Unaudited Financial Results for the Quarter Ended 30th June 2024
| UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th JUNE 2024 | ||||||
|---|---|---|---|---|---|---|
| Particulars | Quarter ended | Year ended | ||||
| 30-06-2024 | 31-03-2024 | 30-06-2023 | 31-03-2024 | |||
| Unaudited | Audited | Unaudited | Audited | |||
| 1. Interest earned (a+b+c+d) | 228453 | 218457 | 188291 | 820394 | ||
| a) Interest / discount on advances / bills | 188804 | 182240 | 156903 | 684183 | ||
| b) Income on investments | 38509 | 35365 | 30464 | 133101 | ||
| c) Interest on balances with Reserve Bank of India & other interbank funds | 427 | 364 | 812 | 2205 | ||
| d) Other interest | 713 | 488 | 112 | 905 | ||
| 2. Other income | 38835 | 62885 | 33316 | 165869 | ||
| 3. Total income (1+2) | 267288 | 281342 | 221607 | 986263 | ||
| 4. Interest expended | 126018 | 118911 | 98584 | 439474 | ||
| 5. Operating expenses (i+ii) | 66685 | 75740 | 58181 | 263875 | ||
| (i) Employees cost | 33346 | 43975 | 31891 | 146103 | ||
| (ii) Other operating expenses | 33339 | 31765 | 26290 | 117772 | ||
| 6. Total expenditure (excluding provisions and contingencies) (4+5) | 192703 | 194651 | 156765 | 703349 | ||
| 7. Operating profitbefore provisions and contingencies (3-6) | 74585 | 86691 | 64842 | 282914 | ||
| 8. Provisions (other than tax) and contingencies | 13294 | 29341 | 15942 | 72895 | ||
| 9. Exceptional items | - | - | - | - | ||
| 10. Profit from ordinary activities before tax (7-8-9) | 61291 | 57350 | 48900 | 210019 | ||
| 11. Tax expense | 15426 | 11740 | 13037 | 49538 | ||
| 12. Net profit from ordinary activities after tax (10-11) | 45865 | 45610 | 35863 | 160481 | ||
| 13. Extraordinary items (net of tax expense) | - | - | - | - | ||
| 14. Net profit for the period (12-13) | 45865 | 45610 | 35863 | 160481 | ||
| 15. Paid-up equity share capital (Face Value Rs.2/- per share) | 16094 | 16088 | 16048 | 16088 | ||
| 16. Reserves excluding Revaluation Reserve | 987920 | |||||
| 17. Analytical Ratios | ||||||
| (i) % of shares held by Government of India | - | - | - | - | ||
| (ii) Capital adequacy ratio - Basel III (%) | 16.47 | 16.67 | 17.67 | 16.67 | ||
| (iii) Earnings per share (EPS)1 (Rs..) | ||||||
| a) Basic EPS before and after extraordinary items | 5.70 | 5.67 | 4.47 | 19.99 | ||
| b) Diluted EPS before and after extraordinary items | 5.70 | 5.67 | 4.46 | 19.97 | ||
| (iv) NPA Ratios | ||||||
| a) Gross NPA | 102453 | 104164 | 132965 | 104164 | ||
| b) Net NPA | 29366 | 29797 | 39002 | 29797 | ||
| c) % of Gross NPA | 1.32 | 1.40 | 1.99 | 1.40 | ||
| d) % of Net NPA | 0.38 | 0.40 | 0.59 | 0.40 | ||
| (v) Return on asset (annualised) (%) | 1.70 | 1.76 | 1.53 | 1.63 | ||
| 18. Net worth2 | 1032237 | 980282 | 873983 | 980282 | ||
| 19. Paid up debt capital/ Outstanding debt3 (%) | - | - | 31.33 | - | ||
| 20. Debt/equity ratio4 | 0.06 | 0.07 | 0.10 | 0.07 | ||
| 21. Total debts to total assets5 (%) | 1.94 | 2.35 | 1.64 | 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 ENDED 30th JUNE 2024 | ||||||
|---|---|---|---|---|---|---|
| Business Segments | Quarter ended | Year ended | ||||
| 30-06-2024 | 31-03-2024 | 30-06-2023 | 31-03-2024 | |||
| Unaudited | Audited | Unaudited | Audited | |||
| Segment Revenue | ||||||
| 1. Treasury | 40859 | 58120 | 34988 | 167984 | ||
| 2. Corporate/Wholesale banking | 48411 | 47382 | 39563 | 174149 | ||
| 3. Retail banking | 175656 | 170902 | 145766 | 633516 | ||
| a) Digital Banking | 1 | 1 | - | 1 | ||
| b) Other Retail Banking | 175655 | 170901 | 145766 | 633515 | ||
| 4. Other banking operations | 2362 | 4938 | 1290 | 10614 | ||
| Total | 267288 | 281342 | 221607 | 986263 | ||
| Segment results | ||||||
| 1. Treasury | 9320 | 27861 | 10867 | 58446 | ||
| 2. Corporate/Wholesale banking | 15768 | 13617 | 12755 | 52426 | ||
| 3. Retail banking | 55842 | 49465 | 47145 | 193840 | ||
| a) Digital Banking | (10) | (12) | (2) | (41) | ||
| b) Other Retail Banking | 55852 | 49477 | 47147 | 193881 | ||
| 4. Other banking operations | 1828 | 3716 | 975 | 7978 | ||
| Total | 82758 | 94659 | 71742 | 312690 | ||
| Less: Unallocated income/expenses | 8173 | 7968 | 6900 | 29776 | ||
| Operating profit | 74585 | 86691 | 64842 | 282914 | ||
| Tax expense | 15426 | 11740 | 13037 | 49538 | ||
| Other provisions | 13294 | 29341 | 15942 | 72895 | ||
| Net profit from ordinary activities | 45865 | 45610 | 35863 | 160481 | ||
| Extraordinary items | - | - | - | - | ||
| Net profit | 45865 | 45610 | 35863 | 160481 | ||
| Segment assets | ||||||
| 1. Treasury | 2317406 | 2311896 | 2081280 | 2311896 | ||
| 2. Corporate/Wholesale banking | 1637057 | 1567949 | 1371104 | 1567949 | ||
| 3. Retail banking | 6059430 | 5798800 | 5226159 | 5798800 | ||
| c) Digital Banking | - | 2 | - | 2 | ||
| d) Other Retail Banking | 6059430 | 5798798 | 5226159 | 5798798 | ||
| 4. Other banking operations | - | - | - | - | ||
| 5. Unallocated | 873512 | 879875 | 782175 | 879875 | ||
| Total segment assets | 10887405 | 10558520 | 9460718 | 10558520 | ||
| Segment Liabilities | ||||||
| 1. Treasury | 2119787 | 2147669 | 1912734 | 2147669 | ||
| 2. Corporate/Wholesale banking | 1473059 | 1408343 | 1236030 | 1408343 | ||
| 3. Retail banking | 5451493 | 5208500 | 4712098 | 5208500 | ||
| a) Digital Banking | - | - | - | - | ||
| b) Other Retail Banking | 5451493 | 5208500 | 4712098 | 5208500 | ||
| 4. Other banking operations | - | - | - | - | ||
| 5. Unallocated | 784521 | 789998 | 705450 | 789998 | ||
| Total (a) | 9828860 | 9554510 | 8566312 | 9554510 | ||
| Capital employed (Segment assets - Segment liabilities) | ||||||
| 1. Treasury | 197619 | 164227 | 168546 | 164227 | ||
| 2. Corporate/Wholesale banking | 163998 | 159606 | 135074 | 159606 | ||
| 3. Retail banking | 607937 | 590300 | 514061 | 590300 | ||
| a) Digital Banking | - | 2 | - | 2 | ||
| b) Other Retail Banking | 607937 | 590298 | 514061 | 590298 | ||
| 4. Other banking operations | - | - | - | - | ||
| 5. Unallocated | 88991 | 89877 | 76725 | 89877 | ||
| Total (b) | 1058545 | 1004010 | 894406 | 1004010 | ||
| Total segment liabilities (a+b) | 10887405 | 10558520 | 9460718 | 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 ended 30th June 2024.
Notes:
1) The above financial results for the quarter ended 30th June 2024 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 18th July 2024. 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.
2) From 1st April 2024, the Bank has changed its accounting policy with respect to ‘Investments’ to comply with RBI’s master direction on Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions) 2023 dated 12th September 2023 (‘Master direction') which is effective from 1st April 2024. Accordingly ,the investments of the Bank as at 1st April 2024 have been re-classified, wherever required and valued in accordance with the requirement of said master direction and transitional adjustment on account of AFS 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 lakhs) respectively. All investment purchased and sold during the current quarter are done in compliance with the requirement of the master direction & revised accounting policy. The impact on account of this change in the policy is not material. Apart from the above, there has been no other change in the accounting policy followed in the preparation of the financial results for the quarter ended 30th June 2024 as compared to earlier years.
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 ended 30th June 2024, the Bank has allotted 301664 equity shares (corresponding quarter of previous year 337668 equity shares) of face value Rs. 2/- each, pursuant to the exercise of stock options by employees.
6) Disclosure as per RBI Circular DOR.STR.REC.51/21.04.048/2021-22 dated 24th September 2021 (updated as on December 05, 2022) in respect of loans not in default / stressed loans transferred / acquired during the quarter ended 30th June 2024 :
- The Bank has not acquired any "loans not in default" through assignment.
- The Bank has neither transferred any stressed (SMA) loans & loans not in default nor has acquired any stressed loans / loans classified as NPA.
- The Bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of stressed loans transferred to ARCs.
- Recovery Ratings assigned to outstanding SRs as on 30th June 2024 by Credit Rating Agencies:
| Rating Scale | Book Value |
|---|---|
| RR1 | - |
| RR1 + | - |
| RR2 | - |
| RR4 | - |
| Unrated* (Rating Withdrawn) | 25214.95 |
| Unrated | 1115.93 |
| Total | 26330.88 |
| *As per RBI guideline, rating is not applicable after 8 years | |
7) Provision Coverage Ratio as on 30th June 2024, calculated as per RBI guidelines is 94.91% (93.41% for the corresponding period of previous year).
8) In accordance with RBI circular DOR.CAP.REC.4/21.06.201/2024-25 dated 01st April 2024, read together with RBI circular DBR.No.BP.BC.1/21.06.201/2015-16 dated 1st July 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 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.
9) The figures for the quarter ended 31st March 2024 are the balancing figures between audited figures for the financial year ended 31st March 2024 and unaudited published figures for nine months ended 31st December 2023 which were subject to limited review.
10) Figures for the previous period/s have been re-grouped / re-classified, where necessary, to make them comparable with current period figures.
Date: 18th July 2024
B Ramesh Babu
MD & CEO
