Unaudited Financial Results for the Quarter/Nine Months Ended 31st December 2024
| SEGMENT REPORTING FOR THE QUARTER/NINE MONTHS ENDED 31st DECEMBER 2024 | ||||||
|---|---|---|---|---|---|---|
| Particulars | Quarter ended | Nine Months ended | Year ended | |||
| 31-12-2024 | 30-09-2024 | 31-12-2023 | 31-12-2024 | 31-12-2023 | 31-03-2024 | |
| Unaudited | Unaudited | Audited | ||||
| 1. Interest earned (a+b+c+d) | 248601 | 238400 | 213938 | 715454 | 601937 | 820394 |
| a) Interest / discount on advances / bills | 205546 | 197613 | 179373 | 591963 | 501943 | 684183 |
| b) Income on investments | 42276 | 39322 | 33930 | 120107 | 97736 | 133101 |
| c) Interest on balances with Reserve Bank of India & other interbank funds | 232 | 371 | 431 | 1030 | 1841 | 2205 |
| d) Others | 547 | 1094 | 204 | 2354 | 417 | 905 |
| 2. Other income | 46743 | 47201 | 35779 | 132779 | 102984 | 165869 |
| 3. Total income (1+2) | 295344 | 285601 | 249717 | 848233 | 704921 | 986263 |
| 4. Interest expended | 140722 | 132405 | 113809 | 399145 | 320563 | 439474 |
| 5. Operating expenses (i+ii) | 73095 | 71572 | 68318 | 211352 | 188135 | 263875 |
| (i) Employees cost | 37382 | 35700 | 37473 | 106428 | 102128 | 146103 |
| (ii) Other operating expenses | 35713 | 35872 | 30845 | 104924 | 86007 | 117772 |
| 6. Total expenditure (excluding provisions and contingencies) (4+5) | 213817 | 203977 | 182127 | 610497 | 508698 | 703349 |
| 7. Operating profit before provisions and contingencies (3-6) | 81527 | 81624 | 67590 | 237736 | 196223 | 282914 |
| 8. Provisions (other than tax) and contingencies | 14744 | 17983 | 14971 | 46021 | 43554 | 72895 |
| 9. Exceptional items | - | - | - | - | - | - |
| 10. Profit from ordinary activities before tax (7-8-9) | 66783 | 63641 | 52619 | 191715 | 152669 | 210019 |
| 11. Tax expense | 17180 | 16281 | 11456 | 48887 | 37798 | 49538 |
| 12. Net profit from ordinary activities after tax (10-11) | 49603 | 47360 | 41163 | 142828 | 114871 | 160481 |
| 13. Extraordinary items (net of tax expense) | - | - | - | - | - | - |
| 14. Net profit for the period (12-13) | 49603 | 47360 | 41163 | 142828 | 114871 | 160481 |
| 15. Paid-up equity share capital (FV Rs.2/- per share) | 16100 | 16096 | 16076 | 16100 | 16076 | 16088 |
| 16. Reserves excluding Revaluation Reserve | 987920 | |||||
| 17. Analytical Ratios | ||||||
| (i) % of shares held by Government of India | - | - | - | - | - | - |
| (ii) Capital adequacy ratio - Basel III (%) | 15.91 | 16.28 | 15.39 | 15.91 | 15.39 | 16.67 |
| (iii) Earnings per share (EPS)1 (Rs..) | ||||||
| a) Basic EPS before and after extraordinary items | 6.16 | 5.89 | 5.13 | 17.75 | 14.31 | 19.99 |
| b) Diluted EPS before and after extraordinary items | 6.16 | 5.88 | 5.12 | 17.74 | 14.29 | 19.97 |
| (iv) NPA Ratios | ||||||
| a) Gross NPA | 69092 | 88561 | 115186 | 69092 | 115186 | 104164 |
| b) Net NPA | 16669 | 21922 | 30527 | 16669 | 30527 | 29797 |
| c) % of Gross NPA | 0.83 | 1.10 | 1.58 | 0.83 | 1.58 | 1.40 |
| d) % of Net NPA | 0.20 | 0.28 | 0.42 | 0.20 | 0.42 | 0.40 |
| (v) Return on Asset (annualized) (%) | 1.74 | 1.72 | 1.65 | 1.72 | 1.58 | 1.63 |
| 18. Net worth2 | 1131433 | 1081818 | 954260 | 1131433 | 954260 | 980282 |
| 19. Paid up debt capital/ Outstanding debt3 (%) | - | - | 16.27 | - | 16.27 | - |
| 20. Debt/equity ratio4 | 0.06 | 0.05 | 0.11 | 0.06 | 0.11 | 0.07 |
| 21. Total debts to total assets5 (%) | 1.34 | 1.26 | 2.91 | 1.34 | 2.91 | 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. | ||||||
| SEGMENT REPORTING FOR THE QUARTER/NINE MONTHS ENDED 31st DECEMBER 2024 | ||||||
|---|---|---|---|---|---|---|
| Business Segments | Quarter ended | Nine Month ended | Year ended | |||
| 31-12-2024 | 30-09-2024 | 31-12-2023 | 31-12-2024 | 31-12-2023 | 31-03-2024 | |
| Unaudited | Unaudited | Audited | ||||
| Segment Revenue | ||||||
| 1. Treasury | 45157 | 42931 | 38277 | 128947 | 109864 | 167984 |
| 2. Corporate/Wholesale banking | 52437 | 50682 | 45265 | 151530 | 126767 | 174149 |
| 3. Retail banking | 193792 | 187279 | 163735 | 556727 | 462614 | 633516 |
| a) Digital Banking | 1 | 2 | 0 | 4 | 0 | 1 |
| b) Other Retail Banking | 193791 | 187277 | 163735 | 556723 | 462614 | 633515 |
| 4. Other banking operations | 3958 | 4709 | 2440 | 11029 | 5676 | 10614 |
| Total | 295344 | 285601 | 249717 | 848233 | 704921 | 986263 |
| Segment Results | ||||||
| 1. Treasury | 10267 | 10501 | 10225 | 30089 | 30585 | 58446 |
| 2. Corporate/Wholesale banking | 16407 | 16093 | 13394 | 48267 | 38809 | 52426 |
| 3. Retail banking | 60657 | 60346 | 49608 | 176843 | 144375 | 193840 |
| a) Digital Banking | (9) | (12) | (10) | (31) | (29) | (41) |
| b) Other Retail Banking | 60666 | 60358 | 49618 | 176874 | 144404 | 193881 |
| 4. Other banking operations | 3067 | 3647 | 1820 | 8542 | 4262 | 7978 |
| Total | 90398 | 90587 | 75047 | 263741 | 218031 | 312690 |
| Less: Unallocated income/expenses | 8871 | 8963 | 7457 | 26005 | 21808 | 29776 |
| Operating profit | 81527 | 81624 | 67590 | 237736 | 196223 | 282914 |
| Tax expense | 17180 | 16281 | 11456 | 48887 | 37798 | 49538 |
| Other provisions | 14744 | 17983 | 14971 | 46021 | 43554 | 72895 |
| Net profit from ordinary activities | 49603 | 47360 | 41163 | 142828 | 114871 | 160481 |
| Extraordinary items | - | - | - | - | - | - |
| Net profit | 49603 | 47360 | 41163 | 142828 | 114871 | 160481 |
| Segment Assets | ||||||
| 1. Treasury | 2559353 | 2331480 | 2164373 | 2559353 | 2164373 | 2311896 |
| 2. Corporate/Wholesale banking | 1736433 | 1678717 | 1564577 | 1736433 | 1564577 | 1570542 |
| 3. Retail banking | 6621316 | 6400227 | 5721839 | 6621316 | 5721839 | 5904038 |
| a) Digital Banking | 2 | 2 | 2 | 2 | 2 | 2 |
| b ) Other Retail Banking | 6621314 | 6400225 | 5721837 | 6621314 | 5721837 | 5904036 |
| 4. Other banking operations | - | - | - | - | - | - |
| 5. Unallocated | 720225 | 846890 | 836042 | 720225 | 836042 | 772044 |
| Total segment assets | 11637327 | 11257314 | 10286831 | 11637327 | 10286831 | 10558520 |
| Segment Liabilities | ||||||
| 1. Treasury | 2351763 | 2140017 | 2034860 | 2351763 | 2034860 | 2147669 |
| 2. Corporate/Wholesale banking | 1558060 | 1509471 | 1405052 | 1558060 | 1405052 | 1410240 |
| 3. Retail banking | 5941930 | 5755428 | 5138002 | 5941930 | 5138002 | 5303338 |
| a) Digital Banking | 0 | 0 | 0 | 0 | 0 | 0 |
| b) Other Retail Banking | 5941930 | 5755428 | 5138002 | 5941930 | 5138002 | 5303338 |
| 4. Other banking operations | - | - | - | - | - | - |
| 5. Unallocated | 646406 | 762329 | 751024 | 646406 | 751024 | 693265 |
| Total (a) | 10498159 | 10167245 | 9328938 | 10498159 | 9328938 | 9554512 |
| Capital employed (Segment assets - Segment liabilities) | ||||||
| 1. Treasury | 207590 | 191463 | 129513 | 207590 | 129513 | 164227 |
| 2. Corporate/Wholesale banking | 178373 | 169246 | 159525 | 178373 | 159525 | 160302 |
| 3. Retail banking | 679386 | 644799 | 583837 | 679386 | 583837 | 600700 |
| a) Digital Banking | 2 | 2 | 2 | 2 | 2 | 2 |
| b) Other Retail Banking | 679384 | 644797 | 583835 | 679384 | 583835 | 600698 |
| 4. Other banking operations | - | - | - | - | - | - |
| 5. Unallocated | 73819 | 84561 | 85018 | 73819 | 85018 | 78779 |
| Total (b) | 1139168 | 1090069 | 957893 | 1139168 | 957893 | 1004008 |
| Total capital and liabilities (a+b) | 11637327 | 11257314 | 10286831 | 11637327 | 10286831 | 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/nine months ended 31st December 2024. | ||||||
Notes:
1) The above unaudited financial results for the quarter/nine months ended December 31, 2024 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on January 20, 2025. These unaudited financial results have been subjected to limited review as per the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), by the Joint Statutory Central Auditors (M/s. Kalyaniwalla & Mistry LLP, Chartered Accountants and M/s. Varma & Varma, Chartered Accountants) of the bank and have issued an unqualified review report thereon.
The unaudited financial results for the quarter and nine months ended December 31, 2023 and audited financial results for the year ended March 31, 2024, were reviewed / audited by predecessor Joint Statutory Central Auditors ( M/s. Sundaram & Srinivasan, Chartered Accountants and M/s. R.G.N. Price & Company, Chartered Accountants).
2) There has been no change in the accounting policy except with respect to ‘Investments’ to comply with the Reserve Bank of India Master Direction on Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions) 2023 dated September 12, 2023 (‘Master Direction’) which is effective from April 01, 2024 read with the frequently asked questions issued by the Fixed Income Money Market and Derivatives Association of India (‘FIMMDA’).
Accordingly, the investments of the Bank as at April 01, 2024 have been reclassified, wherever required and valued in accordance with the requirement of said Master Direction and transitional adjustment on account of ‘Available For Sale’ (AFS) portfolio 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.20292.00 lakhs) respectively. Thus, corresponding quarter and nine months ended figures in respect of December 31, 2023 and financial year ended March 31, 2024 are not comparable. The impact on account of this change in the accounting policy is not material for the quarter and nine months ended December 31, 2024.
All investments purchased and sold during the current quarter and nine months ended December 31, 2024 are done in compliance with the requirements of the master direction & revised accounting policy. In compliance with Master Directions, the valuation gains and losses for the quarter and nine months ended December 31, 2024 across all performing investment held under AFS is aggregated and the net gain/(loss) amounting to Rs.(595.58) lakhs (net of tax) and Rs.3344.23 lakhs(net of tax) respectively has been directly credited to AFS Reserve. The securities held in Fair Value through Profit and Loss (‘FVTPL’) and Held for Trade (‘HFT’) are fair valued and valuation losses (net) for the quarter and nine months ended December 31, 2024 amounting to Rs.358.80 lakhs and Rs.451.92 lakhs respectively arising on such valuation have been charged to the Profit and Loss.
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 and nine months ended December 31, 2024 the Bank has allotted 130175 equity shares and 563645 equity shares respectively (corresponding quarter and nine months of previous year 11,39,658 equity shares and 17,46,349 equity shares respectively) of face value Rs. 2/- each, pursuant to the exercise of stock options by employees.
6) During the quarter ended December 31, 2024 the Bank has allotted 67111 shares which were kept in abeyance.
7) Disclosure as per RBI Circular DOR.STR.REC.51/21.04.048/2021-22 dated September 24, 2021 (updated as on December 05, 2022 and December 28, 2023) in respect of loans not in default / stressed loans transferred / acquired during the quarter ended December 31, 2024 :
a. The Bank has not acquired any "loans not in default" through assignment.
b. Loans classified as NPAs and SMA transferred
| Particulars | Quarter ended December 31, 2024 Transferred to | ||
|---|---|---|---|
| ARCs | Permitted transferees | Others | |
| No. of accounts | - | - | - |
| Aggregate principal outstanding of loans transferred | - | - | - |
| Weighted average residual tenor of the loans transferred | - | - | - |
| Net book value of loans transferred (at the time of transfer) | - | - | - |
| Aggregate consideration | - | - | - |
| Additional consideration realized in respect of accounts transferred in earlier years | - | - | - |
| Excess provision reversed to the P&L a/c. on account of sale of NPA | - | - | - |
c) The Bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC).
d) Recovery Ratings assigned to outstanding SRs as on December 31, 2024 by Credit Rating Agencies:
| Rating Scale | Book Value |
|---|---|
| RR1 | - |
| RR1+ | - |
| RR2 | - |
| RR3 | - |
| RR5 | - |
| Unrated* (Rating Withdrawn) | 25085.50 |
| Total | 25085.50 |
*As per RBI guideline, rating is not applicable after 8 years
8) Provision Coverage Ratio as on December 31, 2024, calculated as per RBI guidelines is 96.87% (94.81% for the corresponding period of previous year).
9) In accordance with RBI circular DOR.CAP.REC.4/21.06.201/2024-25 dated April 01, 2024, read together with RBI circular DBR.No.BP.BC.1/21.06.201/2015-16 dated July 01, 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 February 05, 2021 read together with circular DBR.BP.BC.No.106/ 21.04.098/2017-18 dated May 17, 2018. These disclosures have not been subjected to audit/review by the Joint Statutory Central Auditors.
10) The bank has filed a writ petition and obtained an interim stay from the Hon’ble High Court of Madras in respect of a show cause notice issued during the quarter by the Commercial Taxes Department, Tamil Nadu, proposing to levy Goods and Service Tax (GST) and penalty thereon aggregating to Rs.253743.26 lakhs for an earlier year. The management has been legally advised that the same is not tenable as per provisions of GST Act and hence does not require any provision or disclosure as contingent liability in the financial results. The above matter has also been intimated to the Stock Exchanges on December 21, 2024, as per the requirements of the Listing agreement.
11) The Bank does not have any Subsidiaries/Associates/Joint ventures as on December 31, 2024, hence, disclosure related to Consolidated Financial Statement is not applicable at this stage.
12) Figures for the previous period/s have been re-grouped / re-classified, where necessary, to make them comparable with current period figures. The Figures for the quarter ended December 31, 2024 are the balancing figures between reviewed figures in respect of nine months ended December 31, 2024 and the published year to date figures upto September 30, 2024.
Date: 20th Janauary 2025
B Ramesh Babu
Managing Director & CEO
(DIN:06900325)
