Unaudited Financial Results for the Quarter/Nine Months Ended 31st December 2022
| UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/NINE MONTHS ENDED 31st DECEMBER 2022 | ||||||
|---|---|---|---|---|---|---|
| Particulars | Quarter ended | Nine Months ended | Year ended | |||
| 31-12-2022 | 30-09-2022 | 31-12-2021 | 31-12-2022 | 31-12-2021 | 31-03-2022 | |
| Unaudited | Unaudited | Audited | ||||
| 1. Interest earned (a+b+c+d) | 169522 | 157948 | 140451 | 474823 | 417840 | 558767 |
| a) Interest / discount on advances / bills | 139580 | 128611 | 113313 | 386603 | 338735 | 452548 |
| b) Income on Investments | 28133 | 27106 | 23478 | 80674 | 68340 | 92478 |
| c) Interest on balances with Reserve Bank of India & other interbank funds | 1651 | 2124 | 3571 | 7174 | 10548 | 13433 |
| d) Other Interest | 158 | 107 | 89 | 372 | 217 | 308 |
| 2. Other income | 31749 | 24157 | 19561 | 75813 | 56358 | 76906 |
| 3. Total Income (1+2) | 201271 | 182105 | 160012 | 550636 | 474198 | 635673 |
| 4. Interest Expended | 80622 | 75813 | 71728 | 229200 | 217296 | 287230 |
| 5. Operating Expenses (i+ii) | 51754 | 49060 | 48125 | 147762 | 138012 | 185422 |
| (i) Employees cost | 25571 | 23387 | 24336 | 72531 | 72186 | 94503 |
| (ii) Other operating expenses | 26183 | 25673 | 23789 | 75231 | 65826 | 90919 |
| 6. Total Expenditure (excluding provisions and contingencies) (4+5) | 132376 | 124873 | 119853 | 376962 | 355308 | 472652 |
| 7. Operating Profit before Provisions and Contingencies (3-6) | 68895 | 57232 | 40159 | 173674 | 118890 | 163021 |
| 8. Provisions (other than tax) and Contingencies | 36409 | 22719 | 14610 | 74592 | 55917 | 69929 |
| 9. Exceptional items | - | - | - | - | - | - |
| 10. Profit from ordinary activity before tax (7-8-9) | 32486 | 34513 | 25549 | 99082 | 62973 | 93092 |
| 11. Tax expense | 3557 | 9490 | 7001 | 22255 | 16993 | 25765 |
| 12. Net Profit from ordinary activities after tax(10-11) | 28929 | 25023 | 18548 | 76827 | 45980 | 67327 |
| 13. Extraordinary items (net of tax expense) | - | - | - | - | - | - |
| 14. Net Profit for the period (12-13) | 28929 | 25023 | 18548 | 76827 | 45980 | 67327 |
| 15. Paid-up equity share capital (FV Rs.2/- per share) | 16019 | 16009 | 15987 | 16019 | 15987 | 16000 |
| 16. Reserves excluding Revaluation Reserve | 743620 | |||||
| 17. Analytical Ratios | ||||||
| (i) % of shares held by Government of India | - | - | - | - | - | - |
| (ii) Capital Adequacy Ratio-Basel III (%) | 17.86 | 18.31 | 18.79 | 17.86 | 18.79 | 19.46 |
| (iii) Earnings per share (EPS)1 (Rs..) | ||||||
| a) Basic EPS before and after extraordinary items | 3.61 | 3.13 | 2.32 | 9.60 | 5.75 | 8.42 |
| b) Diluted EPS before and after extraordinary items | 3.60 | 3.12 | 2.32 | 9.57 | 5.75 | 8.41 |
| (iv) NPA Ratios | ||||||
| a) Gross NPA | 167434 | 245653 | 388752 | 167434 | 388752 | 343104 |
| b) Net NPA | 55043 | 81872 | 135557 | 55043 | 135557 | 126079 |
| c) % of Gross NPA | 2.66 | 3.97 | 6.97 | 2.66 | 6.97 | 5.96 |
| d) % of Net NPA | 0.89 | 1.36 | 2.55 | 0.89 | 2.55 | 2.28 |
| (v) Return on Asset (annualized) (%) | 1.32 | 1.16 | 0.93 | 1.19 | 0.79 | 0.86 |
| 18. Net worth2 | 819844 | 790269 | 733292 | 819844 | 733292 | 741781 |
| 19. Paid up debt capital/ Outstanding debt3 (%) | 33.07 | 21.35 | 37.57 | 33.07 | 37.57 | 36.37 |
| 20. Debt/equity ratio4 | 0.05 | 0.03 | 0.11 | 0.05 | 0.11 | 0.09 |
| 21. Total debts to total assets5 (%) | 1.65 | 2.64 | 1.67 | 1.65 | 1.67 | 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. | ||||||
| SEGMENT REPORTING FOR THE QUARTER/NINE MONTHS ENDED 31st DECEMBER 2022 | ||||||
|---|---|---|---|---|---|---|
| Business Segments | Quarter ended | Nine Month ended | Year ended | |||
| 31-12-2022 | 30-09-2022 | 31-12-2021 | 31-12-2022 | 31-12-2021 | 31-03-2022 | |
| Unaudited | Unaudited | Audited | ||||
| Segment Revenue | ||||||
| 1. Treasury | 30979 | 31550 | 24404 | 88946 | 77159 | 101825 |
| 2. Corporate / Wholesale Banking | 42802 | 38241 | 33769 | 116961 | 101168 | 135997 |
| 3. Retail Banking | 126259 | 111211 | 100888 | 341486 | 293426 | 394225 |
| 4. Other Banking Operations | 1231 | 1103 | 951 | 3243 | 2445 | 3626 |
| Total | 201271 | 182105 | 160012 | 550636 | 474198 | 635673 |
| Segment Results | ||||||
| 1. Treasury | 10272 | 11306 | 4224 | 28423 | 16192 | 21787 |
| 2. Corporate / Wholesale Banking | 15681 | 12606 | 9856 | 39644 | 28982 | 39887 |
| 3. Retail Banking | 48254 | 38589 | 31145 | 121363 | 89275 | 121875 |
| 4. Other Banking Operations | 939 | 831 | 691 | 2444 | 1796 | 2660 |
| Total | 75146 | 63332 | 45916 | 191874 | 136245 | 186209 |
| Less: Unallocated income/expenses | 6251 | 6100 | 5757 | 18200 | 17355 | 23188 |
| Operating Profit | 68895 | 57232 | 40159 | 173674 | 118890 | 163021 |
| Tax expense | 3557 | 9490 | 7001 | 22255 | 16993 | 25765 |
| Other Provisions | 36409 | 22719 | 14610 | 74592 | 55917 | 69929 |
| Net Profit from ordinary activities | 28929 | 25023 | 18548 | 76827 | 45980 | 67327 |
| Extraordinary items | - | - | - | - | - | - |
| Net Profit | 28929 | 25023 | 18548 | 76827 | 45980 | 67327 |
| Segment Assets | ||||||
| 1. Treasury | 2047214 | 1947539 | 1905877 | 2047214 | 1905877 | 1848842 |
| 2. Corporate / Wholesale Banking | 1545515 | 1519160 | 1324378 | 1545515 | 1324378 | 1385684 |
| 3. Retail Banking | 4625413 | 4496982 | 3998291 | 4625413 | 3998291 | 4147778 |
| 4. Other Banking Operations | - | - | - | - | - | - |
| 5. Unallocated | 683111 | 672814 | 532635 | 683111 | 532635 | 622068 |
| Total Segment Assets | 8901253 | 8636495 | 7761181 | 8901253 | 7761181 | 8004372 |
| Segment Liabilities | ||||||
| 1. Treasury | 1857785 | 1845059 | 1761533 | 1857785 | 1761533 | 1738133 |
| 2. Corporate / Wholesale Banking | 1402205 | 1361902 | 1189875 | 1402205 | 1189875 | 1239526 |
| 3. Retail Banking | 4196921 | 4031510 | 3593340 | 4196921 | 3593340 | 3710702 |
| 4. Other Banking Operations | - | - | - | - | - | - |
| 5. Unallocated | 620330 | 603139 | 478461 | 620330 | 478461 | 556391 |
| Total (a) | 8077241 | 7841610 | 7023209 | 8077241 | 7023209 | 7244752 |
| Capital employed (Segment assets - Segment liabilities) | ||||||
| 1. Treasury | 189429 | 102480 | 144344 | 189429 | 144344 | 110709 |
| 2. Corporate / Wholesale Banking | 143310 | 157258 | 134503 | 143310 | 134503 | 146158 |
| 3. Retail Banking | 428492 | 465472 | 404951 | 428492 | 404951 | 437076 |
| 4. Other Banking Operations | - | - | - | - | - | - |
| 5. Unallocated | 62781 | 69675 | 54174 | 62781 | 54174 | 65677 |
| Total (b) | 824012 | 794885 | 737972 | 824012 | 737972 | 759620 |
| Total Segment Liabilities (a+b) | 8901253 | 8636495 | 7761181 | 8901253 | 7761181 | 8004372 |
| 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. However, as the proposed DBUs of the Bank are yet to commence operations and having regard to the discussions of the DBU Working Group formed by Indian Banks' Association (IBA) (which included representatives of banks and RBI), the reporting of Digital Banking Segment will be undertaken based on the decision of the DBU Working Group.
Notes:
1) The above financial results for the quarter/nine months ended 31st December 2022 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 23rd January 2023. The same has been subjected to limited review as per listing agreement with the stock exchange by the Joint Statutory Central Auditors of the Bank and an unqualified review report has been issued.
2) There has been no change in the accounting policies followed in the preparation of the financial results for the period ended 31st December 2022, as compared to those followed for the year ended 31st March 2022.
3) The financial results are prepared after considering provisions for non-performing advances, non-performing investments, standard advances, restructured advances, exposures to entities with unhedged foreign currency exposure, taxes on income after considering the available tax deductions including deferred tax and other usual and 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 nine months ended 31st December 2022, the Bank has allotted 501958 equity shares and 939090 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 24th September 2021 updated on 5th December 2022 in respect of loans not in default / stressed loans transferred / acquired during the quarter ended 31st December 2022 :
a. Loans classified as NPAs transferred during the period
| Particulars | Acquired from | |
|---|---|---|
| SCBs, RRBs, UCBs, StCBs, DCCBs, AIFIs, SFBs and NBFCs (incl. HFCs) | ARCs | |
| Aggregate principal outstanding of loans acquired | Nil | Nil |
| Aggregate consideration paid | Nil | Nil |
| Weighted average residual tenor of loans acquired | Nil | Nil |
| Coverage of tangible security | Nil | Nil |
| Retention of beneficial economic interest by the transferor | Nil | Nil |
| Rating wise distribution of loans acquired | Nil | Nil |
b) The Bank has not acquired any stressed loans / loans classified as NPA nor has transferred any stressed (SMA) loans & loans not in default.
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 31st December 2022 by Credit Rating Agencies:
| Rating Scale | Book Value |
| RR1 | 22189 |
| RR3 | 1005 |
| RR4 | 15600 |
| Unrated* (Rating Withdrawn) | 10337 |
| Total | 49131 |
*As per RBI guidelines, rating is not applicable after 8 years
7) The COVID-19 pandemic affected the world economy over the last two years. Currently, the number of new COVID-19 cases has reduced significantly and Government of India has withdrawn COVID-19 related restrictions. Going forward, the extent to which the pandemic will impact the Bank’s operations will be dependent on the on-going and subsequent developments with regard to its nature and severity as well as the action(s) that are likely to be undertaken to contain its spread and / or mitigate the impact thereof. 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 adequate levels higher than the regulatory minimum as on 31st December 2022.
8) Provision Coverage Ratio as on 31st December 2022, calculated as per RBI guidelines is 90.87% (78.81% for the corresponding period of previous year).
9) 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.
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 and re-classified, where necessary, to make them comparable with current period figures.
Date: 23rd Janauary 2023
B Ramesh Babu
Managing Director & CEO
