UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/HALF YEAR ENDED 30th SEPTEMBER 2021
| Particulars | Quarter ended | Half Year ended | Year ended | |||
|---|---|---|---|---|---|---|
| 30-09-2021 | 30-06-2021 | 30-09-2020 | 30-09-2021 | 30-09-2020 | 31-03-2021 | |
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
| 1. Interest earned (a+b+c+d) | 139795 | 137594 | 139470 | 277389 | 277080 | 547042 |
| a) Interest / discount on advances / bills | 113619 | 111803 | 114030 | 225422 | 225241 | 445354 |
| b) Income on Investments | 23006 | 21856 | 24619 | 44862 | 48754 | 94179 |
| c) Interest on balances with Reserve Bank of India & other interbank funds | 3139 | 3838 | 653 | 6977 | 2741 | 6829 |
| d) Other Interest | 31 | 97 | 168 | 128 | 344 | 680 |
| 2. Other income | 16310 | 20058 | 18275 | 36368 | 48348 | 88859 |
| 3. Total Income (1+2) | 156105 | 157652 | 157745 | 313757 | 325428 | 635901 |
| 4. Interest Expended | 71764 | 73804 | 79321 | 145568 | 160747 | 311091 |
| 5. Operating Expenses (i+ii) | 46957 | 42930 | 42429 | 89887 | 82938 | 198683 |
| (i) Employees cost | 25115 | 22735 | 22055 | 47850 | 43419 | 115368 |
| (ii) Other operating expenses | 21842 | 20195 | 20374 | 42037 | 39519 | 83315 |
| 6. Total Expenditure (excluding provisions and contingencies) (4+5) | 118721 | 116734 | 121750 | 235455 | 243685 | 509774 |
| 7. Operating Profit before Provisions and Contingencies (3-6) | 37384 | 40918 | 35995 | 78302 | 81743 | 126127 |
| 8. Provisions (other than tax) and Contingencies | 16415 | 24463 | 19592 | 40878 | 51709 | 72690 |
| 9. Exceptional items | - | - | - | - | - | - |
| 10. Profit from ordinary activity before tax (7-8-9) | 20969 | 16455 | 16403 | 37424 | 30034 | 53437 |
| 11. Tax expense | 4424 | 5568 | 4914 | 9992 | 7995 | 17498 |
| 12. Net Profit from ordinary activities after tax(10-11) | 16545 | 10887 | 11489 | 27432 | 22039 | 35939 |
| 13. Extraordinary items (net of tax expense) | - | - | - | - | - | - |
| 14. Net Profit for the period (12-13) | 16545 | 10887 | 11489 | 27432 | 22039 | 35939 |
| 15. Paid-up equity share capital (FV Rs.2/- per share) | 15986 | 15986 | 15986 | 15986 | 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 (%) | 18.82 | 19.06 | 18.41 | 18.82 | 18.41 | 18.98 |
| (iii) Earnings per share (EPS)1 (Rs..) | ||||||
| a) Basic EPS before and after extraordinary items | 2.07 | 1.36 | 1.44 | 3.43 | 2.76 | 4.50 |
| b) Diluted EPS before and after extraordinary items | 2.07 | 1.36 | 1.44 | 3.43 | 2.76 | 4.50 |
| (iv) NPA Ratios | ||||||
| a) Gross NPA | 397164 | 416749 | 399843 | 397164 | 399843 | 414287 |
| b) Net NPA | 153771 | 184461 | 142820 | 153771 | 142820 | 171939 |
| c) % of Gross NPA | 7.38 | 7.97 | 7.93 | 7.38 | 7.93 | 7.85 |
| d) % of Net NPA | 2.99 | 3.69 | 2.99 | 2.99 | 2.99 | 3.41 |
| (v) Return on Asset (annualized) (%) | 0.86 | 0.57 | 0.63 | 0.72 | 0.61 | 0.49 |
| 18. Net worth 2 | 713823 | 696253 | 672819 | 713823 | 672819 | 684039 |
| 19. Paid up debt capital/ Outstanding debt3 (%) | 42.07 | 49.36 | 35.22 | 42.07 | 35.22 | 19.26 |
| 20. Debt/equity ratio4 | 0.11 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 |
| 21. Total debts to total assets5 (%) | 1.53 | 1.33 | 1.94 | 1.53 | 1.94 | 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. | ||||||
| SEGMENT REPORTING FOR THE QUARTER/HALF YEAR ENDED 30th SEPTEMBER 2021 | ||||||
|---|---|---|---|---|---|---|
| Business Segments | Quarter ended | Half Year ended | Year ended | |||
| 30-09-2021 | 30-06-2021 | 30-09-2020 | 30-09-2021 | 30-09-2020 | 31-03-2021 | |
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
| Segment Revenue | ||||||
| 1. Treasury | 24315 | 28440 | 29417 | 52755 | 72423 | 125915 |
| 2. Corporate / Wholesale Banking | 37696 | 29592 | 30921 | 67288 | 62322 | 124469 |
| 3. Retail Banking | 93227 | 98993 | 96696 | 192220 | 189601 | 382736 |
| 4. Other Banking Operations | 867 | 627 | 711 | 1494 | 1082 | 2781 |
| Total | 156105 | 157652 | 157745 | 313757 | 325428 | 635901 |
| Segment Results | ||||||
| 1. Treasury | 4124 | 7837 | 6185 | 11961 | 24542 | 35487 |
| 2. Corporate / Wholesale Banking | 10526 | 8490 | 8077 | 19016 | 16022 | 25724 |
| 3. Retail Banking | 28002 | 29815 | 26647 | 57817 | 51297 | 84638 |
| 4. Other Banking Operations | 633 | 472 | 545 | 1105 | 836 | 1990 |
| Total | 43285 | 46614 | 41454 | 89899 | 92697 | 147839 |
| Less: Unallocated income/expenses | 5901 | 5696 | 5459 | 11597 | 10954 | 21712 |
| Operating Profit | 37384 | 40918 | 35995 | 78302 | 81743 | 126127 |
| Tax expense | 4424 | 5568 | 4914 | 9992 | 7995 | 17498 |
| Other Provisions | 16415 | 24463 | 19592 | 40878 | 51709 | 72690 |
| Net Profit from ordinary activities | 16545 | 10887 | 11489 | 27432 | 22039 | 35939 |
| Extraordinary items | - | - | - | - | - | - |
| Net Profit | 16545 | 10887 | 11489 | 27432 | 22039 | 35939 |
| Segment Assets | ||||||
| 1. Treasury | 1914619 | 1906819 | 1862604 | 1914619 | 1862604 | 1912596 |
| 2. Corporate / Wholesale Banking | 1281695 | 1120401 | 1149529 | 1281695 | 1149529 | 1177076 |
| 3. Retail Banking | 3856439 | 3875811 | 3632652 | 3856439 | 3632652 | 3859275 |
| 4. Other Banking Operations | - | - | - | - | - | - |
| 5. Unallocated | 534605 | 522920 | 472687 | 534605 | 472687 | 513372 |
| Total Segment Assets | 7587358 | 7425951 | 7117472 | 7587358 | 7117472 | 7462319 |
| Segment Liabilities | ||||||
| 1. Treasury | 1758602 | 1741253 | 1710762 | 1758602 | 1710762 | 1836846 |
| 2. Corporate / Wholesale Banking | 1154164 | 1010705 | 1033496 | 1154164 | 1033496 | 1045290 |
| 3. Retail Banking | 3473425 | 3495604 | 3266230 | 3473425 | 3266230 | 3428179 |
| 4. Other Banking Operations | - | - | - | - | - | - |
| 5. Unallocated | 481756 | 471528 | 424917 | 481756 | 424917 | 456030 |
| Total (a) | 6867947 | 6719090 | 6435405 | 6867947 | 6435405 | 6766345 |
| Capital employed (Segment assets - Segment liabilities) | ||||||
| 1. Treasury | 156017 | 165566 | 151842 | 156017 | 151842 | 75750 |
| 2. Corporate / Wholesale Banking | 127531 | 109696 | 116033 | 127531 | 116033 | 131786 |
| 3. Retail Banking | 383014 | 380207 | 366422 | 383014 | 366422 | 431096 |
| 4. Other Banking Operations | - | - | - | - | - | - |
| 5. Unallocated | 52849 | 51392 | 47770 | 52849 | 47770 | 57342 |
| Total (b) | 719411 | 706861 | 682067 | 719411 | 682067 | 695974 |
| Total Segment Liabilities (a+b) | 7587358 | 7425951 | 7117472 | 7587358 | 7117472 | 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. | ||||||
| STATEMENT OF ASSETS AND LIABILITIES AS ON 30th SEPTEMBER 2021 | ||||
|---|---|---|---|---|
| Particulars | As On | |||
| 30-09-2021 | 30-09-2020 | 31-03-2021 | ||
| Unaudited | Unaudited | Audited | ||
| Capital and liabilities | ||||
| Capital | 15986 | 15986 | 15986 | |
| Reserves and surplus | 703424 | 666081 | 679988 | |
| Deposits | 6541014 | 6112241 | 6327843 | |
| Borrowings | 115755 | 138269 | 252829 | |
| Other liabilities and provisions | 211179 | 184895 | 185673 | |
| Total | 7587358 | 7117472 | 7462319 | |
| Assets | ||||
| Cash and balances with Reserve Bank of India | 336450 | 257311 | 312405 | |
| Balances with banks and money at call and short notice | 278475 | 22121 | 319629 | |
| Investments | 1638704 | 1843464 | 1601893 | |
| Advances | 5138134 | 4782181 | 5036350 | |
| Fixed assets | 50405 | 55635 | 53906 | |
| Other assets | 145190 | 156760 | 138136 | |
| Total | 7587358 | 7117472 | 7462319 | |
| CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 30th SEPTEMBER 2021 | ||||
|---|---|---|---|---|
| Particulars | Half Year ended | Year ended | ||
| 30-09-2021 | 30-09-2020 | 31-03-2021 | ||
| Unaudited | Unaudited | Audited | ||
| Cash flow from / (used in) operating activities | ||||
| Net profit as per Profit and Loss account | 27432 | 22039 | 35939 | |
| Adjustments for Depreciation on Bank's property | 5988 | 6171 | 12414 | |
| Interest paid on TIER II bonds | 2918 | 2918 | 5819 | |
| Provisions for other contingencies | 2262 | 20046 | 9804 | |
| Provision for taxes | 9992 | 7995 | 17498 | |
| Provision for depreciation on investment | 6086 | 10221 | 13781 | |
| Provision for standard assets | 390 | 755 | 573 | |
| Provision for bad and doubtful debts | 38851 | 32569 | 60375 | |
| Provision for non performing investments | (625) | (1662) | 1938 | |
| Provision for leave encashment | 327 | 789 | 5501 | |
| Amortization of premium paid on Held to Maturity (HTM)investments | 6776 | 5828 | 12273 | |
| Provision for employees stock option plan / scheme | - | - | 8 | |
| (Profit) / loss on sale of fixed assets (net) | (4) | - | (22) | |
| Operating profit before working capital changes | 100392 | 107669 | 175901 | |
| Adjustments for working capital changes | ||||
| (Increase) / Decrease in investments (excluding HTM investments) | 54340 | (167214) | 76612 | |
| (Increase) / Decrease in advances | (140470) | (204915) | (487585) | |
| (Increase) / Decrease in other assets | (35561) | (15564) | 5707 | |
| Increase / (Decrease) in deposits | 213171 | 204733 | 420336 | |
| Increase / (Decrease) in borrowings | (137074) | 19852 | 134411 | |
| Increase / (Decrease) in other liabilities and provisions | 25410 | 23751 | 25171 | |
| 80209 | (31688) | 350553 | ||
| Direct taxes paid | 15500 | (7617) | (14000) | |
| Net cash flow from / (used in) operating activities | 95709 | (39305) | 336553 | |
| Cash flow from investing activities | ||||
| Purchase of fixed assets | (2488) | (3142) | (7656) | |
| (Increase) / Decrease in HTM investments | (103388) | (114393) | (130251) | |
| Sale of fixed assets / other assets | 4 | - | 22 | |
| Net cash flow from / (used in) investing activities | (105872) | (117535) | (137885) | |
| Cash flow from financing activities | ||||
| Proceeds from share premium | - | - | - | |
| Increase / (Decrease) in TIER II bonds | - | - | - | |
| Interest paid on TIER II bonds | (2918) | (2918) | (5820) | |
| Dividend paid (including tax on dividend) | (4028) | (65) | (69) | |
| Net cash from / (used in) financing activities | (6946) | (2983) | (5889) | |
| Net Increase / (Decrease) in cash & cash equivalents | (17109) | (159823) | 192779 | |
| Cash and cash equivalents at the beginning of the year | 632034 | 439255 | 439255 | |
| Cash and cash equivalents at the end of the period | 614925 | 279432 | 632034 | |
Notes:
1) The above financial results for the quarter / half-year ended 30th September 2021 have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 8th November 2021. The same have been subjected to limited review by the Joint Statutory Central Auditors of the Bank and an unqualified review report has been issued as per listing agreement with the stock exchange. The previous period results were reviewed/audited by M/s. Walker Chandiok & Co., LLP, Chartered Accountants.
2) There has been no change in the accounting policies followed in the preparation of the financial results for the quarter / half-year ended 30th September 2021, as compared to those followed for the year ended 31st March 2021.
Figures for the current period have been reported pursuant to the RBI Master Direction on Financial Statements – Presentation and Disclosures dated 30th August 2021; corresponding figures for the previous periods/year have been re-classified to make the same comparable. Had the figures been reported as per the earlier classification, the position of Other income, Total income, Operating profit and Provisions (Other than tax) and contingencies would have been as under :
| Particulars | Quarter ended | Half Year ended | Year ended | |||
|---|---|---|---|---|---|---|
| 30-09-2021 | 30-06-2021 | 30-09-2020 | 30-09-2021 | 30-09-2020 | 31-03-2021 | |
| Other Income | 20884 | 21999 | 27156 | 42883 | 58869 | 105665 |
| Total Income | 160678 | 159593 | 166626 | 320271 | 335949 | 652707 |
| Operating profit | 41957 | 42859 | 44876 | 84816 | 92264 | 142933 |
| Provisions (other than tax) and contingencies | 20988 | 26404 | 28473 | 47392 | 62230 | 89496 |
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’ 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), profit on bullion business etc.
5) In the current quarter, the Bank has accounted the liability on actuarial basis on account of revision in family pension for employees covered under the 11th Bipartite Settlement and Joint Note dated 11th November 2020 at Rs. 8026 lakh. The Bank has opted to amortise the liability during the three quarters of financial year 2021-22 and accordingly an amount of Rs. 2676 lakh is expensed to Profit & Loss account during the quarter / half-year ended 30.09.2021. The balance amount of Rs. 5350 lakh will be amortised over the remaining two quarters of the current financial year. Had the Bank charged the entire liability to the Profit and Loss Account, the profits after tax for the quarter / half year ended 30th September 2021 would have been lower by Rs. 4004 lakh.
6) 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. India experienced a “second wave” of the COVID-19 pandemic in April-May 2021 following the discovery of mutant coronavirus variants, leading to the re-imposition of regional lockdowns. These were gradually lifted as the second wave subsided.
There is improvement in economic activity consequent to the relaxations of restrictions by Government. 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 30th September 2021.
7) Details of resolution plan implemented as at 30th September 2021, as per RBI circular DOR.No.BP.BC/3/21.04.048/2020-21 dated 6th August 2020 in respect of restructuring of eligible borrower accounts (Resolution Framework 1.0 for COVID-19 related stress) :
| Type of borrower | No. of accounts where resolution plan has been implemented under this window | Exposure to accounts mentioned at (A) before implementation of the plan (Rs.) | Of (B), aggregate amount of debt that was converted into other securities (Rs.) | Additional funding sanctioned, if any, including between invocation of the plan and implementation (Rs.) | Increase in provisions on account of the implementation of the resolution plan2 (Rs.) |
|---|---|---|---|---|---|
| (A) | (B) | (C) | (D) | (E) | |
| Personal Loans | 1364 1 | 24901 | - | - | 3076 |
| Corporate persons* 3 | 23 | 23061 | - | 1048 | 23061 |
| Of which, MSMEs | - | - | - | - | - |
| Others3 | 23 | 3121 | - | 82 | 299 |
| Total | 1410 | 51083 | - | 1130 | 5627 |
| *As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016 | |||||
1 242 accounts that were restructured under Resolution Framework 1.0 and modified under Resolution Framework 2.0 have been included in Resolution framework 2.0 disclosure, given below.
2 Represents outstanding provision on all accounts that were restructured under Resolution Framework 1.0 as on 30Th September 2021.
3 Represents all accounts related to the borrowers whose accounts were restructured under Resolution Framework 1.0.
Details of resolution plan implemented under the Resolution Framework for COVID-19 related stress as per RBI Circular DOR.No.BP.BC/3/21.04.048/2020-21 dated 6th August 2020 (Resolution Framework 1.0) and as per RBI circular DOR.STR.REC.11/21.04.048/2021-22 dated 5th May 2021 (Resolution Framework 2.0) “Covid-19 Related Stress of Individuals and Small businesses” are given below:
| Type of borrower | Exposure to accounts classified as Standard consequent to implementation of resolution plan – Position as at the end of the previous half-year ( 31.03.2021)1 | Of (A), aggregate debt that slipped into NPA during the half-year | Of (A), amount written off during the half-year | Of (A), amount paid by the borrowers during the half-year2 | Exposure to accounts classified as Standard consequent to implementation of resolution plan – Position as at the end of this half-year (30.09.2021) |
|---|---|---|---|---|---|
| (A) | (B) | (C) | (D) | (E) | |
| Personal Loans | 70841 | 1741 | - | 839 | 68261 |
| Corporate persons* | 27178 | - | - | (985) | 28163 |
| Of which, MSMEs | - | - | - | - | - |
| Others | 5336 | 25 | - | (219) | 5530 |
| Total | 103355 | 1766 | - | (365) | 101954 |
| *As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016 | |||||
1 Includes exposure as on 31st March 2021 of accounts that are restructured after 31st March 2021
2 Represents Net Movement in Balances
Details of resolution plan implemented under Resolution Framework 2.0 : Resolution of COVID-19 related stress of Individuals and Small Businesses as per RBI circular dated 5th May 2021 are given below:
| S. N | Description | Individual Borrowers | Small businesses3 | |
|---|---|---|---|---|
| Personal Loans | Business Loans 3 | |||
| 1 | Number of requests received for invoking resolution process under Part A 1 | 2525 | 15 | 35 |
| 2 | Number of accounts where resolution plan has been implemented under this window1 | 2300 | 13 | 31 |
| 3 | Exposure to accounts mentioned at (B) before implementation of the plan | 44582 | 222 | 6591 |
| 4 | Of (C), aggregate amount of debt that was converted into other securities | - | - | - |
| 5 | Additional funding sanctioned, if any, including between invocation of the plan and implementation | - | 3 | 672 |
| 6 | Increase in provisions on account of the implementation of the resolution plan2 | 4557 | 33 | 666 |
1 242 accounts that were restructured under Resolution Framework 1.0 and modified under Resolution Framework 2.0 have been Included.
2 Represents outstanding provision on all accounts that were restructured under Resolution Framework 2.0 as on 30Th September 2021.
3 Represents all accounts related to the borrowers whose accounts were restructured under Resolution Framework 2.0.
Disclosure as per RBI circular DOR.STR.REC.11/21.04.048/2021-22 dated 5th May 2021 in respect of borrower accounts where modifications were sanctioned and implemented (Resolution Framework 2.0 for COVID-19 related stress):
| No. of accounts in respect of which modification were sanctioned and implemented (A) | 242 |
| Aggregate exposure to such borrower accounts as on 30th September 2021 (Rs. in lakh) | 6953 |
| Exposure to accounts mentioned at (A) before implementation of the Resolution Plan (Rs. in lakh) | 6611 |
8) Disclosures 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 in respect of accounts where the resolution period was extended during the year ended 31st March 2021 is as under :
| No. of accounts in respect of which resolution period was extended | 2 |
| Amount outstanding as on 30th September 2021 (Rs. in lakh) | 13833 |
9) The Honourable Supreme Court of India, vide an interim order dated 3rd September 2020, had directed that 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 / half-year ended 30th September 2021 may not be comparable with the prior period/s.
10) Provision Coverage Ratio as on 30th September 2021, calculated as per RBI guidelines is 76.28% (corresponding previous period 75.19%).
11) 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.
12) 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 linkhttps://www.kvb.co.in/about-us/disclosures/disclosures-pillar-III/.. 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: 08.11.2021
