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Unaudited Financial Results for the Quarter/Three Months Ended 30th September 2023

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(Rs. In Lakh)
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/HALF YEAR ENDED 30th SEPTEMBER 2023
Particulars Quarter ended Half Year ended Year ended
30-09-2023 30-06-2023 30-09-2022 30-09-2023 30-09-2022 31-03-2023
Unaudited Unaudited Audited
1. Interest earned (a+b+c+d) 199708 188291 157948 387999 305301 651655
a) Interest / discount on advances  / bills 165667 156903 128611 322570 247023 532695
b) Income on investments 33342 30464 27106 63806 52541 109913
c) Interest on balances with Reserve Bank of India & other interbank funds 598 812 2124 1410 5523 8260
d) Other interest 101 112 107 213 214 787
2. Other income 33889 33316 24157 67205 44064 115894
3. Total income (1+2) 233597 221607 182105 455204 349365 767549
4. Interest expended 108170 98584 75813 206754 148578 316774
5. Operating expenses (i+ii) 61636 58181 49060 119817 96008 203196
    (i) Employees cost 32764 31891 23387 64655 46960 100596
    (ii) Other operating expenses 28872 26290 25673 55162 49048 102600
6. Total expenditure (excluding provisions and contingencies) (4+5) 169806 156765 124873 326571 244586 519970
7. Operating profit before provisions and contingencies (3-6) 63791 64842 57232 128633 104779 247579
8. Provisions (other than tax) and contingencies 12641 15942 22719 28583 38183 103893
9. Exceptional items - - - - - -
10. Profit from ordinary activities before tax  (7-8-9) 51150 48900 34513 100050 66596 143686
11. Tax expense 13305 13037 9490 26342 18698 33077
12. Net profit from ordinary activities after tax (10-11) 37845 35863 25023 73708 47898 110609
13. Extraordinary items (net of tax expense) - - - - - -
14. Net profit for the period (12-13) 37845 35863 25023 73708 47898 110609
15. Paid-up equity share capital (FV Rs.2/- per share) 16053 16048 16009 16053 16009 16041
16. Reserves excluding Revaluation Reserve 842364
17. Analytical ratio
  (i) % of shares held by Government of India - - - - - -
 (ii) Capital adequacy ratio - Basel III (%) 16.84 17.67 18.07 16.84 18.07 18.56
(iii) Earnings per share (EPS) 1 (Rs.)
     a) Basic EPS before and after extraordinary items  4.72 4.47 3.13 9.19 5.99 13.81
     b) Diluted EPS before and after extraordinary items  4.70 4.46 3.12 9.16 5.97 13.78
(iv) NPA ratios
     a) Gross NPA 121908 132965 245653 121908 245653 145815
     b) Net NPA 32363 39002 81872 32363 81872 46815
     c) % of Gross NPA 1.73 1.99 4.02 1.73 4.02 2.27
     d) % of Net NPA 0.47 0.59 1.38 0.47 1.38 0.74
(v) Return on asset (annualised) (%) 1.57 1.53 1.16 1.55 1.13 1.27
18. Net worth 2 912308 873983 790269 912308 790269 837867
19. Paid up debt capital/ Outstanding debt 3 (%) 18.82 31.33 21.35 18.82 21.35 34.01
20. Debt/equity ratio 4 0.10 0.10 0.03 0.10 0.03 0.05
21. Total debts to total assets 5 (%) 2.63 1.64 2.64 2.63 2.64 1.59

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)
SEGMENT REPORTING FOR THE QUARTER/HALF YEAR ENDED 30TH SEPTEMBER 2023
Business Segments Quarter ended Half Year ended Year ended
30-09-2023 30-06-2023 30-09-2022 30-09-2023 30-09-2022 31-03-2023
Unaudited Unaudited Audited
Segment revenue
1. Treasury 36599 34988 31550 71587 57967 124680
2. Corporate/Wholesale banking 41939 39563 38595 81502 74847 157607
3. Retail banking 153113 145766 110857 298879 214539 480325
        a) Digital Banking 0 0 0
        b) Other Retail Banking 153113 145766 110857 298879 214539 480325
4. Other banking operations 1946 1290 1103 3236 2012 4937
Total 233597 221607 182105 455204 349365 767549
Segment results 
1. Treasury 9493 10867 11307 20360 18152 41538
2. Corporate/Wholesale banking 12660 12755 12857 25415 24446 55097
3. Retail banking 47621 47145 38345 94767 72638 171785
        a) Digital Banking (17) (2) (19)
        b) Other Retail Banking 47638 47147 38345 94786 72638 171785
4. Other banking operations 1469 975 832 2443 1506 3734
Total 71243 71742 63341 142985 116742 272154
Less: Unallocated income/expenses 7452 6900 6109 14352 11963 24575
Operating profit 63791 64842 57232 128633 104779 247579
Tax expense 13305 13037 9490 26342 18698 33077
Other provisions 12641 15942 22719 28583 38183 103893
Net profit from ordinary activities 37845 35863 25023 73708 47898 110609
Extraordinary items - - - - - -
Net profit 37845 35863 25023 73708 47898 110609
Segment Assets
1. Treasury 2107593 2081280 1947539 2107593 1947539 1937886
2. Corporate/Wholesale banking 1512092 1371104 1516835 1512092 1516835 1387959
3. Retail banking 5438644 5226159 4423386 5438644 4423386 4925455
       a) Digital Banking 2 -
2
       b ) Other Retail Banking 5438642 5226159 4423386 5438642 4423386 4925455
4. Other banking operations - - - - - -
5. Unallocated  785164 782175 748735 785164 748735 766642
Total segment assets 9843493 9460718 8636495 9843493 8636495 9017942
Segment liabilities 
1. Treasury 1997178 1912734 1845059 1997178 1845059 1769206
2. Corporate/Wholesale banking 1354437 1236030
1359580 1354437 1359580 1252671
3. Retail banking 4871916 4712098 3965699 4871916 3965699 4445801
        a) Digital Banking - -
-
        b) Other Retail Banking 4871916 4712098 3965699 4871916 3965699 4445801
4. Other banking operations - - - - - -
5. Unallocated  703670 705450 671273 703670 671273 691859
                    Total (a) 8927201 8566312 7841611 8927201 7841611 8159537
Capital employed (Segment assets - Segment liabilities)
1. Treasury 110415 168546 102480 110415 102480 168680
2. Corporate/Wholesale banking 157655 135074 157255 157655 157255 135288
3. Retail banking 566728 514061 457687 566728 457687 479654
        a) Digital Banking 2 -
2
        b) Other Retail Banking 566726 514061 457687 566726 457687 479654
4. Other banking operations - - - - - -
5. Unallocated  81494 76725 77462 81494 77462 74783
                     Total (b) 916292 894406 794884 916292 794884 858405
Total segment liabilities (a+b) 9843493 9460718 8636495 9843493 8636495 9017942
For the above segment reporting, the reportable segments are identified into Treasury, Corporate/Wholesale banking, Retail banking (Digital Banking & Other 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 has commenced first DBU on 19.06.2023 and segment information disclosed above is related to the said DBU for the quarter/half year ended 30th September 2023.
(Rs. In Lakh)
STATEMENT OF ASSETS AND LIABILITIES
Particulars As On
30-09-2023 30-09-2022 31-03-2023
Unaudited Audited
Capital and liabilities 
Capital 16053 16009 16041
Reserves and surplus 900237 778875 842364
Deposits 8306850 7339754 7663758
Borrowings 258787 228064 143201
Other liabilities and provisions 361566 273793 352578
Total  9843493 8636495 9017942
Assets 
Cash and balances with Reserve Bank of India 461416 469061 427948
Balances with banks and money at call and short notice 27591 125080 41565
Investments 2083446 1829465 1880832
Advances 6950736 5940222 6313414
Fixed assets 42325 45964 43504
Other assets 277979 226703 310679
Total  9843493 8636495 9017942
(Rs. In Lakh)
CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 30th SEPTEMBER 2023
Particulars Half Year ended Year ended
30-09-2023 30-09-2022 31-03-2023
Unaudited Audited
Cash flow from/ (used in) operating activities
Net Profit as per Profit and Loss account 73708 47898 110609
Adjustments for
Depreciation  on Bank’s property 4960 5514 10566
Interest paid on TIER II bonds 2918 2918 5820
Provisions for other contingencies 5073 1964 18503
Provision for taxes 26342 18698 33078
Provision for depreciation on investment (2197) 2393 (1188)
Provision for standard assets 2760 2020 3451
Provision for bad and doubtful debts 21038 34654 71700
Provision for non performing investments (289) (454) 10238
Provision for compensation absences 1617 465 588
Amortization of premium paid on Held to Maturity (HTM) investments 5305 5531 10757
Provision for employees stock option plan / scheme - - 170
(Profit) /Loss  on sale of fixed assets (net) (752) (4) (104)
Operating profit before working capital changes 140483 121597 274188
Adjustments for working capital changes
(Increase) / Decrease in investments  (excluding HTM investments) (178037) (67495) (58130)
(Increase) / Decrease in advances (658278) (441414) (918127)
(Increase) / Decrease in other assets 32700 (79412) (89758)
Increase / (Decrease) in deposits 643091 472138 815157
Increase / (Decrease) in borrowings 115586 94154 9292
Increase / (Decrease) in other liabilities and provisions (4423) 26443 68599

91122 126011 101221
Direct taxes paid (22500) 42500 20500
Net cash flow from/ ( used in) operating activities 68622 168511 121721
Cash flow from investing activities
Purchase  of fixed assets (3781) (3630) (6222)
(Increase)/Decrease  in HTM investments (27395) (47834) (120902)
Sale of fixed assets / other assets 752 4 104
Net cash flow from / (used in) investing activities (30424) (51460) (127020)
Cash flow from financing activities
Proceeds from share capital 12 9 41
Proceeds from share premium 215 160 767
Increase/(Decrease) in tier II bonds - - -
Interest paid on tier II bonds (2918) (2918) (5820)
Dividend paid (including tax on dividend) (16013) (12778) (12793)
Net cash flow from (used in) financing activities (18704) (15527) (17805)

Net Increase/ (decrease) in cash & cash equivalents 19494 101524 (23104)
Cash and cash equivalents at the beginning of the year 469513 492617 492617
Cash and cash equivalents at the end of the period 489007 594141 469513

Notes:

1. The above financial results for the quarter/half year ended 30 th September 2023 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 16 th October 2023. These results have been subjected to Limited review by the Joint Statutory Central Auditors of the Bank in line with SEBI (Listing Obligations and Disclosures Requirements) Regulation, 2015 as amended.

2. In the previous quarter, the Bank had introduced a floating provision policy with effect from 1 st April 2023 in line with RBI master circular on Income Recognition, Asset Classification and Provisioning pertaining Advances duly approved by the Board of Directors. Accordingly, the Bank has created a provision of Rs.2500 lakhs each  in current quarter of 30 th September 2023 and previous quarter of 30 th June 2023.  Floating provision created is considered as part of Tier II capital. Apart from the new policy on floating provisions, there has been no change in the accounting policies followed in the preparation of the financial results for the period ended 30 th September 2023, as compared to those followed in the annual financial statements for the year ended 31 st March 2023.

3. The financial results are prepared after considering provisions for non-performing advances, non-performing investments, standard advances(including stressed advances/sectors), restructured advances, floating provision on standard advances, exposures to entities with unhedged foreign currency exposure, income tax(including litigated taxes as applicable) and other necessary provisions. 

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), recoveries in written off accounts,  profit on bullion business etc.

5. During the quarter and half year ended 30 th September 2023, the Bank has allotted 2,69,023 equity shares and 6,06,691 equity shares respectively (corresponding quarter and half year of previous year 3,54,892 equity shares and 4,37,132 equity shares respectively) of face value Rs. 2/- each, pursuant to the exercise of stock options by employees. 

6. Disclosure as per RBI Circular DOR.STR.REC.51/21.04.048/2021-22 dated 24 th September 2021 (updated as on December 05, 2022) in respect of loans not in default / stressed loans transferred / acquired during the quarter ended 30 th September 2023 : 

a) Loans not in default acquired through assignment

(Rs. In Lakh)
Particulars Acquired from
SCBs, RRBs, UCBs, StCBs, DCCBs, AIFIs, SFBs and NBFCs (incl. HFCs) ARCs
Aggregate principal outstanding of loans acquired 16796 -
Aggregate consideration paid 15116 -
Weighted average residual tenor of loans acquired Ranging between 19.70 months to 112.95 months -
Coverage of tangible security Ranging between 168% to 193% -
Retention of beneficial economic interest by the transferor 10% -
Rating wise distribution of loans acquired Not Applicable* -
* - loans acquired are under non-corporate category

b) Loans classified as NPAs and SMA transferred

(Rs. In Lakh)
Particulars Quarter ended 30 th Sept. 2023 Transferred to
ARCs Permitted transferees Others
No. of accounts 1 - -
Aggregate principal outstanding of loans transferred 298 - -
Weighted average residual tenor of the loans transferred - - -
Net book value of loans transferred (at the time of transfer) 298 - -
Aggregate consideration 162 - -
Additional consideration realized in respect of accounts transferred in earlier years - - -
Excess provision reversed to the P&L a/c. on account of sale of NPA 162 - -

c) The Bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of stressed loans transferred to ARCs.

d) Recovery Ratings assigned to outstanding SRs as on 30th September 2023 by Credit Rating Agencies:

(Rs. In Lakh)
Rating Scale Book Value
RR1 6820
RR1+ 2295
RR2 7871
RR3 1722
RR5 15726
Unrated* (Rating Withdrawn) 10629
Total 45063
*As per RBI guideline, rating is not applicable after 8 years

7. Disclosure as per RBI circulars DOR.No.BP.BC/3/21.04.048/2020-21 dated 6 th August 2020 (Resolution Framework 1.0) and DOR.STR.REC.11/21.04.048/2021-22 dated 5 th May 2021 (Resolution Framework 2.0) "COVID-19 Related Stress of Individuals and Small Businesses" for the half-year ended 30 th September 2023 :

(Rs. In Lakh)
Type of borrower Exposure to accounts classified as Standard consequent to implementation of resolution plan – Position as at 31.03.2023 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-year 1 Exposure to accounts classified as Standard consequent to implementation of resolution plan – Position as at 30.09.2023
A B C D E
Personal Loans 44079 1976 - 3761 38342
Corporate persons* 16373 - - 796 15577
Of which MSMEs - - - - -
Others 3887 23 - 1245 2619
Total 64339 1999 - 5802 56538
*As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016
1 Represents Net Movement in Balances

8. Provision Coverage Ratio as on 30 th September 2023, calculated as per RBI guidelines is 94.49% (86.94% for the corresponding period of previous year).

9. In accordance with RBI circular DOR.CAP.REC.15/21.06.201/2023-24 dated 12 th May 2023, read together with RBI circular DBR.No.BP.BC.1/21.06.201/2015-16 dated 1 st 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/pillar-III-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 5 th February 2021 read together with circular DBR.BP.BC.No.106/ 21.04.098/2017-18 dated 17 th May 2018. These disclosures have not been subjected to audit/review by the Statutory Central Auditors.

10. The ratios and other information which are 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. Figures for the previous period/s have been re-grouped / re-classified, where necessary, to make them comparable with current period figures. The Figures for the quarter ended 30 th September 2023 are the balancing figures between reviewed figures in respect of half year ended 30 th September 2023 and the published year to date figures upto 30 th June 2023.

Place: Karur
Date: 16th October 2023
For and on behalf of Board of Directors,
B Ramesh Babu
Managing Director & CEO
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