Audited Financial Results for the Quarter and Year ended 31st March 2022
| Particulars | Quarter ended | Year ended | ||||
|---|---|---|---|---|---|---|
| 31-03-2022 | 31-12-2021 | 31-03-2021 | 31-03-2022 | 31-03-2021 | ||
| Audited | Unaudited | Audited | Audited | |||
| 1. Interest earned (a+b+c+d) | 140927 | 140451 | 134931 | 558767 | 547043 | |
| a) Interest / discount on advances / bills | 113813 | 113313 | 109648 | 452548 | 445355 | |
| b) Income on Investments | 24138 | 23478 | 21970 | 92478 | 94179 | |
| c) Interest on balances with Reserve Bank of India & other interbank funds | 2885 | 3571 | 3245 | 13433 | 6829 | |
| d) Other Interest | 91 | 89 | 68 | 308 | 680 | |
| 2. Other Income | 20548 | 19561 | 16908 | 76906 | 91882 | |
| 3. Total Income (1+2) | 161475 | 160012 | 151839 | 635673 | 638925 | |
| 4. Interest Expended | 69934 | 71728 | 73671 | 287230 | 311091 | |
| 5. Operating Expenses (i+ii) | 47410 | 48125 | 57929 | 185422 | 198683 | |
| (i) Employees cost | 22317 | 24336 | 35121 | 94503 | 115368 | |
| (ii) Other operating expenses | 25093 | 23789 | 22808 | 90919 | 83315 | |
| 6. Total Expenditure (excluding provisions and contingencies) (4+5) | 117344 | 119853 | 131600 | 472652 | 509774 | |
| 7. Operating Profit before Provisions and Contingencies (3-6) | 44131 | 40159 | 20239 | 163021 | 129151 | |
| 8. Provisions (other than tax) and Contingencies | 14012 | 14610 | 2406 | 69929 | 75714 | |
| 9. Exceptional items | - | - | - | - | - | |
| 10. Profit from ordinary activity before tax (7-8-9) | 30119 | 25549 | 17833 | 93092 | 53437 | |
| 11. Tax expense | 8772 | 7001 | 7396 | 25765 | 17498 | |
| 12. Net Profit from ordinary activities after tax(10-11) | 21347 | 18548 | 10437 | 67327 | 35939 | |
| 13. Extraordinary items (net of tax expense) | - | - | - | - | - | |
| 14. Net Profit for the period (12-13) | 21347 | 18548 | 10437 | 67327 | 35939 | |
| 15. Paid-up equity share capital (FV Rs.2/- per share) | 16000 | 15987 | 15986 | 16000 | 15986 | |
| 16. Reserves excluding Revaluation Reserve | 743620 | 679988 | ||||
| 17. Analytical Ratios | ||||||
| (i) % of shares held by Government of India | - | - | - | - | - | |
| (ii) Capital Adequacy Ratio-Basel III (%) | 19.46 | 18.79 | 18.98 | 19.46 | 18.98 | |
| (iii) Earnings per share (EPS)1 (Rs..) | ||||||
| a) Basic EPS before and after extraordinary items | 2.67 | 2.32 | 1.31 | 8.42 | 4.50 | |
| b) Diluted EPS before and after extraordinary items | 2.67 | 2.32 | 1.31 | 8.41 | 4.50 | |
| (iv) NPA Ratios | ||||||
| a) Gross NPA | 343104 | 388752 | 414287 | 343104 | 414287 | |
| b) Net NPA | 126079 | 135557 | 171939 | 126079 | 171939 | |
| c) % of Gross NPA | 5.96 | 6.97 | 7.85 | 5.96 | 7.85 | |
| d) % of Net NPA | 2.28 | 2.55 | 3.41 | 2.28 | 3.41 | |
| (v) Return on Asset (annualized) (%) | 1.06 | 0.93 | 0.55 | 0.86 | 0.49 | |
| 18. Net worth2 | 741781 | 733292 | 684039 | 741781 | 684039 | |
| 19. Paid up debt capital/ Outstanding debt3 (%) | 36.37 | 37.57 | 19.26 | 36.37 | 19.26 | |
| 20. Debt/equity ratio4 | 0.09 | 0.11 | 0.11 | 0.09 | 0.11 | |
| 21. Total debts to total assets5 (%) | 1.67 | 1.67 | 3.39 | 1.67 | 3.39 | |
| 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 31.03.2022 (Audited) | As on 31.03.2021 (Audited) | |||
| Capital and Liabilities | |||||
| Capital | 16000 | 15986 | |||
| Reserve and Surplus | 743620 | 679988 | |||
| Deposits | 6867616 | 6327843 | |||
| Borrowings | 133909 | 252829 | |||
| Other Liabilities and Provision | 243227 | 185673 | |||
| Total | 8004372 | 7462319 | |||
| Assets | |||||
| Cash & Balances with RBI | 359426 | 351406 | |||
| Balances with Banks and Money at Call and Short Notice | 133191 | 280628 | |||
| Investments | 1721606 | 1601893 | |||
| Advances | 5533462 | 5036350 | |||
| Fixed Assets | 47849 | 53906 | |||
| Other Assets | 208838 | 138136 | |||
| Total | 8004372 | 7462319 | |||
| Segment Reporting for the Quarter and Year ended 31st March 2022 | |||||
|---|---|---|---|---|---|
| Business Segments | Quarter ended | Year ended | |||
| 31-03-2022 | 31-12-2021 | 31-03-2021 | 31-03-2022 | 31-03-2021 | |
| Audited | Unaudited | Audited | Audited | ||
| Segment Revenue | |||||
| 1. Treasury | 24666 | 24404 | 21701 | 101825 | 125915 |
| 2. Corporate / Wholesale Banking | 34829 | 33769 | 31647 | 135997 | 125211 |
| 3. Retail Banking | 100799 | 100888 | 97537 | 394225 | 385018 |
| 4. Other Banking Operations | 1181 | 951 | 954 | 3626 | 2781 |
| Total | 161475 | 160012 | 151839 | 635673 | 638925 |
| Segment Results | |||||
| 1. Treasury | 5595 | 4224 | 1294 | 21787 | 35538 |
| 2. Corporate / Wholesale Banking | 10904 | 9856 | 5528 | 39887 | 26455 |
| 3. Retail Banking | 32600 | 31145 | 18111 | 121875 | 86877 |
| 4. Other Banking Operations | 865 | 691 | 647 | 2660 | 1997 |
| Total | 49964 | 45916 | 25580 | 186209 | 150867 |
| Less: Unallocated Income/Expenses | 5833 | 5757 | 5341 | 23188 | 21716 |
| Operating Profit | 44131 | 40159 | 20239 | 163021 | 129151 |
| Tax expense | 8772 | 7001 | 7396 | 25765 | 17498 |
| Other Provisions | 14012 | 14610 | 2406 | 69929 | 75714 |
| Net Profit from ordinary activities | 21347 | 18548 | 10437 | 67327 | 35939 |
| Extraordinary items | - | - | - | - | - |
| Net Profit | 21347 | 18548 | 10437 | 67327 | 35939 |
| Segment Assets | |||||
| 1. Treasury | 1848842 | 1905877 | 1912596 | 1848842 | 1912596 |
| 2. Corporate / Wholesale Banking | 1385684 | 1324378 | 1177076 | 1385684 | 1177076 |
| 3. Retail Banking | 4147778 | 3998291 | 3859275 | 4147778 | 3859275 |
| 4. Other Banking Operations | - | - | - | - | - |
| 5. Unallocated | 622068 | 532635 | 513372 | 622068 | 513372 |
| Total Segment Assets | 8004372 | 7761181 | 7462319 | 8004372 | 7462319 |
| Segment Liabilities | |||||
| 1. Treasury | 1738133 | 1761533 | 1836846 | 1738133 | 1836846 |
| 2. Corporate / Wholesale Banking | 1239526 | 1189875 | 1045290 | 1239526 | 1045290 |
| 3. Retail Banking | 3710702 | 3593340 | 3428179 | 3710702 | 3428179 |
| 4. Other Banking Operations | - | - | - | - | - |
| 5. Unallocated | 556391 | 478461 | 456030 | 556391 | 456030 |
| Total (a) | 7244752 | 7023209 | 6766345 | 7244752 | 6766345 |
| Capital Employed (Segment Assets - Segment Liabilities) | |||||
| 1. Treasury | 110709 | 144344 | 75750 | 110709 | 75750 |
| 2. Corporate / Wholesale Banking | 146158 | 134503 | 131786 | 146158 | 131786 |
| 3. Retail Banking | 437076 | 404951 | 431096 | 437076 | 431096 |
| 4. Other Banking Operations | - | - | - | - | - |
| 5. Unallocated | 65677 | 54174 | 57342 | 65677 | 57342 |
| Total (b) | 759620 | 737972 | 695974 | 759620 | 695974 |
| Total Segment Liabilities (a+b) | 8004372 | 7761181 | 7462319 | 8004372 | 7462319 |
| 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. | |||||
| CASH FLOW STATEMENT | |||||
|---|---|---|---|---|---|
| Particulars | As on 31.03.2022 (Audited) | As on 31.03.2021 (Audited) | |||
| Cash flow from operating activities | |||||
| Net Profit as per Profit and Loss account | 67327 | 35939 | |||
| Adjustments for | |||||
| Depreciation on Bank’s property | 11918 | 12414 | |||
| Interest paid on TIER II bonds | 5820 | 5819 | |||
| Provisions for other contingencies | 5334 | 9804 | |||
| Provision for taxes | 25765 | 17498 | |||
| Provision for depreciation on investment | 10714 | 13782 | |||
| Provision for standard assets | 1699 | 573 | |||
| Provision for bad and doubtful debts | 63485 | 63399 | |||
| Provision for non performing investments | (589) | 1938 | |||
| Provision for compensation absences | 208 | 5501 | |||
| Amortization of premium paid on Held to Maturity (HTM) investments | 13574 | 12273 | |||
| Provision for employees stock option plan / scheme | 49 | 8 | |||
| (Profit) / Loss on sale of fixed assets (net) | (110) | (22) | |||
| Operating profit before working capital changes | 205193 | 178926 | |||
| Adjustments for working capital changes | |||||
| (Increase) / Decrease in investments (excluding HTM investments) | 10213 | 76611 | |||
| (Increase) / Decrease in advances | (560432) | (490609) | |||
| (Increase) / Decrease in other assets | (130225) | 5707 | |||
| Increase / (Decrease) in deposits | 539773 | 420336 | |||
| Increase / (Decrease) in borrowings | (118920) | 134411 | |||
| Increase / (Decrease) in other liabilities and provisions | 52447 | 25171 | |||
| (1951) | 350553 | ||||
| Direct taxes paid | 31500 | (14000) | |||
| Net cash flow from / (used in) operating activities | 29549 | 336553 | |||
| Cash flow from investing activities | |||||
| Purchase of fixed assets | (5861) | (7656) | |||
| (Increase)/Decrease in HTM investments | (153626) | (130251) | |||
| Sale of fixed assets / other assets | 110 | 22 | |||
| Net cash flow from / (used in) investing activities | (159376) | (137885) | |||
| Cash flow from financing activities | |||||
| Proceeds from issue of share capital | 14 | - | |||
| Proceeds from share premium | 253 | - | |||
| Increase/(Decrease) in tier II bonds | - | - | |||
| Interest paid on tier II bonds | (5820) | (5820) | |||
| Dividend paid (including tax on dividend) | (4037) | (69) | |||
| Net cash flow from /(used in) financing activities | (9590) | (5889) | |||
| Net Increase in cash & cash equivalents | (139417) | 192779 | |||
| Cash and cash equivalents at the beginning of the year | 632034 | 439255 | |||
| Cash and cash equivalents at the end of the year | 492617 | 632034 | |||
Notes:
1) The figures for the quarter ended 31st March 2022 and 31st March 2021 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.
2) The above financial results for the quarter / year ended 31st March 2022 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 20th May 2022. 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. The financial results for the quarter and year ended 31st March 2021 were audited by the erstwhile statutory auditor, on which they had issued an unmodified opinion.
3) There has been no change in the accounting policies followed in the preparation of the financial results for the quarter / year ended 31st March 2022, as compared to those followed for the year ended 31st March 2021, except that related to Employee Stock Option Scheme, the details of which are given in item 4 below.
4) RBI issued a clarification on 30th August 2021, regarding Compensation of Whole Time Directors/Chief Executive Officers/Material Risk Takers and Control Function Staff, advising Banks that the compensation through share linked instruments are required to be fair valued on the date of grant using the Black-Scholes model and the fair value thus arrived should be recognised as an item of expenditure for all options granted after the accounting period ended 31st March 2021. Accordingly, the Bank has changed its accounting policy from the earlier intrinsic value method to the fair value method using Black-Scholes model for share linked instruments granted after 31” March 2021 and consequently recognized the value of the options granted as an item of employee cost over the vesting period. However, there is no material impact due to change in the valuation method.
5) The financial results are prepared after considering provisions for NPA, non-performing investments, standard advances, restructured advances, exposures to entities with unhedged foreign currency exposure, taxes on income including deferred tax and other usual and necessary provisions. Provision for employees’ benefits (including retirement benefits) viz. pension, gratuity and compensated absences has been made based on actuarial valuation.
6) 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, premium on sale of priority sector lending certificates, profit on bullion business etc.
7) During the quarter and year ended 31st March 2022, the Bank has allotted 6,53,236 and 6,89,964 equity shares respectively, of face value Rs. 2/- each, pursuant to the exercise of stock options by employees.
8) The revision in family pension payable to employees of the Bank covered under 11th Bipartite Settlement and Joint Note dated 11th November 2020 was quantified on 26th August 2021; the Bank opted to amortize the additional liability of Rs. 8026 lakh based on actuarial valuation during the three quarters of financial year 2021-22 equally, and has been accordingly expensed to Profit & Loss account i.e. Rs. 2676 lakh during the quarter ended 30th September 2021, Rs. 2675 lakh during the quarter ended 31st December 2021 and Rs. 2675 lakh during the quarter ended 31st March 2022.
9) The outbreak of the COVID-19 pandemic had led to a nation-wide lockdown in April-May 2020. This was followed by localised lockdowns in areas with a significant number of COVID-19 cases. Following the decline in the spread of the pandemic, the lockdown measures were eased and there is a gradual improvement in economic activity. The extent to which the current pandemic and its future waves, if any, including other related developments would impact the Bank’s and the asset quality are uncertain. The Management continues to closely monitor the day to day operations, liquidity position and adequacy of capital and continues to maintain liquidity coverage and capital adequacy ratios at higher levels than the regulatory minimum as on 31st March 2022.
10) Details of 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 30.09.20211 | 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-year2 | Exposure to accounts classified as Standard consequent to implementation of resolution plan – Position as at 31.03.2022 |
|---|---|---|---|---|---|
| A | B | C | D | E | |
| Personal Loans | 68968 | 4392 | 0 | 2940 | 61635 |
| Corporate persons* | 30109 | 0 | 0 | 933 | 29176 |
| Of which MSMEs | 0 | 0 | 0 | 0 | 0 |
| Others | 5915 | 0 | 0 | 565 | 5350 |
| Total | 104992 | 4392 | 0 | 4438 | 96161 |
| * As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016 1Includes exposure as on 30th September 2021 of accounts that are restructured after 30th September 2021 2Represents Net Movement in Balances | |||||
11) Disclosure in respect of borrower accounts where modifications were sanctioned and implemented under Resolution Framework 2.0 for COVID-19 related stress:
| No. of accounts in respect of which modification were sanctioned and implemented (A) | 295 |
| Aggregate exposure to such borrower accounts as on 31st March 2022 | 8498 |
| Exposure to accounts mentioned at (A) before implementation of the Resolution Plan | 8674 |
12) Details of loans not in default / stressed loans transferred / acquired as per RBI Circular DOR.STR.REC.51/21.04.048/2021-22 dated 24th September 2021 are given below:
a. Loans classified as NPAs transferred
| Particulars | Quarter ended 31st March 2022 Transferred to | Year ended 31st March 2022 Transferred to | ||||
|---|---|---|---|---|---|---|
| ARCs | Permitted transferees | Others | ARCs | Permitted transferees | Others | |
| No. of accounts | 71 | - | - | 73 | - | - |
| Aggregate principal outstanding of loans transferred | 7151 | - | - | 15095 | - | - |
| 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 | 3541 | - | - | 10586 | - | - |
| 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 | 3541 | - | - | 10586 | - | - |
b. Loans not in default acquired through assignment
| Particulars | Quarter ended 31st March 2022 Acquired from | Year ended 31st March 2022 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 | 5334 | - | 25314 | - |
| Aggregate consideration paid | 4800 | - | 24780 | - |
| Weighted average residual tenor of loans acquired | Ranging between 38 to 91 months | - | Ranging between 16 to 91 months | |
| Coverage of tangible security | Ranging between 155% to 270% | - | Ranging between 100% to 270% | |
| 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 2022.
13) Provision Coverage Ratio as on 31st March 2022, calculated as per RBI guidelines is 80.27% (corresponding previous year ratio is 72.70%).
14) 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.
15) Based on RBI Master Direction on Financial Statements – Presentation and Disclosures dated 30th August 2021 (updated by RBI on 15th November 2021), depreciation on investments which were hitherto classified under provisions and contingencies have now been reported under ‘Other Income’. The figures for the current and earlier periods are accordingly presented as per the updated directions.
16) The Board of Directors have recommended a dividend of 80% i.e. Rs. 1.60 per equity share of Rs. 2.00 each for the year 2021-22, 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 2022 and correspondingly not reported under Other Liabilities and Provisions as at 31st March 2022. However, capital adequacy ratio has been computed by reducing the proposed dividend.
17) In accordance with RBI circular DBOD.No.BPBC.1/21.06.201/2015-16 dated 1st July 2015, read together with RBI circular DBR.No.BP.BC.80/21.06.201/2014-15 dated 31st March 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 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.
18) Figures for the previous period/s have been re-grouped and re-classified, where necessary, to make them comparable with current period figures.
Date: 20.05.2022
B Ramesh Babu
Managing Director & CEO
