Unaudited Financial Results for the Quarter/Three Months Ended 30th September 2023
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/HALF YEAR ENDED 30th SEPTEMBER 2023 | |||||||
---|---|---|---|---|---|---|---|
Particulars | Quarter ended | Half Year ended | Year ended | ||||
30-09-2023 | 30-06-2023 | 30-09-2022 | 30-09-2023 | 30-09-2022 | 31-03-2023 | ||
Unaudited | Unaudited | Audited | |||||
1. Interest earned (a+b+c+d) | 199708 | 188291 | 157948 | 387999 | 305301 | 651655 | |
a) Interest / discount on advances / bills | 165667 | 156903 | 128611 | 322570 | 247023 | 532695 | |
b) Income on investments | 33342 | 30464 | 27106 | 63806 | 52541 | 109913 | |
c) Interest on balances with Reserve Bank of India & other interbank funds | 598 | 812 | 2124 | 1410 | 5523 | 8260 | |
d) Other interest | 101 | 112 | 107 | 213 | 214 | 787 | |
2. Other income | 33889 | 33316 | 24157 | 67205 | 44064 | 115894 | |
3. Total income (1+2) | 233597 | 221607 | 182105 | 455204 | 349365 | 767549 | |
4. Interest expended | 108170 | 98584 | 75813 | 206754 | 148578 | 316774 | |
5. Operating expenses (i+ii) | 61636 | 58181 | 49060 | 119817 | 96008 | 203196 | |
(i) Employees cost | 32764 | 31891 | 23387 | 64655 | 46960 | 100596 | |
(ii) Other operating expenses | 28872 | 26290 | 25673 | 55162 | 49048 | 102600 | |
6. Total expenditure (excluding provisions and contingencies) (4+5) | 169806 | 156765 | 124873 | 326571 | 244586 | 519970 | |
7. Operating profit before provisions and contingencies (3-6) | 63791 | 64842 | 57232 | 128633 | 104779 | 247579 | |
8. Provisions (other than tax) and contingencies | 12641 | 15942 | 22719 | 28583 | 38183 | 103893 | |
9. Exceptional items | - | - | - | - | - | - | |
10. Profit from ordinary activities before tax (7-8-9) | 51150 | 48900 | 34513 | 100050 | 66596 | 143686 | |
11. Tax expense | 13305 | 13037 | 9490 | 26342 | 18698 | 33077 | |
12. Net profit from ordinary activities after tax (10-11) | 37845 | 35863 | 25023 | 73708 | 47898 | 110609 | |
13. Extraordinary items (net of tax expense) | - | - | - | - | - | - | |
14. Net profit for the period (12-13) | 37845 | 35863 | 25023 | 73708 | 47898 | 110609 | |
15. Paid-up equity share capital (FV Rs.2/- per share) | 16053 | 16048 | 16009 | 16053 | 16009 | 16041 | |
16. Reserves excluding Revaluation Reserve | 842364 | ||||||
17. Analytical ratio | |||||||
(i) % of shares held by Government of India | - | - | - | - | - | - | |
(ii) Capital adequacy ratio - Basel III (%) | 16.84 | 17.67 | 18.07 | 16.84 | 18.07 | 18.56 | |
(iii) Earnings per share (EPS) 1 (Rs.) | |||||||
a) Basic EPS before and after extraordinary items | 4.72 | 4.47 | 3.13 | 9.19 | 5.99 | 13.81 | |
b) Diluted EPS before and after extraordinary items | 4.70 | 4.46 | 3.12 | 9.16 | 5.97 | 13.78 | |
(iv) NPA ratios | |||||||
a) Gross NPA | 121908 | 132965 | 245653 | 121908 | 245653 | 145815 | |
b) Net NPA | 32363 | 39002 | 81872 | 32363 | 81872 | 46815 | |
c) % of Gross NPA | 1.73 | 1.99 | 4.02 | 1.73 | 4.02 | 2.27 | |
d) % of Net NPA | 0.47 | 0.59 | 1.38 | 0.47 | 1.38 | 0.74 | |
(v) Return on asset (annualised) (%) | 1.57 | 1.53 | 1.16 | 1.55 | 1.13 | 1.27 | |
18. Net worth 2 | 912308 | 873983 | 790269 | 912308 | 790269 | 837867 | |
19. Paid up debt capital/ Outstanding debt 3 (%) | 18.82 | 31.33 | 21.35 | 18.82 | 21.35 | 34.01 | |
20. Debt/equity ratio 4 | 0.10 | 0.10 | 0.03 | 0.10 | 0.03 | 0.05 | |
21. Total debts to total assets 5 (%) | 2.63 | 1.64 | 2.64 | 2.63 | 2.64 | 1.59 | |
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 2023 | ||||||
---|---|---|---|---|---|---|
Business Segments | Quarter ended | Half Year ended | Year ended | |||
30-09-2023 | 30-06-2023 | 30-09-2022 | 30-09-2023 | 30-09-2022 | 31-03-2023 | |
Unaudited | Unaudited | Audited | ||||
Segment revenue | ||||||
1. Treasury | 36599 | 34988 | 31550 | 71587 | 57967 | 124680 |
2. Corporate/Wholesale banking | 41939 | 39563 | 38595 | 81502 | 74847 | 157607 |
3. Retail banking | 153113 | 145766 | 110857 | 298879 | 214539 | 480325 |
a) Digital Banking | 0 | 0 | 0 | |||
b) Other Retail Banking | 153113 | 145766 | 110857 | 298879 | 214539 | 480325 |
4. Other banking operations | 1946 | 1290 | 1103 | 3236 | 2012 | 4937 |
Total | 233597 | 221607 | 182105 | 455204 | 349365 | 767549 |
Segment results | ||||||
1. Treasury | 9493 | 10867 | 11307 | 20360 | 18152 | 41538 |
2. Corporate/Wholesale banking | 12660 | 12755 | 12857 | 25415 | 24446 | 55097 |
3. Retail banking | 47621 | 47145 | 38345 | 94767 | 72638 | 171785 |
a) Digital Banking | (17) | (2) | (19) | |||
b) Other Retail Banking | 47638 | 47147 | 38345 | 94786 | 72638 | 171785 |
4. Other banking operations | 1469 | 975 | 832 | 2443 | 1506 | 3734 |
Total | 71243 | 71742 | 63341 | 142985 | 116742 | 272154 |
Less: Unallocated income/expenses | 7452 | 6900 | 6109 | 14352 | 11963 | 24575 |
Operating profit | 63791 | 64842 | 57232 | 128633 | 104779 | 247579 |
Tax expense | 13305 | 13037 | 9490 | 26342 | 18698 | 33077 |
Other provisions | 12641 | 15942 | 22719 | 28583 | 38183 | 103893 |
Net profit from ordinary activities | 37845 | 35863 | 25023 | 73708 | 47898 | 110609 |
Extraordinary items | - | - | - | - | - | - |
Net profit | 37845 | 35863 | 25023 | 73708 | 47898 | 110609 |
Segment Assets | ||||||
1. Treasury | 2107593 | 2081280 | 1947539 | 2107593 | 1947539 | 1937886 |
2. Corporate/Wholesale banking | 1512092 | 1371104 | 1516835 | 1512092 | 1516835 | 1387959 |
3. Retail banking | 5438644 | 5226159 | 4423386 | 5438644 | 4423386 | 4925455 |
a) Digital Banking | 2 | - | | 2 | | |
b ) Other Retail Banking | 5438642 | 5226159 | 4423386 | 5438642 | 4423386 | 4925455 |
4. Other banking operations | - | - | - | - | - | - |
5. Unallocated | 785164 | 782175 | 748735 | 785164 | 748735 | 766642 |
Total segment assets | 9843493 | 9460718 | 8636495 | 9843493 | 8636495 | 9017942 |
Segment liabilities | | |||||
1. Treasury | 1997178 | 1912734 | 1845059 | 1997178 | 1845059 | 1769206 |
2. Corporate/Wholesale banking | 1354437 | 1236030 | 1359580 | 1354437 | 1359580 | 1252671 |
3. Retail banking | 4871916 | 4712098 | 3965699 | 4871916 | 3965699 | 4445801 |
a) Digital Banking | - | - | | - | | |
b) Other Retail Banking | 4871916 | 4712098 | 3965699 | 4871916 | 3965699 | 4445801 |
4. Other banking operations | - | - | - | - | - | - |
5. Unallocated | 703670 | 705450 | 671273 | 703670 | 671273 | 691859 |
Total (a) | 8927201 | 8566312 | 7841611 | 8927201 | 7841611 | 8159537 |
Capital employed (Segment assets - Segment liabilities) | ||||||
1. Treasury | 110415 | 168546 | 102480 | 110415 | 102480 | 168680 |
2. Corporate/Wholesale banking | 157655 | 135074 | 157255 | 157655 | 157255 | 135288 |
3. Retail banking | 566728 | 514061 | 457687 | 566728 | 457687 | 479654 |
a) Digital Banking | 2 | - | | 2 | | |
b) Other Retail Banking | 566726 | 514061 | 457687 | 566726 | 457687 | 479654 |
4. Other banking operations | - | - | - | - | - | - |
5. Unallocated | 81494 | 76725 | 77462 | 81494 | 77462 | 74783 |
Total (b) | 916292 | 894406 | 794884 | 916292 | 794884 | 858405 |
Total segment liabilities (a+b) | 9843493 | 9460718 | 8636495 | 9843493 | 8636495 | 9017942 |
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. RBI, vide circular dated 7th April 2022 on establishment of Digital Banking Units (DBUs), has prescribed that reporting of Digital Banking Segment has to be made as a sub-segment of Retail Banking Segment under Accounting Standard 17 – Segment Reporting. The Bank has commenced first DBU on 19.06.2023 and segment information disclosed above is related to the said DBU for the quarter/half year ended 30th September 2023. |
STATEMENT OF ASSETS AND LIABILITIES | ||||
---|---|---|---|---|
Particulars | As On | |||
30-09-2023 | 30-09-2022 | 31-03-2023 | ||
Unaudited | Audited | |||
Capital and liabilities | ||||
Capital | 16053 | 16009 | 16041 | |
Reserves and surplus | 900237 | 778875 | 842364 | |
Deposits | 8306850 | 7339754 | 7663758 | |
Borrowings | 258787 | 228064 | 143201 | |
Other liabilities and provisions | 361566 | 273793 | 352578 | |
Total | 9843493 | 8636495 | 9017942 | |
Assets | ||||
Cash and balances with Reserve Bank of India | 461416 | 469061 | 427948 | |
Balances with banks and money at call and short notice | 27591 | 125080 | 41565 | |
Investments | 2083446 | 1829465 | 1880832 | |
Advances | 6950736 | 5940222 | 6313414 | |
Fixed assets | 42325 | 45964 | 43504 | |
Other assets | 277979 | 226703 | 310679 | |
Total | 9843493 | 8636495 | 9017942 |
CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 30th SEPTEMBER 2023 | ||||
---|---|---|---|---|
Particulars | Half Year ended | Year ended | ||
30-09-2023 | 30-09-2022 | 31-03-2023 | ||
Unaudited | Audited | |||
Cash flow from/ (used in) operating activities | ||||
Net Profit as per Profit and Loss account | 73708 | 47898 | 110609 | |
Adjustments for | ||||
Depreciation on Bank’s property | 4960 | 5514 | 10566 | |
Interest paid on TIER II bonds | 2918 | 2918 | 5820 | |
Provisions for other contingencies | 5073 | 1964 | 18503 | |
Provision for taxes | 26342 | 18698 | 33078 | |
Provision for depreciation on investment | (2197) | 2393 | (1188) | |
Provision for standard assets | 2760 | 2020 | 3451 | |
Provision for bad and doubtful debts | 21038 | 34654 | 71700 | |
Provision for non performing investments | (289) | (454) | 10238 | |
Provision for compensation absences | 1617 | 465 | 588 | |
Amortization of premium paid on Held to Maturity (HTM) investments | 5305 | 5531 | 10757 | |
Provision for employees stock option plan / scheme | - | - | 170 | |
(Profit) /Loss on sale of fixed assets (net) | (752) | (4) | (104) | |
Operating profit before working capital changes | 140483 | 121597 | 274188 | |
Adjustments for working capital changes | | |||
(Increase) / Decrease in investments (excluding HTM investments) | (178037) | (67495) | (58130) | |
(Increase) / Decrease in advances | (658278) | (441414) | (918127) | |
(Increase) / Decrease in other assets | 32700 | (79412) | (89758) | |
Increase / (Decrease) in deposits | 643091 | 472138 | 815157 | |
Increase / (Decrease) in borrowings | 115586 | 94154 | 9292 | |
Increase / (Decrease) in other liabilities and provisions | (4423) | 26443 | 68599 | |
| 91122 | 126011 | 101221 | |
Direct taxes paid | (22500) | 42500 | 20500 | |
Net cash flow from/ ( used in) operating activities | 68622 | 168511 | 121721 | |
Cash flow from investing activities | | |||
Purchase of fixed assets | (3781) | (3630) | (6222) | |
(Increase)/Decrease in HTM investments | (27395) | (47834) | (120902) | |
Sale of fixed assets / other assets | 752 | 4 | 104 | |
Net cash flow from / (used in) investing activities | (30424) | (51460) | (127020) | |
Cash flow from financing activities | | |||
Proceeds from share capital | 12 | 9 | 41 | |
Proceeds from share premium | 215 | 160 | 767 | |
Increase/(Decrease) in tier II bonds | - | - | - | |
Interest paid on tier II bonds | (2918) | (2918) | (5820) | |
Dividend paid (including tax on dividend) | (16013) | (12778) | (12793) | |
Net cash flow from (used in) financing activities | (18704) | (15527) | (17805) | |
| ||||
Net Increase/ (decrease) in cash & cash equivalents | 19494 | 101524 | (23104) | |
Cash and cash equivalents at the beginning of the year | 469513 | 492617 | 492617 | |
Cash and cash equivalents at the end of the period | 489007 | 594141 | 469513 |
Notes:
1. The above financial results for the quarter/half year ended 30 th September 2023 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 16 th October 2023. These results have been subjected to Limited review by the Joint Statutory Central Auditors of the Bank in line with SEBI (Listing Obligations and Disclosures Requirements) Regulation, 2015 as amended.
2. In the previous quarter, the Bank had introduced a floating provision policy with effect from 1 st April 2023 in line with RBI master circular on Income Recognition, Asset Classification and Provisioning pertaining Advances duly approved by the Board of Directors. Accordingly, the Bank has created a provision of Rs.2500 lakhs each in current quarter of 30 th September 2023 and previous quarter of 30 th June 2023. Floating provision created is considered as part of Tier II capital. Apart from the new policy on floating provisions, there has been no change in the accounting policies followed in the preparation of the financial results for the period ended 30 th September 2023, as compared to those followed in the annual financial statements for the year ended 31 st March 2023.
3. The financial results are prepared after considering provisions for non-performing advances, non-performing investments, standard advances(including stressed advances/sectors), restructured advances, floating provision on standard 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 half year ended 30 th September 2023, the Bank has allotted 2,69,023 equity shares and 6,06,691 equity shares respectively (corresponding quarter and half year of previous year 3,54,892 equity shares and 4,37,132 equity shares respectively) 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 24 th September 2021 (updated as on December 05, 2022) in respect of loans not in default / stressed loans transferred / acquired during the quarter ended 30 th September 2023 :
a) Loans not in default acquired through assignment
Particulars | Acquired from | |
SCBs, RRBs, UCBs, StCBs, DCCBs, AIFIs, SFBs and NBFCs (incl. HFCs) | ARCs | |
Aggregate principal outstanding of loans acquired | 16796 | - |
Aggregate consideration paid | 15116 | - |
Weighted average residual tenor of loans acquired | Ranging between 19.70 months to 112.95 months | - |
Coverage of tangible security | Ranging between 168% to 193% | - |
Retention of beneficial economic interest by the transferor | 10% | - |
Rating wise distribution of loans acquired | Not Applicable* | - |
* - loans acquired are under non-corporate category |
b) Loans classified as NPAs and SMA transferred
Particulars | Quarter ended 30 th Sept. 2023 Transferred to | ||
ARCs | Permitted transferees | Others | |
No. of accounts | 1 | - | - |
Aggregate principal outstanding of loans transferred | 298 | - | - |
Weighted average residual tenor of the loans transferred | - | - | - |
Net book value of loans transferred (at the time of transfer) | 298 | - | - |
Aggregate consideration | 162 | - | - |
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 | 162 | - | - |
c) The Bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of stressed loans transferred to ARCs.
d) Recovery Ratings assigned to outstanding SRs as on 30th September 2023 by Credit Rating Agencies:
Rating Scale | Book Value |
RR1 | 6820 |
RR1+ | 2295 |
RR2 | 7871 |
RR3 | 1722 |
RR5 | 15726 |
Unrated* (Rating Withdrawn) | 10629 |
Total | 45063 |
*As per RBI guideline, rating is not applicable after 8 years |
7. Disclosure as per RBI circulars DOR.No.BP.BC/3/21.04.048/2020-21 dated 6 th August 2020 (Resolution Framework 1.0) and DOR.STR.REC.11/21.04.048/2021-22 dated 5 th May 2021 (Resolution Framework 2.0) "COVID-19 Related Stress of Individuals and Small Businesses" for the half-year ended 30 th September 2023 :
Type of borrower | Exposure to accounts classified as Standard consequent to implementation of resolution plan – Position as at 31.03.2023 | 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-year 1 | Exposure to accounts classified as Standard consequent to implementation of resolution plan – Position as at 30.09.2023 |
---|---|---|---|---|---|
A | B | C | D | E | |
Personal Loans | 44079 | 1976 | - | 3761 | 38342 |
Corporate persons* | 16373 | - | - | 796 | 15577 |
Of which MSMEs | - | - | - | - | - |
Others | 3887 | 23 | - | 1245 | 2619 |
Total | 64339 | 1999 | - | 5802 | 56538 |
*As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016 1 Represents Net Movement in Balances |
8. Provision Coverage Ratio as on 30 th September 2023, calculated as per RBI guidelines is 94.49% (86.94% for the corresponding period of previous year).
9. In accordance with RBI circular DOR.CAP.REC.15/21.06.201/2023-24 dated 12 th May 2023, read together with RBI circular DBR.No.BP.BC.1/21.06.201/2015-16 dated 1 st 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 5 th February 2021 read together with circular DBR.BP.BC.No.106/ 21.04.098/2017-18 dated 17 th May 2018. These disclosures have not been subjected to audit/review by the Statutory Central Auditors.
10. The ratios and other information which are 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.
11. 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 30 th September 2023 are the balancing figures between reviewed figures in respect of half year ended 30 th September 2023 and the published year to date figures upto 30 th June 2023.
Date: 16th October 2023
B Ramesh Babu
Managing Director & CEO