Unaudited Financial Results for the Quarter Ended 30th June 2024

(Rs. In Lakh)
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th JUNE 2024
Particulars Quarter ended Year ended
30-06-2024 31-03-2024 30-06-2023 31-03-2024
Unaudited Audited Unaudited Audited
1. Interest earned (a+b+c+d) 228453 218457 188291 820394
a) Interest / discount on advances / bills 188804 182240 156903 684183
b) Income on investments 38509 35365 30464 133101
c) Interest on balances with Reserve Bank of India & other interbank funds 427 364 812 2205
d) Other interest 713 488 112 905
2. Other income 38835 62885 33316 165869
3. Total income (1+2) 267288 281342 221607 986263
4. Interest expended 126018 118911 98584 439474
5. Operating expenses (i+ii) 66685 75740 58181 263875
   (i) Employees cost 33346 43975 31891 146103
    (ii) Other operating expenses 33339 31765 26290 117772
6. Total expenditure (excluding provisions and contingencies) (4+5) 192703 194651 156765 703349
7. Operating profitbefore provisions and contingencies (3-6) 74585 86691 64842 282914
8. Provisions (other than tax) and contingencies 13294 29341 15942 72895
9. Exceptional items - - - -
10. Profit from ordinary activities before tax (7-8-9) 61291 57350 48900 210019
11. Tax expense 15426 11740 13037 49538
12. Net profit from ordinary activities after tax (10-11) 45865 45610 35863 160481
13. Extraordinary items (net of tax expense) - - - -
14. Net profit for the period (12-13) 45865 45610 35863 160481
15. Paid-up equity share capital (Face Value Rs.2/- per share) 16094 16088 16048 16088
16. Reserves excluding Revaluation Reserve 987920
17. Analytical Ratios
(i) % of shares held by Government of India - - - -
(ii) Capital adequacy ratio - Basel III (%) 16.47 16.67 17.67 16.67
(iii) Earnings per share (EPS)1 (Rs..)
    a) Basic EPS before and after extraordinary items 5.70 5.67 4.47 19.99
    b) Diluted EPS before and after extraordinary items 5.70 5.67 4.46 19.97
(iv) NPA Ratios
    a) Gross NPA 102453 104164 132965 104164
    b) Net NPA 29366 29797 39002 29797
    c) % of Gross NPA 1.32 1.40 1.99 1.40
    d) % of Net NPA 0.38 0.40 0.59 0.40
(v) Return on asset (annualised) (%) 1.70 1.76 1.53 1.63
18. Net worth2 1032237 980282 873983 980282
19. Paid up debt capital/ Outstanding debt3 (%) - - 31.33 -
20. Debt/equity ratio4 0.06 0.07 0.10 0.07
21. Total debts to total assets5 (%) 1.94 2.35 1.64 2.35

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 ENDED 30th JUNE 2024
Business Segments Quarter ended Year ended
30-06-2024 31-03-2024 30-06-2023 31-03-2024
Unaudited Audited Unaudited Audited
Segment Revenue
1. Treasury 40859 58120 34988 167984
2. Corporate/Wholesale banking 48411 47382 39563 174149
3. Retail banking 175656 170902 145766 633516
   a) Digital Banking 1 1 - 1
   b) Other Retail Banking 175655 170901 145766 633515
4. Other banking operations 2362 4938 1290 10614
Total 267288 281342 221607 986263
Segment results
1. Treasury 9320 27861 10867 58446
2. Corporate/Wholesale banking 15768 13617 12755 52426
3. Retail banking 55842 49465 47145 193840
   a) Digital Banking (10) (12) (2) (41)
   b) Other Retail Banking 55852 49477 47147 193881
4. Other banking operations 1828 3716 975 7978
Total 82758 94659 71742 312690
Less: Unallocated income/expenses 8173 7968 6900 29776
Operating profit 74585 86691 64842 282914
Tax expense 15426 11740 13037 49538
Other provisions 13294 29341 15942 72895
Net profit from ordinary activities 45865 45610 35863 160481
Extraordinary items - - - -
Net profit 45865 45610 35863 160481
Segment assets
1. Treasury 2317406 2311896 2081280 2311896
2. Corporate/Wholesale banking 1637057 1567949 1371104 1567949
3. Retail banking 6059430 5798800 5226159 5798800
   c) Digital Banking - 2 - 2
   d) Other Retail Banking 6059430 5798798 5226159 5798798
4. Other banking operations - - - -
5. Unallocated 873512 879875 782175 879875
Total segment assets 10887405 10558520 9460718 10558520
Segment Liabilities
1. Treasury 2119787 2147669 1912734 2147669
2. Corporate/Wholesale banking 1473059 1408343 1236030 1408343
3. Retail banking 5451493 5208500 4712098 5208500
   a) Digital Banking - - - -
   b) Other Retail Banking 5451493 5208500 4712098 5208500
4. Other banking operations - - - -
5. Unallocated 784521 789998 705450 789998
Total (a) 9828860 9554510 8566312 9554510
Capital employed (Segment assets - Segment liabilities)
1. Treasury 197619 164227 168546 164227
2. Corporate/Wholesale banking 163998 159606 135074 159606
3. Retail banking 607937 590300 514061 590300
   a) Digital Banking - 2 - 2
   b) Other Retail Banking 607937 590298 514061 590298
4. Other banking operations - - - -
5. Unallocated 88991 89877 76725 89877
Total (b) 1058545 1004010 894406 1004010
Total segment liabilities (a+b) 10887405 10558520 9460718 10558520

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.

Digital Banking Segment is a sub-segment of Retail Banking Segment under Accounting Standard 17 – Segment Reporting and segment information disclosed above is related to the said DBU for the quarter ended 30th June 2024.

Notes:

1) The above financial results for the quarter ended 30th June 2024 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 18th July 2024. 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) From 1st April 2024, the Bank has changed its accounting policy with respect to ‘Investments’ to comply with RBI’s master direction on Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions) 2023 dated 12th September 2023 (‘Master direction') which is effective from 1st April 2024. Accordingly ,the investments of the Bank as at 1st April 2024 have been re-classified, wherever required and valued in accordance with the requirement of said master direction and transitional adjustment on account of AFS and other securities has been adjusted in AFS reserve and opening General reserve to the extent of Rs.2300.60 lakhs and Rs.26097.86 lakhs (which includes reversal of provision for depreciation of Rs.5805.86 lakhs and transfer of Investment Reserve of Rs.20292 lakhs) respectively. All investment purchased and sold during the current quarter are done in compliance with the requirement of the master direction & revised accounting policy. The impact on account of this change in the policy is not material. Apart from the above, there has been no other change in the accounting policy followed in the preparation of the financial results for the quarter ended 30th June 2024 as compared to earlier years.

3) The financial results are prepared after considering provisions for non-performing advances, non-performing investments, standard advances (including stressed advances/sectors), restructured 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 ended 30th June 2024, the Bank has allotted 301664 equity shares (corresponding quarter of previous year 337668 equity shares) 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 30th June 2024 :

  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 30th June 2024 by Credit Rating Agencies:
(Rs. In Lakh)
Rating Scale Book Value
RR1 -
RR1 + -
RR2 -
RR4 -
Unrated* (Rating Withdrawn) 25214.95
Unrated 1115.93
Total 26330.88
*As per RBI guideline, rating is not applicable after 8 years

7) Provision Coverage Ratio as on 30th June 2024, calculated as per RBI guidelines is 94.91% (93.41% for the corresponding period of previous year).

8) In accordance with RBI circular DOR.CAP.REC.4/21.06.201/2024-25 dated 01st April 2024, 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 figures for the quarter ended 31st March 2024 are the balancing figures between audited figures for the financial year ended 31st March 2024 and unaudited published figures for nine months ended 31st December 2023 which were subject to limited review.

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: 18th July 2024
For and on behalf of Board of Directors,
B Ramesh Babu
MD & CEO

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