Audited Financial Results for the Quarter and Year ended 31st March 2025
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. |
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. |
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 |
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:
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
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
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:
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.
Date: 19th May 2025
B Ramesh Babu
MD & CEO
DIN: 06900325