Unaudited Financial Results for the Quarter/Three Months Ended 30th June 2022

(Rs. In Lakh)
Particulars Quarter ended Year ended
30-06-2022 31-03-2022 30-06-2021 31-03-2022
Unaudited Audited Unaudited Audited
1. Interest earned (a+b+c+d) 147353 140927 137594 558767
a) Interest / discount on advances / bills 118412 113813 111803 452548
b) Income on Investments 25435 24138 21856 92478
c) Interest on balances with Reserve Bank of India & other interbank funds 3399 2885 3838 13433
d) Other Interest 107 91 97 308
2. Other income 19907 20548 20332 76906
3. Total Income (1+2) 167260 161475 157926 635673
4. Interest Expended 72765 69934 73804 287230
5. Operating Expenses (i+ii) 46948 47410 42930 185422
(i) Employees cost 23573 22317 22735 94503
(ii) Other operating expenses 23375 25093 20195 90919
6. Total Expenditure (excluding provisions and contingencies) (4+5) 119713 117344 116734 472652
7. Operating Profit before Provisions and Contingencies (3-6) 47547 44131 41192 163021
8. Provisions (other than tax) and Contingencies 15464 14012 24737 69929
9. Exceptional items - - - -
10. Profit from ordinary activity before tax (7-8-9) 32083 30119 16455 93092
11. Tax expense 9208 8772 5568 25765
12. Net Profit from ordinary activities after tax(10-11) 22875 21347 10887 67327
13. Extraordinary items (net of tax expense) - - - -
14. Net Profit for the period (12-13) 22875 21347 10887 67327
15. Paid-up equity share capital (FV Rs.2/- per share) 16002 16000 15986 16000
16. Reserves excluding Revaluation Reserve 743620
17. Analytical Ratios
(i) % of shares held by Government of India - - - -
(ii) Capital Adequacy Ratio-Basel III (%) 19.21 19.46 19.06 19.46
(iii) Earnings per share (EPS)1 (Rs..)
a) Basic EPS before and after extraordinary items 2.86 2.67 1.36 8.42
b) Diluted EPS before and after extraordinary items 2.86 2.67 1.36 8.41
(iv) NPA Ratios
a) Gross NPA 310717 343104 416749 343104
b) Net NPA 109836 126079 184461 126079
c) % of Gross NPA 5.21 5.96 7.97 5.96
d) % of Net NPA 1.91 2.28 3.69 2.28
(v) Return on Asset (annualized) (%) 1.09 1.06 0.57 0.86
18. Net worth2 765614 741781 696253 741781
19. Paid up debt capital/ Outstanding debt3 (%) 18.65 36.37 49.36 36.37
20. Debt/equity ratio4 0.08 0.09 0.10 0.09
21. Total debts to total assets5 (%) 3.11 1.67 1.33 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 ENDED 30th JUNE 2022
Business Segments Quarter ended Year ended
30-06-2022 31-03-2022 30-06-2021 31-03-2022
Unaudited Audited Unaudited Audited
Segment Revenue
1. Treasury 26417 24666 28440 101825
2. Corporate / Wholesale Banking 35918 34829 29655 135997
3. Retail Banking 104016 100799 99204 394225
4. Other Banking Operations 909 1181 627 3626
Total 167260 161475 157926 635673
Segment Results
1. Treasury 6845 5595 7841 21787
2. Corporate / Wholesale Banking 11357 10904 8552 39887
3. Retail Banking 34520 32600 30023 121875
4. Other Banking Operations 674 865 472 2660
Total 53396 49964 46888 186209
Less: Unallocated income/expenses 5849 5833 5696 23188
Operating Profit 47547 44131 41192 163021
Tax expense 9208 8772 5568 25765
Other Provisions 15464 14012 24737 69929
Net Profit from ordinary activities 22875 21347 10887 67327
Extraordinary items - - - -
Net Profit 22875 21347 10887 67327
Segment Assets
1. Treasury 2023059 1848842 1906819 1848842
2. Corporate / Wholesale Banking 1466758 1385684 1120401 1385684
3. Retail Banking 4289125 4147778 3875811 4147778
4. Other Banking Operations - - - -
5. Unallocated 605751 622068 522920 622068
Total Segment Assets 8384693 8004372 7425951 8004372
Segment Liabilities
1. Treasury 1940471 1738133 1741253 1738133
2. Corporate / Wholesale Banking 1305168 1239526 1010705 1239526
3. Retail Banking 3816999 3710702 3495604 3710702
4. Other Banking Operations - - - -
5. Unallocated 539529 556391 471528 556391
Total (a) 7602167 7244752 6719090 7244752
Capital employed (Segment assets - Segment liabilities)
1. Treasury 82588 110709 165566 110709
2. Corporate / Wholesale Banking 161590 146158 109696 146158
3. Retail Banking 472126 437076 380207 437076
4. Other Banking Operations - - - -
5. Unallocated 66222 65677 51392 65677
Total (b) 782526 759620 706861 759620
Total Segment Liabilities (a+b) 8384693 8004372 7425951 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.

Notes:

1. The above financial results for the quarter ended 30th June 2022 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 25th July 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 quarter ended 30th June 2021 were reviewed 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 ended 30th June 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 including deferred tax and other usual and necessary provisions. Provision for employees’ benefits (including retirement benefits) viz. pension, gratuity and compensated absences has been made based on management estimates.

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 ended 30th June 2022, the Bank has allotted 82,240 equity shares, of face value Rs. 2/- each, pursuant to the exercise of stock options by employees.

6. 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 higher levels than the regulatory minimum as on 30th June 2022.

7. Disclosure as per RBI Circular DOR.STR.REC.51/21.04.048/2021-22 dated 24th September 2021 in respect of loans not in default / stressed loans transferred / acquired during the quarter ended 30th June 2022 :

  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 2022 by Credit Rating Agencies:
(Rs. In Lakh)
Rating Scale Book Value
R1 6357
RR1 17004
RR3 1184
RR4 924
NR4 76
NR5 15877
NR6 466
Unrated* (Rating Withdrawn) 10125
Total 52013
*As per RBI guideline, rating is not applicable after 8 years

8. Provision Coverage Ratio as on 30th June 2022, calculated as per RBI guidelines is 82.74% (72.40% for the corresponding period of previous year).

9. 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 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. As per RBI circular dated 7th April 2022 on establishment of Digital Banking Units (DBUs), it is prescribed that reporting of Digital Banking Segment has to be made as a sub-segment of Retail Banking Segment. 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.

11. 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.

12. The figures for the quarter ended 31st March 2022 are the balancing figures between audited figures for the financial year ended 31st March 2022 and unaudited published figures for nine months ended 31st December 2021.

13. 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: 25.07.2022
For and on behalf of Board of Directors,
B Ramesh Babu
Managing Director & CEO

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