AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2016

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(Rs. In lakhs)

Particulars 3 Months ended  Year ended 
31-03-2016 31-12-2015 31-03-2015 31-03-2016 31-03-2015
Audited Reviewed Audited Audited
1. Interest earned (a)+(b)+(c)+(d) 137016 135236 132782 544339 539587
a) Interest / discount on advances  /bills 108728 107567 104446 432937 421131
b) Income on Investments 28009 27203 27778 109578 115816
c) Interest on balances with RBI and other interbank funds 89 20 54 224 624
d) Others 190 446 504 1600 2016
2. Other Income 16614 17278 17979 70682 58084
3. Total Income (1+2) 153630 152514 150761 615021 597671
4. Interest Expended 89752 90416 93044 366203 392997
5. Operating Expenses (i+ii) 37990 29541 31717 125276 110345
    (i) Employees cost 13927 12655 15776 54738 54705
(ii) Other operating expenses 24063 16886 15941 70538 55640
6. Total Expenditure (4+5) excluding provision and contigencies 127742 119957 124761 491479 503342
7. Operating Profit before Provisions and Contingencies (3-6) 25888 32557 26000 123542 94329
8. Provisions (other than tax) and Contingencies -1262 9274 19483 32379 48051
9. Exceptional items 0 0 0 0 0
10. Profit /(Loss) from Ordinary activities before tax (7-8-9) 27150 23283 6517 91163 46278
11.Tax expense 13350 8000 -6399 34400 717
12.Net Profit from ordinary activities after tax(10-11) 13800 15283 12916 56763 45561
13.Extraordinary items (net of tax expense) 0 0 -867 0 -867
14.Net Profit for the period (12-13) 13800 15283 13783 56763 46428
15.Paid-up equity share capital (FV Rs.10/-) 12186 12186 12163 12186 12163
16.Reserves excluding Revaluation Reserve (as per balance sheet of               previous accounting year) 445109 412440 412440 445109 412440
17. Analytical Ratios          
(i) % of shares held by Government of India 0% 0% 0% 0% 0%
(ii) Capital Adequacy Ratio-Basel II 12.26% 13.30% 14.63% 12.26% 14.63%
Basel III 12.17% 12.90% 14.62% 12.17% 14.62%
(iii) Earnings per share (EPS)           
a)Basic EPS before extraordinary items (not to be annualized) 11.33 12.54 11.83 46.59 39.12
b)Diluted EPS before extraordinary items (not to be annualized) 11.33 12.54 11.81 46.59 39.04
a)Basic EPS after extraordinary items (not to be annualized) 11.33 12.54 11.09 46.59 39.86
b)Diluted EPS after extraordinary items (not to be annualized) 11.33 12.54 11.81 46.59 39.78
(iv) NPA Ratios          
a) Gross NPA 51118 72118 67778 51118 67778
b) Net NPA 21617 35951 28097 21617 28097
c) % of Gross NPA 1.30% 1.91% 1.85% 1.30% 1.85%
     d) % of Net NPA 0.55% 0.96% 0.78% 0.55% 0.78%
e) Return on Asset(annualized) 0.97% 1.10% 1.04% 1.03% 0.88%
 
Segment Reporting for the year ended 31st March 2016
Particulars 3 Months ended  Year ended 
31-03-2016 31-12-2015 31-03-2015 31-03-2016 31-03-2015
Audited Reviewed Audited Audited
Business Segments          
Segment Revenue          
1. Treasury Operations 30118 30700 32099 124751 128011
2. Corporate/Wholesale Banking Operations 46177 44924 42842 178607 163005
3. Retail Banking Operations 77027 76633 75483 310566 305643
4. Other Banking Operations 309 257 337 1098 1013
Total 153631 152514 150761 615022 597672
Segment Results          
1. Treasury Operations 8397 3229 5973 25685 13109
2. Corporate/Wholesale Banking Operations 10158 12256 9639 44824 35739
3. Retail Banking Operations 12610 22556 15675 74823 67737
4. Other Banking Operations 281 234 308 1000 933
Total 31446 38275 31595 146332 117518
 
Unallocated Income/Expenses 5558 5718 5595 22790 23189
Operating Profit 25888 32557 26000 123542 94329
Income Taxes 13350 8000 -6399 34400 717
Other Provisions -1262 9274 19483 32379 48051
Net Profit from ordinary activities 13800 15283 12916 56763 45561
Extraordinary items 0 0 867 0 867
Net Profit 13800 15283 13783 56763 46428
 
Other Information 3 Months ended  Year ended 
31-03-2016 31-12-2015 31-03-2015 31-03-2016 31-03-2015
Audited Reviewed Audited Audited
Segment Assets          
1. Treasury Operations 1325211 1309645 1238559 1325211 1238559
2. Corporate/Wholesale Banking Operations 1399159 1418676 1345414 1399159 1345414
3. Retail Banking Operations 2509279 2315948 2265480 2509279 2265480
4. Other Banking Operations 0 0 0 0 0
5. Unallocated Assets  532723 455828 465795 532723 465795
Total 5766372 5500097 5315248 5766372 5315248
 
Other Information 3 Months ended  Year ended 
31-03-2016 31-12-2015 31-03-2015 31-03-2016 31-03-2015
Audited Reviewed Audited Audited
Segment Liabilities           
1. Treasury Operations 1285805 1258348 1234898 1285805 1234898
2. Corporate/Wholesale Banking Operations 1267263 1277327 1206349 1267263 1206349
3. Retail Banking Operations 2273342 2085623 2031394 2273342 2031394
4. Other Banking Operations 0 0 0 0 0
5. Unallocated Liabilities 482667 410587 418004 482667 418004
        0  
Capital Employed 457295 468212 424603 457295 424603
Total Liabilities 5766372 5500097 5315248 5766372 5315248
 
GEOGRAPHIC SEGMENTS:  The Bank operates only in Domestic segment.
Statement of Assets and Liabilities 
Capital and Liabilities As on 31.03.2016 Audited As on 31.03.2015 Audited
Capital 12186 12163
Reserve and Surplus 445109 412440
Deposits 5007890 4469027
Borrowings 157324 290075
Other Liabilities and Provision 143863 131543
Total 5766372 5315248
 
Assets
Cash & Balances with RBI 252906 269292
Balances with Banks and Money at Call 26254 5617
Investments 1322167 1237515
Advances 3908438 3610894
Fixed Assets 42012 41117
Other Assets 214595 150813
Total 5766372 5315248

 


Notes:


1) The above financial results for the year ended March 31,2016 have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at their meeting held on May 27, 2016. 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 generally accepted practices adopted for the preparation of the audited finacial statements for the previous year.

3) The figures for the quarter ended 31st March 2016 and the corresponding quarter ended in the previous year as reported in these financial results are the balancing figure 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 year ended 31st March 2016 have been arrived at after making provisions for Non-performing Assets, provision for Standard Assets, Depreciation on Investments, Taxes on Income and other usual and necessary provisions.

5) During the first quarter of the current year, the Bank had alloted 2,34,845 shares persuant to the exercise of stock options by certain employees at Rs. 275 per share and Rs. 10.75 crore has been credited to share premium account.

6) In accordance with the 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 audit by the Statutory Central Auditors.

7) Pursuant to RBI circular DBR.BP.BC.No.31/21.04.018/2015-16 dated July 16, 2015, the Bank has, effective quarter ended June 30, 2015, included the deposits placed with NABARD / SIDBI / NHB on account of shortfall in priority sector targets under schedule 11 - "Other Assets". Hitherto these were included under "Investments". Interest Income on these deposits has been included under "Interest Earned - Others". Hitherto such interest income was included under "Interest Earned - Income on Investments". The above change in classification has no impact on the profit of the Bank for the year ended 31st March, 2016 and previous year presented.

8) In compliance of RBI communication no. DBR.No.BP.13018/21.04.048/2015-16 dated April 12th, 2016, Bank has provided a sum of Rs.35.52 crore being 15% of the existing outstanding of Rs.236.81 crore as on 31.03.2016 under food credit availed by Government of Punjab out of the total exposure of Rs. 589.80 crore in Food Credit. As permitted by RBI, Banks are required to make provision @ 7.50% by March, 2016 and additional 7.50% in June,2016 on the amount outstanding as on that date. However, Bank has made the required provision in full (i.e., 15%) in March 2016 quarter itself.

9) In accordance with UDAY (Ujwal Discom Assurance Yogjna) Scheme of GOI, Ministry of Power for operational and financial turnaround of Power Distribution Companies ( DISCOMS), the Bank has subscribed to Non - SLR SDL Bonds of Government of Rajasthan (GoR) and Government of UP (GoUP) amounting to Rs. 55.24 crore and Rs. 14.81 crore respectively and discom bonds of Rs.15.07 crore issued by AVVNL (Rajasthan Discom). In compliance of the RBI communication no. DBR.BP.No.11657/21.04.132/2015-16 dated 17th March 2016, the Bank has made provisions of Rs. 1.01 crore towards diminution in the fair value of the loan/discom bonds envisaged to be converted into SDL during the year 2016-17. There is no part of DISCOM dues which is not envisaged to be converted as SDL Bonds by the end of March 2017.

10) In terms of RBI circular DBR.No.BP.BC.2/21.04.048/2015-16 dated July 1, 2015 in respect of asset sold to SC/RCs, the shortfall arrived at by deducting the sale consideration and the provision held as on the date of the sale from the outstanding amount can be amortised over two years. Accordingly, for those sales that were concluded during the current financial year, the Bank has charged to the Profit and Loss Account an amount of Rs.67.63 crore during the year ended March 31,2016 on proportionate basis and balance carried over as at March 31, 2016 is Rs.437.83 crore.

11) In terms of RBI circular DBR.No.BP.BC.83/21.01.048/2014-15 dated 01st April 2015, banks are allowed to make provisions in respect of fraud accounts, over a period not exceeding four quarters commencing with the quarter in which the fraud has been detected; During the year ended 31st March 2016, in accounts amounting to `157.43 crore, frauds were reported (Previous Year - ` 115.31 crore). The total amount of provision debited to profit and loss account during the year against these frauds was ` 200.91 crore (Previous Year - ` 30 crore) and unamortised amount at the year end is `41.83 crore (Previous Year end - ` 85.31 crore). In terms of RBI circular DBR.No.BP.BC.92/21.04.048/2015-16 dated 18th April 2016, the un amortised amount of `41.83 crore at the year end has been debited to General Reserve. The same will be debited to Profit and Loss account in the next year and correspondingly the General Reseve will be credited as per the said circular.

12) 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.

13) The Board of Directors recommend a final Dividend of Rs. 4/- per equity share of Rs.10/- each for the year 2015-16. Taking into account the interim dividend of Rs. 10/- per equity share already paid in March 2016, the total dividend comes to Rs. 14/- per equity share of Rs.10/- each for the year 2015-16.

"14) The position of investor complaints is as under. No. of complaints pending at the beginning of the quarter Nil ; received during the quarter - 8; disposed off during the quarter - 8; pending at the end of the quarter Nil." 15) Provision Coverage Ratio is 82.46% as on 31st March 2016.

16) Figures of the corresponding period have been re-classified/regrouped wherever considered necessary.


For and on behalf of Board of Directors

Place: Karur


Date: 27th May, 2016

-sd/-

K.Venkataraman

Managing Director& C.E.O

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