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Audited Financial Results for the Quarter and Year ended 31st March 2023

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(Rs. In Lakh)

Particulars	Quarter ended			Year ended
	31-03-2023	31-12-2022	31-03-2022	31-03-2023	31-03-2022
	Audited	Unaudited	Audited	Audited
1. Interest earned (a+b+c+d)	176832	169522	140927	651655	558767
a) Interest / discount on advances/ bills	146092	139580	113813	532695	452548
b) Income on investments	29239	28133	24138	109913	92478
c) Interest on balances with Reserve Bank of India & other interbank funds	1086	1651	2885	8260	13433
d) Other interest	415	158	91	787	308
2. Other income	40081	31749	20548	115894	76906
3. Total income (1+2)	216913	201271	161475	767549	635673
4. Interest expended	87574	80622	69934	316774	287230
5. Operating expenses (i+ii)	55434	51754	47410	203196	185422
(i) Employees cost	28065	25571	22317	100596	94503
(ii) Other operating expenses	27369	26183	25093	102600	90919
*6. Total expenditure (excluding provisions and contingencies)* (4+5)**	143008	132376	117344	519970	472652
7. Operating profit before provisions and contingencies (3-6)	73905	68895	44131	247579	163021
8. Provisions (other than tax) and contingencies	29301	36409	14012	103893	69929
9. Exceptional items	-	-	-	-	-
10. Profit from ordinary activities before tax (7-8-9)	44604	32486	30119	143686	93092
11. Tax expense	10822	3557	8772	33077	25765
12. Net profit from ordinary activities after tax (10-11)	33782	28929	21347	110609	67327
13. Extraordinary items (net of tax expense)	-	-	-	-	-
14. Net profit for the period (12-13)	33782	28929	21347	110609	67327
15. Paid-up equity share capital (FV Rs.2/- per share)	16041	16019	16000	16041	16000
16. Reserves excluding revaluation reserve				842364	743620
17. Analytical ratio
(i) % of shares held by Government of India	-	-	-	-	-
(ii) Capital adequacy ratio - Basel III (%)	18.56	17.62	19.21	18.56	19.21
(iii) Earnings per share (EPS) ¹ (Rs.)
a) Basic EPS before and after extraordinary items	4.21	3.61	2.67	13.81	8.42
b) Diluted EPS before and after extraordinary items	4.20	3.60	2.67	13.78	8.41
(iv) NPA ratios
a) Gross NPA	145815	167434	343104	145815	343104
b) Net NPA	46815	55043	126079	46815	126079
c) % of Gross NPA	2.27	2.70	6.03	2.27	6.03
d) % of Net NPA	0.74	0.90	2.31	0.74	2.31
(v) Return on asset (annualised) (%)	1.50	1.32	1.06	1.27	0.86
18. Net worth ²	837867	819844	741781	837867	741781
19. Paid up debt capital/ Outstanding debt ³ (%)	34.01	33.07	36.37	34.01	36.37
20. Debt/equity ratio ⁴	0.05	0.05	0.09	0.05	0.09
21. Total debts to total assets ⁵ (%)	1.59	1.65	1.67	1.59	1.67
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)

STATEMENT OF ASSETS AND LIABILITIES
Particulars	As on 31.03.2023 (Audited)	As on 31.03.2022 (Audited)
Capital and Liabilities
Capital	16041	16000
Reserves and surplus	842364	743620
Deposits	7663758	6848601
Borrowings	143201	133909
Other liabilities and provisions	352578	265002
Total	9017942	8007132
Assets
Cash & balances with Reserve Bank of India	427948	359426
Balances with banks and money at call and short notice	41565	133191
Investments	1880832	1721606
Advances	6313414	5466120
Fixed assets	43504	47849
Other assets	310679	278940
Total	9017942	8007132

(Rs. In Lakh)

SEGMENT REPORTING FOR THE QUARTER/YEAR ENDED 31ST MARCH 2023
Business Segments	Quarter ended			Year ended
	31-03-2023	31-12-2022	31-03-2022	31-03-2023	31-03-2022
	Audited	Unaudited	Audited	Audited
Segment Revenue
1. Treasury	35734	30979	24666	124680	101825
2. Corporate/Wholesale banking	39551	43209	35148	157607	137351
3. Retail banking	139933	125853	100481	480325	392871
4. Other banking operations	1695	1230	1180	4937	3626
Total	216913	201271	161475	767549	635673
Segment Results
1. Treasury	13113	10273	5596	41538	21790
2. Corporate/Wholesale banking	14674	15977	11122	55097	40810
3. Retail banking	51181	47966	32387	171785	120974
4. Other banking operations	1290	938	866	3734	2661
Total	80258	75154	49971	272154	186235

Less: Unallocated income/expenses	6353	6259	5840	24575	23214
Operating profit	73905	68895	44131	247579	163021
Tax expense	10822	3557	8772	33077	25765
Other provisions	29301	36409	14012	103893	69929
Net profit from ordinary activities	33782	28929	21347	110609	67327
Extraordinary items	-	-	-	-	-
Net profit	33782	28929	21347	110609	67327

Segment assets
1. Treasury	1937886	2047214	1848842	1937886	1848842
2. Corporate/Wholesale banking	1387959	1543134	1383603	1387959	1383603
3. Retail banking	4925455	4547189	4082517	4925455	4082517
4. Other banking operations	-	-	-	-	-
5. Unallocated	766642	763716	692170	766642	692170
Total segment assets	9017942	8901253	8007132	9017942	8007132

Segment liabilities
1. Treasury	1769206	1857785	1738054	1769206	1738054
2. Corporate/Wholesale banking	1252671	1400589	1237855	1252671	1237855
3. Retail banking	4445801	4125842	3652676	4445801	3652676
4. Other banking operations	-	-	-	-	-
5. Unallocated	691859	693025	618928	691859	618928
Total (a)	8159537	8077241	7247513	8159537	7247513

Capital employed (Segment assets - Segment liabilities)
1. Treasury	168680	189429	110788	168680	110788
2. Corporate/Wholesale banking	135288	142545	145748	135288	145748
3. Retail banking	479654	421347	429841	479654	429841
4. Other banking operations	-	-	-	-	-
5. Unallocated	74783	70691	73242	74783	73242
Total (b)	858405	824012	759619	858405	759620
Total segment liabilities (a+b)	9017942	8901253	8007132	9017942	8007132
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. RBI, vide circular dated 7th April 2022 on establishment of Digital Banking Units (DBUs), has prescribed that reporting of Digital Banking Segment has to be made as a sub-segment of Retail Banking Segment under Accounting Standard 17 – Segment Reporting. The Bank does not have any DBUs, hence no digital banking segment disclosures have been made for the year ended 31st March 2023.

(Rs. In Lakh)

CASH FLOW STATEMENT
Particulars	As on 31.03.2023 (Audited)	As on 31.03.2022 (Audited)
Cash flow from operating activities
Net Profit as per Profit and Loss account	110609	67327
Adjustments for
Depreciationon Bank’s property	10566	11918
Interest paid on TIER II bonds	5820	5820
Provisions for other contingencies	18503	5334
Provision for taxes	33078	25765
Provision for depreciation on investment	(1188)	10713
Provision for standard assets	3451	1699
Provision for bad and doubtful debts	71700	63485
Provision for non performing investments	10238	(589)
Provision for compensation absences	588	208
Amortization of premium paid on Held to Maturity (HTM) investments	10757	13574
Provision for employees stock option plan / scheme	170	49
(Profit) /Losson sale of fixed assets (net)	(104)	(110)
Operating profit before working capital changes	274188	205193
Adjustments for working capitalchanges
(Increase) / Decrease in investments(excluding HTM investments)	(58130)	10213
(Increase) / Decrease in advances	(918127)	(558682)
(Increase) / Decrease in other assets	(89758)	(134735)
Increase / (Decrease) in deposits	815157	540832
Increase / (Decrease) in borrowings	9292	(118920)
Increase / (Decrease) in other liabilities and provisions	68599	54148
	101221	(1951)
Direct taxes paid	20500	31500
Net cash flow (from)/ used in operating activities	121721	29549
Cash flow from investing activities
Purchaseof fixed assets	(6222)	(5861)
(Increase)/Decreasein HTM investments	(120902)	(153625)
Sale of fixed assets / other assets	104	110
Net cash flowfrom / (used in) investing activities	(127020)	(159376)
Cash flow from financing activities
Proceeds from share capital	41	14
Proceeds from share premium	767	253
Increase/(Decrease) in tier II bonds	-	-
Interest paid on tier II bonds	(5820)	(5820)
Dividend paid	(12793)	(4037)
Net cash flow from / (used in) financing activities	(17805)	(9590)

Net Increase/ (decrease) in cash & cash equivalents	(23104)	(139417)
Cash and cash equivalents at the beginning of the year	492617	632034
Cash and cash equivalents at the end of the year	469513	492617

Notes:

1) The above financial results for the quarter / year ended 31st March 2023 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 15th May 2023. The same has been subjected to audit as per listing agreement with the stock exchange by the Joint Statutory Central Auditors of the Bank and an unmodified audit report has been issued.

2) The figures for the quarter ended 31^st March 2023 and 31^st March 2022 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.

3) There has been no change to significant accounting policies followed in the preparation of the financial results for the quarter and for the year ended 31^st March 2023.

4) The financial results prepared for the quarter / year ended 31^st March 2023 have been assessed after considering provisions for standard assets, non-performing assets, non-performing investments, restructured advances, exposures to entities with unhedged foreign currency exposure, income tax and other necessary provisions.

5) Other income includes fees, income from non-fund based activities such as earnings from foreign exchange transactions, selling third party products, profit/loss on sale or revaluation of investments (net), recoveries in written off accounts, profit on bullion business, etc.

6) During the quarter and year ended 31^st March 2023, the Bank has allotted 1102701 (includes 43174 shares under ESOS on compensation of key managerial personnel) equity shares and 2041791(includes 43174 shares under ESOS on compensation of key managerial personnel) equity shares respectively, of face value Rs. 2/- each respectively, pursuant to the exercise of stock options by certain employees.

7) 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 6^th August 2020 (Resolution Framework 1.0) and as per RBI circular DOR.STR.REC.11/21.04.048/2021-22 dated 5^th 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 30.09.2022	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 31.03.2023
Type of borrower	A	B	C	D	E
Personal Loans	50917	1970	-	4868	44079
Corporate persons*	25797	7981	-	1443	16373
Of which MSMEs	-	-	-	-	-
Others	4691	17	-	787	3887
Total	81405	9968	-	7098	64339
^* As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016 ¹Represents Net Movement in Balances

8) Details of loans not in default / stressed loans transferred / acquired under RBI Master Directions DOR.STR.REC.51/21.04.048/2021-22 dated 24^th September 2021 (updated as on December 05, 2022) on transfer of loan exposures are given below:

a. Loans classified as NPAs and SMA transferred

(Rs. In Lakh)

Particulars	Quarter ended 31^st March 2023 Transferred to			Year ended 31^st March 2023 Transferred to
Particulars	ARCs	Permitted transferees	Others	ARCs	Permitted transferees	Others
No. of accounts	1	-	-	1	-	-
Aggregate principal outstanding of loans transferred	105	-	-	105	-	-
Weighted average residual tenor of the loans transferred	0	-	-	0	-	-
Net book value of loans transferred (at the time of transfer)	0	-	-	0	-	-
Aggregate consideration	100	-	-	100	-	-
Additional consideration realized in respect of accounts transferred in earlier years	0	-	-	0	-	-
Excess provision reversed to the P&L a/c. on account of sale of NPA	100	-	-	100	-	-

b. Loans not in default acquired through assignment

(Rs. In Lakh)

Particulars	Quarter ended 31^st March 2023 Acquired from		Year ended 31^st March 2023 Acquired from
Particulars	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	63257	-	76478	-
Aggregate consideration paid	56931	-	68830	-
Weighted average residual tenor of loans acquired	Ranging between 17.76 months to 167.46 months	-	Ranging between 17.76 months to 167.46 months	-
Coverage of tangible security	Ranging between 158% to 278%	-	Ranging between 149% to 285%
Retention of beneficial economic interest by the transferor	10%	-	10%	-
Rating wise distribution of loans acquired	Not Applicable*	-	Not Applicable*	-
^* - loans acquired are under non-corporate category

c. The Bank has neither transferred any stressed (SMA) loans & loans not in default nor has acquired any stressed loans / loans classified as NPA acquired during the quarter / year ended 31^st March 2023.

d. Recovery Ratings assigned to outstanding SRs as on 31st March 2023 by Credit Rating Agencies:

(Rs. In Lakh)

Rating Scale	Book Value
R1	10515
RR1	2125
RR2	6884
RR4	15931
Unrated* (Rating Withdrawn)	10753
Total	46208
*As per RBI guidelines, rating is not applicable after 8 years

9) Provision Coverage Ratio as on 31^st March 2023, is 92.14% (corresponding previous year is 80.27%).

10) The ratios and other information which is to be disclosed as per Regulation 52(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, have been disclosed to the extent considered applicable.

11) The Board of Directors have recommended a dividend of 100% i.e. Rs. 2 per equity share of Rs. 2.00 each for the year ended 31^st March 2023 (previous year 80% i.e. Rs.1.60 per share) subject to the approval of the shareholders at the ensuing Annual General Meeting. In accordance with Accounting Standards 4 - Contingencies and Events Occurring after the Balance Sheet date, the proposed dividend has not been shown as an appropriation from the Profit and Loss account for the year ended 31^st March 2023 and correspondingly not reported under Other Liabilities and Provisions as at 31^st March 2023. However, capital adequacy ratio has been computed by reducing the proposed dividend.

12) In accordance with RBI circular DOR.CAP.REC.3/21.06.201/2022-23 dated 01^st April 2022, read together with RBI circular DBR.No.BP.BC.1/21.06.201/2015-16 dated 1^st July 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/ , 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 5^th February 2021 read together with circular DBR.BP.BC.No.106/ 21.04.098/2017-18 dated 17^th May 2018. These disclosures have not been subjected to audit/review by the Statutory Central Auditors.

13) During the quarter, the Reserve Bank of India has levied penalty of Rs.30 lakhs on the Bank. The same has been paid.

14) Based on RBI Master Direction on financial statements – Presentation and Disclosures issued on August 30, 2021 (Updated as on February 20, 2023), Interest accrued but not due on advances and deposits have been reclassified under Other Assets (Schedule 11 - Notes to Accounts to the financial statements) and Other Liabilities and Provisions (Schedule 5 - Notes to Accounts to the financial statements). Though, there is no change in the Net Profit / Loss for the previous periods, the figures have been reclassified as appropriate to make them comparable with the figures of the current period.

15) Figures for the previous period/s have been re-grouped and re-classified, where necessary, to make them comparable with current period figures.

Place: Karur
Date: 15^th May 2023

For and on behalf of Board of Directors
B Ramesh Babu
MD & CEO