Kotak Mahindra Bank Ltd

Company

Building Sustainable value

We are very mindful that our shareholders give us the capital to run our business. In turn, we are committed to building a sustainable franchise that delivers growth and returns, underpinned by prudent risk management and world-class governance.

Primarily, we measure ourselves on book value per share. We delivered a 21% growth on this metric. From a risk appetite perspective, we target to grow assets at 1.5 to 2 times nominal GDP growth. In FY 2024-25, our average advances grew by 18%, in line with our risk appetite, and average deposits by 16%, to ensure a balanced customer growth franchise. The technology embargo primarily affected our Consumer Bank, while the microfinance industry wide downturn impacted our Commercial Bank. Our Corporate Bank remained resilient and delivered growth for the Bank. Within the Commercial Bank, our Tractor Finance business was a standout, with a market share of 11.5%.

"A strong risk management culture remains at the heart of Kotak and that is the one thing that will not change."

Our diversified business model offers significant counter-cyclical benefits, clearly demonstrated this year with the capital market businesses having a stellar year. Kotak Mahindra Capital Company (KMCC), our Investment Banking subsidiary, retained its number one position in Equity Capital Markets category for the third consecutive year. Kotak Securities? institutional equities business and Kotak Asset Management Company both had exceptional years. Our retail securities and life insurance businesses also performed strongly.

A strong risk management culture remains at the heart of Kotak and that is the one thing that will not change. We seek sustainable, profitable growth without compromising on our strong governance process and mindset, which are of utmost importance to us. We also take pride in our strong balance sheet and capital position. This strength enables us to weather downturns and take advantage of opportunities as they arise.

"We seek sustainable, profitable growth without compromising on our strong governance process and mindset, which are of utmost importance to us."

The acquisition of the RS. 3,330 crore personal loan book from Standard Chartered Bank, India was one such opportunity. Into this year, we recognise that managing the businesses through the regulatory repo rate cut cycle and navigating avenues for growth, are important business challenges that lie ahead.

"We take pride in our strong balance sheet and capital position. This strength enables us to weather downturns and take advantage of opportunities as they arise."

Colleagues

Our Greatest Asset

Our Colleagues are our greatest assets. At its core the transformation that we have embarked upon is one of culture change - designed to allow Kotak to capture opportunities in a fast-changing world and scale our businesses. This year, we launched a number of initiatives including ‘Best of Kotak for Kotakites? and transparent career growth plans for branch managers. We also continued to invest in our young talent through initiatives like Kotak Young Leaders programme. At senior management levels, we have introduced both financial and non-financial measures to focus the organisation on customer centricity and collaboration. We are seeking to ensure a good balance of organisational memory with the skills that are needed for the new age. All of this while ensuring that we build a diversified management bench capable of taking Kotak to the next level.

"Our Colleagues are our greatest assets."

Community

Thriving Together

Our regulators are among our most important stakeholders. We operate under the licence they provide, and our goals are fully aligned. We are committed to being role models in building a compliant and sustainable franchise.

We are committed to giving back to the community in which we live. We understand that our prosperity is inherently linked to theirs. We are immensely proud of the work that we do in the community focused on financial inclusion, education, healthcare and sustainability. We recognise that economic growth and jobs is what will power India ahead and that it is essential that this growth be evenly spread and lift as many boats as possible. Towards this objective, we have launched Kotak Biz Labs - a programme to help entrepreneurs grow and scale up.

"...our brand Kotak has been built brick by brick, with ambition and hard work."

Finally, our brand Kotak has been built brick by brick, with ambition and hard work. Over the years, our vision and aspirations have evolved to achieve the audacious. That is who we are, and who we will always be. And that is what India represents, the bold hopes and aspirations of over a billion people. We are committed to partnering with aspirational India, because we believe - Hausla hai toh ho jayega!

In Closing

While, last year was eventful, we made substantial progress in laying the foundations of our transformation journey. We expect momentum to build in the years ahead. We thank you for your continued support and remain committed to building a franchise you are proud of.

Let?s keep going!

07th July, 2025