Unaudited Financial Results for the Quarter / Nine Months ended 31st December 2019
(Rs. In Lakh)
| Particulars | Quarter ended | Nine Months ended | Year ended | |||
|---|---|---|---|---|---|---|
| 31-12-2019 | 30-09-2019 | 31-12-2018 | 31-12-2019 | 31-12-2018 | 31-03-2019 | |
| Unaudited | Unaudited | Audited | ||||
| 1. Interest earned (a+b+c+d) | 150378 | 153751 | 144276 | 453382 | 434223 | 581582 |
| a) Interest / discount on advances / bills | 115236 | 119324 | 114174 | 352110 | 343510 | 459638 |
| b) Income on Investments | 29181 | 30021 | 29223 | 87415 | 86897 | 115059 |
| c) Interest on balances with Reserve Bank of India & other interbank funds | 3732 | 4163 | 549 | 11141 | 2782 | 4290 |
| d) Other Interest | 2229 | 243 | 330 | 2716 | 1034 | 2595 |
| 2. Other Income | 26006 | 27773 | 25989 | 80763 | 69032 | 96277 |
| 3. Total Income (1+2) | 176384 | 181524 | 170265 | 534145 | 503255 | 677859 |
| 4. Interest Expended | 92657 | 94123 | 86193 | 277636 | 259864 | 345300 |
| 5. Operating Expenses (i+ii) | 45254 | 44285 | 41571 | 130407 | 118789 | 161480 |
| (i) Employees cost | 22549 | 21299 | 19767 | 64223 | 54889 | 76117 |
| (ii) Other operating expenses | 22705 | 22986 | 21804 | 66184 | 63900 | 85363 |
| 6. Total Expenditure (excluding provisions and contingencies) (4+5) | 137911 | 138408 | 127764 | 408043 | 378653 | 506780 |
| 7. Operating Profit before Provisions and Contingencies (3-6) | 38473 | 43116 | 42501 | 126102 | 124602 | 171079 |
| 8. Provisions (other than tax) and Contingencies | 36426 | 36517 | 40040 | 105940 | 103621 | 138855 |
| 9. Exceptional items | 0 | 0 | 0 | 0 | 0 | 0 |
| 10. Profit from ordinary activities before tax (7-8-9) | 2047 | 6599 | 2461 | 20162 | 20981 | 32224 |
| 11. Tax expense | 540 | 266 | 341 | 5030 | 5896 | 11137 |
| 12. Net Profit from ordinary activities after tax(10-11) | 1507 | 6333 | 2120 | 15132 | 15085 | 21087 |
| 13. Extraordinary items (net of tax expense) | 0 | 0 | 0 | 0 | 0 | 0 |
| 14. Net Profit for the period (12-13) | 1507 | 6333 | 2120 | 15132 | 15085 | 21087 |
| 15. Paid-up equity share capital (FV Rs.2/- per share) | 15986 | 15986 | 15986 | 15986 | 15986 | 15986 |
| 16. Reserves excluding Revaluation Reserve | 626294 | |||||
| 17. Analytical Ratios | ||||||
| (i) % of shares held by Government of India | 0% | 0% | 0% | 0% | 0% | 0% |
| (ii) Capital Adequacy Ratio-Basel III | 15.87% | 15.99% | 14.59% | 15.87% | 14.59% | 16.00% |
| (iii) Earnings per share (EPS) (*) (Rs.) | ||||||
| a) Basic EPS before and after extraordinary items | 0.19 | 0.79 | 0.27 | 1.89 | 1.89 | 2.64 |
| b) Diluted EPS before and after extraordinary items | 0.19 | 0.79 | 0.27 | 1.89 | 1.89 | 2.64 |
| (iv) NPA Ratios | ||||||
| a) Gross NPA | 442397 | 439103 | 405573 | 442397 | 405573 | 444957 |
| b) Net NPA | 194568 | 211835 | 229560 | 194568 | 229560 | 242034 |
| c) % of Gross NPA | 8.92% | 8.89% | 8.49% | 8.92% | 8.49% | 8.79% |
| d) % of Net NPA | 4.13% | 4.50% | 4.99% | 4.13% | 4.99% | 4.98% |
| (v) Return on Asset (annualized) | 0.08% | 0.34% | 0.12% | 0.27% | 0.29% | 0.31% |
| *EPS not annualized for the quarter / nine months. | ||||||
(Rs. In Lakh)
| Segment Reporting for the Quarter / Nine Months ended 31st December 2019 | ||||||
|---|---|---|---|---|---|---|
| Business Segments | Quarter ended | Nine Months ended | Year ended | |||
| 31-12-2019 | 30-09-2019 | 31-12-2018 | 31-12-2019 | 31-12-2018 | 31-03-2019 | |
| Unaudited | Unaudited | Audited | ||||
| Segment Revenue | ||||||
| 1. Treasury | 38284 | 44326 | 33463 | 121713 | 94058 | 130725 |
| 2. Corporate / Wholesale Banking | 37270 | 37798 | 39759 | 113443 | 124958 | 165386 |
| 3. Retail Banking | 100010 | 98694 | 96458 | 296837 | 282527 | 379250 |
| 4. Other Banking Operations | 820 | 706 | 585 | 2152 | 1712 | 2498 |
| Total | 176384 | 181524 | 170265 | 534145 | 503255 | 677859 |
| Segment Results | ||||||
| 1. Treasury | 9472 | 15224 | 9914 | 38758 | 21242 | 34590 |
| 2. Corporate / Wholesale Banking | 9437 | 9176 | 10904 | 28907 | 36852 | 48484 |
| 3. Retail Banking | 25785 | 24673 | 27278 | 76402 | 82874 | 109855 |
| 4. Other Banking Operations | 717 | 621 | 517 | 1893 | 1525 | 2219 |
| Total | 45411 | 49694 | 48613 | 145960 | 142493 | 195148 |
| Less: Unallocated Expenses | 6938 | 6578 | 6112 | 19858 | 17891 | 24069 |
| Operating Profit | 38473 | 43116 | 42501 | 126102 | 124602 | 171079 |
| Tax expense | 540 | 266 | 341 | 5030 | 5896 | 11137 |
| Other Provisions | 36426 | 36517 | 40040 | 105940 | 103621 | 138855 |
| Net Profit from ordinary activities | 1507 | 6333 | 2120 | 15132 | 15085 | 21087 |
| Extraordinary items | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Profit | 1507 | 6333 | 2120 | 15132 | 15085 | 21087 |
| Segment Assets | ||||||
| 1. Treasury | 1978272 | 2031770 | 1620475 | 1978272 | 1620475 | 1560418 |
| 2. Corporate / Wholesale Banking | 1245554 | 1266351 | 1302805 | 1245554 | 1302805 | 1359870 |
| 3. Retail Banking | 3466386 | 3443830 | 3297721 | 3466386 | 3297721 | 3498211 |
| 4. Other Banking Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. Unallocated | 575271 | 599480 | 538247 | 575271 | 538247 | 515512 |
| Total Segment Assets | 7265483 | 7341431 | 6759248 | 7265483 | 6759248 | 6934011 |
| Segment Liabilities | ||||||
| 1. Treasury | 1896941 | 2009300 | 1468041 | 1896941 | 1468041 | 1446291 |
| 2. Corporate / Wholesale Banking | 1111004 | 1116766 | 1179811 | 1111004 | 1179811 | 1226053 |
| 3. Retail Banking | 3092531 | 3036956 | 2987181 | 3092531 | 2987181 | 3154225 |
| 4. Other Banking Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. Unallocated | 513369 | 528279 | 487966 | 513369 | 487966 | 465162 |
| Total (a) | 6613845 | 6691301 | 6122999 | 6613845 | 6122999 | 6291731 |
| Capital Employed (Segment Assets - Segment Liabilities) | ||||||
| 1. Treasury | 81331 | 22470 | 152434 | 81331 | 152434 | 114127 |
| 2. Corporate / Wholesale Banking | 134550 | 149585 | 122994 | 134550 | 122994 | 133817 |
| 3. Retail Banking | 373855 | 406874 | 310540 | 373855 | 310540 | 343986 |
| 4. Other Banking Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. Unallocated | 61902 | 71201 | 50281 | 61902 | 50281 | 50350 |
| Total (b) | 651638 | 650130 | 636249 | 651638 | 636249 | 642280 |
| Total Segment Liabilities (a+b) | 7265483 | 7341431 | 6759248 | 7265483 | 6759248 | 6934011 |
| 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. | ||||||
Notes:
- The above financial results for the quarter/nine months ended 31st December 2019 have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 01st February 2020. The same have been subjected to “Limited Review” by the Statutory Central Auditors of the Bank in line with the guidelines issued by the Reserve Bank of India and as per the listing agreement with the stock exchange.
- There has been no change in the accounting policies followed in the preparation of interim financial results for the quarter/nine months ended 31st December 2019 as compared to those followed in the annual financial statements for the year ended 31st March 2019.
- The bank has made provisions in accordance with Reserve Bank of India guidelines, for loan losses and depreciation on Investments, Standard Advances, Restructured Advances, exposures to entities with Unhedged Foreign Currency Exposure. Provision for employees’ retirement benefits viz. pension, gratuity and leave encashment has been made based on actuarial valuation. Provision for Income Tax, Deferred Tax and other contingencies are made on an estimated and proportionate basis and are subject to adjustments, if any, at the year end.
- 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 from advances written off, etc.
- In accordance with RBI circular DBOD.No.BP.BC.1/21.06.201/2015-16 dated 01st 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/disclosures-pillar-III/. These disclosures have not been subjected to review/audit by the Statutory Central Auditors.
- From quarter/half-year ended 30th September 2019, the Bank has elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendments) Ordinance, 2019. Accordingly, provision for Income Tax for the quarter and nine months ended 31st December 2019 as well as re-measurement of Deferred Tax Liability and Assets have been made basis the rate prescribed in the aforesaid section.
- In respect of certain Non-Performing Assets under Red Flag Account, there is a delay over and above the time period of six months as stipulated by the RBI vide Master Direction DBS.CO.CFMC.BC.No.1/23.04.001/2016-17 dated 1st July 2016 (updated as on 3rd July 2017) in classifying the accounts as fraud or otherwise pending completion and receipt of the forensic audit reports. These accounts which have balance outstanding of Rs.17975.07 lakhs (net of provisions) have also been referred to National Company Law tribunal under Corporate Insolvency Resolution Process for recovery / resolution proceedings. In the opinion of the management, the provisions on these accounts made are adequate and no additional provisions are required to be made as on 31st December 2019.
- Provision Coverage Ratio calculated as per Reserve Bank of India guidelines is 65.43% as on 31st December 2019.
- Previous period’s / year’s figures have been re-classified / regrouped wherever considered necessary to confirm to the current period’s classification.
For and on behalf of Board of Directors
P. R. Seshadri
Managing Director & CEO
Place: Karur
Date: 01.02.2020
