Kotak Bank suffers derivative burns

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Kotak Mahindra Depository Financial Institution vice-chairman and managing manager Uday Kotak in Mumbai on Friday. (PTI)

Mumbai, May 9: After ICICI Depository Financial Institution and the State Depository Financial Institution of Republic Of India (SBI), it’s now the bend of Kotak Mahindra Depository Financial Institution to take a derivative hit.

The private depository financial institution today said it had made a provisioning of Rs 86 crore to cover the mark-to-market (MTM) losings of its clients on business relationship of forex derived function transactions.

The depository financial institution have got around 45 clients, having exposure to forex derivatives, who have suffered MTM losings of Rs 612 crore on business relationship of forex minutes as on May 8, 2008.

MTM is the pattern of assigning a value to a fiscal instrument based on its current marketplace price.

“We carry a proviso of Rs 86 crore toward stressed assets. In this respect (exposure to forex derivatives), the depository financial institution have no exposure to SME clients,” Uday Kotak, the bank’s vice-chairman and managing director, told newsmen here today.

A host of lenders, including the SBI and ICICI Bank, have made commissariat on business relationship of losings of their clients in forex transactions.

The SBI have made a proviso of $10 million (around Rs 40 crore) to cover forex losings of its clients, which is in the scope of Rs 600-700 crore, while ICICI Depository Financial Institution have made provisioning of around $170 million (around Rs 680 crore).

On a amalgamate basis, Kotak Mahindra Depository Financial Institution posted a net income growing charge per unit of 41 per cent for the 4th one-fourth ended March 31, 2008. Net net income grew to Rs 240 crore from Rs 170 crore in the same time period last year.

Net net income for the full twelvemonth rose 84 per cent to Rs 991 crore (Rs 538 crore). The standalone Numbers for the one-fourth showed a net income growing of 86 per cent to Rs 69 crore.

Kotak Mahindra Depository Financial Institution said amalgamate fee income was up 59 per cent to Rs 1,676 crore in 2007-08 from Rs 1,053 crore last year. For the 4th quarter, fee income was up 37 per cent to Rs 407 crore from Rs 297 crore in same time period last year.

Consolidated progresses was up 41 per cent year-on-year to Rs 21,985 crore as on March 31, 2008, with retail and commercial loans comprising 89 per cent of the portfolio. Consolidated network involvement border (NIM) for the twelvemonth was a strong 5.6 per cent.

Deposits of the depository financial institution grew 49 per cent to Rs 16,005 crore (excluding impermanent sedimentations held as aggregation bankers to IPOs) as on March 31, 2008 from Rs 10,251 crore last year. Current and economy business relationship sedimentations comprised 27 per cent of entire sedimentations (22 per cent) and entire Numbers of sedimentation business relationships have got more than than doubled at 749,000 as on March 31, 2008 (350,000), the depository financial institution reported.

Avinash paid Moon Rs 5 lakh on Valentine's Day

life INTERRUPTED: Moushumi
'Moon' Das

BHUBANESWAR:
Avinash Patnaik paid a brawny Rs 5 hundred thousand to Moushumi 'Moon' Hyrax from his ICICI
Bank account, according to a quarterly depository financial institution statement of the 22-year-old Orissa
businessman who allegedly shot and killed Moushumi's female parent Kanan and uncle
Vikas Chandra Sarkar on Thursday nighttime in Mumbai before killing himself. The payment was made this year
on February 14, Valentine's Day, when Moushumi and Avinash's human relationship would
have been a month-and-a-half old. Two sedimentations of Rs 3 hundred thousand and
Rs 2 hundred thousand were also made into Avinash's business relationship on the same day, just before the
Rs 5-lakh payment to Moushumi. The sedimentations came from funds
in State Depository Financial Institution of India. It is known that Avinash got a Rs 2-crore loan from a
nationalised depository financial institution for his business, but the beginning of the Rs 2 hundred thousand and Rs 3
lakh sedimentations could not be confirmed. Avinash's business relationship balance was
Rs 301.92 before the sedimentations and returned to that amount after the payment to
Moushumi. A quarterly statement of Avinash's nest egg business relationship shows that the Rs 5
lakh was transferred to Moushumi's ICICI business relationship through check figure 171975. Moushumi could not be contacted for comment. From January 1 to March 31,
Avinash made entire backdowns of Rs 8,28,103 against entire sedimentations of Rs
9,00,794. Avinash's father
Bhupen Patnaik have also alleged that his boy was taking a level in Moushumi's
name. "As much as we have
gathered, Avinash had paid Rs 1 hundred thousand to book a level for Moon in South Kolkata a
few calendar months ago,'' he said. Bhupen added, "I made some
inquiries about this miss through my friends in Kolkata just to happen out whether
there was more than to the relationship. Like any parent, I wanted to cognize about the
girl and her family. The thought was to cognize if there was anything serious between
the two. Had I known that it was serious, I would have got met Moon's family. I
would have got surely agreed to their marriage. But Avinash just dismissed Moon as a
friend and asked me not to bother. Hence, I took it as a simple friendship." The Patnaik household is inclined
to believe that Avinash was in Mumbai on Thursday to acquire back some money he had
"possibly invested" in some business. "Avinash perhaps had some
business golf course with person in Mumbai. It could well be Romesh Sharma," Bhupen
said. Romesh was a common friend of both Moushumi and Avinash. "People, who knew Avinash
closely, state me that my boy had possibly financed person dealing with Chinese
products in Mumbai. I believe it's Romesh. His figure was establish in Avinash's
cellphone. Moreover, some of Avinash's friends state they had seen Romesh in
Bhubaneswar," said Bhupen, a superintending applied scientist in an electrical company. While the Patnaiks doubt
Avinash was killed over money, Bhupen said, "Avinash had reportedly told some
friends that he would be returning (to Orissa) with Rs 30 lakh. I have got reasons
to believe this, because sometime ago, I had asked him about his preparedness
for the new kharif selling season. He said he would acquire back some money he had
invested elsewhere and things should be mulct by December." Avinash owned a rice
mill in Angul, Orissa. According to the father,
Avinash was fiercely independent. "I did not desire to cognize much from him and used
to just do questions once in a piece to check up on if everything was okay. I never
imagined things would take such as a turn," he said.