Consolidated Capital Structure : Basel II(Pillar 3)

Kotak Mahindra Bank Ltd.

Currency: Rs. Million (Non-Annualised)
Tier-I capital element
Gross tier I capital
Paid-up share capital
Reserves
Innovative instruments
Other capital instruments/others
Amounts deducted from tier I capital
Investments in paid up equity of
financial subsidiaries/associates
Intangibles
Securitisation exposure incl credit
enhancement
Other amounts deducted from tier 1 capital
Net tier I capital

Mar-10
12 mths

Mar-11
12 mths

Mar-12
12 mths

Mar-13
12 mths

80,102.1
0
3,481.40
76,620.7
0

110,149.6
0
3,684.40
106,465.2
0

127,448.9
0
3,703.40
123,745.5
0

149,175.8
0
3,703.40
145,472.4
0

5,197.60

5,163.00

4,624.70

4,820.90

1,906.40
3,291.20

1,906.40
3,256.60

1,906.40
2,718.30

1,906.40
2,914.50

74,904.5
0

104,986.6
0

122,824.2
0

144,354.9
0

10,436.5
0
2,198.40

10,085.20
1,988.60

12,184.00
2,452.40

9,771.00
437.6

3,380.50

3,366.80

3,649.40

3,802.80

3,380.50

3,366.80

3,649.40

3,802.80

4,857.60

4,729.80

6,082.20

5,530.60

5,918.00

7,774.00

7,524.00

1,500.00

900

1,906.40
10,277.60

1,906.40
7,864.60

Tier-II capital element

Gross tier II capital
General provision and loss reserve
Debt capital instruments eligible for inclusion
in upper tier II capital
Total amount of debt capital instruments
outstanding
Amount raised during the current year from
upper tier II capital debt instruments
Subordinated debt eligible for inclusion
in lower tier II capital
Total amount of subordinated debt instruments
outstanding
Amount raised during the current year from
lower
tier II capital subordinated debt instruments
Other tier II capital
Other deductions from capital
Net tier II capital

1,906.40
8,530.10

1,906.40
8,178.80

The capital adequacy norms issued by RBI classify capital funds into Tier-I and Tier-II capital.
Tier-I capital includes paid-up equity capital, statutory reserves, other disclosed free
reserves, capital reserves and elements of Tier-II capital include investment reserve, general
provision and loss reserve, eligible upper Tier-II instruments and subordinate debt

instruments (lower Tier -II bonds). Group has issued debt instruments that form part of Tier-II
capital.
KMBL has authorized share capital of ` 400.00 crore comprising 80,00,00,000 equity shares
of ` 5 each. As on 31st March 2013, KMBL has issued, subscribed and paid-up equity capital
of ` 373.31 crore, constituting 74,66,09,026 number of equity shares of ` 5 each. KMBL
shares are listed on the National Stock Exchange and the Bombay Stock Exchange.

Consolidated Capital Requirement for Risk Areas

Kotak Mahindra Bank Ltd.

Currency: Rs. Million (Non-Annualised)
Risk area
Capital requirement for credit risk
For portfolios subject to standardised approach
Fund based
Non-fund based
For securitisation exposures

Mar-10
12 mths

Mar-11
12 mths

Mar-12
12 mths

Mar-13
12 mths

34,155.40
34,102.10

46,069.90
46,051.70

61,014.60
60,999.50

73,287.40
73,287.40

53.3

18.2

15.1

Capital req for mkt risk (Standardised duration

approach)
Interest rate risk
Foreign exchange risk (including gold)
Equity risk

3,325.00
1,939.60
200
1,185.40

5,792.30
2,051.20
200
3,541.10

5,992.40
2,373.00
200
3,419.40

9,480.40
6,244.00
200
3,036.40

Capital requirements for operational risk (Basic

indicator approach)

5,787.30

6,276.70

7,272.40

8,230.30

43,267.70

58,138.90

74,279.40

90,998.10

432,676.5
0
19.3

581,388.6
0
19.5

742,792.9
0
17.9

909,980.7
0
17

Total capital required

Total capital funds of the Bank

Total risk weighted assets

Total capital adequacy ratio of the bank (%)
Tier I capital adequacy ratio of the bank (%)
Total capital adequacy ratio of consolidated
group (%)
Tier I capital adequacy ratio of consolidated
group (%)
Total capital adequacy ratio for significant
subsidiary not under consolidated group (%)
Tier I capital adequacy ratio for significant
subsidiary not under consol group (%)

The diversified business activities require the group to identify, measure, aggregate and manage risks
effectively and to allocate capital among its businesses appropriately. The Bank identifies risks and
determines the level of capital to cover those risks. Some of the risks are mentioned below.

Credit risk
The potential variation in net income and market value of equity resulting from nonpayment or delayed
payment on loans and securities
Market risk
The risk to a financial institutions condition resulting from adverse movements in market rates or prices
Interest Rate Risk
The potential variability in a bank's net interest income and market value of equity due to changes in the
level of market interest rates
Foreign exchange risk
The risk to a financial institutions condition resulting from adverse movements in foreign exchange rates
Equity and security price risk
Change in market prices, interest rates and foreign exchange rates affect the market values of equities,
fixed income securities, foreign currency holdings, and associated derivative and other off-balance sheet
contracts.