Standalone Unaudited Financial Results for the Quarter ended 31st December 2018

(Rs. In Lakhs)
Particulars Quarter ended 9 Months ended Year Ended
31.12.2018 30.09.2018 31.12.2017 31.12.2018 31.12.2017 31.03.2018
Unaudited Unaudited Audited
1. Interest earned (a+b+c+d) 144276 145694 142232 434223 420877 569965
a) Interest / discount on advances / bills 114174 115909 111654 343510 331588 442081
b) Income on Investments 29223 28722 28124 86897 82901 112293
c) Interest on balances with Reserve Bank of India & other interbank funds 549 728 2131 2782 5538 7721
d) Other Interest 330 335 323 1034 850 7870
2. Other Income 25989 17556 22485 69032 69128 89993
3. Total Income (1+2) 170265 163250 164717 503255 490005 659958
4. Interest Expended 86193 87780 86068 259864 255355 340154
5. Operating Expenses (i+ii) 41571 39331 36530 118789 104889 142072
(i) Employees cost 19767 17266 15336 54889 45988 63908
(ii) Other operating expenses 21804 22065 21194 63900 58901 78164
6. Total Expenditure (excluding provisions and contingencies) (4+5) 127764 127111 122598 378653 360244 482226
7. Operating Profit before provisions and contingencies (3-6) 42501 36139 42119 124602 129761 177732
8. Provisions (other than tax) and Contingencies 40040 21314 32470 103621 87950 127367
9. Exceptional items - - - - - -
10. Profit from ordinary activities before tax (7-8-9) 2461 14825 9649 20981 41811 50365
11. Tax expense 341 6451 2500 5896 12300 15798
12. Net Profit from ordinary activities after tax (10-11) 2120 8374 7149 15085 29511 34567
13. Extraordinary items (net of tax expense) - - - - - -
14. Net Profit for the period (12-13) 2120 8374 7149 15085 29511 34567
15. Paid-up equity share capital (FV Rs. 2/- per share) 15986 15986 14533 15986 14533 14533
16. Reserves excluding Revaluation Reserve 611886
17. Analytical Ratios
(i) % of shares held by Government of India 0% 0% 0% 0% 0% 0%
(ii) Capital Adequacy Ratio - Basel III 14.59% 14.22% 13.92% 14.59% 13.92% 14.43%
(iii) Earnings per share (EPS)^ (Rs.)
a) Basic EPS before and after extraordinary items 0.27 1.05 0.95 1.89 4.03 4.78
b) Diluted EPS before and after extraordinary items 0.27 1.05 0.95 1.89 4.03 4.78
(iv) NPA Ratios
a) Gross NPA 405573 370741 266332 405573 266332 301576
b) Net NPA 229560 205151 169892 229560 169892 186283
c) % of Gross NPA 8.49% 7.70% 5.94% 8.49% 5.94% 6.56%
d) % of Net NPA 4.99% 4.41% 3.88% 4.99% 3.88% 4.16%
(v) Return on Asset (annualised) 0.12% 0.49% 0.43% 0.29% 0.62% 0.53%

^ EPS not annualized for the quarter / 9 Months. EPS for the earlier periods / year has been re-stated after considering the rights issue of equity shares made during the quarter ended 31st December 2017 and the issue of bonus shares during the quarter ended 30th September 2018.

Segment Results

(Rs. In Lakhs)
Business Segments Quarter ended 9 Months ended Year Ended
31.12.2018 30.09.2018 31.12.2017 31.12.2018 31.12.2017 31.03.2018
Unaudited Unaudited Audited
Segment Revenue
1. Treasury 33463 28118 33694 94058 100825 134522
2. Corporate / Wholesale Banking 39759 41589 42757 124958 127727 170986
3. Retail Banking 96458 93010 87836 282527 260222 352660
4. Other Banking Operations 585 533 430 1712 1231 1790
Total 170265 163250 164717 503255 490005 659958
Segment Results (Net of provisions)
1. Treasury 9914 3338 8932 21242 28979 38284
2. Corporate / Wholesale Banking 10904 11862 13347 36852 40808 55514
3. Retail Banking 27278 26487 25121 82874 75384 104555
4. Other Banking Operations 517 477 389 1525 1114 1618
Total 48613 42164 47789 142493 146285 199971
Less: Unallocated Income/Expenses 6112 6025 5670 17891 16524 22239
Operating Profit 42501 36139 42119 124602 129761 177732
Tax expense 341 6451 2500 5896 12300 15798
Other Provisions 40040 21314 32470 103621 87950 127367
Net Profit from ordinary activities 2120 8374 7149 15085 29511 34567
Extraordinary items - - - - - -
Net Profit 2120 8374 7149 15085 29511 34567
Other Information
Segment Assets
1. Treasury 1620475 1651777 1720196 1620475 1720196 1655543
2. Corporate / Wholesale Banking 1302805 1393214 1400733 1302805 1400733 1402984
3. Retail Banking 3297721 3254764 2978520 3297721 2978520 3077030
4. Other Banking Operations - - - - - -
5. Unallocated 538049 492287 553676 538049 553676 557355
Total Segment Assets 6759050 6792042 6653125 6759050 6653125 6692912
Segment Liabilities
1. Treasury 1467994 1529593 1616347 1467994 1616347 1559607
2. Corporate / Wholesale Banking 1179773 1254319 1253635 1179773 1253635 1255173
3. Retail Banking 2987084 2930617 2666282 2987084 2666282 2752878
4. Other Banking Operations - - - - - -
5. Unallocated 487950 443383 495498 487950 495498 498835
Total (a) 6122801 6157912 6031762 6122801 6031762 6066493
Capital Employed (Segment Assets - Segment Liabilities)
1. Treasury 152481 122184 103849 152481 103849 95936
2. Corporate / Wholesale Banking 123032 138895 147098 123032 147098 147811
3. Retail Banking 310637 324147 312238 310637 312238 324152
4. Other Banking - - - - - -
5. Unallocated 50099 48904 58178 50099 58178 58520
Total (b) 636249 634130 621363 636249 621363 626419
Total Segment Liabilities (a+b) 6759050 6792042 6653125 6759050 6653125 6692912

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:

  1. The above financial results for the period ended 31st December 2018 have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 12th February 2019. The same have been subjected to “Limited Review” by the Statutory Central Auditors of the Bank.
  2. There has been no change in the accounting policies followed in the preparation of interim financial results for the period ended 31st December 2018, as compared to those followed in the annual financial statements for the year ended 31st March 2018.
  3. 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.
  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), income from priority sector lending certificates, recoveries from advances written off, etc.
  5. In the Annual General Meeting held on 9th August 2018, the shareholders of the bank approved  an issue of 7,26,63,937 bonus shares to equity shareholders,  in the proportion of 1 (one) bonus  share of Rs. 2/- each for every 10 (ten) fully paid up equity shares. Correspondingly, the basic and diluted Earnings Per Share have been restated for the previous period / year.
  6. Reserve Bank of India vide circulars DBR No. BP.BC.102/21.04.048/2017-18 dated April 02, 2018 and DBR No. BP.BC.113/21.04.048/2017-18 dated June 15, 2018, granted Banks the option to amortise provisioning for mark-to-market losses on investments held in AFS and HFT categories for the quarters ended 31st December 2017, 31st March 2018 and 30th June 2018, equally over four quarters, commencing with the quarter in which the loss was incurred.  Accordingly, the Bank has charged proportionate un-amortised MTM loss of Rs. 2540 lakhs pertaining to the quarters ended 31st March, 2018 and 30th June, 2018 to the profit and loss account during the quarter ended 31st December  2018 and the balance amount of Rs. 2106 lakhs pertaining to the quarter ended 30th June 2018 will be amortised during the quarter ending 31st March 2019.
  7. In accordance with RBI circular DBOD.No.BPBC.1/21.06.201/2015-16 dated July 01, 2015, read together with RBI circular DBR.No.BP.BC.80/21.06.201/2014-15 dated March 31, 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.
  8. Provision Coverage Ratio calculated as per the guidelines of Reserve Bank of India is 56.09% as on 31st December 2018.
  9. The financial results for the quarter ended 31st December 2017, and for the period 1st April 2017 to 31st December 2017, were reviewed by the predecessor Central Statutory Auditors. Also, the financial results for the year ended 31st March 2018 had been audited by the predecessor Central Statutory Auditors.
  10. Previous period’s / year’s figures have been re-classified / regrouped wherever considered necessary to conform to the current period’s classification.

For and on behalf of Board of Directors

P. R. Seshadri
Managing Director & CEO

Place: Karur
Date: 12.02.2019

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