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Unaudited Financial Results for the Quarter/Nine Months Ended 31st December 2023

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(Rs. In Lakh)
SEGMENT REPORTING FOR THE QUARTER/NINE MONTHS ENDED 31st DECEMBER 2023
Particulars Quarter ended Nine Months ended Year ended
31-12-2023 30-09-2023 31-12-2022 31-12-2023 31-12-2022 31-03-2023
Unaudited Unaudited Audited
1. Interest earned (a+b+c+d) 213938 199708 169522 601937 474823 651655
a) Interest / discount on advances / bills 179373 165667 139580 501943 386603 532695
b) Income on Investments 33930 33342 28133 97736 80674 109913
c) Interest on balances with Reserve Bank of India & other interbank funds 431 598 1651 1841 7174 8260
d) Other interest 204 101 158 417 372 787
2. Other income 35779 33889 31749 102984 75813 115894
3. Total income (1+2) 249717 233597 201271 704921 550636 767549
4. Interest expended 113809 108170 80622 320563 229200 316774
5. Operating expenses (i+ii) 68318 61636 51754 188135 147762 203196
   (i) Employees cost 37473 32764 25571 102128 72531 100596
   (ii) Other operating expenses 30845 28872 26183 86007 75231 102600
6. Total expenditure (excluding provisions and contingencies) (4+5) 182127 169806 132376 508698 376962 519970
7. Operating profit before provisions and contingencies (3-6) 67590 63791 68895 196223 173674 247579
8. Provisions (other than tax) and contingencies 14971 12641 36409 43554 74592 103893
9. Exceptional items - - - - - -
10. Profit from ordinary activities before tax (7-8-9) 52619 51150 32486 152669 99082 143686
11. Tax expense 11456 13305 3557 37798 22255 33077
12. Net profit from ordinary activities after tax (10-11) 41163 37845 28929 114871 76827 110609
13. Extraordinary items (net of tax expense) - - - - - -
14. Net profit for the period (12-13) 41163 37845 28929 114871 76827 110609
15. Paid-up equity share capital (FV Rs.2/- per share) 16076 16053 16019 16076 16019 16041
16. Reserves excluding Revaluation Reserve 842364
17. Analytical Ratios
(i) % of shares held by Government of India - - - - - -
(ii) Capital adequacy ratio - Basel III (%) 15.39 16.84 17.62 15.39 17.62 18.56
(iii) Earnings per share (EPS)1 (Rs..)
    a) Basic EPS before and after extraordinary items 5.13 4.72 3.61 14.31 9.60 13.81
    b) Diluted EPS before and after extraordinary items 5.12 4.70 3.60 14.29 9.57 13.78
(iv) NPA Ratios
    a) Gross NPA 115186 121908 167434 115186 167434 145815
    b) Net NPA 30527 32363 55043 30527 55043 46815
    c) % of Gross NPA 1.58 1.73 2.70 1.58 2.70 2.27
    d) % of Net NPA 0.42 0.47 0.90 0.42 0.90 0.74
(v) Return on Asset (annualized) (%) 1.65 1.57 1.32 1.58 1.19 1.27
18. Net worth2 954260 912308 819844 954260 819844 837867
19. Paid up debt capital/ Outstanding debt3 (%) 16.27 18.82 33.07 16.27 33.07 34.01
20. Debt/equity ratio4 0.11 0.10 0.05 0.11 0.05 0.05
21. Total debts to total assets5 (%) 2.91 2.63 1.65 2.91 1.65 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/NINE MONTHS ENDED 31st DECEMBER 2023
Business Segments Quarter ended Nine Month ended Year ended
31-12-2023 30-09-2023 31-12-2022 31-12-2023 31-12-2022 31-03-2023
Unaudited Unaudited Audited
Segment Revenue
1. Treasury 38277 36599 30979 109864 88946 124680
2. Corporate/Wholesale banking 45265 41939 43209 126767 118056 157607
3. Retail banking 163735 153113 125853 462614 340391 480325
    a) Digital Banking 0 0 0
    b) Other Retail Banking 163735 153113 125853 462614 340391 480325
4. Other banking operations 2440 1946 1230 5676 3243 4937
Total 249717 233597 201271 704921 550636 767549
Segment Results
1. Treasury 10225 9493 10273 30585 28425 41538
2. Corporate/Wholesale banking 13394 12660 15977 38809 40423 55097
3. Retail banking 49608 47621 47966 144375 120604 171785
    a)Digital Banking (10) (17) (29)
    b) Other Retail Banking 49618 47638 47966 144404 120604 171785
4. Other banking operations 1820 1469 938 4262 2444 3734
Total 75047 71243 75154 218031 191896 272154
Less: Unallocated income/expenses 7457 7452 6259 21808 18222 24575
Operating profit 67590 63791 68895 196223 173674 247579
Tax expense 11456 13305 3557 37798 22255 33077
Other provisions 14971 12641 36409 43554 74592 103893
Net profit from ordinary activities 41163 37845 28929 114871 76827 110609
Extraordinary items - - - - - -
Net profit 41163 37845 28929 114871 76827 110609
Segment assets
1. Treasury 2164373 2107593 2047214 2164373 2047214 1937886
2. Corporate/Wholesale banking 1562461 1512092 1543134 1562461 1543134 1387959
3. Retail banking 5617348 5438644 4547189 5617348 4547189 4925455
    a) Digital Banking 2 2 2
    b ) Other Retail Banking 5617346 5438642 4547189 5617346 4547189 4925455
4. Other banking operations - - - - - -
5. Unallocated 942649 785164 763716 942649 763716 766642
Total segment assets 10286831 9843493 8901253 10286831 8901253 9017942
Segment liabilities
1. Treasury 2034860 1997178 1857785 2034860 1857785 1769206
2. Corporate/Wholesale banking 1403205 1354437 1400589 1403205 1400589 1252671
3. Retail banking 5044702 4871916 4125842 5044702 4125842 4445801
    a) Digital Banking 0 0 0
    b) Other Retail Banking 5044702 4871916 4125842 5044702 4125842 4445801
4. Other banking operations - - - - - -
5. Unallocated 846171 703670 693025 846171 693025 691859
Total (a) 9328938 8927201 8077241 9328938 8077241 8159537
Capital employed (Segment assets - Segment liabilities)
1. Treasury 129513 110415 189429 129513 189429 168680
2. Corporate/Wholesale banking 159256 157655 142545 159256 142545 135288
3. Retail banking 572646 566728 421347 572646 421347 479654
    a)Digital Banking 2 2 2
    b) Other Retail Banking 572644 566726 421347 572644 421347 479654
4. Other banking operations - - - - - -
5. Unallocated 96478 81494 70691 96478 70691 74783
Total (b) 957893 916292 824012 957893 824012 858405
Total segment liabilities (a+b) 10286831 9843493 8901253 10286831 8901253 9017942
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 has commenced first DBU on 19.06.2023 and segment information disclosed above is related to the said DBU for the quarter/nine months ended 31st December 2023.

Notes:

1) The above financial results for the quarter/nine months ended 31st December 2023 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 22nd January 2024. 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 quarter ended June-23, the Bank had introduced a floating provision policy with effect from 1st 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 last 3 quarters. 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 31st December 2023, as compared to those followed in the annual financial statements for the year ended 31st 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 nine months ended 31st December 2023, the Bank has allotted 11,39,658 equity shares and 17,46,349 equity shares respectively (corresponding quarter and nine months of previous year 5,01,958 equity shares and 9,39,090 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 as on December 05, 2022) in respect of loans not in default / stressed loans transferred / acquired during the quarter ended 31st December 2023 :

  1. The Bank has not acquired any "loans not in default" through assignment.
  2. The Bank has neither transferred any stressed (SMA) loans & loans not in default nor has acquired any stressed loans / loans classified as NPA.
  3. The Bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of stressed loans transferred to ARCs.
  4. Recovery Ratings assigned to outstanding SRs as on 31st December 2023 by Credit Rating Agencies:
(Rs. In Lakh)
Rating Scale Book Value
RR1 6817.89
RR1+ 2295.00
RR2 6110.13
RR3 1609.12
RR5 15714.58
Unrated* (Rating Withdrawn) 10244.18
Total 42790.90

*As per RBI guideline, rating is not applicable after 8 years

7) Provision Coverage Ratio as on 31st December 2023, calculated as per RBI guidelines is 94.81% (90.87% for the corresponding period of previous year).

8) In accordance with RBI circular DOR.CAP.REC.15/21.06.201/2023-24 dated 12th May 2023, 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/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 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.

9) 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.

10) Figures for the previous period/s have been re-grouped / re-classified, where necessary, to make them comparable with current period figures.

Place: Karur
Date: 22nd Janauary 2024
For and on behalf of Board of Directors,
B Ramesh Babu
Managing Director & CEO
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