Audited Financial Results for the Quarter and Year ended 31st March 2024
| Particulars | Quarter ended | Year ended | ||||
|---|---|---|---|---|---|---|
| 31-03-2024 | 31-12-2023 | 31-03-2023 | 31-03-2024 | 31-03-2023 | ||
| Audited | Unaudited | Audited | Audited | |||
| 1. Interest earned (a+b+c+d) | 218457 | 213938 | 176832 | 820394 | 651655 | |
| a) Interest / discount on advances / bills | 182240 | 179373 | 146092 | 684183 | 532695 | |
| b) Income on investments | 35365 | 33930 | 29239 | 133101 | 109913 | |
| c) Interest on balances with Reserve Bank of India & other interbank funds | 364 | 431 | 1086 | 2205 | 8260 | |
| d) Other interest | 488 | 204 | 415 | 905 | 787 | |
| 2. Other income | 62885 | 35779 | 40081 | 165869 | 115894 | |
| 3. Total income (1+2) | 281342 | 249717 | 216913 | 986263 | 767549 | |
| 4. Interest expended | 118911 | 113809 | 87574 | 439474 | 316774 | |
| 5. Operating expenses (i+ii) | 75740 | 68318 | 55434 | 263875 | 203196 | |
| (i) Employees cost | 43975 | 37473 | 28065 | 146103 | 100596 | |
| (ii) Other operating expenses | 31765 | 30845 | 27369 | 117772 | 102600 | |
| 6. Total Expenditure (excluding provisions and contingencies) (4+5) | 194651 | 182127 | 143008 | 703349 | 519970 | |
| 7. Operating profit before provisions and contingencies (3-6) | 86691 | 67590 | 73905 | 282914 | 247579 | |
| 8. Provisions (other than tax) and Contingencies | 29341 | 14971 | 29301 | 72895 | 103893 | |
| 9. Exceptional items | - | - | - | - | - | |
| 10. Profit from ordinary activities before tax (7-8-9) | 57350 | 52619 | 44604 | 210019 | 143686 | |
| 11. Tax expense | 11740 | 11456 | 10822 | 49538 | 33077 | |
| 12. Net profit from ordinary activities after tax (10-11) | 45610 | 41163 | 33782 | 160481 | 110609 | |
| 13. Extraordinary items (net of tax expense) | - | - | - | - | - | |
| 14. Net profit for the period (12-13) | 45610 | 41163 | 33782 | 160481 | 110609 | |
| 15. Paid-up equity share capital (FV Rs.2/- per share) | 16088 | 16076 | 16041 | 16088 | 16041 | |
| 16. Reserves excluding Revaluation Reserve | 987920 | 842364 | ||||
| 17. Analytical Ratios | ||||||
| (i) % of shares held by Government of India | - | - | - | - | - | |
| (ii) Capital Adequacy Ratio-Basel III (%) | 16.67 | 15.39 | 18.56 | 16.67 | 18.56 | |
| (iii) Earnings per share (EPS) 1 (Rs.) | ||||||
| a) Basic EPS before and after extraordinary items | 5.67 | 5.13 | 4.21 | 19.99 | 13.81 | |
| b) Diluted EPS before and after extraordinary items | 5.67 | 5.12 | 4.20 | 19.97 | 13.78 | |
| (iv) NPA Ratios | ||||||
| a) Gross NPA | 104164 | 115186 | 145815 | 104164 | 145815 | |
| b) Net NPA | 29797 | 30527 | 46815 | 29797 | 46815 | |
| c) % of Gross NPA | 1.40 | 1.58 | 2.27 | 1.40 | 2.27 | |
| d) % of Net NPA | 0.40 | 0.42 | 0.74 | 0.40 | 0.74 | |
| (v) Return on asset (annualised) (%) | 1.76 | 1.65 | 1.50 | 1.63 | 1.27 | |
| 18. Net worth 2 | 980282 | 954260 | 837867 | 980282 | 837867 | |
| 19. Paid up debt capital/ Outstanding debt 3 (%) | - | 16.27 | 34.01 | - | 34.01 | |
| 20. Debt/equity ratio 4 | 0.07 | 0.11 | 0.05 | 0.07 | 0.05 | |
| 21. Total debts to total assets 5 (%) | 2.35 | 2.91 | 1.59 | 2.35 | 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/YEAR ENDED 31ST MARCH 2024 | |||||
|---|---|---|---|---|---|
| Business Segments | Quarter ended | Year ended | |||
| 31-03-2024 | 31-12-2023 | 31-03-2023 | 31-03-2024 | 31-03-2023 | |
| Audited | Unaudited | Audited | Audited | ||
| Segment Revenue | |||||
| 1. Treasury | 58120 | 38277 | 35734 | 167984 | 124680 |
| 2. Corporate/Wholesale banking | 47382 | 45265 | 39551 | 174149 | 157607 |
| 3. Retail banking | 170902 | 163735 | 139933 | 633516 | 480325 |
| a) Digital Banking | 1 | - | 1 | ||
| b) Other Retail Banking | 170901 | 163735 | 139933 | 633515 | 480325 |
| 4. Other banking operations | 4938 | 2440 | 1695 | 10614 | 4937 |
| Total | 281342 | 249717 | 216913 | 986263 | 767549 |
| Segment Results | |||||
| 1. Treasury | 27861 | 10225 | 13113 | 58446 | 41538 |
| 2. Corporate/Wholesale banking | 13617 | 13394 | 14674 | 52426 | 55097 |
| 3. Retail banking | 49465 | 49608 | 51181 | 193840 | 171785 |
| a) Digital Banking | (12) | (10) | (41) | ||
| b) Other Retail Banking | 49477 | 49618 | 51181 | 193881 | 171785 |
| 4. Other banking operations | 3716 | 1820 | 1290 | 7978 | 3734 |
| Total | 94659 | 75047 | 80258 | 312690 | 272154 |
| Less: Unallocated income/expenses | 7968 | 7457 | 6353 | 29776 | 24575 |
| Operating profit | 86691 | 67590 | 73905 | 282914 | 247579 |
| Tax expense | 11740 | 11456 | 10822 | 49538 | 33077 |
| Other provisions | 29341 | 14971 | 29301 | 72895 | 103893 |
| Net profit from ordinary activities | 45610 | 41163 | 33782 | 160481 | 110609 |
| Extraordinary items | - | - | - | - | - |
| Net profit | 45610 | 41163 | 33782 | 160481 | 110609 |
| Segment Assets | |||||
| 1. Treasury | 2311896 | 2164373 | 1937886 | 2311896 | 1937886 |
| 2. Corporate/Wholesale banking | 1567949 | 1562461 | 1387959 | 1567949 | 1387959 |
| 3. Retail banking | 5798800 | 5617348 | 4925455 | 5798800 | 4925455 |
| a) Digital Banking | 2 | 2 | 2 | ||
| b) Other Retail Banking | 5798798 | 5617346 | 4925455 | 5798798 | 4925455 |
| 4. Other banking operations | - | - | - | - | - |
| 5. Unallocated | 879875 | 942649 | 766642 | 879875 | 766642 |
| Total segment assets | 10558520 | 10286831 | 9017942 | 10558520 | 9017942 |
| Segment Liabilities | |||||
| 1. Treasury | 2147669 | 2034860 | 1769206 | 2147669 | 1769206 |
| 2. Corporate/Wholesale banking | 1408343 | 1403205 | 1252671 | 1408343 | 1252671 |
| 3. Retail banking | 5208500 | 5044702 | 4445801 | 5208500 | 4445801 |
| a) Digital Banking | - | - | - | ||
| b) Other Retail Banking | 5208500 | 5044702 | 4445801 | 5208500 | 4445801 |
| 4. Other banking operations | - | - | - | - | - |
| 5. Unallocated | 789998 | 846171 | 691859 | 789998 | 691859 |
| Total (a) | 9554510 | 9328938 | 8159537 | 9554510 | 8159537 |
| Capital employed (Segment assets - Segment liabilities) | |||||
| 1. Treasury | 164227 | 129513 | 168680 | 164227 | 168680 |
| 2. Corporate/Wholesale banking | 159606 | 159256 | 135288 | 159606 | 135288 |
| 3. Retail banking | 590300 | 572646 | 479654 | 590300 | 479654 |
| a) Digital Banking | 2 | 2 | 2 | ||
| b) Other Retail Banking | 590298 | 572644 | 479654 | 590298 | 479654 |
| 4. Other banking operations | - | - | - | - | - |
| 5. Unallocated | 89877 | 96478 | 74783 | 89877 | 74783 |
| Total (b) | 1004010 | 957893 | 858405 | 1004010 | 858405 |
| Total segment liabilities (a+b) | 10558520 | 10286831 | 9017942 | 10558520 | 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/year ended 31st March 2024. | |||||
| STATEMENT OF ASSETS AND LIABILITIES | |||||
|---|---|---|---|---|---|
| Particulars | As on 31.03.2024 (Audited) | As on 31.03.2023 (Audited) | |||
| Capital and Liabilities | |||||
| Capital | 16088 | 16041 | |||
| Reserves and surplus | 987920 | 842364 | |||
| Deposits | 8911272 | 7663758 | |||
| Borrowings | 247835 | 143201 | |||
| Other liabilities and provisions | 395405 | 352578 | |||
| Total | 10558520 | 9017942 | |||
| Assets | |||||
| Cash & balances with Reserve Bank of India | 558793 | 427948 | |||
| Balances with banks and money at call and short notice | 7064 | 41565 | |||
| Investments | 2234352 | 1880832 | |||
| Advances | 7366748 | 6313414 | |||
| Fixed assets | 43288 | 43504 | |||
| Other assets | 348275 | 310679 | |||
| Total | 10558520 | 9017942 | |||
| CASH FLOW STATEMENT | |||||
|---|---|---|---|---|---|
| Particulars | Year ended 31-03-2024 (Audited) | Year ended 31-03-2023 (Audited) | |||
| Cash flow from/(used in) operating activities | |||||
| Net Profit as per Profit and Loss account | 160481 | 110609 | |||
| Adjustments for | |||||
| Depreciationon Bank’s property | 10026 | 10566 | |||
| Interest paid on TIER II bonds | 5501 | 5820 | |||
| Provisions for other contingencies | 10842 | 18503 | |||
| Provision for taxes | 49538 | 33078 | |||
| Provision for depreciation on investment | (25461) | (1188) | |||
| Provision for standard assets | 4474 | 3451 | |||
| Provision for bad and doubtful debts | 42766 | 71700 | |||
| Provision for non performing investments | 14813 | 10238 | |||
| Provision for compensation absences | 7264 | 588 | |||
| Amortization of premium paid on Held to Maturity (HTM) investments | 10362 | 10757 | |||
| Provision for employees stock option plan / scheme | 341 | 170 | |||
| (Profit) /Loss on sale of fixed assets (net) | (783) | (104) | |||
| Operating profit before working capital changes | 290164 | 274188 | |||
| Adjustments for working capital changes | |||||
| (Increase) / Decrease in investments (excluding HTM investments) | (232613) | (58130) | |||
| (Increase) / Decrease in advances | (1095896) | (918127) | |||
| (Increase) / Decrease in other assets | (40565) | (89758) | |||
| Increase / (Decrease) in deposits | 1247514 | 815157 | |||
| Increase / (Decrease) in borrowings | 153333 | 9292 | |||
| Increase / (Decrease) in other liabilities and provisions | 18969 | 68599 | |||
| 340906 | 101221 | ||||
| Direct taxes paid | (45500) | 20500 | |||
| Net cash flow (from)/ used in operating activities | 295406 | 121721 | |||
| Cash flow from investing activities | |||||
| Purchase of fixed assets | (9810) | (6222) | |||
| (Increase)/Decrease in HTM investments | (120621) | (120902) | |||
| Sale of fixed assets / other assets | 783 | 104 | |||
| Net cash flow from / (used in) investing activities | (129648) | (127020) | |||
| Cash flow from financing activities | |||||
| Proceeds from share capital | 46 | 41 | |||
| Proceeds from share premium | 785 | 767 | |||
| Increase/(Decrease) in tier II bonds | (48700) | - | |||
| Interest paid on tier II bonds | (5501) | (5820) | |||
| Dividend paid | (16044) | (12793) | |||
| Net cash flow from / (used in) financing activities | (69414) | (17805) | |||
| Net Increase/ (decrease) in cash & cash equivalents | 96344 | (23104) | |||
| Cash and cash equivalents at the beginning of the year | 469513 | 492617 | |||
| Cash and cash equivalents at the end of the year | 565857 | 469513 | |||
Notes:
1) The above financial results for the quarter / year ended 31st March 2024 have been recommended by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on 13th May 2024. The same has been subjected to audit as per listing agreement with the stock exchange by the Joint Statutory Central Auditors of the Bank in line with SEBI (Listing Obligations and Disclosures Requirements) Regulation, 2015 as amended and an unmodified audit report has been issued.
2) The figures for the quarter ended 31st March 2024 and 31st March 2023 are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the end of the third quarter of the respective financial year.
3) In the quarter ended 30th June 2023, the Bank had introduced a floating provision policy with effect from 1st April 2023 in line with RBI master circular on Income Recognition, Asset Classification and Provisioning pertaining Advances duly approved by the Board of Directors. In accordance with policy, the Bank has created a provision of Rs.2500 lakhs each in last 4 quarters. 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 quarter and year ended 31st March 2024.
4) 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.
5) 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.
6) As per RBI Master Direction (Transfer of Loan Exposures ) Directions , 2021 SR investments more than 8 years have to be classified as Loss assets - Non Performing Investments (NPI). As per RBI Direction on Financial Statements - presentation and disclosure (30.08.2021) depreciation on investments have to be classified under other income. During the March quarter, we have reversed Rs. 157 crores of such SR investments provision resulting in increase in other income and treated the same amount as provision for NPI under provisions. However, there is no impact on net profit on account of this.
7) During the quarter and year ended 31st March 2024, the Bank has allotted 5,77,186 equity shares and 23,23,535 equity shares respectively (corresponding quarter and previous year 11,02,701 equity shares and 20,41,791 equity shares respectively) of face value Rs. 2/- each, pursuant to the exercise of stock options by employees.
8) Details of disclosure on 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:
| Type of borrower | Exposure to accounts classified as Standard consequent to implementation of resolution plan – outstanding as at 30.09.2023 | 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-year1 | Exposure to accounts classified as Standard consequent to implementation of resolution plan – outstanding as at 31.03.2024 |
|---|---|---|---|---|---|
| A | B | C | D | E | |
| Personal Loans | 38342 | 1532 | - | 3478 | 33332 |
| Corporate persons* | 15577 | - | - | 3165 | 12412 |
| Of which MSMEs | - | - | - | - | - |
| Others | 2737 | - | - | 369 | 2368 |
| Total | 56656 | 1532 | - | 7012 | 48112 |
| * As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016 1Represents Net Movement in Balances | |||||
9) Details of loans not in default / stressed loans transferred / acquired under RBI Master Directions DOR.STR.REC.51/21.04.048/2021-22 dated 24th September 2021 (updated as on December 28, 2023) on transfer of loan exposures are given below:
a. Loans not in default acquired through assignment
| Particulars | Quarter ended 31st March 2024 Acquired from | Year ended 31st March 2024 Acquired from | ||
|---|---|---|---|---|
| SCBs, RRBs, UCBs, StCBs, DCCBs, AIFIs, SFBs and NBFCs (incl. HFCs) | ARCs | SCBs, RRBs, UCBs, StCBs, DCCBs, AIFIs, SFBs and NBFCs (incl. HFCs) | ARCs | |
| Aggregate principal outstanding of loans acquired | 5534 | - | 22330 | - |
| Aggregate consideration paid | 4981 | - | 20097 | - |
| Weighted average residual tenor of loans acquired | 109.43 months | - | Ranging between 19.70 to 112.95 months | - |
| Coverage of tangible security | 224.16% | - | Ranging between 168% to 224% | - |
| Retention of beneficial economic interest by the transferor | 10% | - | 10% | - |
| Rating wise distribution of loans acquired | Not Applicable* | - | Not Applicable* | - |
| * - loans acquired are under non-corporate category | ||||
b. Loans classified as NPAs and SMA transferred.
| Particulars | Quarter ended 31st March 2024 Transferred to | Year ended 31st March 2024 Transferred to | ||||
|---|---|---|---|---|---|---|
| ARCs | Permitted transferees | Others | ARCs | Permitted transferees | Others | |
| No. of accounts | 1 | - | - | 2 | - | - |
| Aggregate principal outstanding of loans transferred | 3767 | - | - | 4065 | - | - |
| Weighted average residual tenor of the loans transferred | - | - | - | - | - | - |
| Net book value of loans transferred (at the time of transfer) | - | - | - | - | - | - |
| Aggregate consideration | 725 | - | - | 887 | - | - |
| 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 | 725 | - | - | 887 | - | - |
c. The Bank has neither transferred any stressed (SMA) loans & loans not in default nor has acquired any stressed loans / loans classified as NPA acquired during the quarter / year ended 31st March 2024
d. Recovery Ratings assigned to outstanding SRs as on 31st March 2024 by Credit Rating Agencies:
| Rating Scale | Book Value |
|---|---|
| RR1 | 6441 |
| RR1+ | Nil |
| RR2 | 5973 |
| RR3 | Nil |
| Unrated | 96 |
| Unrated* (Rating Withdrawn) | 25333 |
| Total | 37843 |
| *As per RBI guidelines, rating is not applicable after 8 years | |
10) Provision Coverage Ratio as on 31st March 2024, calculated as per RBI guidelines is 94.85% (92.14% for the corresponding period of previous year).
11) The Board of Directors have recommended a dividend of 120% i.e. Rs.2.40 per equity share of Rs. 2.00 each for the year ended 31st March 2024 (previous year 100% i.e. Rs.2 per share) subject to the approval of the shareholders at the ensuing Annual General Meeting. Effect of proposed dividend has been reckoned in capital adequacy ratio computation.
12) In accordance with RBI circular DOR.CAP.REC.15/21.06.201/2023-24 dated 12th May 2023, 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.
13) On March 12, 2024, the Bank has exercised call option and redeemed Basel III compliant Tier II Bonds (ISIN: INE036D08015) of Rs. 48700 lakhs after obtaining approval from RBI.
14) 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.
15) Figures for the previous period/s have been re-grouped / re-classified, where necessary, to make them comparable with current period figures.
Date: 13th May 2024
B Ramesh Babu
MD & CEO
DIN: 06900325
