Unaudited Financial Results for the Quarter/Nine Months Ended 31st December 2021

(Rs. In Lakh)
Particulars Quarter ended Nine Months ended Year ended
31-12-2021 30-09-2021 31-12-2020 31-12-2021 31-12-2020 31-03-2021
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
1. Interest earned (a+b+c+d) 140451 139795 135031 417840 412111 547042
a) Interest / discount on advances / bills 113313 113619 110465 338735 335706 445354
b) Income on Investments 23478 23006 23455 68340 72209 94179
c) Interest on balances with Reserve Bank of India & other interbank funds 3571 3139 843 10548 3584 6829
d) Other Interest 89 31 268 217 612 680
2. Other income 19561 16466 26327 56358 74975 91882
3. Total Income (1+2) 160012 156261 161358 474198 487086 638924
4. Interest Expended 71728 71764 76673 217296 237420 311091
5. Operating Expenses (i+ii) 48125 46957 57816 138012 140754 198683
(i) Employees cost 24336 25115 36828 72186 80247 115368
(ii) Other operating expenses 23789 21842 20988 65826 60507 83315
6. Total Expenditure (excluding provisions and contingencies) (4+5) 119853 118721 134489 355308 378174 509774
7. Operating Profit before Provisions and Contingencies (3-6) 40159 37540 26869 118890 108912 129150
8. Provisions (other than tax) and Contingencies 14610 16571 21299 55917 73308 75713
9. Exceptional items - - - - - -
10. Profit from ordinary activity before tax (7-8-9) 25549 20969 5570 62973 35604 53437
11. Tax expense 7001 4424 2107 16993 10102 17498
12. Net Profit from ordinary activities after tax(10-11) 18548 16545 3463 45980 25502 35939
13. Extraordinary items (net of tax expense) - - - - - -
14. Net Profit for the period (12-13) 18548 16545 3463 45980 25502 35939
15. Paid-up equity share capital (FV Rs.2/- per share) 15987 15986 15986 15987 15986 15986
16. Reserves excluding Revaluation Reserve 679988
17. Analytical Ratios
(i) % of shares held by Government of India - - - - - -
(ii) Capital Adequacy Ratio-Basel III (%) 18.79 18.82 18.52 18.79 18.52 18.98
(iii) Earnings per share (EPS)1 (Rs..)
a) Basic EPS before and after extraordinary items 2.32 2.07 0.43 5.75 3.19 4.50
b) Diluted EPS before and after extraordinary items 2.32 2.07 0.43 5.75 3.19 4.50
(iv) NPA Ratios
a) Gross NPA 388752 397164 384247 388752 384247 414287
b) Net NPA 135557 153771 126311 135557 126311 171939
c) % of Gross NPA 6.97 7.38 7.37 6.97 7.37 7.85
d) % of Net NPA 2.55 2.99 2.55 2.55 2.55 3.41
(v) Return on Asset (annualized) (%) 0.93 0.86 0.19 0.79 0.47 0.49
18. Net worth2 733292 713823 677252 733292 677252 684039
19. Paid up debt capital/ Outstanding debt3 (%) 37.57 42.07 35.04 37.57 35.04 19.26
20. Debt/equity ratio4 0.11 0.11 0.12 0.11 0.12 0.11
21. Total debts to total assets5 (%) 1.67 1.53 1.91 1.67 1.91 3.39

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 YEAR ENDED 31st DECEMBER 2021
Business Segments Quarter ended Nine Month ended Year ended
31-12-2021 30-09-2021 31-12-2020 31-12-2021 31-12-2020 31-03-2021
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
Segment Revenue
1. Treasury 24404 24315 31791 77159 104214 125915
2. Corporate / Wholesale Banking 33769 37744 31168 101168 93564 125211
3. Retail Banking 100888 93334 97654 293426 287481 385018
4. Other Banking Operations 951 868 745 2445 1827 2780
Total 160012 156261 161358 474198 487086 638924
Segment Results
1. Treasury 4224 4127 9697 16192 34244 35538
2. Corporate / Wholesale Banking 9856 10574 4832 28982 20927 26455
3. Retail Banking 31145 28107 17247 89275 68766 86877
4. Other Banking Operations 691 633 514 1796 1350 1996
Total 45916 43441 32290 136245 125287 150866
Less: Unallocated income/expenses 5757 5901 5421 17355 16375 21716
Operating Profit 40159 37540 26869 118890 108912 129150
Tax expense 7001 4424 2107 16993 10102 17498
Other Provisions 14610 16571 21299 55917 73308 75713
Net Profit from ordinary activities 18548 16545 3463 45980 25502 35939
Extraordinary items - - - - - -
Net Profit 18548 16545 3463 45980 25502 35939
Segment Assets
1. Treasury 1905877 1914619 1837265 1905877 1837265 1912596
2. Corporate / Wholesale Banking 1324378 1281695 1203033 1324378 1203033 1177076
3. Retail Banking 3998291 3856439 3748212 3998291 3748212 3859275
4. Other Banking Operations - - - - - -
5. Unallocated 532635 534605 471255 532635 471255 513372
Total Segment Assets 7761181 7587358 7259765 7761181 7259765 7462319
Segment Liabilities
1. Treasury 1761533 1758602 1676339 1761533 1676339 1836846
2. Corporate / Wholesale Banking 1189875 1154164 1086600 1189875 1086600 1045290
3. Retail Banking 3593340 3473425 3385706 3593340 3385706 3428179
4. Other Banking Operations - - - - - -
5. Unallocated 478461 481756 425590 478461 425590 456030
Total (a) 7023209 6867947 6574235 7023209 6574235 6766345
Capital employed (Segment assets - Segment liabilities)
1. Treasury 144344 156017 160926 144344 160926 75750
2. Corporate / Wholesale Banking 134503 127531 116433 134503 116433 131786
3. Retail Banking 404951 383014 362506 404951 362506 431096
4. Other Banking Operations - - - - - -
5. Unallocated 54174 52849 45665 54174 45665 57342
Total (b) 737972 719411 685530 737972 685530 695974
Total Segment Liabilities (a+b) 7761181 7587358 7259765 7761181 7259765 7462319

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 quarter / nine months ended 31st December 2021 have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 31st January 2022. 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. The financial results for the period ended 31st December 2020 and year ended 31st March 2021 were reviewed/audited by the erstwhile statutory auditor.

2. There has been no change in the accounting policies followed in the preparation of the financial results for the quarter / nine months ended 31st December 2021, as compared to those followed for the year ended 31st March 2021. The figures for the quarter / half-year ended 30th September 2021 with corresponding figures for the comparable period were disclosed based on the RBI Master Direction on Financial Statements – Presentation and Disclosures dated 30th August 2021. The said master directions were updated by RBI on 15th November 2021 wherein the presentation of recoveries in written off accounts were restored to the earlier disclosures under 'Other Income'. The figures for the current period are accordingly presented as per the updated directions.

3. The financial results are prepared after considering provisions for NPA, non-performing investments, standard advances, restructured advances, exposures to entities with unhedged foreign currency exposure, taxes on income and other usual and necessary provisions. Provision for employees’ benefits (including 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), recoveries in written off accounts, premium on sale of priority sector lending certificates, profit on bullion business etc.

5. During the quarter and nine months ended 31st December 2021, the Bank has allotted 36,728 equity shares of face value Rs. 2/- each, pursuant to the exercise of stock options by employees.

6. The revision in family pension payable to employees of the Bank covered under 11th Bipartite Settlement and Joint Note dated 11th November 2020 was quantified on 26th August 2021; the Bank has opted to amortize the additional liability of Rs. 8026 lakh based on actuarial valuation during the three quarters of financial year 2021-22 equally. Accordingly, an amount of Rs. 5351 lakh is expensed to Profit & Loss account during the nine months ended 31st December 2021 (Rs. 2676 lakh during the quarter ended 30th September 2021 and Rs. 2675 lakh during the quarter ended 31st December 2021). The balance amount of Rs. 2675 lakh will be amortised in the last quarter of the current financial year.

7. The outbreak of the COVID-19 pandemic had led to a nation-wide lockdown in April-May 2020. This was followed by localised lockdowns in areas with a significant number of COVID-19 cases. Following the easing of lockdown measures, there was an improvement in economic activity in the second half of fiscal 2021. However, India has experienced a “second wave” of the COVID-19 pandemic in April-May 2021 and is currently experiencing a “third wave” following discovery of mutant coronavirus variants, leading to the re-imposition of regional lockdowns at varied levels over the last three quarters. These restrictions are being gradually lifted as the impact of the pandemic subsides. Economic activity improved consequent to the relaxations of restrictions imposed to curb the spread of the pandemic. The extent to which the current pandemic and its future waves, if any, including other related developments would impact the Bank’s and the asset quality are uncertain. The Management continues to closely monitor the day to day operations, business, liquidity position and adequacy of capital and continues to maintain liquidity coverage and capital adequacy ratios at higher levels than the regulatory minimum as on 31st December 2021.

8. Details of restructuring of credit facilities granted to Individuals and Small Businesses as per RBI circular No. DOR.STR.REC.11/21.04.048/2021-22 dated 5th May 2021 (Resolution Framework 2.0 for COVID-19 related stress) :

(Rs. In Lakh)
S. N Description Individual Borrowers Small businesses3
Personal Loans Business Loans 3
A Number of requests received for invoking resolution process1 2,525 13 36
B Number of accounts where resolution plan has been implemented under this window1 2,406 13 35
C Exposure to accounts mentioned at (B) before implementation of the plan 47004 206 8924
D Of (C), aggregate amount of debt that was converted into other securities - - -
E Additional funding sanctioned, if any, including between invocation of the plan and implementation - 2 1063
F Increase in provisions on account of the implementation of the resolution plan2  5149 24 778

1Includes 295 accounts that were restructured under Resolution Framework 1.0 and modified under Resolution Framework 2.0.

2Represents outstanding provision on all accounts that were restructured under Resolution Framework 2.0 as on 31st December 2021.

3 Represents all outstanding accounts related to the borrowers whose accounts were restructured under Resolution Framework 2.0.

9. Disclosure in respect of borrower accounts where modifications were sanctioned and implemented under Resolution Framework 2.0 for COVID-19 related stress:

(Rs. In Lakh)
No. of accounts in respect of which modification were sanctioned and implemented (A) 295
Aggregate exposure to such borrower accounts as on 31st December 2021 8747
Exposure to accounts mentioned at (A) before implementation of the Resolution Plan 8674

10. Disclosures in respect of accounts where the resolution period was extended during the year ended 31st March 2021 (as per RBI circular DOR.No.BP.BC.72/21.04.048/2019-20 dated 23rd May 2020 and DOR.No.BP.BC.62/21.04.048/2020-21 dated 17th April 2020) :

No. of accounts in respect of which resolution period was extended 2
Amount outstanding as on 31st December 2021 (Rs. in lakh) 14033

11. The Honourable Supreme Court of India, vide an interim order dated 3rd September 2020, had directed those accounts which were not declared NPA till 31st August 2020 shall not be declared as NPA till further orders (which was subsequently vacated on 23rd March 2021) and the same was complied with by the Bank. Hence, the results for the quarter / nine months ended 31st December 2021 may not be comparable with the prior period/s.

12. Details of not in default loans / stressed loans transferred / acquired during the quarter ended 31st December 2021 as per Master Directions – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 dated 24th September 2021 are given below:

a. Loans classified as NPAs transferred during the period

(Rs. In Lakh)
Particulars Transferred to
ARCs Permitted transferees Others
No. of accounts 2 - -
Aggregate principal outstanding of loans transferred 7944 - -
Weighted average residual tenor of the loans transferred 0 - -
Net book value of loans transferred (at the time of transfer) 0 - -
Aggregate consideration 7045 - -
Additional consideration realized in respect of accounts transferred in earlier years - - -

b. Loans not in default acquired through assignment 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 19980 -
Aggregate consideration paid 19980 -
Weighted average residual tenor of loans acquired 16.56 months -
Coverage of tangible security 100% -
Retention of beneficial economic interest by the transferor 10% -
Rating wise distribution of loans acquired Not Applicable* -
* - loans acquired are under non-corporate category

c. The Bank has not transferred any stressed (SMA) loans & loans not in default during the period nor has acquired any stressed loans / loans classified as NPA acquired during the period.

13. Provision Coverage Ratio as on 31st December 2021, calculated as per RBI guidelines is 78.81% (corresponding previous period 77.35%).

14. The ratios and other information which is 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.

15. In accordance with RBI circular DBOD.No.BPBC.1/21.06.201/2015-16 dated 1st July 2015, read together with RBI circular DBR.No.BP.BC.80/21.06.201/2014-15 dated 31st March 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/, 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 review by the Statutory Central Auditors.

For and on behalf of Board of Directors

B. Ramesh Babu
Managing Director & CEO

Place: Karur
Date: 31st January 2022

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