Twenty five years is a defining age.  It is the crossroads where youth
 and aspiration meet insight and maturity We, at Kotak, are at this
 point of reckoning
 
 The world around us has changed at startling speed: 25 years ago,
 Indian television was in its infancy, mobile phones were unheard of,
 and emai did not exist. One of our recent TV ads captured this thought
 - When was 25, conversations happened face-to-face, not on Facebook.
 The true challenge is to ensure we stay relevant to our customers
 through a deep understanding of their constantly evolving mindsets.
 
 I look back to when it all started for perspective. Way back in 1985,
 your bank (of course, it was not a bank then) was born out of an
 opportunity in the spreads business – bills discounting.  Soon, it
 grew deeper and wider into leasing and car fnance – also spreads
 businesses (essentially those that intermediated between savers and
 borrowers). Investors as a breed were scant.
 
 Come the early 90s, the stage was set for a slew of reforms in the
 capital markets. The abolition of the Controller of Capital Issues
 (CCI), the setting up of the regulator Securities & Exchanges Board of
 India (SEBI), the launch of the National Stock Exchange (NSE) and the
 creation of Indias frst Depository, NSDL. Your company saw opportunity
 in this reform-fuelled environment and built its capital markets
 business in an emerging world of investors and issuers. Our
 takeover of FICOM gave us a distribution advantage, so our reach could
 exceed our 6 year old grasp.
 
 Throughout the 90s, as your company approached teenage, it straddled
 both the spreads and the markets businesses.  Meanwhile, we forged
 associations with Goldman Sachs and Ford Credit, in 1995 and 1996
 respectively. The frst energized our foray into investment banking and
 securities, and the second helped us consolidate our strengths in auto
 fnance.
 
 Then the environment around us suddenly changed with the onset of the
 Asian contagion in the late 90s. Non Performing Loans (NPLs) destroyed
 the spreads industry, and practically 90% of the NBFCs died. Even large
 government sponsored fnancial institutions needed restructuring to
 endure. At Kotak, we hunkered down, pruned exposures, survived and grew
 stronger. Like the boy who stayed home to avoid catching the bug from
 the other kids in the playground.
 
 Then came our age of adolescence.  Thats when we started building
 things, in what Id call our fnancial manufacturing businesses. We
 launched our Asset Management offering at age 13 and then Life
 Insurance in partnership with South Africas Old Mutual at 16.
 
 At 18, like all young adults, we got our license to drive. We became
 Indias frst and so far only NBFC to turn into a bank. This was also
 the period when the capital markets really took off. So while we were
 setting up the Bank, we saw exponential growth in the securities and
 investment banking businesses.
 
 India seemed set to convert into a country of investors, from one of
 just savers. We used this time to build out the banks network of
 branches and
 
 ATMs, as also its suite of world class offerings.
 
 We also responded to the call of the markets by adding other markets-
 related offerings such as our private equity business, our realty fund
 and the ability to retail pension funds.
 
 However, post 2008, in the wake of the American upheaval, the tables
 turned for fnancial services worldwide. The investor, particularly in
 equities, was wounded and withdrew to the cocoon of savings. It seemed
 like we had come full circle, with the return of the saver!
 
 You may recall, I frst referred to a unique merit of our business model
 on these pages way back in 2003, with the epithet 6=1. At that time, we
 had begun to taste the benefts of group synergy, and customers had
 begun experiencing a seamless brand and service experience. Even as the
 
 American fu was spreading in 2008, I wrote here of how I believed that
 our integrated one frm approach was the most appropriate model for the
 Indian fnancial sector. Just last year, I reiterated my belief that
 while the capital markets businesses are cyclical in nature, the
 fnancing and asset management offerings would provide a steady stream
 of growing annuity.
 
 Your banks fnancial results for 2010-11 only serve to reinforce my
 faith in this model. This year, 75% of our earnings came from the
 fnancing business. The capital markets business contributed 15% (down
 from 55% in 2008) and the manufacturing business, i.e. Asset Management
 and Life Insurance 10%. Regulatory developments, environmental events
 and customer mindsets can all serve to shift value from one side of the
 platform to another, hence it is critical to be present across the
 spectrum of the fnancial ecosystem.
 
 As you can see, while the environment has proven dynamic we have grown
 our profts steadily on a consolidated basis.  The business model is
 complete, and our position vindicated. We are attaining stability and
 maturity; we are coming of age. We are, after all, 25!
 
 As we head into the second major phase of our life cycle as a frm, we
 want to follow 2 mantras:
 
 Excellence for Relevance
 
 Depth in addition to width At Kotak, we have long defned our position
 as concentrated India, diversifed fnancial services. This approach
 has served us well so far, given Indias stage of evolution. But going
 forward, we will have to make choices, and turning up at every
 happening party may not be the right strategy. In preparation for that
 time, we must now fgure out how we do better, what we do.
 
 Until now, an important aspect of Kotaks DNA was width – wherever we
 spotted relevant, lucrative, unexploited opportunities, we moved ahead
 with speed and broke new ground. Now we will complement that with a
 surgical focus on depth and excellence. For example, customer
 experience is always about delighting each customer, and not about the
 average.
 
 And as I wrote in 2007, quality of service is directly linked to the
 quality of people. When we crossed the 10,000 mark, we won a mention in
 Hewitts list of Indias best employers. Today, at over double that
 number, we have again been counted among Indias best employers, and
 continue to be Indias number one BFSI employer. I salute my colleagues
 and thank them for their contributions. I also thank their families for
 their unstinting support.
 
 Finally, I thank our Board of Directors for their support and exemplary
 guidance.  also take this opportunity to express my gratitude to all
 our stakeholders who continue to repose faith and trust in us over the
 years.
 
 In conclusion, on a personal note, I did celebrate my own 52nd birthday
 just weeks before the end of this fscal
 
 But along with your company, I too feel so full of energy, enthusiasm
 and passion as I look forward, that I can say with conviction that it
 truly is…grt 2b 25!
 
 Best Wishes