Unaudited Financial Results for the Quarter/Nine Months Ended 31st December 2022

(Rs. In Lakh)
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.

(Rs. In Lakh)
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

(Rs. In Lakh)
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.

Place: Karur
Date: 23rd Janauary 2023
For and on behalf of Board of Directors,
B Ramesh Babu
Managing Director & CEO
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