News Release

Capital Investment and Business Cooperation with Kotak Mahindra Bank Limited(1/1)

June 30, 2010


Sumitomo Mitsui Banking Corporation


Capital Investment and Business Cooperation with Kotak Mahindra Bank Limited


TOKYO, June 30, 2010 --- Sumitomo Mitsui Banking Corporation@(gSMBCh, President: Masayuki Oku) announced today an agreement to take an ownership interest in, and a Memorandum of Understanding for business cooperation with, Kotak Mahindra Bank Limited (gKotakh, Vice Chairman & Managing Director: Uday S. Kotak), the 4th largest private sector banking and financial services player in India by market capitalization.


Kotak is a financial services conglomerate offering a wide range of financial services including commercial banking, asset management, securities, and investment banking in India and overseas. SMBC intends to cooperate with Kotak to develop new cross border business opportunities in India, in areas such as asset management, alternate assets, securities and investment banking, subject to regulatory and business considerations.


1. Profile of Kotak

Established                           :  1985 (obtained commercial banking license in 2003)

Location of head office     :  36-38A, Nariman Bhavan,227 Nariman Point,

Mumbai, India

Networks               :  1,716 outlets (including group companies)*

Number of employees      :  approximately 20,000 (including group companies)*

Consolidated total assets     :  551.2 billion Indian Rupee*

Consolidated Capital Adequacy Raio  :  19.3% *

@@@@@@@@@@@@@i–Fas of 31 March, 2010)


2. Summary of share subscription

Subscription method@@: Private placement by preferential allotment of new shares by Kotak

Number of shares@ @ : 16,400,000 ordinary shares

( 4.5% of the total issued shares after the subscription)

Subscription price @   : 13.6612 billion Indian Rupee

Schedule             : Scheduled to close during August / September 2010**


(**) The subscription is subject to approval by Kotak shareholders and the Reserve Bank of India.


SMBC will continue to serve its Japanese clients through SCB Japan Desk under the business alliance with Standard Chartered Bank.

To News Release Top Page

Go to top of page