Audited Financial Results for the Quarter and Year ended 31st March 2023
|Particulars||Quarter ended||Year ended|
|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.
|STATEMENT OF ASSETS AND LIABILITIES|
|Particulars||As on 31.03.2023 |
|As on 31.03.2022 |
|Capital and Liabilities|
|Reserves and surplus||842364||743620|
|Other liabilities and provisions||352578||265002|
|Cash & balances with Reserve Bank of India||427948||359426|
|Balances with banks and money at call and short notice||41565||133191|
|SEGMENT REPORTING FOR THE QUARTER/YEAR ENDED 31ST MARCH 2023|
|Business Segments||Quarter ended||Year ended|
|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|
|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|
|Less: Unallocated income/expenses||6353||6259||5840||24575||23214|
|Net profit from ordinary activities||33782||28929||21347||110609||67327|
|Segment assets|| |
|2. Corporate/Wholesale banking||1387959||1543134||1383603||1387959||1383603|
|3. Retail banking||4925455||4547189||4082517||4925455||4082517|
|4. Other banking operations||-||-||-||-||-|
|Total segment assets||9017942||8901253||8007132||9017942||8007132|
|Segment liabilities|| |
|2. Corporate/Wholesale banking||1252671||1400589||1237855||1252671||1237855|
|3. Retail banking||4445801||4125842||3652676||4445801||3652676|
|4. Other banking operations||-||-||-||-||-|
|Capital employed (Segment assets - Segment liabilities)|
|2. Corporate/Wholesale banking||135288||142545||145748||135288||145748|
|3. Retail banking||479654||421347||429841||479654||429841|
|4. Other banking operations||-||-||-||-||-|
|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.
|CASH FLOW STATEMENT|
|Particulars||As on 31.03.2023 |
|As on 31.03.2022 |
|Cash flow from operating activities|
|Net Profit as per Profit and Loss account||110609||67327|
|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|
|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)|
|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|
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 31st March 2023 and 31st 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 31st March 2023.
4) The financial results prepared for the quarter / year ended 31st 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 31st 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 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 30.09.2022||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|
|Of which MSMEs||-||-||-||-||-|
| * 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 24th September 2021 (updated as on December 05, 2022) on transfer of loan exposures are given below:
a. Loans classified as NPAs and SMA transferred
|Particulars||Quarter ended 31st March 2023 Transferred to||Year ended 31st March 2023 Transferred to|
|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||-||-|
|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
|Particulars||Quarter ended 31st March 2023 Acquired from||Year ended 31st March 2023 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||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 31st March 2023.
d. Recovery Ratings assigned to outstanding SRs as on 31st March 2023 by Credit Rating Agencies:
|Rating Scale||Book Value|
|Unrated* (Rating Withdrawn)||10753|
|*As per RBI guidelines, rating is not applicable after 8 years|
9) Provision Coverage Ratio as on 31st 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 31st 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 31st March 2023 and correspondingly not reported under Other Liabilities and Provisions as at 31st 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 01st April 2022, read together with RBI circular DBR.No.BP.BC.1/21.06.201/2015-16 dated 1st 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 5th February 2021 read together with circular DBR.BP.BC.No.106/ 21.04.098/2017-18 dated 17th 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.
Date: 15th May 2023
B Ramesh Babu
MD & CEO