Unaudited Financial Results for the Quarter/Nine Months Ended 31st December 2021
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. |
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) :
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:
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
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
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