ICRA reaffirms LAA+ to Kotak Mahindra's bonds prog

New Delhi, Oct 23 (UNI) ICRA has reaffirmed the LAA+ rating, incating high-credit-quality, to the outstanding Rs 300 croore long-term subordinated bonds programme of Kotak Mahindra Bank Limited (KMBL).

The rating also reflects low credit risk in the instrument.

It factors KMBL's strong position in the commercial vehicle finance and improving franchise in the other retail asset segments such as personal loans and mortgage finance.

It also takes into account the improving financial performance and the ability of the bank to maintain its asset quality with negligible losses and delinquencies despite its greater focus on the non-salaried individual segment.

In addition, the rating derives comfort from the operational synergies with its subsidiaries in Kotak Mahindra Group operating in car financing (Kotak Mahindra Prime Limited rated LAA), capital market (Kotak Securities Limited rated LAA/A1+ and Kotak Mahindra Investments Limited rated A1+) and investment banking businesses.

Kotak Mahindra, with its corporate office in Mumbai, is present in banking, insurance, asset management, capital markets and private equity. It had 65 branches spread across 43 towns and cities as on March 31, 2006.

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