the consolidated PAT.

The contribution of key subsidiaries is given below:

Subsidiaries PAT (` crore)	Q3FY21	Q3FY20
Kotak Securities	184	128
Kotak Mahindra Life Insurance	167	166
Kotak Mahindra Prime	149	187
Kotak Asset Management & Trustee Company	91	91
Kotak Mahindra Investments	68	64

AUM (Policyholders') of Kotak Mahindra Life Insurance as at December 31, 2020 grew 21.7% YoY to ` 39,770 crore.

The Relationship Value of the customers of Wealth, Priority Banking and Investment Advisory was ~ ` 375,000 crore as at December 31, 2020 up 22% from ~ ` 306,000 crore as at December 31, 2019.

Consolidated Networth as at December 31, 2020 was ` 81,616 crore (` 64,518 crore as at December 31, 2019). The Book Value per Share was ` 412.

Consolidated Customer Assets, including Advances and Credit Substitutes, were ` 255,786 crore as at December 31, 2020 (` 247,432 crore as at September 30, 2020 and ` 261,410 crore as at December 31, 2019).

Total assets managed / advised by the Group crossed Rs 300,000 crore. As at December 31, 2020 they were at ` 314,833 crore up 20% over ` 263,256 crore as at December 31, 2019.

The financial results of the subsidiaries and associates used for preparation of the consolidated financial results are in accordance with Generally Accepted Accounting Principles in India ('GAAP') specified under Section 133 and relevant provision of Companies Act, 2013. The financial statements of Indian subsidiaries (excluding insurance companies) and associates are prepared as per Indian Accounting Standards in accordance with the Companies (Indian Accounting Standards) Rules, 2015.

About Kotak Mahindra Group

Established in 1985, Kotak Mahindra Group is one of India's leading financial services conglomerates. 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 non-banking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd (KMBL).

Kotak Mahindra Group (Group) offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life and general insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The premise of Kotak Mahindra Group's business model is concentrated India, diversified financial services. The

bold vision that underscores the Group's growth is an inclusive one, with a host of products and services designed to address the needs of the unbanked and insufficiently banked.

As at December 31, 2020, the Group's consolidated net worth stands at ` 81,616 crore.

Kotak Mahindra Group has a global presence through its subsidiaries in UK, USA, Gulf Region, Singapore and Mauritius with offices in London, New York, Abu Dhabi, Singapore and Mauritius respectively. As on December 31, 2020, Kotak Mahindra Bank Ltd has a national footprint of 1,603 branches and 2,573 ATMs, and branches in GIFT City and DIFC (Dubai).

For more information, please visit the Company's website at https://www.kotak.com

For further information, please contact

Rohit Rao	Phiroza Choksi	Rakesh Sharma	Lalita Tiwari
Kotak Mahindra Bank	Kotak Mahindra Bank	Fortuna PR	Fortuna PR
Phone: [phone]	Phone: [phone]	Mobile: [phone]	Mobile: [phone]
[e-mail]	[e-mail]	[e-mail]	[e-mail]

KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED)

Registered Office: 27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051

UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2020

₹ crore

Sr			Quarter ended		Nine months ended	Year ended
Particulars	31-Dec-20	30-Sep-20	31-Dec-19	31-Dec-20	31-Dec-19	31-Mar-20
No
(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1	Interest earned (a+b+c+d)	8,280.41	8,337.36	8,331.98	25,039.46	25,040.03	33,474.16
	(a) Interest/discount on advances/bills	5,397.88	5,473.08	6,197.23	16,644.23	18,678.16	24,877.11
	(b) Income on investments	2,410.96	2,419.14	1,831.67	6,894.47	5,458.98	7,327.31
	(c) Interest on balances with RBI &	365.60	334.04	195.60	1,178.53	566.41	827.64
	other interbank funds
	(d) Others	105.97	111.10	107.48	322.23	336.48	442.10
2	Other income (a+b+c)	6,554.58	5,254.05	5,210.45	15,710.09	13,174.95	16,825.53
	(a) Profit/(Loss) on sale of investments
	including revaluation (insurance	1,819.33	693.78	532.42	3,895.78	861.69	(1,494.83)
	business)
	(b) Premium on Insurance Business	2,712.95	2,468.07	2,723.40	6,427.58	6,641.28	10,566.03
	(c) Other income (Refer Notes 4, 5 & 6)	2,022.30	2,092.20	1,954.63	5,386.73	5,671.98	7,754.33
3	Total income (1+2)	14,834.99	13,591.41	13,542.43	40,749.55	38,214.98	50,299.69
4	Interest expended	3,120.26	3,285.51	3,890.35	10,034.01	12,099.74	15,900.68
5	Operating expenses (a+b+c)	7,585.70	5,918.21	6,290.02	18,644.16	16,071.99	20,419.11
	(a) Employees Cost	1,536.64	1,496.56	1,568.80	4,417.52	4,332.99	5,755.97
	(b) Policy holders' reserves, surrender	4,345.03	2,990.08	2,976.00	9,877.23	6,868.42	7,958.18
	expense and claims (Refer Note 11)
	(c) Other operating expenses (Refer	1,704.03	1,431.57	1,745.22	4,349.41	4,870.58	6,704.96
	Note 5 and 7)
6	Total expenditure (4+5) (excluding	10,705.96	9,203.72	10,180.37	28,678.17	28,171.73	36,319.79
provisions and contingencies)
	Operating Profit (3-6)
7	(Profit before provisions and	4,129.03	4,387.69	3,362.06	12,071.38	10,043.25	13,979.90
	contingencies)
8	Provisions (other than tax) and	674.03	473.22	472.59	2,266.58	1,295.91	2,558.10
contingencies (Refer Note 8)
9	Exceptional items	-	-	-	-	-	-
10	Profit from ordinary activities	3,455.00	3,914.47	2,889.47	9,804.80	8,747.34	11,421.80
before tax (7-8-9)
11	Tax expense	879.26	981.01	560.14	2,455.16	2,092.08	2,814.72
	Net Profit from ordinary activities
12	after tax before Minority Interest	2,575.74	2,933.46	2,329.33	7,349.64	6,655.26	8,607.08
	(10-11)
13	Extraordinary items (net of tax	-	-	-	-	-	-
expense)
	Net Profit from ordinary activities
14	after tax before Minority Interest	2,575.74	2,933.46	2,329.33	7,349.64	6,655.26	8,607.08
	(12 -13)
15	Less: Share of Minority Interest	-	-	-	-	-	-
16	Add: Share in Profit/(Loss) of associates	25.93	13.16	19.39	51.24	32.92	(13.72)
17	Profit after tax (14-15+16)	2,601.67	2,946.62	2,348.72	7,400.88	6,688.18	8,593.36
18	Paid Up Equity Capital - (Face value	990.24	989.60	955.52	990.24	955.52	956.52
of ₹ 5 per share)
19	Group Reserves (excluding Minority						65,677.60
Interest and Revaluation reserves)
20	Minority Interest						-
21	Analytical Ratios
	(i) Capital Adequacy ratio - Basel III	21.54	22.05	18.21	21.54	18.21	17.89
	(standalone)
	(ii) Earnings per equity share
	- Basic (not annualised) ₹	13.14	14.89	12.29	37.66	35.02	44.73
	- Diluted (not annualised) ₹	13.14	14.89	12.28	37.64	34.97	44.68

							₹ crore
Sr			Quarter ended		Nine months ended	Year ended
Particulars	31-Dec-20	30-Sep-20	31-Dec-19	31-Dec-20	31-Dec-19	31-Mar-20
No
(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
	(iii) NPA Ratios (unaudited)
	(a) Gross NPA	5,510.55	6,055.01	5,914.92	5,510.55	5,914.92	5,487.66
	(b) Net NPA	1,284.58	1,636.82	2,174.73	1,284.58	2,174.73	1,744.81
	(c) % of Gross NPA to Gross	2.25	2.55	2.33	2.25	2.33	2.16
	Advances
	(d) % of Net NPA to Net Advances	0.53	0.70	0.87	0.53	0.87	0.70
	(iv) Return on average Assets (not	0.56	0.64	0.58	1.61	1.67	2.10
	annualised) (unaudited)

NOTES:

1. The consolidated financial results are prepared in accordance with Accounting Standard - 21 (AS-21) "Consolidated Financial Statements" and Accounting Standard - 23 (AS-23) "Accounting for investment in associates in Consolidated Financial
   Statements" specified under section 133 and relevant provisions of Companies Act, 2013.
2. The financial results of the subsidiaries and associates used for preparation of the consolidated financial results are in accordance with Generally Accepted Accounting Principles in India ('GAAP') specified under Section 133 and relevant provision of Companies
   Act, 2013. The financial statements of Indian subsidiaries (excluding insurance companies) and associates are prepared as per Indian Accounting Standards in accordance with the Companies (Indian Accounting Standards) Rules, 2015.
3. The above consolidated results for the quarter and nine months ended 31st December, 2020 were reviewed by the Audit Committee and approved at the meeting of the Board of Directors held on 25th January, 2021. These results were subjected to limited review by the statutory auditors of the Bank and there are no modifications in the Limited Review Report.
4. Details of other income forming part of the consolidated results are as follows:
5. • crore

		Quarter ended		Nine months ended	Year ended
Particulars	31-Dec-20	30-Sep-20	31-Dec-19	31-Dec-20	31-Dec-19	31-Mar-20
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
Commission, fees, exchange,	1,893.11	1,873.26	1,828.48	4,919.22	5,236.46	6,876.96
brokerage and others
Profit on sale of investments
(other than insurance	129.19	218.94	126.15	467.51	435.52	877.37
business)
Total - Other income	2,022.30	2,092.20	1,954.63	5,386.73	5,671.98	7,754.33

1. Other income in the consolidated results for the reporting periods is net of sub-brokerage paid in the broking subsidiary amounting to ₹ 26.02 crore for the quarter and ₹ 75.17 crore for the nine months ended 31st December, 2020 (for the quarter ended 30th September 2020, ₹ 28.58 crore, for the quarter and nine months ended 31st December, 2019 ₹ 15.33 crore and ₹ 48.19 crore respectively, for the year ended 31st March, 2020 amounting to ₹ 66.04 crore).
2. Other income includes non-fund based income such as commission earned from guarantees / letters of credit, financial advisory fees, selling of third party products, earnings from foreign exchange transactions and profit / loss from the sale of securities.
3. Details of other operating expenditure forming part of consolidated results are as follows:
4. • crore

		Quarter ended		Nine months ended	Year ended
Particulars
31-Dec-20	30-Sep-20	31-Dec-19	31-Dec-20	31-Dec-19	31-Mar-20
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
Brokerage	156.01	101.29	196.65	310.89	515.26	704.19
Depreciation	115.35	116.67	111.90	345.39	347.96	464.89
Rent, taxes and lighting	195.79	190.97	191.16	577.47	569.47	768.58
Others	1,236.88	1,022.64	1,245.51	3,115.66	3,437.89	4,767.30
Total - Other operating	1,704.03	1,431.57	1,745.22	4,349.41	4,870.58	6,704.96
expenses

8. Provisions and contingencies are net of recoveries made against accounts, which have been written off as bad in the previous period / year. Details of Provisions (other than tax) and contingencies forming part of consolidated results are as follows:

• crore

						Quarter ended		Nine months ended	Year ended
Particulars				31-Dec-20	30-Sep-20	31-Dec-19	31-Dec-20	31-Dec-19	31-Mar-20
					(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
Provision	towards	advances /
others (including	provisions	for
exposures	to	entities	with
Unhedged	Foreign	Currency	739.43	436.08	480.45	1,659.86	1,224.49	1,663.49
Exposures	and	accounts	not
recognized as NPA in accordance
with Hon. Supreme Court interim
order) (Refer Note 9) (net)
General provision for COVID-19	-	14.92	-	682.40	-	713.68
Deferment cases (net)
Provision/(Write back of provisions)	(65.40)	22.22	(7.86)	(75.68)	71.42	180.93
towards investments (net)
Total - Provisions (other than	674.03	473.22	472.59	2,266.58	1,295.91	2,558.10
tax) and contingencies

1. The COVID-19 pandemic and the consequent lockdown has taken toll on human life and impacted a whole range of economic activities adversely. The lockdowns have been lifted for activities in a phased manner by various governments at various points in time depending on the situation prevailing in their respective jurisdictions.
   The easing of restrictions has driven a revival in economic activity across sectors. This coupled with lowering spread of infection and the commencement of vaccination program against the virus is a positive development, however, the time required for business to come back to normal fully is still uncertain. COVID-19 has impacted lending business, fee income generation from sale of third party products or usage of debit/ credit cards, collection efficiency etc. This slowdown has impacted customer defaults and consequently increase in provisions. The extent to which COVID-19 pandemic will impact the Bank's operations and financial results is dependent on future developments and hence the Bank continues to closely monitor any new information concerning the severity of the COVID-19 pandemic and any action taken to contain its spread or mitigate its impact.
   In accordance with the RBI guidelines relating to COVID-19 Regulatory Package dated 27th March, 2020, 17th April, 2020 and 23rd May 2020 and clarification issued by RBI through Indian Bankers Association dated 6th May, 2020, the Bank and its NBFC subsidiaries granted moratorium on the payment of installments and/or interest, as applicable, falling due between 1st March, 2020 and 31st August, 2020 to eligible borrowers classified as Standard, even if overdue, as on 29th February, 2020. The moratorium period, wherever granted, is excluded from the number of days past-due for the purpose of asset classification under RBI's Income Recognition and Asset Classification norms.
   The Bank and its NBFC subsidiaries hold provisions as at 31st December, 2020 against the potential impact of customers impacted by COVID-19 pandemic, which is higher than the regulatory requirements.
   In accordance with Resolution Framework for COVID-19 announced by RBI on 6th August, 2020, the Bank and its NBFC subsidiaries have implemented a one-time restructuring for certain eligible borrowers and such borrowers are classified as Standard in accordance with the above framework.
   The Honourable Supreme Court of India, in multiple writ petitions, vide an interim order dated 3rd September, 2020 has directed that accounts which were not declared as NPA till 31st August, 2020 shall not be declared as NPA till further orders. Basis the said interim order, the Bank and its NBFC subsidiaries have not classified any borrower account (whether granted moratorium or not) as NPA after 31st August, 2020. Had the Bank and its NBFC subsidiaries classified borrower accounts which were more than 90 days overdue as at 31st December, 2020 as NPA, the gross NPA ratio and net NPA ratio as at 31st December, 2020 would have been 3.31% and 1.32% respectively. As a matter of prudence, the Bank and its NBFC subsidiaries have made additional provisions (including interest accrued) of ₹ 958.43 crore on such advances, including ₹ 813.52 crore for this quarter.
2. RBI circular DBOD.No.BP.BC.1/21.06.201/2015-16 dated 1st July, 2015 on 'Basel III Capital Regulations' read together with the RBI circular DBR.No.BP.BC.80/21.06.201/2014-15 dated 31st March, 2015 on 'Prudential Guidelines on Capital Adequacy and Liquidity Standards-Amendments' requires banks to make applicable Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel III Framework. These disclosures are available on the Bank's website at the following link: https://www.kotak.com/en/investor-relations/financial-results/regulatory-disclosure.html. These disclosures have not been subjected to audit or limited review.
3. The change in the valuation of liabilities for life policies in force, lapsed policies that are likely to be revived in future and for policies in respect of which premium has been discontinued but liability exists, for the quarter and nine months ended 31st December, 2020 amounting to ₹ 3,155.03 crore and ₹ 6,916.33 crore respectively (for the quarter ended 30th September, 2020, ₹ 1,944.79 crore, for the quarter and nine months ended 31st December, 2019, ₹ 1,740.22 crore and ₹ 4,095.02 crore respectively, for the year ended 31st March, 2020 amounting to ₹ 4,100.96 crore) has been included in "Policy holders' reserves, surrender expense and claims" under "Operating Expenses".

1. During the first quarter of the current financial year, the Bank had issued 65,000,000 equity shares of a face value ₹ 5 each at a price of ₹ 1,145 per equity share including a premium of ₹ 1,140 per equity share aggregating to ₹ 7,442.50 crore pursuant to a Qualified Institutional Placement (QIP).
2. Consolidated Segment information is as under:

		Segment		Principal activity
	Corporate/ Wholesale		Wholesale borrowings and lending and other related services to the corporate sector which are not
	Banking		included under retail banking.
	Retail Banking		Includes lending, deposit taking and other retail services/ products including credit cards.
	Treasury, BMU and		Money market, forex market, derivatives, investments and primary dealership of government securities,
	Corporate Centre		Balance Sheet Management Unit (BMU) responsible for Asset Liability Management and Corporate
				Centre which primarily comprises of support functions.
	Vehicle Financing		Retail vehicle finance and wholesale trade finance to auto dealers from its Subsidiary Company
	Other Lending Activities		Financing against securities, securitisation and other loans / services from its Subsidiary Companies
	Broking		Brokerage income on market transactions done on behalf of clients, interest on delayed payments,
				distribution of financial products from its Subsidiary Company.
	Advisory and		Providing financial advisory and transactional services such as mergers and acquisition advice and
	Transactional Services		equity/ debt issue management services from its Subsidiary Companies
	Asset Management		Management of funds and investments on behalf of clients and funds from its Subsidiary Companies
	Insurance		Life insurance and General Insurance from its Subsidiary Companies
										₹ crore
Sr	Particulars			Quarter ended		Nine months ended	Year ended
	31-Dec-20	30-Sep-20	31-Dec-19	31-Dec-20	31-Dec-19	31-Mar-20
No
			(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1	Segment Revenues:
		Treasury, BMU and Corporate Centre	2,454.85	2,642.81	1,819.05	7,178.51	5,249.00	7,184.98
		Retail Banking		3,577.44	3,566.08	3,835.43	10,561.01	11,300.63	15,057.84
		Corporate / Wholesale Banking	3,230.95	3,229.74	3,458.25	9,772.23	10,210.58	13,918.46
		Vehicle Financing		499.17	489.80	574.25	1,464.02	1,774.15	2,334.43
		Other Lending Activities		348.53	374.38	467.69	1,097.13	1,509.81	1,974.16
		Broking (Refer Note 5)		431.71	428.74	342.26	1,262.64	1014.49	1,393.27
		Advisory and Transactional Services	123.24	91.96	136.99	282.00	344.60	417.78
		Asset Management		297.03	270.66	272.26	799.05	807.41	1,121.48
		Insurance		5,129.60	3,747.28	3,754.43	12,052.63	8,979.51	11,063.09
		Sub-total		16,092.52	14,841.45	14,660.61	44,469.22	41,190.18	54,465.49
		Less: inter-segment revenues	(1,257.53)	(1,250.04)	(1,118.18)	(3,719.67)	(2,975.20)	(4,165.80)
		Total Income		14,834.99	13,591.41	13,542.43	40,749.55	38,214.98	50,299.69
2	Segment Results:
		Treasury, BMU and Corporate Centre	1,222.01	1,175.98	751.24	2,578.38	2,105.77	2,283.73
		Retail Banking		(151.21)	447.18	257.21	654.47	1,203.63	1,553.19
		Corporate / Wholesale Banking	1,562.22	1,462.66	1,051.10	4,292.36	3,103.76	4,384.22
		Vehicle Financing		68.73	55.12	133.33	105.13	380.31	444.01
		Other Lending Activities		145.54	150.37	157.60	391.75	480.63	651.93
		Broking		186.41	193.65	117.21	543.30	339.64	509.32
		Advisory and Transactional Services	55.31	20.99	73.09	80.54	175.29	168.69
		Asset Management		143.29	173.22	161.29	478.85	455.65	615.37
		Insurance		222.70	235.30	187.40	680.02	502.66	811.34
		Total Profit before tax, minority	3,455.00	3,914.47	2,889.47	9,804.80	8,747.34	11,421.80
		interest and associates
		Provision for tax		879.26	981.01	560.14	2,455.16	2,092.08	2,814.72
		Net Profit before share of	2,575.74	2,933.46	2,329.33	7,349.64	6,655.26	8,607.08
		Associates and Minority
3	Segment Assets:
		Treasury, BMU and Corporate Centre	167,490.04	159,786.00	103,457.33	167,490.04	103,457.33	137,136.12
		Retail Banking		235,768.44	231,146.15	203,655.02	235,768.44	203,655.02	216,234.38
		Corporate / Wholesale Banking	156,010.68	148,856.91	142,816.79	156,010.68	142,816.79	153,443.88
		Vehicle Financing		16,452.84	17,127.33	19,626.63	16,452.84	19,626.63	19,505.92
		Other Lending Activities		12,950.92	13,782.26	16,791.34	12,950.92	16,791.34	15,340.95
		Broking		6,679.51	5,303.07	5,724.11	6,679.51	5,724.11	5,753.97
		Advisory and Transactional Services	263.86	272.39	360.99	263.86	360.99	319.06
		Asset Management		3,224.68	3,262.41	3,373.07	3,224.68	3,373.07	2,975.43
		Insurance		44,984.34	41,350.69	36,749.73	44,984.34	36,749.73	37,133.30
		Sub-total		643,825.31	620,887.21	532,555.01	643,825.31	532,555.01	587,843.01
		Less: inter-segment assets	(168,236.36)	(165,138.97)	(125,956.88)	(168,236.36)	(125,956.88)	(145,997.82)
		Total		475,588.95	455,748.24	406,598.13	475,588.95	406,598.13	441,845.19
		Add: Unallocated Assets		1,703.93	1,534.87	1,217.76	1,703.93	1,217.76	1,327.52
		Total Assets as per Balance Sheet	477,292.88	457,283.11	407,815.89	477,292.88	407,815.89	443,172.71

Sr	Particulars		Quarter ended		Nine months ended	Year ended
31-Dec-20	30-Sep-20	31-Dec-19	31-Dec-20	31-Dec-19	31-Mar-20
No
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
4	Segment Liabilities:
	Treasury, BMU and Corporate Centre	137,905.07	130,969.26	90,028.24	137,905.07	90,028.24	122,215.01
	Retail Banking	221,565.27	216,791.27	188,542.28	221,565.27	188,542.28	200,770.56
	Corporate / Wholesale Banking	140,547.20	134,952.40	128,655.32	140,547.20	128,655.32	137,983.86
	Vehicle Financing	9,825.69	10,501.13	14,214.30	9,825.69	14,214.30	14,185.38
	Other Lending Activities	5,662.78	6,750.70	7,654.56	5,662.78	7,654.56	7,610.77
	Broking	5,825.14	4,400.43	4,805.02	5,825.14	4,805.02	4,860.90
	Advisory and Transactional Services	75.98	76.79	98.35	75.98	98.35	74.52
	Asset Management	468.16	587.59	1,189.43	468.16	1,189.43	576.71
	Insurance	40,724.64	37,315.25	33,424.94	40,724.64	33,424.94	33,526.74
	Sub-total	562,599.93	542,344.82	468,612.44	562,599.93	468,612.44	521,804.45
	Less: inter-segment liabilities	(168,236.36)	(165,138.97)	(125,956.88)	(168,236.36)	(125,956.88)	(145,997.82)
	Total	394,363.57	377,205.85	342,655.56	394,363.57	342,655.56	375,806.63
	Add: Unallocated liabilities	812.83	688.45	142.65	812.83	142.65	231.96
	Add: Share Capital, Reserves &	82,116.48	79,388.81	65,017.68	82,116.48	65,017.68	67,134.12
	Surplus & Minority Interest
	Total Capital and Liabilities as per	477,292.88	457,283.11	407,815.89	477,292.88	407,815.89	443,172.71
	Balance Sheet

1. There has been no change in the significant accounting policies during the quarter and nine months ended 31st December, 2020 as compared to those followed for the year ended 31st March, 2020.
2. Figures for the previous periods / year have been regrouped wherever necessary to conform to current period's presentation.

By order of the Board of Directors

For Kotak Mahindra Bank Limited

	Dipak Gupta
Mumbai, 25th January, 2021	Joint Managing Director

KOTAK MAHINDRA BANK LIMITED (STANDALONE)

Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31st DECEMBER, 2020

									` crore
Sr		Particulars		Quarter ended		Nine months ended	Year ended
No			31-Dec-20	30-Sep-20		31-Dec-19	31-Dec-20	31-Dec-19	31-Mar-20
			(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1	Interest earned (a+b+c+d)	6,790.54	6,836.05		6,735.60	20,538.45	20,124.93	26,929.61
	(a) Interest/discount on advances/	4,636.56	4,710.78		5,252.84	14,323.09	15,716.42	20,999.24
	bills
	(b) Income on investments	1,797.09	1,803.90		1,322.96	5,090.34	3,956.32	5,257.25
	(c) Interest on balances with RBI &	297.59	259.95		87.47	941.70	226.79	381.24
	other interbank funds
	(d) Others	59.30	61.42		72.33	183.32	225.40	291.88
2	Other income (Refer Note 2)	1,334.38	1,452.03		1,341.43	3,559.95	3,882.72	5,372.11
3	Total income (1+2)	8,124.92	8,288.08		8,077.03	24,098.40	24,007.65	32,301.72
4	Interest expended	2,783.72	2,922.84		3,306.07	8,894.57	10,184.92	13,429.95
5	Operating expenses (a+b)	2,257.86	2,067.75		2,382.89	6,199.29	6,527.18	8,850.94
	(a) Employee cost	959.28	990.07		1,091.52	2,860.23	2,908.04	3,877.63
	(b) Other operating expenses	1,298.58	1,077.68		1,291.37	3,339.06	3,619.14	4,973.31
6	Total expenditure (4+5)
	(excluding provisions &	5,041.58	4,990.59		5,688.96	15,093.86	16,712.10	22,280.89
	contingencies)
7	Operating profit (3-6)
	(Profit before provisions and	3,083.34	3,297.49		2,388.07	9,004.54	7,295.55	10,020.83
	contingencies)
8	Provisions (other than tax) and	599.03	368.59		444.00	1,929.63	1,168.69	2,216.16
	contingencies (Refer Note 2 and 3)
9	Exceptional items	-	-		-	-	-	-
10	Profit from ordinary activities	2,484.31	2,928.90		1,944.07	7,074.91	6,126.86	7,804.67
	before tax (7-8-9)
11	Tax expense	630.77	744.42		348.17	1,792.44	1,446.28	1,857.49
12	Net Profit from ordinary activities	1,853.54	2,184.48		1,595.90	5,282.47	4,680.58	5,947.18
	after tax (10-11)
13	Extraordinary items (net of tax	-	-		-	-	-	-
	expense)
14	Net Profit (12-13)	1,853.54	2,184.48		1,595.90	5,282.47	4,680.58	5,947.18
15	Paid up equity share capital - (of	990.24	989.60		955.52	990.24	955.52	956.52
	Face Value ` 5 per share)
16	Reserves (excluding revaluation							47,558.78
	reserves)
17	Analytical Ratios
	(i) Percentage of shares held by		-		-	-	-	-
	Government of India
	(ii) Capital adequacy ratio - Basel III	21.54	22.05		18.21	21.54	18.21	17.89
	(iii) Earnings per equity share
	- Basic (not annualised) `	9.36	11.04		8.35	26.88	24.51	30.88
	- Diluted (not annualised) `	9.36	11.04		8.34	26.87	24.47	30.84
	(iv) NPA Ratios
	a)	Gross NPA	4,928.04	5,335.95		5,413.20	4,928.04	5,413.20	5,026.89
	b)	Net NPA	1,064.02	1,303.78		1,925.08	1,064.02	1,925.08	1,557.89
	c) % of Gross NPA to Gross	2.26	2.55		2.46	2.26	2.46	2.25
		Advances
	d) % of Net NPA to Net	0.50	0.64		0.89	0.50	0.89	0.71
		Advances
	(v) Return on average Assets (%)	0.49	0.59		0.50	1.42	1.50	1.87
	not annualised

Segment Results

The reportable segments of the Bank as per RBI guidelines are as under:

		Segment								Principal activity
Corporate/Wholesale			Wholesale borrowings and lending and other related services to the corporate sector which are not
Banking				included under retail banking.
Retail Banking			Includes lending, deposit taking and other retail services/ products including credit cards.
Treasury,	BMU	and		Money	market, forex market, derivatives, investments and primary	dealership of	government
Corporate Centre			securities, Balance Sheet Management Unit (BMU) responsible for Asset Liability Management and
						Corporate Centre which primarily comprises of support functions.
															` crore
			Particulars				Quarter ended		Nine months ended		Year ended
								31-Dec-20		30-Sep-20	31-Dec-19	31-Dec-20	31-Dec-19		31-Mar-20
								(Unaudited)		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)		(Audited)
1	Segment Revenue
	a.	Corporate/ Wholesale Banking		3,230.95		3,229.74	3,458.25	9,772.23	10,210.58		13,918.46
	b.	Retail Banking					3,577.44		3,566.08	3,835.43	10,561.01	11,300.63		15,057.84
	c. Treasury, BMU and Corporate		2,350.09		2,516.01	1,699.73	6,828.93	4,928.22		6,693.60
		Centre
	d.	Other Banking business			-		-	-	-	-		-
	Sub-total						9,158.48		9,311.83	8,993.41	27,162.17	26,439.43		35,669.90
	Less: Inter-segmental revenue		1,033.56		1,023.75	916.38	3,063.77	2,431.78		3,368.18
	Total						8,124.92		8,288.08	8,077.03	24,098.40	24,007.65		32,301.72
2	Segment Results
	a.	Corporate/ Wholesale Banking		1,562.22		1,462.66	1,051.10	4,292.36	3,103.76		4,384.22
	b.	Retail Banking					(151.21)		447.18	257.21	654.47	1,203.63		1,553.19
	c. Treasury, BMU and Corporate		1,073.30		1,019.06	635.76	2,128.08	1,819.47		1,867.26
		Centre
	d.	Other Banking business			-		-	-	-	-		-
	Total Profit Before Tax			2,484.31		2,928.90	1,944.07	7,074.91	6,126.86		7,804.67
3	Segment Assets
	a.	Corporate/ Wholesale Banking		156,010.68		148,856.91	142,816.79	156,010.68	142,816.79		153,443.88
	b.	Retail Banking					235,768.44		231,146.15	203,655.02	235,768.44	203,655.02		216,234.38
	c. Treasury, BMU and Corporate		162,441.94		157,602.49	101,149.57	162,441.94	101,149.57		133,563.77
		Centre
	d.	Other Banking business			-		-	-	-	-		-
	Sub-total						554,221.06		537,605.55	447,621.38	554,221.06	447,621.38		503,242.03
	Less : Inter-segmental Assets		165,823.50		163,315.07	124,386.66	165,823.50	124,386.66		143,307.69
	Total						388,397.56		374,290.48	323,234.72	388,397.56	323,234.72		359,934.34
	Add : Unallocated Assets			628.13		474.62	246.27	628.13	246.27		317.34
	Total Assets as per Balance		389,025.69		374,765.10	323,480.99	389,025.69	323,480.99		360,251.68
	Sheet
4	Segment	Liabilities
	a.	Corporate/ Wholesale Banking		140,547.20		134,952.40	128,655.32	140,547.20	128,655.32		137,983.86
	b.	Retail Banking					221,565.27		216,791.27	188,542.28	221,565.27	188,542.28		200,770.56
	c. Treasury, BMU and Corporate		130,284.19		126,008.45	82,949.09	130,284.19	82,949.09		115,719.99
		Centre
	d.	Other Banking business			-		-	-	-	-		-
	Sub-total						492,396.66		477,752.12	400,146.69	492,396.66	400,146.69		454,474.41
	Less : Inter-segmental Liabilities		165,823.50		163,315.07	124,386.66	165,823.50	124,386.66		143,307.69
	Total						326,573.16		314,437.05	275,760.03	326,573.16	275,760.03		311,166.72
	Add : Unallocated liabilities			538.50		405.16	115.05	538.50	115.05		69.66
	Add : Share Capital & Reserves &		61,914.03		59,922.89	47,605.91	61,914.03	47,605.91		49,015.30
	surplus
	Total Liabilities as per Balance		389,025.69		374,765.10	323,480.99	389,025.69	323,480.99		360,251.68
	Sheet

NOTES:

1. The above results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors held on 25th January, 2021. The results for the quarter and nine months ended 31st December, 2020 were subject to limited review by the statutory auditors and there are no modifications in the limited review report.
2. Other Income includes non-fund based income such as commission earned from guarantees / letters of credit, financial advisory fees, selling of third party products, earnings from foreign exchange transactions and profit / loss from the sale of securities. Provision / (write-back) for mark-to-market depreciation on investments in AFS and HFT categories are considered in Provisions and Contingencies.
3. Provisions and contingencies are net of recoveries made against accounts which have been written off as bad in the previous period / year.
   Break up of provisions (other than tax) and contingencies:
4. • crore

Particulars

Quarter ended

Nine months ended

Year ended

31-Dec-20

30-Sep-20

31-Dec-19

31-Dec-20

31-Dec-19

31-Mar-20

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Provision towards advances

/

Others

(including

provisions for exposures to

entities

with

Unhedged

Foreign Currency Exposures

640.65

332.72

432.02

1,326.25

1,102.32

1,476.04

and

accounts

not

recognized

as

NPA

in

accordance

with

Hon.

Supreme

Court

interim

order) (Refer Note 4) (net)

General

provision

for

COVID 19 Deferment cases

-

13.00

-

629.00

-

650.00

(net)

Provision / (write-back of

provisions) for mark-to-

market

depreciation

on

(5.27)

18.50

6.07

7.41

36.90

60.58

investments

in

AFS

and

HFT categories (net)

Other

Provision

/

(write

back

of

other provisions)

(36.35)

4.37

5.91

(33.03)

29.47

29.54

towards investments (net)

Total

provisions

(other

than

Tax)

and

599.03

368.59

444.00

1,929.63

1,168.69

2,216.16

contingencies

4. The Covid 19 pandemic and consequent lockdown has taken toll on human life and impacted a whole range of economic activities adversely. The lockdowns have been lifted for activities in a phased manner by various governments at various points in time depending on the situation prevailing in their respective jurisdictions.

The easing of restrictions has driven a revival in economic activity across sectors. This coupled with lowering spread of infection and the commencement of vaccination program against the virus is a positive development, however, the time required for business to come back to normal fully is still uncertain. Covid 19 has impacted lending business, fee income generation from sale of third party products or usage of debit/ credit cards, collection efficiency etc. This slowdown has impacted customer defaults and consequently increase in provisions. The extent to which COVID 19 pandemic will impact the Bank's operations and financial results is dependent on the future developments and hence the Bank continues to closely monitor any new information concerning the severity of the COVID-19 pandemic and any action taken to contain its spread or mitigate its impact.

In accordance with the RBI guidelines relating to COVID 19 Regulatory Package dated 27th March, 2020 and 17th April, 2020, and 23rd May, 2020 and clarification issued by RBI through Indian Bankers Association dated 6th May, 2020, the Bank granted moratorium on the payment of installments and/or interest, as applicable, falling due between 1st March, 2020 and 31st August, 2020 to eligible borrowers classified as Standard, even if overdue, as on 29th February, 2020. The moratorium period, wherever granted, is excluded from the number of days past-due for the purpose of asset classification under RBI's Income Recognition and Asset Classification norms.

The Bank holds provisions as at 31st December, 2020 against the potential impact of customers impacted by COVID 19 pandemic, which is higher than the regulatory requirements.

In accordance with Resolution Framework for COVID-19 announced by RBI on August 6, 2020, the Bank has implemented a one-time restructuring for certain eligible borrowers and such borrowers are classified as Standard in accordance with the above framework.

The Honourable Supreme Court of India in multiple writ petitions, vide an interim order dated 3rd September, 2020 has directed that accounts which were not declared as NPA till 31st August, 2020 shall not be declared as NPA till further orders. Basis the said interim order, the Bank has not classified any borrower account (whether granted moratorium or not) as NPA after 31st August, 2020. Had the Bank classified borrower accounts, which were more than 90 days overdue at 31st December 2020 as NPA, the Bank's gross NPA ratio and net NPA ratio as at 31st December, 2020 would have been 3.27% and 1.24% respectively. As a matter of prudence, the Bank has made additional provisions (including interest accrued) as at 31st December 2020 of ` 814 crore on such advances including ` 722 crore for this quarter.

5. During the first quarter of the current financial year, the Bank had issued 65,000,000 equity shares of a face value ` 5 each at a price of ` 1,145 per equity share including a premium of ` 1,140 per equity share aggregating to ` 7,442.50 crore pursuant to a Qualified Institutional Placement (QIP).

1. During the quarter, the Bank has granted Nil options under employee stock option scheme. Stock options aggregating to 1,270,912 were exercised during the quarter and 7,593,225 stock options were outstanding with employees of the Bank and its subsidiaries as at 31st December, 2020.
2. RBI circular DBOD.No.BP.BC.1/21.06.201/2015-16 dated 1st July, 2015 on 'Basel III Capital Regulations' read together with the RBI circular DBR.No.BP.BC.80/21.06.201/2014-15 dated 31st March, 2015 on 'Prudential Guidelines on Capital Adequacy and Liquidity Standards-Amendments' requires banks to make applicable Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel III Framework. These disclosures are available on the Bank's website at the following link: https://www.kotak.com/en/investor-relations/financial-results/regulatory-disclosure.html.These disclosures have not been subjected to audit or limited review.
3. There has been no change to significant accounting policies during the quarter and nine months ended 31st December, 2020.
4. Figures for the previous periods / year have been regrouped wherever necessary to conform to current period's presentation.

By order of the Board of Directors

For Kotak Mahindra Bank Limited

	Dipak Gupta
Mumbai, 25th January, 2021	Joint Managing Director