UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/HALF YEAR ENDED 30th SEPTEMBER 2021

(Rs. In Lakh)
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.

(Rs. In Lakh)
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.
(Rs. In Lakh)
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
(Rs. In Lakh)
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 :

(Rs. In Lakh)
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) :

(Rs. In Lakh)
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:

(Rs. In Lakh)
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

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