Audited Financial Results for the Quarter and Year ended 31st March 2020
| Particulars | Quarter ended | Year ended | |||
|---|---|---|---|---|---|
| 31.03.2020 | 31.12.2019 | 31.03.2019 | 31.03.2020 | 31.03.2019 | |
| Audited (Refer note 1 below) | Unaudited | Audited (Refer note 1 below) | Audited | ||
| 1. Interest earned (a+b+c+d) | 145616 | 150378 | 147359 | 598998 | 581582 |
| a) Interest / discount on advances / bills | 114395 | 115236 | 116128 | 466505 | 459638 |
| b) Income on Investments | 27552 | 29181 | 28162 | 114967 | 115059 |
| c) Interest on balances with Reserve Bank of India & other interbank funds | 2935 | 3732 | 1508 | 14076 | 4290 |
| d) Other Interest | 734 | 2229 | 1561 | 3450 | 2595 |
| 2. Other Income | 34699 | 26006 | 27245 | 115462 | 96277 |
| 3. Total Income (1+2) | 180315 | 176384 | 174604 | 714460 | 677859 |
| 4. Interest Expended | 86568 | 92657 | 85436 | 364204 | 345300 |
| 5. Operating Expenses (i+ii) | 43764 | 45254 | 42691 | 174171 | 161480 |
| (i) Employees cost | 21442 | 22549 | 21228 | 85665 | 76117 |
| (ii) Other operating expenses | 22322 | 22705 | 21463 | 88506 | 85363 |
| 6. Total Expenditure (excluding provisions and contingencies) (4+5) | 130332 | 137911 | 128127 | 538375 | 506780 |
| 7. Operating Profit before Provisions and Contingencies (3-6) | 49983 | 38473 | 46477 | 176085 | 171079 |
| 8. Provisions (other than tax) and Contingencies | 42927 | 36426 | 35234 | 148867 | 138855 |
| 9. Exceptional items | 0 | 0 | 0 | 0 | 0 |
| 10. Profit from ordinary activity before tax (7-8-9) | 7056 | 2047 | 11243 | 27218 | 32224 |
| 11. Tax expense | (1314) | 540 | 5241 | 3716 | 11137 |
| 12. Net Profit from ordinary activities after tax(10-11) | 8370 | 1507 | 6002 | 23502 | 21087 |
| 13. Extraordinary items (net of tax expense) | 0 | 0 | 0 | 0 | 0 |
| 14. Net Profit for the period (12-13) | 8370 | 1507 | 6002 | 23502 | 21087 |
| 15. Paid-up equity share capital (FV Rs.2/- per share) | 15986 | 15986 | 15986 | 15986 | 15986 |
| 16. Reserves excluding Revaluation Reserve | 644041 | 626294 | |||
| 17. Analytical Ratios | |||||
| (i) % of shares held by Government of India | 0 | 0 | 0 | 0 | 0 |
| (ii) Capital Adequacy Ratio-Basel III (%) | 17.17 | 15.87 | 16.00 | 17.17 | 16.00 |
| (iii) Earnings per share (EPS) (*) (Rs..) | |||||
| a) Basic EPS before and after extraordinary items | 1.05 | 0.19 | 0.75 | 2.94 | 2.64 |
| b) Diluted EPS before and after extraordinary items | 1.05 | 0.19 | 0.75 | 2.94 | 2.64 |
| (iv) NPA Ratios | |||||
| a) Gross NPA | 421277 | 442397 | 444957 | 421277 | 444957 |
| b) Net NPA | 180865 | 194568 | 242034 | 180865 | 242034 |
| c) % of Gross NPA | 8.68 | 8.92 | 8.79 | 8.68 | 8.79 |
| d) % of Net NPA | 3.92 | 4.13 | 4.98 | 3.92 | 4.98 |
| (v) Return on Asset (annualized) (%) | 0.46 | 0.08 | 0.35 | 0.32 | 0.31 |
| ^ EPS not annualised for the quarter | |||||
| Segment Reporting for the Quarter and Year ended 31st March 2020 | |||||
|---|---|---|---|---|---|
| Business Segments | Quarter ended | Year ended | |||
| 31.03.2020 | 31.12.2019 | 31.03.2019 | 31.03.2020 | 31.03.2019 | |
| Audited (Refer Note 1 below) | Unaudited | Audited (Refer Note 1 below) | Audited | ||
| Segment Revenue | |||||
| 1. Treasury | 45183 | 38284 | 36667 | 166896 | 130725 |
| 2. Corporate / Wholesale Banking | 37104 | 37270 | 40428 | 150547 | 165386 |
| 3. Retail Banking | 97044 | 100010 | 96723 | 393881 | 379250 |
| 4. Other Banking Operations | 984 | 820 | 786 | 3136 | 2498 |
| Total | 180315 | 176384 | 174604 | 714460 | 677859 |
| Segment Results | |||||
| 1. Treasury | 19067 | 9472 | 13348 | 57825 | 34590 |
| 2. Corporate / Wholesale Banking | 10352 | 9437 | 11632 | 39259 | 48484 |
| 3. Retail Banking | 26175 | 25785 | 26981 | 102577 | 109855 |
| 4. Other Banking Operations | 867 | 717 | 694 | 2760 | 2219 |
| Total | 56461 | 45411 | 52655 | 202421 | 195148 |
| Less: Unallocated Income/Expenses | 6478 | 6938 | 6178 | 26336 | 24069 |
| Operating Profit | 49983 | 38473 | 46477 | 176085 | 171079 |
| Tax expense | -1314 | 540 | 5241 | 3716 | 11137 |
| Other Provisions | 42927 | 36426 | 35234 | 148867 | 138855 |
| Net Profit from ordinary activities | 8370 | 1507 | 6002 | 23502 | 21087 |
| Extraordinary items | 0 | 0 | 0 | 0 | 0 |
| Net Profit | 8370 | 1507 | 6002 | 23502 | 21087 |
| Segment Assets | |||||
| 1. Treasury | 1738669 | 1978272 | 1560418 | 1738669 | 1560418 |
| 2. Corporate / Wholesale Banking | 1213077 | 1245554 | 1359870 | 1213077 | 1359870 |
| 3. Retail Banking | 3396734 | 3466386 | 3498211 | 3396734 | 3498211 |
| 4. Other Banking Operations | 0 | 0 | 0 | 0 | 0 |
| 5. Unallocated | 479337 | 575271 | 515512 | 479337 | 515512 |
| Total Segment Assets | 6827817 | 7265483 | 6934011 | 6827817 | 6934011 |
| Segment Liabilities | |||||
| 1. Treasury | 1607550 | 1896941 | 1446291 | 1607550 | 1446291 |
| 2. Corporate / Wholesale Banking | 1087141 | 1111004 | 1226053 | 1087141 | 1226053 |
| 3. Retail Banking | 3043627 | 3092531 | 3154225 | 3043627 | 3154225 |
| 4. Other Banking Operations | 0 | 0 | 0 | 0 | 0 |
| 5. Unallocated | 429472 | 513369 | 465162 | 429472 | 465162 |
| Total (a) | 6167790 | 6613845 | 6291731 | 6167790 | 6291731 |
| Capital Employed (Segment Assets - Segment Liabilities) | |||||
| 1. Treasury | 131119 | 81331 | 114127 | 131119 | 114127 |
| 2. Corporate / Wholesale Banking | 125936 | 134550 | 133817 | 125936 | 133817 |
| 3. Retail Banking | 353107 | 373855 | 343986 | 353107 | 343986 |
| 4. Other Banking Operations | 0 | 0 | 0 | 0 | 0 |
| 5. Unallocated | 49865 | 61902 | 50350 | 49865 | 50350 |
| Total (b) | 660027 | 651638 | 642280 | 660027 | 642280 |
| Total Segment Liabilities (a+b) | 6827817 | 7265483 | 6934011 | 6827817 | 6934011 |
| For the above segment reporting, the reportable segments are identified into Treasury, Corporate/Wholesale banking, Retail banking and other banking operations in compliance with RBI guidelines. The Bank operates only in India. | |||||
| Statement of Assets and Liabilities as on 31st March 2020 | |||||
|---|---|---|---|---|---|
| Particulars | As on 31.03.2020 (Audited) | As on 31.03.2019Audited) | |||
| Capital and Liabilities | |||||
| Capital | 15986 | 15986 | |||
| Reserve and Surplus | 644041 | 626294 | |||
| Deposits | 5907508 | 5986795 | |||
| Borrowings | 118418 | 156534 | |||
| Other Liabilities and Provision | 141864 | 148402 | |||
| Total | 6827817 | 6934011 | |||
| Assets | |||||
| Cash & Balances with RBI | 273267 | 293468 | |||
| Balances with Banks and Money at Call and Short Notice | 165988 | 76237 | |||
| Investments | 1576244 | 1488159 | |||
| Advances | 4609811 | 4858081 | |||
| Fixed Assets | 58664 | 58298 | |||
| Other Assets | 143843 | 159768 | |||
| Total | 6827817 | 6934011 | |||
| Cash flow statement for the year ended 31st March 2020 | |||||
|---|---|---|---|---|---|
| Particulars | As on 31.03.2020 (Audited) | As on 31.03.2019Audited) | |||
| Cash flow from / (used in) operating activities | |||||
| Net Profit as per Profit and Loss account | 23502 | 21087 | |||
| Adjustments for | |||||
| Depreciation on Bank’s property | 11888 | 10122 | |||
| Interest paid on TIER II bonds | 6537 | 1798 | |||
| Provisions for other contingencies | 5247 | 383 | |||
| Provision for taxes | 3716 | 11137 | |||
| Provision for depreciation on investment | 4022 | 1735 | |||
| Provision for standard assets | 370 | (208) | |||
| Provision for bad and doubtful debts | 135617 | 131774 | |||
| Provision for non performing investments | 3610 | 5170 | |||
| Provision for leave encashment | 1011 | 1921 | |||
| Amortization of premium paid on Held to Maturity (HTM) investments | 6708 | 4393 | |||
| Provision for employees stock option plan / scheme | 20 | 29 | |||
| (Profit) / Loss on sale of fixed assets (net) | 1246 | (125) | |||
| Operating profit before working capital changes | 203494 | 189216 | |||
| Adjustments for working capital changes | |||||
| (Increase) / Decrease in investments (excluding HTM investments) | 37537 | 10453 | |||
| (Increase) / Decrease in advances | 112224 | (509083) | |||
| (Increase) / Decrease in other assets | 18181 | (838) | |||
| Increase / (Decrease) in deposits | (79287) | 297786 | |||
| Increase / (Decrease) in borrowings | (23116) | (131565) | |||
| Increase / (Decrease) in other liabilities and provisions | (6651) | 6466 | |||
| 58888 | (326781) | ||||
| Direct taxes paid | (12000) | (20000) | |||
| Net cash flow from / (used in) operating activities | 250382 | (157565) | |||
| Cash flow from investing activities | |||||
| Purchase of fixed assets | (12253) | (15601) | |||
| (Increase)/Decrease in HTM investments | (139963) | 70411 | |||
| Sale of fixed assets / other assets | (1246) | 125 | |||
| Net cash flow from / (used in) investing activities | (153462) | 54935 | |||
| Cash flow from financing activities | |||||
| Proceeds from issue of share capital | 0 | 0 | |||
| Proceeds from share premium | 6 | 2 | |||
| Increase/(Decrease) in tier II bonds | (15000) | 48700 | |||
| Interest paid on tier II bonds | (6537) | (1798) | |||
| Dividend paid (including tax on dividend) | (5839) | (5491) | |||
| Net cash flow from /(used in) financing activities | (27370) | 41413 | |||
| Net Increase/(Decrease) in cash & cash equivalents | 69550 | (61217) | |||
| Cash and cash equivalents at the beginning of the year | 369705 | 430922 | |||
| Cash and cash equivalents at the end of the year | 439255 | 369705 | |||
| The above Cash Flow Statement is based on indirect method | |||||
Notes:
1) The figures for the quarter ended 31st March 2020 and 31st March 2019 are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the end of the third quarter of the respective financial year.
2) The above financial results for the year ended 31st March 2020 have been reviewed and recommended by the Audit Committee of the Board and approved by the Board of Directors at their meeting held on 24th June 2020. The same have been subjected to audit by the Statutory Central Auditors of the Bank in line with the guidelines issued by Reserve Bank of India and as per listing agreement with the stock exchange.
3) There has been no change in the accounting policies followed in the preparation of these financial results for the year ended 31st March 2020, as compared to those followed in the financial statements for the year ended 31st March 2019. A new accounting policy have been added for accounting for transactions in bullion business, which started in the current year.
4) The bank has made provisions in accordance with Reserve Bank of India guidelines, for loan losses and depreciation on investments, standard advances, restructured advances, exposures to entities with unhedged foreign currency exposure, taxes on income and other usual and necessary provisions. Provision for employees’ retirement benefits viz. pension, gratuity and leave encashment has been made based on actuarial valuation.
5) Other income includes fees earned from providing services to customers, commission from non-fund based banking activities, earnings from foreign exchange transactions, selling third party products, profit on sale of investments (net), income from priority sector lending certificates, recoveries from advances written off, etc.
6) The Bank has elected to exercise the option permitted under section 115BAA of the Income Tax Act,1961 as introduced by the Taxation Laws (Amendments) Ordinance, 2019. Accordingly, provision for Income Tax for the quarter and year ended 31st March 2020 as well as re-measurement of deferred tax liability and assets have been made basis the rate prescribed in the aforesaid section.
7) Deferred tax assets (DTA) of Rs. 45.95 crore has been recognised on provision for standard assets during the quarter ended 31st March 2020, which was hitherto not recognized by the Bank.
8) The COVID-19 global pandemic continues to spread rapidly across the globe including India. COVID-19 has caused a significant impact and volatility in the global and domestic financial markets and economic activities. The Government of India had announced a series of lock-down measures beginning 24th March 2020 with extension thereof up to 31st May 2020, in order to limit the spread of the pandemic across India. A calibrated and gradual withdrawal of lockdown and partial resumption of various business / economic activities are implemented with effect from 1st June 2020, based on the guidelines to be issued by the respective states. The impact of COVID-19 on the Bank’s operations and financial results will depend on future developments and resumption of various business activities, which are highly uncertain as the same will be dependent on the severity and spread of the COVID-19 pandemic and measures undertaken to mitigate the same.
In accordance with the RBI guidelines vide circular DOR.No.BP.BC.47/21.04.048/2019-20 dated March 27, 2020 and DOR.No.BP.BC.63/21.04.048/2019-20 dated April 17, 2020 on the ‘COVID-19 Regulatory Package’, Board has approved a policy for implementation of the said guidelines by the Bank, including, inter-alia granting of moratorium on the payment of installments and / or interest falling due between March 01, 2020 and May 31, 2020 upto June 30, 2020 (and subsequently extended to August 31, 2020 vide RBI circular DOR.No.BP.BC.72/21.04.048/2019-20 dated May 23, 2020) as well as relaxation of certain parameters, to eligible borrowers. The moratorium period / benefits, wherever granted, shall be excluded for the purpose of asset classification as per Income Recognition and Asset Classification norms. Bank is required to make additional provision @ 10%, over two quarters beginning with quarter ending March 31, 2020, in respect of such borrowers whose accounts, though classified as standard as on March 31, 2020, would have become non-performing but for these benefits/relaxations. Accordingly, Bank has made the required provision in full amounting to Rs. 19.50 crore during the quarter ended 31st March 2020.
9) Provision Coverage Ratio calculated as per the guidelines of Reserve Bank of India is 68.90% as on 31st March 2020 (previous year 56.86%).
10) In accordance with RBI circular DBOD.No.BPBC.1/21.06.201/2015-16 dated July 01, 2015, read together with RBI circular DBR.No.BP.BC.80/21.06.201/2014-15 dated March 31, 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 https://www.kvb.co.in/about-us/disclosures/disclosures-pillar-III/. These disclosures have not been subjected to review/audit by the Statutory Central Auditors.
11) Reserve Bank of India, vide circular dated April 17, 2020, has decided that banks shall not make any further dividend pay-outs from the profits pertaining to the financial year ended 31st March 2020 until further instructions, in order to enable the banks to conserve capital to retain their capacity to support the economy and absorb losses in an environment of heightened uncertainty caused by COVID-19. Accordingly, the Board of Directors of the Bank, at their meeting held on 24th June 2020, have not recommended any dividend for the year ended 31st March 2020.
12) Previous period /year’s figures have been re-classified / regrouped wherever considered necessary to confIrm to the current period/year’s classification.
For and on behalf of Board of Directors
N. S. SRINATH
CHAIRMAN
Place: Bengaluru
Date: 24.06.2020
