KOTAK BANK excel due to strong lending operations and Branch Banking. Bank has shown the strong operation excellence of capturing low cost deposit and high advances through strong corporate banking activities.

Kotak Bank is the first to participate in Asset Reconstruction which reinforces that, bank believes in their strength of decreasing NPA by NPA and loan restructuring.

The Bank currently operates 23 full-fledged branches across 16 cities in India and plans to have 75 to 100 branches by March 2008 across 30 - 40 cities.

Consolidated financial highlights
· Consolidated advances were up 48% to Rs. 5,573 crore as on September 30, 2004 (Rs. 3,768 crore as on September 30, 2003).
· Consolidated net NPAs as on September 30, 2004 were 0.3% of net advances.
· Consolidated book value per share as on September 30, 2004 was Rs. 108.

Total advances of the Bank stood at Rs. 2,708 crore as on September 30, 2004, up 75% from Rs. 1,551 crore as on September 30, 2003.

The consolidated total income for the quarter was up 22% to Rs. 317.74 crore as compared to Rs. 259.40 crore (quarter ended September 30, 2003).

Proportion of fee income and insurance premium to total income increased to 38% for Q2 FY05 compared to 29% in Q2FY04.

Consolidated Net Interest Income (NII) was up 29% to Rs. 110.75 crore as against Rs. 85.85 crore (quarter ended September 30, 2003). Consolidated profit after tax for the quarter was Rs. 32.50 crore as compared to Rs. 38.94 crore (quarter ended September 30, 2003).

NII of Kotak Mahindra Bank, on a stand-alone basis, was up 50% at Rs. 54.74 crore for the quarter as compared to Rs. 36.51 crore (quarter ended September 30, 2003).

The profit after tax of the Bank for the quarter was up 4% at Rs. 20.65 crore as against Rs. 19.84 crore (quarter ended September 30, 2003).

Business highlights

· Assets Under Management (AUM) of Kotak Mutual Fund stood at Rs. 5,518 crore as on September 30, 2004.
· Kotak Life insurance recorded 130% growth in gross premium income in Q2 FY05 to Rs. 47.70 crore as compared to Rs. 20.68 crore Q2 FY04.
· Launched a private equity fund with a target corpus of Rs. 400-450 crore.