Audited Financial Results for the Quarter and Year ended 31st March 2025

(Rs. In Lakh)
Particulars Quarter ended Year ended
31-03-2025 31-12-2024 31-03-2024 31-03-2025 31-03-2024
Audited Unaudited Audited Audited
1. Interest earned (a+b+c+d) 251593 248862 218705 967804 821316
a) Interest / discount on advances / bills 208045 205807 182488 800765 685105
b) Income on investments 42140 42276 35365 162247 133101
c) Interest on balances with Reserve Bank of India & other interbank funds 982 232 364 2012 2205
d) Other interest 426 547 488 2780 905
2. Other income 50933 46482 62637 182955 164947
3. Total income (1+2) 302526 295344 281342 1150759 986263
4. Interest expended 142667 140722 118911 541812 439474
5. Operating expenses (i+ii) 76362 73095 75740 287714 263875
    (i) Employees cost 38493 37382 43975 144921 146103
     (ii) Other operating expenses 37869 35713 31765 142793 117772
6. Total expenditure (excluding provisions and contingencies) (4+5) 219029 213817 194651 829526 703349
7. Operating profit before provisions and contingencies (3-6) 83497 81527 86691 321233 282914
8. Provisions (other than tax) and contingencies 16140 14744 29341 62160 72895
9. Exceptional items - - - - -
10. Profit from ordinary activities before tax (7-8-9) 67357 66783 57350 259073 210019
11. Tax expense 16021 17180 11740 64909 49538
12. Net profit from ordinary activities after tax (10-11) 51336 49603 45610 194164 160481
13. Extraordinary items (net of tax expense) - - - - -
14. Net profit for the period (12-13) 51336 49603 45610 194164 160481
15. Paid-up equity share capital (FV Rs.2/- per share) 16102 16100 16088 16102 16088
16. Reserves excluding revaluation reserve 1176852 987920
17. Analytical Ratios
(i) % of shares held by Government of India - - - - -
(ii) Capital adequacy ratio - Basel III (%) 18.17 15.91 16.67 18.17 16.67
(iii) Earnings per share (EPS)1 (Rs.)
      a) Basic EPS before and after extraordinary items 6.38 6.16 5.67 24.13 19.99
      b) Diluted EPS before and after extraordinary items 6.37 6.16 5.67 24.12 19.97
(iv) NPA ratios
      a) Gross NPA 64180 69092 104164 64180 104164
      b) Net NPA 16621 16669 29797 16621 29797
      c) % of Gross NPA 0.76 0.83 1.40 0.76 1.40
     d) % of Net NPA 0.20 0.20 0.40 0.20 0.40
(v) Return on asset (annualised) (%) 1.73 1.74 1.76 1.72 1.63
18. Net worth 2 1164488 1131433 980282 1164488 980282
19. Paid up debt capital/ Outstanding debt 3 (%) - - - - -
20. Debt/equity ratio 4 0.06 0.06 0.07 0.06 0.07
21. Total debts to total assets 5 (%) 1.02 1.34 2.35 1.02 2.35

1 - EPS not annualised for the quarter.

2 - Net worth is calculated as per guidelines given under RBI Master Circular on Exposure Norms.

3 - Outstanding debt / Total debts represent total borrowings of the Bank. Debt represents borrowings with residual maturity of more than one year.

4 - Equity represents total of share capital and reserves less proposed dividend.

5 - Total assets as per Balance Sheet.

(Rs. In Lakh)
SEGMENT REPORTING FOR THE QUARTER/YEAR ENDED 31ST MARCH 2025
Business Segments Quarter ended Year ended
31-03-2025 31-12-2024 31-03-2024 31-03-2025 31-03-2024
Audited Unaudited Audited Audited
Segment Revenue
1. Treasury 45553 45157 58120 174500 167984
2. Corporate/Wholesale banking 53940 52437 47382 205470 174149
3. Retail banking 196491 193792 170902 753218 633516
      a) Digital Banking 2 1 1 6 1
      b) Other Retail Banking 196489 193791 170901 753212 633515
4. Other banking operations 6542 3958 4938 17571 10614
Total 302526 295344 281342 1150759 986263
Segment Results
1. Treasury 10289 10267 27861 40186 58446
2. Corporate/Wholesale banking 17037 16407 13617 65298 52426
3. Retail banking 59837 60657 49465 236876 193840
      a) Digital Banking (8) (9) (12) (39) (41)
      b) Other Retail Banking 59845 60666 49477 236915 193881
4. Other banking operations 5050 3067 3716 13595 7978
Total 92213 90398 94659 355955 312690
Less: Unallocated income/expenses 8716 8871 7968 34722 29776
Operating profit 83497 81527 86691 321233 282914
Tax expense 16021 17180 11740 64909 49538
Other provisions 16140 14744 29341 62160 72895
Net profit from ordinary activities 51336 49603 45610 194164 160481
Extraordinary items - - - - -
Net profit 51336 49603 45610 194164 160481
Segment Assets
1. Treasury 2711385 2559353 2311896 2711385 2311896
2. Corporate/Wholesale banking 1721605 1736433 1570542 1721605 1570542
3. Retail banking 6811768 6621316 5904038 6811768 5904038
      a) Digital Banking 2 2 2 2 2
      b) Other Retail Banking 6811766 6621314 5904036 6811766 5904036
4. Other banking operations - - - - -
5. Unallocated 691984 720225 758850 691984 758850
Total segment assets 11936742 11637327 10545326 11936742 10545326
Segment Liabilities
Treasury
2442639 2351763 2146674 2442639 2146674
2. Corporate/Wholesale banking 1548746 1558060 1410172 1548746 1410172
3. Retail banking 6129468 5941930 5302589 6129468 5302589
      a) Digital Banking - - - - -
      b) Other Retail Banking 6129468 5941930 5302589 6129468 5302589
4. Other banking operations - - - - -
5. Unallocated 622934 646406 681882 622934 681882
Total (a) 10743787 10498159 9541317 10743787 9541317
Capital employed (Segment assets - Segment liabilities)
1. Treasury 268746 207590 165222 268746 165222
2. Corporate/Wholesale banking 172859 178373 160370 172859 160370
3. Retail banking 682300 679386 601449 682300 601449
      a) Digital Banking 2 2 2 2 2
      b) Other Retail Banking 682298 679384 601447 682298 601447
4. Other banking operations - - - - -
5. Unallocated 69050 73819 76968 69050 76968
Total (b) 1192955 1139168 1004009 1192955 1004009
Total segment liabilities (a+b) 11936742 11637327 10545326 11936742 10545326

For the above segment reporting, the reportable segments are identified into Treasury, Corporate/Wholesale banking, Retail banking (Digital Banking & Other Retail Banking) and other banking operations in compliance with RBI guidelines. The Bank operates only in India.

Digital Banking Segment is a sub-segment of Retail Banking Segment under Accounting Standard 17 – Segment Reporting and segment information disclosed above is related to the said DBU for the quarter/year ended 31st March 2025.

(Rs. In Lakh)
STATEMENT OF ASSETS AND LIABILITIES
Particulars As on 31.03.2025
(Audited)
As on 31.03.2024
(Audited)
Capital & liabilities
Capital 16102 16088
Reserves and surplus 1176852 987920
Deposits 10207799 8911272
Borrowings 121698 247835
Other liabilities and provisions 414291 382211
Total 11936742 10545326
(Rs. In Lakh)
CASH FLOW STATEMENT
Particulars As on 31.03.2025
(Audited)
As on 31.03.2024
(Audited)
Cash flow from/(used in) operating activities
Net Profit as per Profit and Loss account 194164 160481
Adjustments for
Depreciation on Bank’s property 11373 10026
Interest paid on TIER II bonds - 5501
Provisions for other contingencies 11785 10842
Provision for taxes 64909 49538
Provision for depreciation on investment - (25461)
Provision for standard assets 3995 4474
Provision for bad and doubtful debts 44040 42766
Provision for non performing investments 2340 14813
Provision for compensation absences 3130 7264
Provision for medical leave 1124 -
Amortization of premium paid on Held to Maturity (HTM) investments 8528 10362
Provision for employees stock option plan / scheme 275 341
(Profit) /Loss on sale of fixed assets (net) (306) (783)
Operating profit before working capital changes 345357 290164
Adjustments for working capital changes
(Increase) / Decrease in investments (excluding HTM investments) 52251 (232613)
(Increase) / Decrease in advances (1077642) (1095896)
(Increase) / Decrease in other assets 8812 (40565)
Increase / (Decrease) in deposits 1296526 1247514
Increase / (Decrease) in borrowings (126137) 153333
Increase / (Decrease) in other liabilities and provisions 1039 18969
500206 340906
Direct taxes paid (51500) (45500)
Net cash flow (from)/ used in operating activities 448706 295406
Cash flow from investing activities
Purchase of fixed assets (17163) (9810)
(Increase)/Decrease in HTM investments (198283) (120621)
Sale of fixed assets / other assets 366 783
Net cash flow from / (used in) investing activities (215080) (129648)
Cash flow from financing activities
Proceeds from share capital 15 46
Proceeds from share premium 427 785
Increase/(Decrease) in tier II bonds - (48700)
Interest paid on tier II bonds - (5501)
Dividend paid (19253) (16044)
Net cash flow from / (used in) financing activities (18811) (69414)
Net Increase/ (decrease) in cash & cash equivalents 214815 96344
Cash and cash equivalents at the beginning of the year 565857 469513
Cash and cash equivalents at the end of the year 780672 565857

Notes:

1. The above audited financial results for the quarter/year ended March 31, 2025 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on May 19, 2025. The same has been subjected to audit as per the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), by the Joint Statutory Central Auditors (M/s. Kalyaniwalla & Mistry LLP, Chartered Accountants and M/s. Varma & Varma, Chartered Accountants) of the bank and have issued an unmodified audit report.

The financial results for the quarter and year ended March 31 2024, were audited by predecessor Joint Statutory Central Auditors ( M/s. Sundaram & Srinivasan, Chartered Accountants and M/s. R.G.N. Price & Company, Chartered Accountants).

2. There has been no change in the accounting policy except with respect to ‘Investments’ to comply with the Reserve Bank of India Master Direction on Classification, Valuation and Operation of Investment Port folio of Commercial Banks (Directions) 2023 dated September 12, 2023 (‘Master Direction’) which is effective from April 01, 2024 read with the frequently asked questions issued by the Fixed Income Money Market and Derivatives Association of India (‘FIMMDA’).

Accordingly, the investment of the Bank as at April 01, 2024 have been reclassified, wherever required and valued in accordance with the requirement of said Master Direction and transitional adjustment on account of ‘Available For Sale’ (AFS) portfolio and other securities has been adjusted in AFS reserve and opening General reserve to the extent of Rs.2300.60 lakhs and Rs.26097.86 lakhs (which includes reversal of provision for depreciation of Rs.5805.86 lakhs and transfer of Investment Reserve of Rs.20292.00 lakhs) respectively. Thus, corresponding quarter and year ended figures in respect of March 31, 2024 are not comparable. The impact on account of this change in the accounting policy is not material for the quarter and year ended March 31, 2025.

All investments purchased and sold during the current quarter and year ended March 31, 2025 are done in compliance with the requirements of the master direction & revised accounting policy. In compliance with Master Directions, the valuation gains and losses for the quarter and year ended March 31, 2025 across all performing investment held under AFS is aggregated and the net gain amounting to Rs.2158.05 lakhs (net of tax) and Rs.5502.28 lakhs (net of tax) for the quarter and year ended March 31, 2025, respectively, has been directly credited to AFS Reserve. The securities held in Fair Value through Profit and Loss (‘FVTPL’) and Held for Trade (‘HFT’) are fair valued and valuation losses (net) for the quarter and year ended March 31, 2025 amounting to Rs.49.64 lakhs and Rs.501.56 lakhs respectively, arising on such valuation have been charged to the Profit and Loss.

3. The financial results are prepared after considering provisions for non-performing advances, non-performing investments, standard advances (including stressed advances/sectors), restructured advances, exposures to entities with unhedged foreign currency exposure, income tax (including litigated taxes as applicable) and other necessary provisions.

4. 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), recoveries in written off accounts, profit on bullion business etc.

5. During the quarter and year ended March 31, 2025 the Bank has allotted 116895 equity shares and 680540 equity shares respectively (corresponding quarter and previous year 5,77,186 equity shares and 23,23,535 equity shares respectively) of face value Rs. 2/- each, pursuant to the exercise of stock options by employees. In addition during the current year 61019 equity shares of face value of Rs.2/- each have been allotted under 2017 rights issue and 6102 equity shares of face value Rs. 2/- each allotted under bonus shares of 2018 which were kept on abeyance.

6. Details of disclosure on resolution plan implemented under the Resolution Framework for COVID-19 related stress as per RBI Circular DOR.No.BP.BC/3/21.04.048/2020-21 dated 6th August 2020 (Resolution Framework 1.0) and as per RBI circular DOR.STR.REC.11/21.04.048/2021-22 dated 5th May 2021 (Resolution Framework 2.0) "Covid-19 Related Stress of Individuals and Small businesses" are given below:

(Rs. In Lakh)
Type of borrower Exposure to accounts classified as Standard consequent to implementation of resolution plan – Position as at 30.09.2024 Of (A), aggregate debt that slipped into NPA during the half-year Of (A), amount written off during the half-year Of (A), amount paid by the borrowers during the half-year1 Exposure to accounts classified as Standard consequent to implementation of resolution plan – outstanding as at 31.03.2025
A B C D E
Personal Loans 30661 651 - 3572 26702
Corporate persons* 11513 - - 1302 10237
Of which MSMEs - - - -
Others 910 - - 102 1170
Total 43084 651 - 4976 38109
* As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016
1Represents Net Movement in Balances

7. Disclosure as per RBI Circular DOR.STR.REC.51/21.04.048/2021-22 dated September 24, 2021 (updated as on December 05, 2022 and December 28, 2023) in respect of loans not in default / stressed loans transferred / acquired during the quarter/year ended March 31, 2025 :

a. Loans not in default acquired through assignment

(Rs. In Lakh)
Particulars Quarter ended 31st March 2025 Acquired from Year ended 31st March 2025 Acquired from
SCBs, RRBs, UCBs, StCBs, DCCBs, AIFIs, SFBs and NBFCs (incl. HFCs) ARCs SCBs, RRBs, UCBs, StCBs, DCCBs, AIFIs, SFBs and NBFCs (incl. HFCs) ARCs
Aggregate principal outstanding of loans acquired 16578 - 16578 -
Aggregate consideration paid 14920 - 14920 -
Weighted average residual tenor of loans acquired Ranging between 96.22 to 136.58 months - Ranging between 96.22 to 136.58 months -
Coverage of tangible security Ranging between 252% to 333% - Ranging between 252% to 333% -
Retention of beneficial economic interest by the transferor 10% - 10% -
* - loans acquired are under non-corporate category

b. Loans classified as NPAs and SMA transferred

(Rs. In Lakh)
Particulars Quarter ended 31st March 2025 Transferred to Year ended 31st March 2025 Transferred to
ARCs Permitted transferees Others ARCs Permitted transferees Others
No. of accounts - - - 1 - -
Aggregate principal outstanding of loans transferred - - - 5331 - -
Weighted average residual tenor of the loans transferred - - - 0 - -
Net book value of loans transferred (at the time of transfer) - - - 0 - -
Aggregate consideration - - - 601 - -
Additional consideration realized in respect of accounts transferred in earlier years - - - 0 - -
Excess provision reversed to the P&L a/c. on account of sale of NPA - - - 601 - -

c. The Bank has neither transferred any stressed (SMA) loans and loans not in default during FY 2024-25; nor has acquired any stressed loans / loans classified as NPA during the financial year 2024-25 (also during previous year).

d. Recovery Ratings assigned to outstanding SRs as on March 31, 2025 by Credit Rating Agencies:

(Rs. In Lakh)
Rating Scale Book Value
R1
RR1
RR2
RR4
Unrated* (Rating Withdrawn) 24970
Total 24970
*As per RBI guidelines, rating is not applicable after 8 years

8. Provision Coverage Ratio as on March 31, 2025, calculated as per RBI guidelines is 96.81% (94.85% for the corresponding period of previous year).

9. The Board of Directors have recommended a dividend of 130% i.e. Rs.2.60 per equity share of Rs. 2.00 each for the year ended 31st March 2025 (previous year 120% i.e. Rs.2.40 per share) subject to the approval of the shareholders at the ensuing Annual General Meeting. Effect of proposed dividend has been reckoned in capital adequacy ratio computation.

10. In accordance with RBI circular DOR.CAP.REC.4/21.06.201/2024-25 dated April 01, 2024, read together with RBI circular DBR.No.BP.BC.1/21.06.201/2015-16 dated July 01, 2015, Banks are required to make Pillar 3 disclosures under Basel III capital regulations. Accordingly, Pillar 3 disclosures under Basel III capital regulations will be made available on the Bank’s website at the following link https://www.kvb.co.in/about-us/disclosures/pillar-III-disclosures/ , including disclosures in respect of Net Stable Funding Ratio (NSFR) as per RBI circular DOR.No.LRG.BC.40/21.04.098/2020-21 dated February 05, 2021 read together with circular DBR.BP.BC.No.106/ 21.04.098/2017-18 dated May 17, 2018. These disclosures have not been subjected to audit/review by the Joint Statutory Central Auditors.

11. The bank has filed a writ petition and obtained an interim stay from the Hon’ble High Court of Madras in respect of a show cause notice issued during the year/quarter ended December 31, 2024 by the Commercial Taxes Department, Tamil Nadu, proposing to levy Goods and Service Tax (GST) and penalty thereon aggregating to Rs.253743.26 lakhs for an earlier year. The management has been legally advised that the same is not tenable as per provisions of GST Act and hence does not require any provision or disclosure as contingent liability in the financial results. The above matter has also been intimated to the Stock Exchanges on December 21, 2024, as per the requirements of the Listing agreement.

12. The Income Tax department has completed the regular assessment under Section 143(3) and passed assessment order pertaining to AY 2023-24, wherein there is a demand of Rs. 16033 lakhs on account of certain additions and disallowances made. The Bank has filed an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre. Looking at the precedence / Orders of appellate authorities, the Bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter and considering the expected relief, the Bank expects that the entire demand will be set aside. As such, there is no impact on financial, operations or other activities of the Bank.

13. The Bank does not have any Subsidiaries/Associates/Joint ventures as on March 31, 2025, hence, disclosure related to Consolidated Financial Statement is not applicable at this stage.

14. Figures for the previous period/s have been re-grouped / re-classified, where necessary, to make them comparable with current period figures. The Figures for the quarter ended March 31, 2025 are the balancing figures between audited figures in respect of year ended March 31, 2025 and the published year to date figures upto Dec 31, 2024.

Place: Karur
Date: 19th May 2025
For and on behalf of Board of Directors
B Ramesh Babu
MD & CEO
DIN: 06900325
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