Kotak Mahindra Bank Ltd (KOTAKBANK)
₹1819.2▲3.05%
Key Stats
₹1757.7
Day's Price Range
₹1826.45
₹1631
52-Week Price Range
₹2253
| Returns | |
| 1 Month Return | -7.23 % |
| 3 Month Return | 5.84 % |
| 1 Year Return | -11.98 % |
Company Financials
Value in ₹ crore
Peer Comparsion
PE
Rank 10
26.94
EPS
Rank 6
₹65.52
BVPS
Rank 5
₹486.9
Dividend Yield
Rank 12
0.05%
ROE
Rank 10
12.62%
Price To Book Ratio
Rank 9
3.62
Debt To Asset
Rank 9
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Company Information
Kotak Mahindra Bank the Bank is the flagship company of the Kotak Group. It is one amongst the fastest growing banks and the most admired financial institutions in India. The Bank offers transaction banking operates lending verticals manages IPOs and provides working capital loans. The principal business activities of the Bank are organised into consumer banking commercial banking corporate banking treasury and other financial services. As of 31 December 2020 the Bank had 1603 branches and 2573 ATMs across the country.The Bank along with its subsidiaries offers a comprehensive range of financial products and services to its customers. The key businesses are commercial banking investment banking stock broking vehicle finance advisory services asset management life insurance and general insurance. The Bank offers complete financial solutions for infinite needs of all individual nonindividual customers depending on the customers need delivered through a state of the art technology platform. They also offer investment products like Mutual Funds Life Insurance retailing of gold coins and bars etc. Apart from Phone banking and Internet banking they offer convenient banking facility through Mobile banking SMS services Netcrd Home banking and BillPay facility among others.The Depository services offered by the Bank allows the customers to hold equity shares government securities bonds and other securities in electronic or Demat forms. Their Salary 2 Wealth offering provides comprehensive administrative solutions for Corporates with features such as easy and automated web based salary upload process thereby eliminating the paper work involved in the process a dedicated relationship manager to service the corporate account customized promotions and tie ups and many such unique features.The Bank offers comprehensive business solutions for the business community that includes the Current Account Trade Services Cash Management Service and Credit Facilities. Their Wholesale banking products offer business banking solutions for longterm investments and working capital needs advice on mergers and acquisitions and equipment financing. The Bank addresses the entire spectrum of financial needs of NonResident Indians NRIs. Their tieup with the Overseas Indian Facilitation Centre OIFC as a strategic partner gives them a platform to share their comprehensive range of banking investment products and services for Non Resident Indians NRIs and Persons of Indian Origin PIOs. The bank has overseas subsidiaries with offices in Mauritius London Dubai Singapore San Francisco New York. The overseas subsidiaries are mainly engaged in investment advisory and investment management of funds equity debt trading management of GDR/ FCCB issuances broker broker dealer activities and investments.Kotak Mahindra Bank Ltd was incorporated in the year 1985 with the name Kotak Capital Management Finance Ltd. On April 8 1986 the companys name was changed Kotak Mahindra Finance Ltd. They started billdiscounting activity. In the year 1987 they entered into lease and hire purchase market. In the year 1990 they started car finance division and during next year they started investment banking division. Also they took over FICOM one of Indias largest financial retail marketing networks.In the year 1994 the company formed Kotak Mahindra International in Mauritius and opened an office in Dubai. They formed Kotak Mahindra UK with office in London. In the year 1996 the car finance business was hived off into a separate company namely Kotak Mahindra Primus Ltd and Ford Credit took a 40 stake in Kotak Mahindra Primus. In the year1998 they formed Kotak Mahindra Inc with office in New York. In the year 2001 Kotak Securities Ltd became a subsidiary company.In February 2003 the company was given the license to carry on banking business by the Reserve Bank of India RBI. This approval created banking history since Kotak Mahindra Finance Ltd is the first nonbanking finance company in India to convert them into a bank as Kotak Mahindra Bank Ltd. In March 2003 they commenced banking operations. The Bank started their operations in New Delhi by inaugurating a branch. They entered into ATM sharing agreement with UTI Bank now known as Axis Bank in which the Bank customers were free to access around 800 ATMs. They unveiled several home finance products options that include Home Loan Home Equity Loan Home Loan Transfer and Home Improvement Loans. Also they launched online remittance services called FUNDS to HOME for Nonresident Indians.In January 2005 the Bank opened 29th retailbanking branch at Mehsana in Gujarat. In February 2005 they launched Rajajinagar extension counter in Bangalore and launched free Mobile Banking facility. Also they launched their branch at Chennai Tamilnadu. In February 23 2005 they opened their retailbanking branch in the business capital of Madhya Pradesh. In March 2005 they opened their eighth retailbanking branch at Napean Sea Road in Mumbai. In May 2005 the Bank opened new retailbanking branch at Parrys Corner in Chennai. In June 2005 they opened two retailbanking branches in Delhi at Safdarjung Enclave and Punjabi Bagh. In October 4 2005 the Bank acquired 40 stake in Kotak Mahindra Primus Ltd KMP held by Ford Credit International FCI thereby giving the Bank and their subsidiary complete ownership of KMP. Simultaneously they also sold their stake in Ford Credit Kotak Mahindra Ltd FCKM to FCI.In September 2006 the Bank acquired 51 of the paid up Share capital of Kotak Mahindra Securities Ltd KMSL by way of preferential allotment of shares by KMSL to the Bank. In March 2007 the Bank entered into a subscription agreement with International Finance Corporation whereby the Bank will issue Upper Tier II Subordinated Bonds by way of Debentures of the value of USD 45 million with the final maturity of over 15 years.During the year 200708 the Bank increased 73 new fullfledged branches 179 new ATMs taking the network size to 178 branches and 314 ATMs. They added new products services like Gold debit card smart fee a fee solution for Educational Institutions a GPRS based mobile banking bill presentment and payment facility online term deposits etc to meet the needs of the customers. During the year 200809 the Bank added 39 branches and 74 ATMs taking the total network size to 217 branches and 387 ATMs including 175 off site ATMs. They introduced several new features like Online password two factor authentication improved features for security of fund transfers etax payment facility auto payment of bills PIN based IVR.During the year 200910 the Bank added 32 branches 77 off site and 28onsite ATMs taking the total number of branches to 249 Nos 252 Nos offsite ATMs and 240 Nos onsite ATMs. They had a debit card base of 829876. They opened a representative office in Dubai. Also they entered Ahmedabad Commodity Exchange as anchor investor.In June 2010 the Bank entered into an agreement with Sumitomo Mitsui Banking Corporation Japan for a preferential issue of 1.64 crore shares at Rs 833 per share which amounts to approximately 4.5 stake on a postissue basis for Rs 1366 crore.During the year 201011 the Bank added 72 branches and 246 ATMs and ended the year with 321 Branches and 710 ATMs and thereby increasing their presence to 183 locations. They also added over half a million new customers this year across core banking products of savings and checking account term deposits overdrafts and nonresident accounts.During the year the Banks Treasury started Correspondent Banking Division to build and leverage on relationships with offshore banks for improving quality and international reach for their customers. Also the Bank entered into a strategic arrangement with PVR Cinemas one of the elite name in entertainment industry to distribute credit card products aimed at upmarket customers. In August 2011 the Bank entered into business cooperation arrangement with CIMB Group Sdn. Bhd. Malaysia CIMB. In October 2011 Kotak Mahindra Capital Company Ltd a subsidiary of the Bank and Evercore Partners global investment banking advisory firm headquartered in New York USA entered into an exclusive strategic partnership for crossborder MA advisory services between India and the United States the United Kingdom and Mexico.On 4 September 2012 Kotak Mahindra Bank Ltd. announced that it entered into a strategic alliance with Scotiabank Canadas most international bank to provide financial services to people immigrating to Canada and to nonresident Indians NRIs and People of Indian Origin PIOs seeking bank accounts and other banking services in India. This alliance brings together the respective strengths of each bank to enable referrals for customers in Canada and India subject to local banking regulations.On 5 February 2013 Kotak Mahindra Bank Ltd. KMBL announced that it acquired a portfolio of approximately 6000 business loans with a total loan outstanding of about Rs 700 crore from Barclays Bank PLC India Branch and Barclays Investment and Loan India Ltd. The acquisition is in line with KMBLs strategy to add value to existing business lines as it strengthens business loans portfolio. On 12 April 2013 Kotak Mahindra Bank Ltd KMBL announced that it has accepted an offer from Heliconia Pte Ltd an affiliate of Government of Singapore Investment Corporation Pte Ltd GIC to subscribe to a preferential issue of 2 crore equity shares of KMBL amounting to approximately 2.6 shareholding in the bank as of 31 March 2013 on a postissue basis. The proposed investment of Rs 1296 crore will be at a price of Rs 648 per share. On 9 October 2013 the then Deputy Governor of Reserve Bank of India Dr. K. C. Chakrabarty formally inaugurated Kotak Mahindra Banks KMB 500th branch located at Mumbais Western suburb of Kandivali and its 1000th ATM located at Jayanagar Bengaluru.On 30 May 2014 Kotak Mahindra Bank Ltd KMBL announced that Kotak Trustee Company Private Limited a promoter group entity has sold approximately 2.5 crore shares amounting to around 3.24 shareholding in KMBL. Post the transaction the promoter holding in the KMBL dropped to 40.33. On 20 July 2014 Kotak Mahindra Bank Ltd KMBL announced that it has entered into a Share Purchase Agreement SPA to purchase 15 equity stake in Multi Commodity Exchange of India Ltd MCX from Financial Technologies India Ltd FTIL for a consideration of Rs 459 crore. On 25 November 2014 Kotak Mahindra Bank announced its plan to foray into general insurance business. Shareholders of Kotak Mahindra Bank at an Extraordinary General Meeting held on 7 January 2015 approved a scheme of amalgamation of ING Vysya Bank Ltd. with Kotak Mahindra Bank Ltd with a share exchange ratio of 725 equity shares of Kotak Mahindra Bank Ltd. for every 1000 equity shares of ING Vysya Bank Ltd. On 20 November 2014 Kotak Mahindra Bank and ING Vysya Bank Ltd. IVBL announced the scheme of merger. ING Vysya Bank Ltd was merged with Kotak Mahindra Bank with effect from 1 April 2015.On 29 January 2015 Kotak Mahindra Bank announced that it agreed to invest 19.9 in Airtel M Commerce Services Limited AMSL which is in process of applying for Payment Bank License to Reserve Bank of India RBI. AMSL is a subsidiary of Bharti Airtel Limited.On 3 May 2016 Kotak Mahindra Bank announced the launch of its International Banking Unit IBU in Gujarat International Finance TecCity GIFT City district Gandhinagar.On 1 September 2016 Kotak Mahindra Bank announced a strategic partnership with Biz2Credit a leading USbased online marketplace for small business finance. Kotak Mahindra Bank will start leveraging the Biz2Credit platform and alliances to increase its Salaried Personal Loan book. On 30 September 2016 Kotak Mahindra Bank announced that it has executed binding share purchase agreement to acquire 99.49 of equity shares of BSS Microfinance Private Limited BSS a NonBanking Finance Company classified as a NBFCMFI from existing shareholders for an aggregate allcash consideration of Rs 139.2 crore. As of June 30 2016 BSS has a networth of approximately Rs 73 crore and micro finance loans of Rs 483 crore in its books. On 6 October 2016 Kotak Mahindra Bank announced that it has reduced its base rate by 10 basis points to 9.4 p.a. with effect from 7 October 2016.On 11 November 2016 Kotak Mahindra Bank announced that it has received Reserve Bank of Indias approval to set up its first overseas branch in Dubai International Financial Centre DIFC Dubai.Kotak Mahindra Bank reduced its Marginal Cost of Funds based Lending Rate KMCLR by up to 45 basis points bps with effect from 1 January 2017 for various tenors. The bank reduced its base rate by 10 basis points to 9.3 p.a. with effect from 6 January 2017.On 29 March 2017 Kotak Mahindra Bank announced the launch of 811 Indias unique fullservice digital banking ecosystem on mobile that will drive the banks organic growth agenda. 811 offers a zero balance savings account with zero charges for all digital transactions where customers can earn up to 6 p.a. on their savings account balances. 811 offer a completely digital and paperless account opening experience across nearly 700 locations in India. It can be opened anywhere anytime within 5 minutes using Kotaks mobile banking app.The Board of Directors of Kotak Mahindra Bank Kotak at its meeting held on 30 March 2017 accorded its approval for fresh issue of up to 6.2 crore equity shares to augment the banks capital base.On 28 April 2017 Kotak Mahindra Bank announced that it has entered into an agreement to purchase the entire 26 equity stake held by Old Mutual plc UK OM in Kotak Mahindra Old Mutual Life Insurance Limited Kotak Life for a consideration of Rs 1292.7 crore. After the completion of the transaction Kotak Mahindra Group will hold 100 of the equity shareholding of Kotak Life. On 13 October 2017 the bank announced that it completed the transaction for acquisition of 26 equity stake held by Old Mutual plc UK in Kotak Life.On 18 May 2017 the Securities Issuance Committee of Kotak Mahindra Bank approved allotment of 6.2 crores equity shares to eligible qualified institutional buyers at issue price of Rs 936 per share aggregating to Rs 5803.20 crore. The QIP issued opened for subscription on 11 May 2017 and closed on 16 May 2017. The Board of Directors of Kotak Mahindra Bank at its meeting held on 18 May 2017 approved increase in ceiling limit on the total shareholding of Foreign Institutional Investors FIIs/Foreign Portfolio Investors FPIs in the bank to 43 from 42.On 3 August 2017 Kotak Mahindra Bank announced that it kept interest rates on savings accounts unchanged for most of the slabs except on savings accounts balance above Rs 1 crore and up to Rs 5 crore. The interest rate on saving accounts balance above Rs 1 crore and up to Rs 5 crore was cut by 50 basis points to 5.5 from 6 with effect from 4 August 2017.In August 2018 the Bank has issued and allotted 100 crore 8.10 Perpetual NonCumulative Preference Shares PNCPS of Rs 5 each amounting to Rs 500 crores.In March 2019 the Bank has issued and allotted 1500 Senior Unsecured Rated Listed Redeemable Long Term Bonds in the nature of NonConvertible Debentures bearing a face value of Rs 10 lakh each aggregating to Rs 150 crore.KMIL on 26th April 2019 sold off its entire equity stake of 19.77 held in Matrix Business Services India Pvt. Ltd. an associate company of KMIL. Accordingly Matrix ceased to be an associate company of KMIL consequently of the Bank from that date.As at 31st March 2019 the Bank has 4 associate companies comprising of Infina Finance Private Limited Phoenix ARC Private Limited Matrix Business Services India Private Limited and ACE Derivatives Commodity Exchange Limited which ceased to be an associate company with effect from 26th April 2019. In August 2018 the Bank completed its issuance of Perpetual NonConvertible Preference Shares PNCPS resulting in dilution of promoter stake to 19.70 of the paidup capital of the Bank. However the Reserve Bank of India RBI communicated to the Bank that the PNCPS issuance does not meet their promoter dilution requirement. The Bank has by way of abundant caution in December 2018 filed a writ petition with the Honble Bombay High Court to validate its position. The writ petition is pending.During the year 2019 Kotak Securities KS launched FIT Free Intraday Trading a subscription based product targeted at online customers. It also launched biometric based account opening process during the year. These resulted in a higher customer acquisition for the year. Besides KS launched commodity brokerage services and direct mutual fund platform during FY 2019.During the year 2019 Kotak Investments Advisors Ltd. KIAL has received new capital commitments of around Rs 50 billion. The aggregate domestic alternate assets managed by KIAL as on 31st March 2019 were Rs10547 crore. It managed 15 domestic funds during the year. It also advised 5 offshore funds during the year. During the year KIAL successfully exited all investments in its Managed Account Fund.The Bank had 1600 branches excluding GIFT and DIFC and 2519 ATMs as on 31 March 2020. As on 31 March 2020 the bank has 19 subsidiaries and 4 associate companies under its roof.Pursuant to the approval of the Board of Directors on 22 April 2020 and approval of the shareholders by way of postal ballot on 25 May 2020 the bank undertook a Qualified Institutions Placement. The object of the issuance is to augment the Banks capital base and to strengthen its balance sheet which would assist the Bank in dealing with contingencies or financing business opportunities which may either be organic or inorganic or both which may arise pursuant to the economic events driven by the outbreak of COVID19 which has been declared a pandemic by the World Health Organization or otherwise. On 30 May 2020 the bank allotted 65000000 equity shares of face value of Rs 5 each at an issue price of Rs 1145 per equity share thereby raising Rs 74425000000.The bank has received the award for Keya AIpowered Voicebot and Chatbot in the category AI/Machine Learning at the BankTech Awards 2020. The bank also received the award under categories Best Cash Management Bank in India Best Productivity Efficiency and Automation Initiative Application or Programme Smart Collect at the Asian Banker Transaction Banking Awards 2019.During the FY2020 Kotak 811 launches Indias first zerocontact video KYC savings account.
| Organisation | Kotak Mahindra Bank Ltd |
| Headquarters | Mumbai |
| Industry | Banks |