Audited Financial Results for the Quarter and Year ended 31st March 2018
(Rs. In Lakhs)
|Particulars||3 Months ended||Year ended|
|1. Interest earned (a+b+c+d)||149088||142232||143324||569965||562235|
|a) Interest / discount on advances / bills||110493||111654||110399||442081||440169|
|b) Income on Investments||29392||28124||29183||112293||110604|
|c) Interest on balances with RBI and other interbank funds||2183||2131||3431||7721||8777|
|2. Other Income||20865||22485||23199||89993||78222|
|3. Total Income (1+2)||169953||164717||166523||659958||640457|
|4. Interest Expended||84799||86068||85325||340154||354865|
|5. Operating Expenses (i+ii)||37183||36530||30492||142072||128495|
|(i) Employees cost||17920||15336||13799||63908||60796|
|(ii) Other operating expenses||19263||21194||16693||78164||67699|
|6. Total Expenditure (4+5) (excluding provision and contingencies)||121982||122598||115817||482226||483360|
|7. Operating Profit before Provisions and Contingencies (3-6)||47971||42119||50706||177732||157097|
|8. Provisions (other than tax) and Contingencies||39417||32470||21750||127367||68750|
|9. Exceptional items||0||0||0||0||0|
|10. Profit from ordinary activity before tax (7-8-9)||8554||9649||28956||50365||88347|
|11. Tax expense||3498||2500||7200||15798||27749|
|12. Net Profit from ordinary activities after tax(10-11)||5056||7149||21756||34567||60598|
|13. Extraordinary items (net of tax expense)||0||0||0||0||0|
|14. Net Profit for the period (12-13)||5056||7149||21756||34567||60598|
|15. Paid-up equity share capital (FV Rs. 2/-)||14533||14533||12186||14533||12186|
|16. Reserves excluding Revaluation Reserve||611886||491383|
|17. Analytical Ratios|
|(i) % of shares held by Government of India||0%||0%||0%||0%||0%|
|(ii) Capital Adequacy Ratio-Basel III||14.43%||13.92%||12.54%||14.43%||12.54%|
|(iii) Earnings per share (EPS) (*) (Rs..)|
|a) Basic EPS before & after extraordinary items (not annualized for quarter)||0.66||1.04||3.34||4.98||9.29|
|b) Diluted EPS before & after extraordinary items (not annualized for quarter)||0.66||1.04||3.34||4.98||9.29|
|(iv) NPA Ratios|
|a) Gross NPAs||301576||266332||148381||301576||148381|
|b) Net NPAs||186283||169892||103346||186283||103346|
|c) % of Gross NPA||6.56%||5.94%||3.58%||6.56%||3.58%|
|d) % of Net NPA||4.16%||3.88%||2.53%||4.16%||2.53%|
|(v) Return on Asset (annualized)||0.30%||0.43%||1.39%||0.53%||1.00%|
|* EPS not annualised for the quarter. EPS for the previous period / year has been re-stated after considering the rights issue undertaken during the year. Diluted EPS has been calculated without considering the 6,22,122 shares held in abeyance (refer note no. 5 & 6 ).|
Segment Reporting for the year ended 31st March 2018
(Rs. In Lakhs)
|Particulars||3 Months ended||Year ended|
|1. Treasury Operations||33697||33694||41388||134522||143754|
|2. Corporate / Wholesale Banking Operations||43259||42757||44010||170986||175576|
|3. Retail Banking Operations||92438||87836||80763||352660||319998|
|4. Other Banking Operations||559||430||362||1790||1128|
|1. Treasury Operations||9305||8932||12371||38284||38818|
|2. Corporate / Wholesale Banking Operations||14706||13347||15530||55514||54341|
|3. Retail Banking Operations||29171||25121||27743||104555||86431|
|4. Other Banking Operations||504||389||331||1618||1020|
|Unallocated Income / Expenses||5715||5670||5269||22239||23513|
|Net Profit from ordinary activities||5056||7149||21756||34567||60598|
|1. Treasury Operations||1655543||1720196||1495821||1655543||1495821|
|2. Corporate / Wholesale Banking Operations||1402984||1400733||1351162||1402984||1351162|
|3. Retail Banking Operations||3077030||2978520||2739610||3077030||2739610|
|4. Other Banking Operations||0||0||0||0||0|
|5. Unallocated Assets||557355||553676||594169||557355||594169|
|Total Segment Assets||6692912||6653125||6180762||6692912||6180762|
|1. Treasury Operations||1559607||1616347||1448711||1559607||1448711|
|2. Corporate / Wholesale Banking Operations||1255173||1253635||1219454||1255173||1219454|
|3. Retail Banking Operations||2752878||2666282||2472378||2752878||2472378|
|4. Other Banking Operations||0||0||0||0||0|
|5. Unallocated Liabilities||498834||495498||536649||498834||536649|
|Capital Employed (Segment Assets - Segment Liabilities)|
|1. Treasury Operations||95936||103849||47110||95936||47110|
|2. Corporate / Wholesale Operations||147811||147098||131708||147811||131708|
|3. Retail Banking Operations||324152||312238||267232||324152||267232|
|4. Other Banking Operations||-||-||-||-||-|
|5. Unallocated Liabilities||58521||58178||57520||58521||57520|
|Total Segment Liabilities (a+b)||6692912||6653125||6180762||6692912||6180762|
GEOGRAPHIC SEGMENTS: The Bank operates only in Domestic segment
Summarised Balance Sheet as on March 31, 2018
(Rs. In Lakhs)
|PARTICULARS||"As on 31.03.2018 (Audited)"||"As on 31.03.2017 (Audited)"|
|Capital and Liabilities|
|Reserve and Surplus||611886||491383|
|Other Liabilities and Provision||139317||137647|
|Cash & Balances with RBI||296007||279047|
|Balances with Banks and Money at Call||133683||155462|
1) The above financial results for the year ended March 31, 2018 have been reviewed and recommended by the Audit Committee of the Board and approved by the Board of Directors at their meeting held on May 25, 2018. 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 practices adopted for the preparation of the audited financial statements for the previous year.
3) The figures for the quarter ended 31st March 2018 and the corresponding quarter of the previous year as reported in these financial results are the balancing figures 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 quarter and year ended 31st March 2018 have been arrived at after making provisions for Non-performing Assets, Standard Assets, Depreciation on Investments, Taxes on Income and other usual and necessary provisions.
5) During the year ended 31st March 2018, Bank has offered 11,87,81,048 Equity shares of Rs. 2/- each at a price of Rs. 76/- including the premium of Rs.74/- per share [comprising of 10,16,21,048 Equity shares on rights basis in the ratio of 1:6 (i.e. one Equity share for every six fully paid-up Equity shares held as on the record date viz. 13th October 2017) aggregating to Rs. 772.32 crore and reservation of up to 1,71,60,000 Equity shares for the eligible employees of the Bank aggregating up to Rs. 130.42 crore]. Bank has allotted 11,73,17,101 shares (including 1,59,14,160 shares to employees under employee reservation portion), after keeping in abeyance entitlements to the extent of 2,18,107 shares, aggregating to Rs. 891.61 crore under the Rights Issue of Equity shares, on 22nd November 2017.
6) Pursuant to the Rights issue, Earnings Per Share (EPS) in respect of previous year/periods has been restated as per Accounting Standard (AS) 20 on “Earnings Per Share”, prescribed under Section 133 of the Companies Act, 2013.
7) The Rights issue has resulted in an increase of Rs. 23.46 crore in Share Capital and Rs. 864.96 crore (net of share issue expenses amounting to Rs. 3.18 crore) in Share Premium account.
8) In accordance with 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. These disclosures have not been subjected to review/audit by the Statutory Central Auditors.
9) In accordance with RBI guidelines, Bank has shifted securities amounting to Rs. 723.60 crore from HTM to AFS category during the first quarter of the current financial year and there was no impact on the Profit & Loss account. (Corresponding depreciation charged during the first quarter of the previous financial year being Rs. 0.93 crore). b. RBI vide circular RBI/2017-18/70 DBR.No.Ret.BC.90/12.02.001/2017-18 dated October 4, 2017 advised all commercial banks that in order to align the ceiling on the SLR holdings under HTM category with the mandatory SLR, it was advised to reduce the ceiling from 20.50% to 19.50% in a phased manner and allowed shifting/sale of excess securities from HTM. Accordingly, securities worth of Rs. 360.86 Crore (Face Value Rs. 360.37 Crore) were during the third quarter and Rs. 119.26 Crore (Face Value Rs. 120.00 Crore) during the fourth quarter from HTM to AFS category and the resultant appreciation of Rs. 20.52 Crore and Rs. 2.72 Crore respectively were ignored.
10) RBI circular DBR.No.BP.BC.102/21.04.048/2017-18 dated 2nd April, 2018 grants option to spread provisioning for mark-to-market losses on investments held in AFS and HFT for the quarters ended 31st December, 2017 and 31st March, 2018 and permits the provisioning for each of these quarters to be spread equally over up to four quarters, commencing with the quarter in which the loss was incurred. Accordingly Bank has recognised depreciation of Rs. 20.69 crore towards mark-to-market loss on investments during the year ended 31.03.2018 and balance amount of Rs. 22.45 crore are / will be spread over the next three quarters.
11) In terms of RBI guidelines vide circular DBR.No.BP.BC.102/21.04.048/2015-16 dated 13.06.2016, the Bank had debited General Reserves an amount of Rs. 185.07 crore as on 31.03.2017, being unamortised loss on sale of NPAs to ARCs during 2015-16, which was to be proportionately debited to Profit and Loss account during the current financial year (i.e. Rs. 63.18 crore each in the quarter ended June 2017 and September 2017 and the remaining Rs. 58.71 crore during the quarter ending December 2017). The entire amount of Rs.185.07 crore has been debited to Profit and Loss account and credited to General Reserves during the half year ended 30th September 2017.
12) Ministry of Labour and Employment, Government of India on 29th March, 2018 enhanced the ceiling on gratuity payable to an employee under Payment of Gratuity Act, 1972 from Rs. 10 Lakhs to Rs. 20 Lakhs. Bank has provided for the entire amount of additional liability during the current quarter and has not availed the dispensation of spreading the provision over a period of four quarters as permitted by RBI.
13) In conformity with RBI circular DBR.BP.BC.No.63/21.04.018/2016-17 dated April 18, 2017 the disclosure on divergence in Asset Classification and Provisioning for NPAs, is as under :
|1. Gross NPAs as on March 31, 2017 as reported by the bank||1483.81|
|2. Gross NPAs as on March 31, 2017 as assessed by RBI||2134.71|
|3. Divergence in Gross NPAs (2-1)||650.9|
|4. Net NPAs as on March 31, 2017 as reported by the bank||1033.46|
|5. Net NPAs as on March 31, 2017 as assessed by RBI||1235.46|
|6. Divergence in Net NPAs (5-4)||202|
|7. Provisions for NPAs as on March 31, 2017 as reported by the bank||428.74|
|8. Provisions for NPAs as on March 31, 2017 as assessed by RBI||630.74|
|9. Divergence in provisioning (8-7)||202|
|10. Reported Net Profit after Tax (PAT) for the year ended March 31, 2017||605.98|
|11. Adjusted (notional) Net Profit after Tax (PAT) for the year ended March 31, 2017 after taking into account the divergence in provisioning||473.89|
The current impact of the above mentioned divergences in provisioning as noted by RBI have been duly reflected in the results for the year ended 31st March 2018.
14) The Board of Directors have recommended a dividend of Rs. 0.60 per equity share of Rs. 2 /- each for the year 2017-18, subject to necessary approvals. In accordance with AS 4, Contingencies and Events Occuring after the Balance Sheet date, the proposed dividend including corporate dividend tax amounting to Rs. 52.47 crore has not been shown as an appropriation from the Profit and Loss appropriation account as of March 31, 2018. For computation of capital adequacy ratio, Bank has reduced the amount of proposed dividend and tax thereon for determining capital funds.
15) 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.
16) Provision Coverage Ratio is 56.50% as on 31st March 2018.
17) The position of investor complaints is : No. of complaints pending at the beginning and at end of the quarter Nil ; received and disposed off during the quarter - 36.
18) Previous period’s / year’s figures have been regrouped, wherever necessary to conform to the current period’s / year’s classification.
For and on behalf of Board of Directors
P. R. Seshadri
Managing Director & C.E.O
“As per our report of even date”
For Abarna & Ananthan
Firm Registration No. 000003S
Membership No. 207867