AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2018

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(Rs. In lakhs)

Particulars 3 Months ended  Year ended 
31/03/2018 31/12/2017 31/03/2017 31/03/2018 31/03/2017
Audited Reviewed Audited Audited
1. Interest earned (a)+(b)+(c)+(d) 149088 142232 143324 569965 562235
a) Interest / discount on advances  /bills 110493 111654 110399 442081 440169
b) Income on Investments 29392 28124 29183 112293 110604
c) Interest on balances with RBI and other interbank funds 2183 2131 3431 7721 8777
d) Others 7020 323 311 7870 2685
2. Other Income 20865 22485 23199 89993 78222
3. Total Income (1+2) 169953 164717 166523 659958 640457
4. Interest Expended 84799 86068 85325 340154 354865
5. Operating Expenses (i+ii) 37183 36530 30492 142072 128495
    (i) Employees cost 17920 15336 13799 63908 60796
(ii) Other operating expenses 19263 21194 16693 78164 67699
6. Total Expenditure (4+5) (excluding provision and contigencies) 121982 122598 115817 482226 483360
7. Operating Profit before Provisions and Contingencies (3-6) 47971 42119 50706 177732 157097
8. Provisions (other than tax) and Contingencies 39417 32470 21750 127367 68750
9. Exceptional items 0 0 0 0 0
10. Profit from ordinary activity before tax (7-8-9) 8554 9649 28956 50365 88347
11.Tax expense 3498 2500 7200 15798 27749
12.Net Profit from ordinary activities after tax(10-11) 5056 7149 21756 34567 60598
13.Extraordinary items (net of tax expense) 0 0 0 0 0
14.Net Profit for the period (12-13) 5056 7149 21756 34567 60598
15.Paid-up equity share capital (FV Rs.2/-) 14533 14533 12186 14533 12186
16.Reserves excluding Revaluation Reserve   611886 491383
17. Analytical Ratios  
(i) % of shares held by Government of India 0% 0% 0% 0% 0%
(ii) Capital Adequacy Ratio-Basel II 14.43% 13.92% 12.54% 14.43% 12.54%
(iii) Earnings per share (EPS) (*) (Rs..)  
a) Basic EPS before & after extraordinary items (not annualized for quarter) 0.66 1.04 3.34 4.98 9.29
b) Diluted EPS before & after extraordinary items (not annualized for quarter) 0.66 1.04 3.34 4.98 9.29
(iv) NPA Ratios  
a) Gross NPAs 301576 266332 148381 301576 148381
b) Net NPAs 186283 169892 103346 186283 103346
c) % of Gross NPA 6.56% 5.94% 3.58% 6.56% 3.58%
d) % of Net NPA 4.16% 3.88% 2.53% 4.16% 2.53%
(v) Return on Asset (annualized) 0.30% 0.43% 1.39% 0.53% 1.00%
* EPS not annualised for the quarter. EPS for the previous period / year has been re-stated after considering the rights issue undertaken during the year. Diluted EPS has been calculated without considering the 6,22,122 shares held in abeyance (refer note no. 5 & 6 )
 
Segment Reporting for the year ended 31st March 2018
Particulars 3 Months ended  Year ended 
31/03/2018 31/12/2017 31/03/2017 31/03/2018 31/03/2017
Audited Reviewed Audited Audited
Business Segments  
Segment Revenue  
1. Treasury Operations 33697 33694 41388 134522 143754
2. Corporate/Wholesale Banking Operations 43259 42757 44010 170986 175576
3. Retail Banking Operations 92438 87836 80763 352660 319998
4. Other Banking Operations 559 430 362 1790 1128
Total 169953 164717 166523 659958 640456
Segment Results  
1. Treasury Operations 9305 8932 12371 38284 38818
2. Corporate/Wholesale Banking Operations 14706 13347 15530 55514 54341
3. Retail Banking Operations 29171 25121 27743 104555 86431
4. Other Banking Operations 504 389 331 1618 1020
Total 53686 47789 55975 199971 180610
 
Unallocated Income/Expenses 5715 5670 5269 22239 23513
Operating Profit 47971 42119 50706 177732 157097
Tax expense 3498 2500 7200 15798 27749
Other Provisions 39417 32470 21750 127367 68750
Net Profit from ordinary activities 5056 7149 21756 34567 60598
Extraordinary items 0 0 0 0 0
Net Profit 5056 7149 21756 34567 60598
Other Information  
Segment Assets  
1. Treasury Operations 1655543 1720196 1495821 1655543 1495821
2. Corporate/Wholesale Banking Operations 1402984 1400733 1351162 1402984 1351162
3. Retail Banking Operations 3077030 2978520 2739610 3077030 2739610
4. Other Banking Operations 0 0 0 0 0
5. Unallocated Assets  557355 553676 594169 557355 594169
Total Segment Assets 6692912 6653125 6180762 6692912 6180762
Segment Liabilities  
1. Treasury Operations 1559607 1616347 1448711 1559607 1448711
2. Corporate/Wholesale Banking Operations 1255173 1253635 1219454 1255173 1219454
3. Retail Banking Operations 2752878 2666282 2472378 2752878 2472378
4. Other Banking Operations 0 0 0 0 0
5. Unallocated Liabilities 498834 495498 536649 498834 536649
Total (a) 6066492 6031762 5677192 6066492 5677192
"Capital Employed
(Segment Assets - Segment Liabilities)"
 
 
GEOGRAPHIC SEGMENTS:  The Bank operates only in Domestic segment.
(Rs. in lakhs)
SUMMARISED BALANCE SHEET AS ON MARCH 31, 2018
PARTICULARS "As on 31.03.2018
(Audited)"
"As on 31.03.2017
(Audited)"
Capital and Liabilities  
Capital 14533 12186
Reserve and Surplus 611886 491383
Deposits 5689009 5369981
Borrowings 238167 169565
Other Liabilities and Provision 139317 137647
Total 6692912 6180762
 
Assets
Cash & Balances with RBI 296007 279047
Balances with Banks and Money at Call 133683 155462
Investments 1580321 1485749
Advances 4480015 4090772
Fixed Assets 52819 41861
Other Assets 150067 127871
Total 6692912 6180762

 


Notes:


1) The above financial results for the year ended March 31, 2018 have been reviewed and recommended by the Audit Committee of the Board and approved by the Board of Directors at their meeting held on May 25, 2018. The same have been subjected to audit by the Statutory Central Auditors of the Bank in line with the guideleines issued by Reserve Bank of India and as per listing agreement with the Stock Exchanges.

2) For the preparation of these financial results, the Bank has followed the same accounting policies and practices adopted for the preparation of the audited financial statements for the previous year.

3) The figures for the quarter ended 31st March 2018 and the corresponding quarter of the previous year as reported in these financial results are the balancing figures between audited figures in respect of the full financial year and the year to date figures upto the end of the third quarter of the relevant financial year.

4) The working results for the quarter and year ended 31st March 2018 have been arrived at after making provisions for Non-performing Assets, Standard Assets, Depreciation on Investments, Taxes on Income and other usual and necessary provisions.

5) During the year ended 31st March 2018, Bank has offered 11,87,81,048 Equity shares of Rs. 2/- each at a price of Rs.76/- including the premium of Rs.74/- per share [comprising of 10,16,21,048 Equity shares on rights basis in the ratio of 1:6 (i.e. one Equity share for every six fully paid-up Equity shares held as on the record date viz. 13th October 2017) aggregating to Rs.772.32 crore and reservation of up to 1,71,60,000 Equity shares for the eligible employees of the Bank aggregating up to Rs.130.42 crore]. Bank has allotted 11,73,17,101 shares (including 1,59,14,160 shares to employees under employee reservation portion), after keeping in abeyance entitlements to the extent of 2,18,107 shares, aggregating to Rs.891.61 crore under the Rights Issue of Equity shares, on 22nd November 2017.

6) Pursuant to the Rights issue, Earnings Per Share (EPS) in respect of previous year/periods has been restated as per Accounting Standard (AS) 20 on “Earnings Per Share”, prescribed under Section 133 of the Companies Act, 2013.

7) The Rights issue has resulted in an increase of Rs.23.46 crore in Share Capital and Rs.864.96 crore (net of share issue expenses amounting to Rs.3.18 crore) in Share Premium account.

8) In accordance with RBI circular DBOD. No. BPBC.1/21.06.201/2015-16 dated 01.07.2015, read together with RBI circular DBR.No.BP.BC.80/21.06.201/2014-15 dated 31.03.2015, Banks are required to make Pillar 3 disclosures under Basel III capital regulations. Accordingly, Pillar 3 disclosures under Basel III capital regulations have been made available on the Bank's website at the following link http://www.kvb.co.in/footer/pillarIII_disclosures.html. These disclosures have not been subjected to review/audit by the Statutory Central Auditors.

"9) a. In accordance with RBI guidelines, Bank has shifted securities amounting to Rs. 723.60 crore from HTM to AFS category during the first quarter of the current financial year and there was no impact on the Profit & Loss account. (Corresponding depreciation charged during the first quarter of the previous financial year being Rs. 0.93 crore). b. RBI vide circular RBI/2017-18/70 DBR.No.Ret.BC.90/12.02.001/2017-18 dated October 4, 2017 advised all commercial banks that in order to align the ceiling on the SLR holdings under HTM category with the mandatory SLR, it was advised to reduce the ceiling from 20.50% to 19.50% in a phased manner and allowed shifting/sale of excess securities from HTM. Accordingly, securities worth of Rs. 360.86 Crore (Face Value Rs. 360.37 Crore) were during the third quarter and Rs. 119.26 Crore (Face Value Rs. 120.00 Crore) during the fourth quarter from HTM to AFS category and the resultant appreciation of Rs. 20.52 Crore and Rs. 2.72 Crore respectively were ignored."

10) RBI circular DBR.No.BP.BC.102/21.04.048/2017-18 dated 2nd April, 2018 grants option to spread provisioning for mark-to-market losses on investments held in AFS and HFT for the quarters ended 31st December, 2017 and 31st March, 2018 and permits the provisioning for each of these quarters to be spread equally over up to four quarters, commencing with the quarter in which the loss was incurred. Accordingly Bank has recognised depreciation of Rs. 20.69 crore towards mark-to-market loss on investments during the year ended 31.03.2018 and balance amount of Rs.22.45 crore are / will be spread over the next three quarters.

11) In terms of RBI guidelines vide circular DBR.No.BP.BC.102/21.04.048/2015-16 dated 13.06.2016, the Bank had debited General Reserves an amount of Rs. 185.07 crore as on 31.03.2017, being unamortised loss on sale of NPAs to ARCs during 2015-16, which was to be proportionately debited to Profit and Loss account during the current financial year (i.e. Rs. 63.18 crore each in the quarter ended June 2017 and September 2017 and the remaining Rs. 58.71 crore during the quarter ending December 2017). The entire amount of Rs.185.07 crore has been debited to Profit and Loss account and credited to General Reserves during the half year ended 30th September 2017.

12) Ministry of Labour and Employment, Government of India on 291h March, 2018 enhanced the ceiling on gratuity payable to an employee under Payment of Gratuity Act, 1972 from Rs. 10 lakh to Rs. 20 lakh. Bank has provided for the entire amount of additional liability during the current quarter and has not availed the dispensation of spreading the provision over a period of four quarters as permitted by RBI.

13) In conformity with RBI circular DBR.BP.BC.No.63/21.04.018/2016-17 dated April 18, 2017 the disclosure on divergence in Asset Classification and Provisioning for NPAs, is as under :

Particulars Amount
1. Gross NPAs as on March 31, 2017 as reported by the bank 1483.81
2. Gross NPAs as on March 31, 2017 as assessed by RBI 2134.71
3. Divergence in Gross NPAs (2-1) 650.90
4. Net NPAs as on March 31, 2017 as reported by the bank 1033.46
5. Net NPAs as on March 31, 2017 as assessed by RBI 1235.46
6. Divergence in Net NPAs (5-4) 202.00
7. Provisions for NPAs as on March 31, 2017 as reported by the bank 428.74
8. Provisions for NPAs as on March 31, 2017 as assessed by RBI 630.74
9. Divergence in provisioning (8-7) 202.00
10. Reported Net Profit after Tax (PAT) for the year ended March 31, 2017 605.98
11. Adjusted (notional) Net Profit after Tax (PAT) for the year ended March 31, 2017 after taking into account the divergence in provisioning 473.89

The current impact of the above mentioned divergences in provisioning as noted by RBI have been duly reflected in the results for the year ended 31st March 2018.



14) The Board of Directors have recommended a dividend of Rs .0.60 per equity share of Rs. 2 /- each for the year 2017-18, subject to necessary approvals. In accordance with AS 4, Contingencies and Events Occuring after the Balance Sheet date, the proposed dividend including corporate dividend tax amounting to Rs.52.47 crore has not been shown as an appropriation from the Profit and Loss appropriation account as of March 31, 2018. For computation of capital adequacy ratio, Bank has reduced the amount of proposed dividend and tax thereon for determining capital funds.



15) The business of the bank has been classified into four segments i.e., i) Treasury; ii) Corporate & Wholesale Banking; iii) Retail Banking; and iv) Other banking operations. Since the Bank does not have any overseas branch, reporting under geographic segment does not arise. Segment assets have been identified and segment liabilities have been allocated on the basis of segment assets. The segment results are annexed.

16) Provision Coverage Ratio is 56.50% as on 31st March 2018.



17) The position of investor complaints is : No. of complaints pending at the beginning and at end of the quarter Nil ; received and disposed off during the quarter - 36.



18) Previous period's /year's figures have been regrouped, wherever necessary to conform to the current period's / year's classification.




For and on behalf of Board of Directors

Place: Karur


Date : 25.05.2018

P R Seshadri

Managing Director & C.E.O

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