About Us → Financial Performance → Audited Financial Results for the Quarter and Year ended 31st March 2023

Audited Financial Results for the Quarter and Year ended 31st March 2023

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(Rs. In Lakh)
Particulars Quarter ended Year ended
31-03-2023 31-12-2022 31-03-2022 31-03-2023 31-03-2022
Audited Unaudited Audited Audited
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.

(Rs. In Lakh)
STATEMENT OF ASSETS AND LIABILITIES
Particulars As on 31.03.2023
(Audited) 		As on 31.03.2022
(Audited)
Capital and Liabilities
Capital 16041 16000
Reserves and surplus 842364 743620
Deposits 7663758 6848601
Borrowings 143201 133909
Other liabilities and provisions 352578 265002
Total  9017942 8007132
Assets 
Cash & balances with Reserve Bank of India 427948 359426
Balances with banks and money at call and short notice 41565 133191
Investments 1880832 1721606
Advances 6313414 5466120
Fixed assets 43504 47849
Other assets 310679 278940
Total  9017942 8007132
(Rs. In Lakh)
SEGMENT REPORTING FOR THE QUARTER/YEAR ENDED 31ST MARCH 2023
Business Segments Quarter ended Year ended
31-03-2023 31-12-2022 31-03-2022 31-03-2023 31-03-2022
Audited Unaudited Audited Audited
Segment Revenue
1. Treasury 35734 30979 24666 124680 101825
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
Total 216913 201271 161475 767549 635673
Segment Results
1. Treasury 13113 10273 5596 41538 21790
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
Total 80258 75154 49971 272154 186235

Less: Unallocated income/expenses 6353 6259 5840 24575 23214
Operating profit 73905 68895 44131 247579 163021
Tax expense 10822 3557 8772 33077 25765
Other provisions 29301 36409 14012 103893 69929
Net profit from ordinary activities 33782 28929 21347 110609 67327
Extraordinary items - - - - -
Net profit 33782 28929 21347 110609 67327

Segment assets
1. Treasury 1937886 2047214 1848842 1937886 1848842
2. Corporate/Wholesale banking 1387959 1543134 1383603 1387959 1383603
3. Retail banking 4925455 4547189 4082517 4925455 4082517
4. Other banking operations - - - - -
5. Unallocated  766642 763716 692170 766642 692170
Total segment assets 9017942 8901253 8007132 9017942 8007132

Segment liabilities 
1. Treasury 1769206 1857785 1738054 1769206 1738054
2. Corporate/Wholesale banking 1252671 1400589 1237855 1252671 1237855
3. Retail banking 4445801 4125842 3652676 4445801 3652676
4. Other banking operations - - - - -
5. Unallocated  691859 693025 618928 691859 618928
Total (a) 8159537 8077241 7247513 8159537 7247513

Capital employed (Segment assets - Segment liabilities)
1. Treasury 168680 189429 110788 168680 110788
2. Corporate/Wholesale banking 135288 142545 145748 135288 145748
3. Retail banking 479654 421347 429841 479654 429841
4. Other banking operations - - - - -
5. Unallocated  74783 70691 73242 74783 73242
Total (b) 858405 824012 759619 858405 759620
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.
(Rs. In Lakh)
CASH FLOW STATEMENT
Particulars As on 31.03.2023
(Audited) 		As on 31.03.2022
(Audited)
Cash flow from operating activities
Net Profit as per Profit and Loss account 110609 67327
Adjustments for
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

101221 (1951)
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)
Dividend paid (12793) (4037)
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

Notes:

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:

(Rs. In Lakh)
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
A B C D E
Personal Loans 50917 1970 - 4868 44079
Corporate persons* 25797 7981 - 1443 16373
Of which MSMEs - - - - -
Others 4691 17 - 787 3887
Total 81405 9968 - 7098 64339
* 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

(Rs. In Lakh)
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 - -
Aggregate consideration 100 - - 100 - -
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

(Rs. In Lakh)
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:

(Rs. In Lakh)
Rating Scale Book Value
R1 10515
RR1 2125
RR2 6884
RR4 15931
Unrated* (Rating Withdrawn) 10753
Total 46208
*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.

Place: Karur
Date: 15th May 2023
For and on behalf of Board of Directors
B Ramesh Babu
MD & CEO
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