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

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:

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

b. Loans classified as NPAs and SMA transferred

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:

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.