Central Office, Erode Road, Karur 639 002
P T Kuppuswamy
Chairman
Dear Shareholder,
I deem it a great privilege to share some of my thoughts with regard to general developments taken place in the Banking
Industry during the year 2004-05, with particular reference to your bank.
For the last 3 or 4 years, all banks were very comfortable as they could generate sizeable profits from Treasury because of
falling interest rate regime. In the last fiscal, there was a ‘U’ turn as the YTM on Government Securities, started to gradually
move northwards, resulting in huge depreciation to the investment portfolio. At one point of time, the total depreciation on
investments made by the banking industry was estimated at Rs.85,000.00 crore. As your bank is also a part of the system,
it has suffered depreciation and amortization to the tune of Rs.67.86 crore in 2004-05. The bank has mitigated the future
interest risk on investment because of shifting high coupon Government securities from AFS to HTM category.
Ø
In addition to the above, Rs.7.00 crore is provided by the bank for wage revision as per the VIII Bi-partite Settlement
entered into between IBA and Employees’ Union and Officers’ Association. Against this backdrop, the performance
highlights of the bank for the year 2004-05 is given below:
ü
ü
ü
ü
The deposits have reached the level of Rs.6672.19 crore as on 31.3.2005 and advances Rs.4741.01 crore.
The Percentage of net NPA to net advance has come down from 2.32% to 1.66%. The coverage ratio
is 67.52%.
The capital funds of the Bank is at Rs.760.87 crore as on 31.3.2005 against Rs.712.03 crore as on 31.3.2004.
The CRAR of the Bank is comfortable at 16.07% after providing capital charge for market risk for trading book
as per the revised norms.
I am very glad to advise you about the progress achieved by the bank on technological front.
q All the branches are computerized and Core Banking Solution is implemented in 183 branches, covering 94% of the
total business of the bank.
q 45 ATMs were installed taking the own ATMs total to 156.
q The bank has entered into an agreement with MITR consortium because of which ATMs of Punjab National Bank,
Oriental Bank of Commerce, Indian Bank and UTI Bank are at the services of KVB customers.
q RTGS facility for instant funds transfer across the banks in the Country is implemented in 26 centres.
q In 2005-06, we have launched Mobile Top-up facility to re-charge the cell phone of all service providers through our
ATM.
It has always been our main Agenda to increase the shareholders value. Even though there is a downfall in profit from
Rs.161.05 crore as on 31.3.2004 to Rs.105.34 crore as on 31.3.2005, our Board is pleased to maintain the dividend at
100% tax free in the hands of the shareholders for the second consecutive year.
The bank is well prepared to migrate to Basel II norms as 100% of the operations are computerized.
Following are some of the initiatives taken by the bank to reach deposit level of Rs.8,000.00 crore and advances level of
Rs.5500.00 crore by the end of 2005-06:
a) Establishing interconnectivity to all the remaining branches and the entire Bank will be brought under CBS.
b) Providing internet banking, mobile banking for the customers’ use.
c) Installing additionally another 50 ATMs and also introducing utility payments through ATMs.
d) Introduction of cheque truncation system.
e) Expansion of RTGS facility to all the non-rural branches.
f) Connecting to National Financial Switch of Institute of Development and Research in Banking Technology (IDRBT).
g) Concentrating on para banking activities like selling of insurance products.
h) Foraying into new areas of business such as derivatives trading.
i) Improving the low cost deposits percentage and to reach at least Rs.1000 crore each under Savings Deposits and
demand deposits.
j) Opening another 15 branches.
Above all, I very much count upon your valuable support for dynamic growth in the days to come. I will be very much
honoured by your esteemed presence at the ensuing General Body Meeting on 21.7.2005.
With warm regards,
Yours sincerely,
P.T. KUPPUSWAMY
CHAIRMAN
Annual Report 2004-05
Directors’ Report
Your Directors have pleasure in presenting the 86th Annual
Report of the Bank along with the audited financial statements
for the financial year ended 31st March 2005. From the
published results, you will find that the Bank has posted
good results during the fiscal 2004-05 albeit the operational
environment relating to treasury dealings posted difficult
challenges as interest rates continued to rise resulting in
charging of depreciation on the investment portfolio affecting
the overall profitability.
Primary market activity gained momentum while the
secondary market registered an upbeat during the fiscal
under report. The secondary market which was volatile
during the first half of the year, registered an upsurge
during the later parts of the year owing to strong macro
economic conditions, renewed buying interest shown
by FIIs, good results put up by the corporates, moderate
inflationary pressures etc.
The Directors take pleasure in advising the members that
your Bank has been assigned ‘Numero Uno’ position among
the old-generation private sector banks by the Business Today
in its issue dated 02.01.2005. The rating matrix was based
on various parameters.
Exports reached nearly $80 billion in 2004-05,
registering a growth of 24.4% over the previous fiscal,
with the Imports surging a much faster growth at 35.6%
to $106.5 billion, resulted in a trade gap of $26.5 billion.
The trade deficit was only $14.2 billion in 2003-04. Forex
reserves surged after the initial pause and reached to a
level of US $ 141.5 billion as on 31st March 2005.
1.
OVERVIEW OF THE ECONOMY
Thus the Indian economy continued to show robust
growth in all sectors in the year under review.
The macro economic performance during the fiscal 200405 was stronger than expected with the real GDP
estimated to be at 6.9%. The main driver for the growth
can be attributed to the resurgent industrial sector,
propelled by buoyant exports, the brightened domestic
investment climate and the good show put up by the
services sector. The Industrial sector contributed 26%
to the overall growth of the economy, with the highest
contribution of 89.8% coming from the Manufacturing
sector alone. Agriculture and allied activity contributed
to the growth of real GDP by 1.1%.
Indian Economy is poised to maintain growth rate of
7% during the current fiscal. Industrial and Services
sectors is expected to maintain the same pace of growth
more or less 8% achieved during the last fiscal.
Agricultural growth is projected to rise 3.3% in 05-06
from 1.1% in the previous fiscal 04-05.
The average inflation rate is placed around 5-5.5%, on
a point to point basis during the current fiscal, subject
to the uncertainties in the oil front.
Domestic financial markets witnessed a sharp increase
in credit off take during the fiscal 2004-05. The non food
credit growth sustained and the distribution of credit
was widespread across various sectors of the economy.
However the expansion of credit did not trigger a hike in
lending rates.
Banks were able to cater to the increased demands for
credit by reducing their investments in Government
securities. This can be seen from the fall in the
incremental investment to deposit ratio to about 25%
than the previous year ratio of 58%. Banks found it
wiser to lend than to invest in securities, thus returning
to their primary area of business. The scheduled
commercial banks investments have declined by about
3% over the previous fiscal 03-04.
The economy witnessed a spurt in savings and
investment rate which are necessary to keep the GDP
growth momentum. The gross capital formation however
slowed down. The capital market mirrored the growing
confidence in the strong fundamentals of the economy.
The non-food credit which registered a growth of 26%
during the year under review is expected to grow further
in 2005-06 as the Government proposes to give highest
priority to rural development, agriculture and allied fields.
2.
PERFORMANCE OF THE BANK
Your Directors record with happiness that the total
business of the Bank has registered a growth of
Rs.1400.58 crs, with volume touching Rs.11,413.20 crs,
as at March 31, 2005 as against the business volume
of Rs.10,012.62 crs recorded during 2003-04.
Gross Deposits which registered a smart increase
aggregated to Rs.6672.19 crs as at 31st March 2005 as
against Rs.5911.47 crs as at the end of the preceding
year recording a growth of Rs.760.72 crs. The advances
portfolio registered a steady growth and reached
Rs.4741.01 crs as at the end of March 2005 with a
growth of 15.60% over the previous fiscal 2003-04
Directors’ Report
(Rs.4101.14 crs). The interest spread was 3.32%
against the previous fiscal rate of 3.36%. This is despite
an intense competition to attract and retain quality
borrowers.
The total income stood at Rs.703.92 crs in 2004-05 as
against the previous fiscal income of Rs.721.87 crs. The
operating profit was at Rs. 199.23 crs during the fiscal
with a net profit of Rs. 105.34 crs as against Rs. 161.05
crs, recorded in the preceding fiscal. The fall in profit is
attributable to the depreciation suffered on the
investment portfolio of the Bank owing to rise in interest
rates. It may be noted that yields have risen by about
150 basis points on an average during the year 200405. In fact, during the first week of November 2005, the
10-year yield stood at 216 basis points over the level as
of 31st March 2004. In such a scenario, the bank has
taken a hit on its Profit and Loss Account to the extent
of Rs.67.86 crore for the year ended 31st March 2005.
This was on account of depreciation of Rs.44.01 crore
on shifting of securities from ‘Available For Sale’ (AFS)
category to ‘Held To Maturity’ (HTM) category, Rs.12.89
crore on revaluation of government securities under AFS
and ‘Held For Trading’ (HFT) categories and amortization
of premium of Rs.10.96 crore on securities under HTM
category. It may be noted that the bank had taken a hit
of only Rs.0.03 crore in its P& L A/c for the year ended
31 st March 2004 on account of depreciation and
amortization. By shifting high coupon government
securities from AFS to HTM category, the Bank has
mitigated the future interest rate risk on these
investments. As a result, the yield on SLR portfolio of
the Bank for the year ended 31st March 2005 stood at a
robust 8.14% although it is slightly less than the previous
year’s yield of 8.48%.
The Bank has also made a provision of Rs.7.00 crore
for the impending industry wage settlement.
The highlights of the bank’s performance during the fiscal
under review are given under:
Rs. in crs
a.
Deposits
6672.19
b.
Gross Advances
4741.01
c.
Total Income
703.92
d.
Operating Profit
199.23
e.
Net Profit
105.34
Appropriations
Transfer to
1.
Statutory Reserve
31.75
2.
General Reserve
54.00
3.
a) Proposed Dividend
b) Dividend Tax
(including surcharge and
Education cess)
17.98
2.52
Other Performance Highlights:
1. Net worth
Rs. 760.88 crs
2. Book value per share
Rs. 423.23
3. Earnings per share
Rs. 58.59
4. Capital Adequacy Ratio
16.07%
3.
DEPOSITS
The aggregate deposits of the bank grew by Rs.760.72
crs from Rs.5911.47 crs as on 31st March 2004 to
Rs.6672.19 crs as at the end of March 2005. The low
cost deposits surged to Rs.1630.48 crs during 2004-05
from Rs.1351.93 crs as on 31.03.2004, thus recording
an increase of 20.60% over the previous fiscal. Of the
low cost deposits the Savings Deposits grew year on
year by 20.99% at Rs.845.25 crs. The thrust given by
the bank in mobilisation of low cost deposits continued
to yield results. Demand deposits were up by 20.19%
at Rs.785.23 crs. (Rs.653.31 crs). The growth in bank’s
deposits was affected largely on account of substitution
in favour of postal deposits, due to attractive returns in
comparison with the bank deposits.
4.
CREDIT PORTFOLIO
Banks have started looking back to their traditional area
of lending due to fall in the treasury income. Your bank’s
credit portfolio in 2004-05 rose by Rs.639.87 crs
registering 15.60% growth to touch Rs.4741.01 crs as
against Rs.4101.14 crs during the previous fiscal.
The Bank continued to comply with the stipulation of
extension of 40% of net bank credit to the priority sector
and reached 40.30% of the net bank credit.
Banks offer highly varied financial products which are
tailor made to suit the needs of the customers in the
retail and corporate segments. Your bank has also been
in forefront in introducing several new products during
the recent years.
Annual Report 2004-05
Directors’ Report
NEW BANKING PRODUCTS
Reserve Fund. The total amount of Rs.36.00 crs lying
in the Contingency Reserve Fund has been reckoned
as provision for NPAs. Your Bank has also provided
Rs.16.50 crs towards the provision for NPAs during the
year under report. Thus the total provision available for
NPAs was Rs.157.44 crs as aginst the required provision
of Rs. 121.21 crs, resulting a net of Rs.36.23 crs as
excess provision.
Fierce competition amongst banks have brought down
the net interest margins over the years. Banks were
forced to operate on thinner spreads as in the case of
their counterparts in the developed countries. Product
innovation has become the order of the day. Product
innovation and creating brand equity for specialized
products will decide the market share and volumes for
each bank.
Your bank, in order to cater to the needs of various
clients of the Bank, introduced 6 new loan products
during the fiscal 2004-2005 viz., KVB Special Home
Loan, IPO Funding Scheme, KVB Kisan Mithra
Scheme, Easy Trade Fin Scheme, KVB Happy Kisan
Scheme and Gold Card Scheme for Export Constituents
of the bank.
5.
7.
DIVIDEND
The Board is aware of the expectations of the
shareholders and has been rewarding them with
handsome dividends and maximizing their wealth over
the years. In consonance with the said policy, the Board
of Directors of the Bank is pleased to recommend a
dividend of 100% for the financial year ended 31st March
2005 despite the profits being lower. The bank had
complied with the revised prudential guidelines issued
by the Reserve Bank of India for declaration of dividend.
The out flow on account of the dividend payment would
be Rs.17.98 crs. The dividend is not taxable in the hands
of the shareholders.
6.
The Gross and Net NPAs stood at Rs.241.91 crs and
Rs.75.75 crs as on 31.3.2005 as against Rs.239.23 crs
and Rs.91.60 crs as on 31.3.2004 respectively. The
percentage of Gross and Net NPAs has come down from
5.83 % and 2.32% to 5.10 % and to 1.66% as at the end
of fiscal under report. The Coverage ratio has improved
from 60.56% to 67.52%.
CAPITAL ADEQUACY
Your Bank’s Capital Adequacy ratio registered 16.07%
as on 31st March 2005 as against the Reserve Bank of
India’s stipulation of 9%.
The paid up share capital of the bank was at Rs.17.98
crs. The EPS and the Book value were Rs. 58.59 and
Rs.423.23 as on 31.03.2005, compared to Rs.89.58 and
Rs.396.05 respectively as at 31.03.2004.
8.
INVESTMENTS
The Bank continued its efforts to reduce the nonperforming assets by implementing various measures.
These measures yielded results in containing the growth
of NPAs inspite of enlargement of credit portfolio and
application of 90 day norm for classification of overdue
loans as per regulatory prescriptions.
The year 2004-05 witnessed decisive change in the
course of movement of interest rates in the Indian debt
market. The continuous softening of interest rates during
the last few years gave way to a reign of rising interest
rates. To grapple with the rising interest rate scenario
and in order to reduce future interest rate risk, the Bank
had adopted the twin strategy of pruning down the
excess SLR securities and shifting of securities from
AFS to HTM category. The Bank had shifted securities
from AFS category to HTM category during September
2004, recognizing depreciation to the tune of Rs.44.01
crore arising out of such shifting of securities.
The continuous and strenuous efforts as also recovery
drives initiated, the Bank could ensure reduction of
Rs.49.13 crs of Non Performing Assets. Members are
aware that as a measure of abundant caution and with
an intention to create an accelerated provision for loan
losses a sum of Rs.25 crs was appropriated out of the
profits of the year 2002-03 and placed as “Contingency
Reserve”. During the fiscal ended 31st March 2004, a
further sum of Rs.11 crs was credited to the Contingency
The net investments of the Bank stood at Rs.2,219.03
crore as on 31st March 2005 as against Rs.2173.01 crore
as at the end of previous fiscal. The Bank has fine-tuned
its strategy of interest rate risk management through
quantitative measures like modified duration and valueat-risk in the light of the emerging scenario but, at the
same time, not losing sight of portfolio yield
considerations. Further, the Bank has also initiated
steps for setting up a Derivatives Desk, which will, inter
RECOVERY
Directors’ Report
9.
alia, facilitate the Bank to manage its interest rate risk
effectively. The Bank has also given fillip to its secondary
market trading in equity shares to take advantage of
the booming stock markets.
Tenkasi and Guntur-Lakshmipuram taking the tally of
branches to 231. Bank has opened 8 Central Clearing
Offices and one Extension Counter in Annamalai Nagar
at Chidambaram during the year under review.
In spite of exercise of call options by many issuers of
non-SLR bonds and the supply of low coupon
government securities in the primary market, the Bank
was able to maintain an average yield of 8.56% on its
investments portfolio during the year under report as
against 9.04% in the previous year.
Efforts are on to open more branches in new places
where hitherto bank has no presence, so as to offer
wide ranging geographical reach to its customers.
FOREX OPERATIONS
The forex turnover of the bank for the fiscal under review
was Rs. 4777.85 crs as against Rs.3231.53 crs as on
31.03.2004, registering a growth rate of 47.85 % over
the previous fiscal 2003-04.
Export credit amounted to Rs.327.10 crs out of the total
advances of Rs.4741.01 crs constituting 6.90%.
During the fiscal, your bank launched a new product
viz: “CASH PASSPORT”- similar to ATM/Debit card.
Travellers going abroad can use this card preloaded with
the required foreign exchange. The product is offered in
pursuance of the agreement entered into with “Travelex”which is engaged in travel related services all over the
world. Card can be encashed wordwide in more than 8
lakh ATMs (VISA Travel Money ATMs) spread across
140 countries.
The Bank tied up with UAE Money Transfer System
where in the customers at select branches can receive
remittances from abroad on a web based tool. The
system is in operation in 40 branches.
Bank has the advantage of earning fee based income,
increased forex turnover and exchange profit.
It would facilitate entry of new customers and provide
an additional window to the existing customers.
10. BRANCH NET WORK AND EXPANSION
The financial performance has also been the result of
the new geographical reach of the bank by the network
of the new branches into newer areas. During the year
under review your bank has opened 9 new branches at
different locations viz: Nizamabad, Neyveli, MumbaiThane (W), Coimbatore-Ganapathy, Jubilee Hills Hyderabad, Karimnagar, Ahmedabad-Satellite Area,
11. RISK MANAGEMENT
In the present day banking scenario banks are facing
fierce competition and as a result the operating margins
have come down drastically. Banks are vying with each
other in grabbing quality assets. Hence it is all the more
important that the Risk management systems, which
are already in place, have to be constantly fine-tuned.
In your Bank the Risk management systems are put in
place so as to measure, monitor and control the several
types of risks associated with various functions of the
bank. The same is also periodically reviewed and
upgraded to suit the requirements of RBI guidelines on
Basel II. The Bank has initiated adequate steps that
would conform to RBI norms governing Risk Based
Supervision.
12. TECHNOLOGICAL ADVANCEMENT
In the era of dotcom boom, clicks were valued higher
than concrete bricks. Banks are keen to be high-tech
as the same is cost effective in the long run. Your bank,
which started the computerization as well as Core
Banking Solution (CBS) to integrate its branches, has
fully seized the opportunities in order to be in the forefront
to serve its customers.
The year witnessed 100% computerization of its
operations. Having embarked upon core banking solution
in February 2003, your bank has migrated to ‘flex cube’
software in 218 branches and offices. Thus 183 flexcube
branches coming under inter-connectivity would serve
the customer better. This facilitates on line banking in
all the said 183 branches to the customers. Also 45
Automated Teller Machines (ATMs) were added during
the year, taking the total of ATMs to 156. Bank has
also entered into agreements with other Banks whereby
the customers of the Bank could access 2000 plus
“MITR” ATMs (covering ATMs of Punjab National Bank,
Indian Bank, UTI Bank, Oriental Bank of Commerce and
Indusind Bank) across the country apart from your bank’s
156 ATMs. Real Time Gross Settlement facility is offered
at select 26 branches. Efforts are on to implement an
Annual Report 2004-05
Directors’ Report
interface for the RTGS system with our Core banking
application which will facilitate customer transaction
through RTGS in all our CBS branches.
Inland Treasury Management System is computerized
procuring license from Credence Analytics Systems.
As an add on service to our customers, the Bank tied
up with M/s Financial Software & Systems Pvt. Ltd.,
Chennai to allow our card holders to use our ATMs for
the following activities.
1. Recharging of pre-paid mobile talk time
2. Recharging of STD/ISD calling rates
3. Recharging of Fixed Line Telephone
Multi-city cheque facility which is in operation for the
current and savings account holders facilitates
transactions by the customers of the bank across any
of the Core Banking Solution branches.
Your Bank has developed a state of art Data Centre in
Hyderadbad for the purpose of Disaster Recovery. A
suitable Business Continuity Plan for the Bank for
switching over the DRS in case of necessity is in
progress.
Bank has also implemented HR module of Enterprise
Resource Planning (ERP) software developed by
RAMCO systems in the Personnel Administration
Department.
13. OTHER DEVELOPMENTS
Your Bank has been a forerunner in participating any
new initiatives in financial sector, taking long-term benefits
into account. Following developments are in this
connection:
‘Asset Reconstruction Company India Limited’ (ARCIL)
has been set up as a company in private sector. The
main objective of the company is to help the Banks and
Financial Institutions in the recovery of NPA. The scope
of business includes acquisition of secured and
unsecured financial assets from Banks & Financial
Institutions at discount rate and recovers the dues over
a period of time with the support of legal system. Your
Bank has contributed Rs.6.38 cr. in equity along with
SBI, IDBI, ICICI Bank, HDFC, HDFC Bank etc.,
Based on National priorities & Government polices, your
Bank has been extending credits to the needy segments.
The commodity exchanges at national level has come
to stay. National Commodity & Derivatives Exchange
Ltd. (NCDEX) is one such on-line commodity exchange.
It provides a world-class commodity exchange platform
for market participants, to trade in a wide spectrum of
commodity derivatives. In order to achieve the said
objectives NCDEX has floated an associate company
called, ‘M/s National Collateral Management Services
Ltd’., (NCMSL) with a paid-up capital of Rs.30 crs. Your
Bank is having an equity participation of Rs.1.50 crs in
NCMSL along with other institutions like ICICI Bank,
LIC, NABARD, NSE, CRISIL, PNB etc. Your Bank has
also become one of the clearing banks of NCDEX. This
initiative has thrown enormous opportunities to your
Bank to extend credit to agriculture sector and traders.
14. AUDITORS
The Statutory Auditors M/s Balu & Swamy Associates
who hold office until the conclusion of the ensuing Annual
General Meeting have audited the accounts of the bank
for the year under report.
M/s Balu & Swamy Associates have been associated
with the Bank continuously for the last 4 years. In terms
of the guidelines issued by the Reserve Bank of India,
the Statutory Auditors can not continue to hold the
office beyond 4 years. Reserve Bank of India on the
recommendation of the Bank approved for appointment
of M/s A. Thirumalaiappan & Co., Chartered
Accountants, Karur as Statutory Auditors to hold office
from the conclusion of ensuing Annual General Meeting
until the conclusion of the next Annual General Meeting.
The Bank received a certificate from the said Auditors
that their appointment, if approved by the Members,
would be within the limits prescribed under Sec 224
(1B) of the Companies Act, 1956.
15. STATUTORY DISCLOSURES
None of the employees of the bank has received the
emoluments for which particulars have to be disclosed
under Sec 217 (2A) of the Companies Act, 1956 and
the Rules framed thereunder. Hence the furnishing of
information required under the said provisions
does not arise. The remuneration drawn by
Shri. P.T. Kuppuswamy, the Chairman and Chief
Executive Officer of the bank is furnished elsewhere in
this document.
Directors’ Report
Furnishing of Information relating to Conservation of
Energy and Technology Absorption in terms of the
provisions of Sec 217 (1) (e) do not apply to the bank.
16. BOARD OF DIRECTORS
Shri P.T. Kuppuswamy was appointed as the Chairman
and Chief Executive Officer of the Bank for a period of
three years with effect from 1st June, 2002. The Board
of Directors in the Meeting held on 25.02.2005 has
recommended for extension of his term of office with
revised remuneration and perquisites. The Reserve
Bank of India accordingly approved extension of term of
office of Shri P.T. Kuppuswamy as the Chairman and
Chief Executive Officer of the Bank for further period of
three years with effect from 1st June, 2005. His reappointment and revised remuneration and perquisites
are covered in the Notice of the ensuing Annual General
Meeting for approval of the Shareholders. Board also
commends for approval of the said resolution.
Shri Ramesan Ramanthan, resigned as a director of
the Bank with effect from 19.01.2005. The Board records
its appreciation for the services rendered by Shri
Ramesan Ramanathan during his tenure as a director
of the Bank. Directors Shri A S Janarthanan, Shri M G
Sankkaranarayanan and Shri G Rajasekaran are retiring
by rotation and being eligible offer themselves for reappointment. Shri T.R. Ramanathan was appointed as
an Additional Director in the Board Meeting held on 27th
May, 2005 and he holds the office of the Director until
the date of the ensuing Annual General Meeting. He
signified his candidature for the office of the director.
Brief resume of the said four directors is given elsewhere
in the report in terms of the Clause 49 of the Listing
Agreement. The Board commends their appointment.
17. DIRECTORS’ RESPONSIBILITY STATEMENT
Pursuant to Sec 217 (2AA) of the Companies Act 1956,
the Directors of the Bank state that:
(a) in the preparation of the annual accounts, the
applicable accounting standards as modified and
advised by RBI have been followed together with
proper explanations for the departures where relevant.
(b) generally accepted accounting policies and the
Karur
28th May 2005.
guidelines issued by the Reserve Bank of India had
been followed consistently.
(c) reasonable and prudent judgments and estimates
had been made so as to give a true and fair view of
the state of affairs of the bank as at 31.03.2005 and
profit of the Bank for the year ended on that date.
(d) proper and sufficient care was taken for the
maintenance of adequate accounting records as
per the applicable provisions governing banks in India.
(e) the annual accounts had been prepared on a goingconcern basis
18. DELISTING
Your Bank’s Equity shares were listed in the Madras,
Coimbatore and National Stock Exchanges. In terms of
the Resolution passed by the members of the Bank in
the Annual General Meeting held on 22.07.2004 in view
of the fact that there was no trading of bank’s equity
shares on the Madras and Coimbatore Stock Exchanges
for three years prior to the passing of the said resolution,
the shares of the Bank were de-listed from the Madras
and Coimbatore Stock Exchanges. However the equity
shares of the Bank are continued to be on listing in the
National Stock Exchange which has trading terminals
all over the country.
19. ACKNOWLEDGEMENTS
The Board expresses its sincere gratitude to the Reserve
Bank of India, Government of India, State Governments,
Securities and Exchange Board of India (SEBI) and other
Regulatory Bodies for their support, guidance and
counsel. Your Board also expresses its sincere thanks
to our partners M/s Bajaj Allianz General Insurance
Company Ltd, Birla Sun Life Insurance Company Ltd,
i-Flex Solutions Ltd., Financial Software & Systems Pvt.
Ltd., and Export Credit and Guarantee Corporation of
India for their support in our business endeavours. Your
Directors are also grateful to the shareholders, depositors,
other clients, well wishers etc., for their continued
support, patronage and goodwill and look forward for the
same in the years to come.
The Board places on record its appreciation for the
dedication and contribution made for the growth of the
bank by members of staff at all levels.
For and on behalf of the Board of Directors
P. T. KUPPUSWAMY
Chairman
Annual Report 2004-05
Corporate Governance
A good Corporate Governance system envisages
application of best Corporate Practices, adherence to
ethical standards for effective management, establishment
of higher standard of disclosure, transparency and
performance and enhancement of wealth of all stake
holders.
2.
BOARD OF DIRECTORS:
Shri P. T. Kuppuswamy is the Chairman and Chief
Executive Officer (CEO) of the Bank. Apart from the
Chairman and CEO, the Board consists of 9 directors.
The Directors represent various sectors as mandated
under the Banking Regulation Act, 1949. All the directors
other than the Chairman are non-executive Directors.
None of the directors of the bank is a member of more
than 10 committees or Chairman of more than 5
committees across all companies in which he is a director.
Other than the normal banking business
transactions, neither the directors nor the relatives of
the directors had any transactions which were materially
significant to report for.
KVB has always maintained its efforts to institutionalize
Corporate Governance Practices and does not intend solely
the adherence of regulatory framework but to be reflected
in its values, beliefs. Corporate Governance for KVB is a
continuous journey and seeks to maximize disclosures,
transparency and performance and thereby enhancing the
wealth of the shareholders and other stakeholders.
I.
The name, category and the sectoral representation of each of the director together with their attendance in the Board
and the Committee Meetings during the fiscal 2004-05 are furnished below:
No.of Meetings attended during the year 2004-2005
Sl
No
Name
Category of
Director
Sectoral
Representation
Banking
01
Shri P T Kuppuswamy
Chairman
02
Shri A S Janarthanan
Promoter Family Business &
Non-Executive Finance
03
Board
(24
Meetings
held)
Advances
S&D
(7
(20
Meetings Meetings
held) *
held)**
ALM
(5
Meetings
held)***
NPAM
(5
Meetings
held)****
NC
(2
Meetings
held)*****
24
6
20
5
5
2
24
7
19
5
5
2
Shri M G Sankkaranarayanan Promoter Family SSI & Finance
Non-Executive
24
7
19
5
5
2
04
Shri G Rajasekaran
Promoter Family Business &
Non-Executive Finance
24
7
20
5
5
2
05
Shri K Ramadurai
Independent
Non-Executive
24
—
—
—
—
—
Promoter Family
Non-Executive SSI
24
7
20
5
5
—
Independent
Non-Executive
Agriculture
14
—
—
—
—
—
Independent
Non-Executive
Law
24
—
—
—
5
—
Independent
Non-Executive
Law
22
—
—
—
—
—
Agriculture &
Information
Technology
18
—
—
—
—
—
06
07
08
09
10
Shri M K Venkatesan
Dr. V G Mohan Prasad
Shri K S Ramabadran
Shri K P Kumar
Shri Ramesan Ramanathan
Independent
Non-Executive
Accountancy
Shri Ramesan Ramanathan resigned as a Director of the Bank with effect from 19.01.2005.
*
Advances - Advances Committee
** S & D
- Staff & Development Committee
*** ALM
- Asset and Liability Management Committee
**** NPAM
- NPA Management & Fraud Monitoring Committee
*****NC
- Nomination Committee
II.
The Directors attendance at the last Annual General Meeting along with the details of directorship/
membership or chairmanship of the committees in other companies as on 31st March, 2005 is furnished
hereunder.
Sl.No
Name of the Director
01
Shri P.T.Kuppuswamy
02
Attendance at
last AGM
(22.07.2004)
Directorships in
other Companies
Memberships and/or
Chairperson of
committees in
other companies
Yes
NIL
NIL
Shri A S Janarthanan
Yes
NIL
NIL
03
Shri M G Sankkaranarayanan
Yes
NIL
NIL
04
Shri G Rajasekaran
Yes
NIL
NIL
05
Shri K Ramadurai
Yes
NIL
NIL
06
Dr V G Mohan Prasad
Yes
NIL
NIL
07
Shri K S Ramabadran
Yes
NIL
NIL
08
Shri M K Venkatesan
Yes
NIL
NIL
09
Shir K P Kumar
Yes
Director in:
* Yokogawa India Ltd
Audit Committee(Member)
* Gokuldas Exports Ltd
Audit (Member)
* Britania Employees Medical Welfare
Initial Public Offer
Association Pvt.Ltd.
and Shareholder
* Britania Employees
Grievance Redressal
Educational Welfare
Committees (Chairman)
Association Pvt.Ltd.
* Britania Employees
General Welfare
Association Pvt. Ltd.
3.
AUDIT COMMITTEE:
b.
Reviewing adequacy of internal control systems
and procedures.
c.
Reviewing adequacy of internal audit function and
other related matters of internal inspection.
The Audit Committee performs, inter-alia, the following
functions.
d.
Interacting with Statutory and concurrent auditors.
a.
e.
Review of quarterly, half yearly and annual financial
statements before they are placed before the Board
of Directors.
Audit Committee of the bank consists of 5 directors
and Director Shri K Ramadurai, a Chartered Accountant
is the Chairman of the Committee.
Overseeing the bank’s financial reporting system
and disclosure of financial information to ensure
the correctness of information, its adequacy.
Annual Report 2004-05
The names of the present members of the Audit Committee, their attendance at the Audit Committee Meetings during the
Financial Year 2004-2005 are given below.
Sl.No.
No.of Meetings held
No.of Meetings Present
(including as spl. Invitee)
Chairman of the committee
6
6
01
Shri K Ramadurai
02
Shri A S Janarthanan *
Director
6
2
03
Shri M K Venkatesan **
Director
6
3
04
Shri K S Ramabadran
Director
6
6
05
Shri K P Kumar
Director
6
6
06
Shri M G Sankkaranarayanan ***
Director
6
4
07
Shri G Rajasekaran ****
Director
6
3
*
**
***
****
4.
Designation
Name
Shri
Shri
Shri
Shri
A S Janarthanan is a member of the Committee since 30.11.2004
M K Venkatesan is a member of the Committee since 23.07.2004
M G Sankkaranarayanan was a member of the Committee till 30.11.2004
G Rajasekaran was a member of the Committee till 23.07.2004
REMUNERATION TO DIRECTORS:
Shri.P.T.Kuppuswamy, Chairman of the bank was paid
Rs. 15,79,859/- as remuneration for the fiscal 2004-05
as per the terms of appointment approved by the
Reserve Bank of India and also by the shareholders of
the bank.
All the other directors of the bank were paid only
6.
sitting fee for each meeting of the Board and Committee
attended by them.
5.
BOARD PROCEDURES:
During the fiscal 2004-2005, the Board met on 24
occasions covering all months of the year. The dates
of the Board Meetings are furnished hereunder:
28.04.2004
29.04.2004
21.05.2004
22.05.2004
29.06.2004
30.06.2004
22.07.2004
23.07.2004
23.08.2004
24.08.2004
27.09.2004
28.09.2004
28.10.2004
29.10.2004
29.11.2004
30.11.2004
29.12.2004
30.12.2004
28.01.2005
29.01.2005
25.02.2005
26.02.2005
29.03.2005
30.03.2005
SHAREHOLDERS:
Shri. Ramesan Ramanathan relinquished the Office of
Director of the Bank with effect from 19.01.2005.
Shri. A S Janarthanan, Shri. M G Sankkaranarayanan
and Shri G Rajasekaran are retiring by rotation and
seeking the approval of the shareholders for their
reappointment. Shri. T R Ramanathan was appointed
as an Additional Director in the Board Meeting held on
27th May 2005 and he will be holding the office until the
date of the ensuing Annual General Meeting. He has
signified his candidature for seeking appointment as a
Director and accordingly his appointment is covered as
an agenda item in the Notice of the Annual General
Meeting .
A brief resume including their expertise in specific functional
areas, their directorships and membership, in committees
of the Board/s of other companies of the above directors are furnished hereunder:
Sl.
No
Name of the Director
Sarvashri
Appointment/
Reappointment
01
A S Janarthanan
Reappointment
He is director from the promoters’ NIL
family. He is engaged in the business
of distribution of Petroleum Products
as also ‘Exide’ batteries and Finance.
He is the President of Karur District
Petroleum Dealers Association. He is
the Vice-President of Tamil Nadu
Petroleum Dealers Association. He is
a member of the Federation of All
India Petroleum Dealers Association.
He has made significant contribution
to the growth of the bank.
02
M G Sankkaranarayanan
Reappointment
He is director from the promoters’
family. He has expertise in the
business of Finance, Textiles and
Garments and SSI Units. His
contribution to the development of the
Bank is commendable.
NIL
03
G Rajasekaran
Reappointment
He is director from the promoters’
f a m i l y. H e h a s e x p e r t i s e i n t h e
business of Finance, Textiles and
Garments. He has made immense
contribution to the growth of the Bank.
NIL
04
T R Ramanathan
Appointment
He is a graduate in Economics and
Master of Arts and a Doctorate in
Political Science. He is an
agriculturist adopting modern methods
of farming. He has made noteworthy
contribution for the growth of the bank.
Ram Programming
Automation Research
Solutions Private Limited
7.
Brief Resume
CUSTOMER SERVICE AND SHAREHOLDERS/
INVESTORS GRIEVANCE COMMITTEE:
The Shareholders/Investors Grievance Committee
was rechristened as Customer Service and
Shareholders/Investors Grievance Committee in the
Board Meeting held on 27.09.2004 so as to enlarge the
scope of the Committee to look into the customer
complaints, grievance mechanism adopted and time
taken for redressel of the customer grievances. The
Committee is headed by Shri.A.S.Janarthanan, a
non-executive director. The Committee is comprised
of the following directors:
Shri.P.T.Kuppuswamy
Shri.A.S.Janarthanan
Shri.M.G.Sankkaranarayanan
Shri.G.Rajasekaran
Shri M.K.Venkatesan
Chairman
Director, Chairman of the Committee
Director
Director
Director
Other
Directorships
The Committee is empowered to consider the share transfers
apart from delegation of power to the Chairman of the
bank to consider the share transfers.
The terms of reference of the Committee include:
to look into the redressal of shareholders complaints relating
to share transfers and transmissions, non receipt of dividends
and annual reports, etc.
❖
to look into the redressal of grievances of customers
of the Bank in connection with the services extended
by the Branches/offices.
❖
During the fiscal the committee met once and all the
members of the committee attended the meeting.
There were 106 complaints in all pertaining to the transfer of
shares, non-receipt of dividend warrants and Balance Sheets
etc and all the complaints have been redressed. No
compleint was pending as on 31st March 2005.
Annual Report 2004-05
8.
COMMITTEES OF THE BOARD :
The details as to the members of the Committees other
than Audit and Customer Service and Shareholders/
Investors Grievance Committees as on 31st March, 2005
are furnished hereunder.
3. M.G.Sankkaranarayanan
4. G.Rajasekaran
5. M.K.Venkatesan
3.
4.
5.
6.
G.Rajasekaran
M.G.Sankkaranarayanan
M.K.Venkatesan
K.S.Ramabadran
NOMINATION COMMITTEE
Sarvashri
ADVANCES COMMITTEE
STAFF AND DEVELOPMENT
COMMITTEE
Sarvashri
Sarvashri
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
P.T.Kuppuswamy, Chairman
A.S.Janarthanan
M.G.Sankkaranarayanan
G.Rajasekaran
M.K.Venkatesan
P.T.Kuppuswamy, Chairman
A.S.Janarthanan
M.G.Sankkaranarayanan
G.Rajasekaran
M.K.Venkatesan
ASSET LIABILITY
MANAGEMENT
COMMITTEE
NPA MANAGEMENT AND
FRAUD MONITORING
COMMITTEE
Sarvashri
Sarvashri
1. P.T.Kuppuswamy, Chairman 1. P.T.Kuppuswamy, Chairman
2. A.S.Janarthanan
2. A.S.Janarthanan
9.
1.
2.
3.
4.
P.T.Kuppuswamy, Chairman
A.S.Janarthanan
M.G.Sankkaranarayanan
G.Rajasekaran
The Nomination Committee met on two occasions to
scrutinize the declaration cum undertakings furnished
by the aspirants for the office of the Director and
Directors seeking reappointment and decided their
suitability/unsuitability for appointment or reappointment
as Directors of the Bank based on qualification,
expertise, track record, integrity and other fit and proper
criteria.
ANNUAL GENERAL MEETINGS:
Information relating to last three Annual General Meetings together with the details as to special resolutions
passed is furnished herebelow:
Name of
theMeeting
83rd AGM
Day, Date And
Time of Meeting
Monday
15.07.2002
10.30 A.M.
Venue
Regd. & Central Office,
Erode Road, Karur
Special ResolutionsTransacted
1. Amendment to Articles of Association U/s 31 of
Companies Act, 1956 by insertion of new Article
16 A - for making calls on shares.
2. Reappointment of Shri.A.D.Navaneethan as the Chairman
and C.E.O. of the bank under Section 35 B of the Banking
Regulation Act, 1949 for over 3 months from 23.02.2002
to 31.05.2002.
3. Appointment of Shri. P.T.Kuppuswamy as the Chairman
and C.E.O. of the bank under Section 35 B of the Banking
Regulation Act, 1949 for 3 years from 01.06.2002 as per
the terms set out in the resolution.
84th AGM
Monday
28.07.2003
10.15 A.M.
Regd. & Central Office,
Erode Road, Karur.
Amendement to Articles of Association U/s 31 of the Companies
Act, 1956 empowering the Board of Directors of the Bank to
decide on the Issue of Bonus shares.
85thAGM
Thursday
22.07.2004
10.30 A.M.
Regd. & Central Office,
Erode Road, Karur.
1. Delisting of Equity Shares from the Madras and
Coimbatore Stock Exchanges in terms of SEBI
(Delisting of Securities) Guidelines 2003.
2. Amendement to Articles of Association
U/s 31 of the Companies Act, 1956 by insertion of a new
Clause 20 (V) which restricts any cases against the Bank
pertaining to General Meetings or meetings of Board or
Committee of Directors of the Bank shall be filed only in
courts in Karur.
10. DISCLOSURE:
The bank has complied with the various rules and
regulations prescribed by the RBI, Stock Exchanges,
Securities and Exchange Board of India (SEBI) and
other Statutory authority on matters relating to Banking
and Capital Markets during the last three years and
there have been no instances of strictures passed
or penalties imposed on the bank by the RBI, Stock
Exchange/s or SEBI or any other Regulatory Authority
on any of the matters.
4
Date of the Book
Closure
:
11th July 2005 to
21st July 2005
(Both days inclusive)
5.
Dividend Payment
Date
:
21st July 2005
6.
Listing on Stock
Exchanges
:
The Equity shares of the
Bank are listed on National
Stock Exchange of India
Limited. The shares are
being traded as a permitted
security in Bombay Stock
Exchange.
11. MEANS OF COMMUNICATION:
1.
2.
3.
The Board of the bank takes on record the
unaudited financial statements but subjected to
Limited Review by the Statutory Auditors for the
first, second and third quarters within one month
after the end of each quarter for which the accounts
are related and audited financial statements for
the fourth quarter.
The unaudited as well as the audited financial
results were intimated forthwith to all Stock
Exchanges where the shares of the bank are
listed viz: Madras Stock Exchange, Coimbatore
Stock Exchange and National Stock Exchange
(presently to National Stock Exchange only as the
shares have been delisted from other two Stock
Exchanges) besides being posted on the bank’s
website: www.kvb.co.in
The quarterly, half yearly and annual results are
published mostly in leading news papers such
as: The Business Line, Financial Express, The
Economic Times and in Tamil vernacular newspaper
‘Dinamalar.’
12. GENERAL SHAREHOLDER INFORMATION:
7.
Market Price Data
:
(High and Low prices of equity shares of the bank during
each month are furnished hereunder.)
Month
High (Rs)
Low (Rs)
April
2004
419.15
359.50
May
2004
414.85
265.80
June
2004
319.90
280.00
July
2004
369.90
282.00
August
2004
308.00
235.00
September
2004
338.50
266.50
October
2004
338.75
271.15
November
2004
344.00
275.00
December
2004
533.90
312.45
January
2005
545.00
455.80
February
2005
491.05
428.00
March
2005
468.00
375.10
Annual General Meeting
THE REGISTRAR AND SHARE TRANSFER AGENT:
1.
Date
:
21st July 2005
2.
Time and Venue
:
10.15 A.M. The Registered
Office of the Bank,
Erode Road,
Karur – 639 002
3.
Financial year
:
01.04.2004 to
31.03.2005
M/s SKDC Consultants Ltd., No.11, Street No.1, S.N.Layout,
Tatabad, Coimbatore 641 012 (Ph. No(s) 0422-5549995 /
2499803) are the Registrar and Transfer Agent for both the
Physical as well as the Demat segment of equity shares of
the bank.
The shareholders are requested to correspond only with the
Registrar on any matter relating to both Physical and Demat
segment of shares.
Annual Report 2004-05
Distribution of shareholding as on 31.03.2005:
No. of Shares
(Category)
No.of Shares
Physical
Demat
Total
No. of Shareholders
%
Physical
Demat
Total
%
Upto 250
7,42,024
8,14,903
15,56,927
8.66
12,640
10,386
23,026
77.21
251-500
4,78,263
7,15,204
11,93,467
6.64
1,343
1,967
3,310
11.10
501-1000
4,47,824
8,42,977
12,90,801
7.18
626
1,138
1,764
5.92
1001-2000
4,15,922
8,05,159
12,21,081
6.79
297
563
860
2.88
2001-3000
2,22,451
4,33,411
6,55,862
3.65
91
173
264
0.89
3001-4000
1,51,338
3,85,429
5,36,767
2.99
43
112
155
0.52
4001-5000
1,10,353
2,78,398
3,88,751
2.16
24
61
85
0.29
5001-10000
3,94,974
8,40,744
12,35,718
6.87
57
120
177
0.59
10001 & above
9,06,986
89,92,075
98,99,061
55.06
39
142
181
0.60
38,70,135
1,41,08,300
1,79,78,435
100.00
15,160
14,662
29,822
100.00
21.53
78.47
100.00
50.83
49.17
100.00
Total
% to Total
DEMATERIALISATION OF BANK’S SHARES:
The Bank’s scrip was put on compulsory demat
segment with effect from 26.03.2001 and is being
traded in dematerialsied form. As on 31.03.2005,
78.47% of our paid up share capital has been
dematerialised as detailed herebelow:
No. of shares dematerialised
as on 31.03.2005
:
1,41,08,300
Percentage to paid up
capital
78.47 %
:
STOCK CODE : (ISIN NO.) :
KARURVYSYA
:
INE036D01010
LOCATION OF THE REGISTERED OFFICE:
The Registered and Central Office of the Bank is located
at Karur, in the State of Tamil Nadu.
Address for Communication:
The Karur Vysya Bank Limited,
Regd. and Central Office,
Post Box No.21, Erode Road,
Karur 639 002,
Tamil Nadu.
Phone : 04324-226520,225521-25
Fax
: 04324-225700
E-Mail : [email protected]
Website : www.kvb.co.in
Management Discussion and Analysis
A.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Commercial Banking in the country has undergone rapid
changes ever since the advent of reforms in 1991.
During the initial stages the commercial banks were in
the private sector, which moved to public sector during
1969 and 1980. With the proposal of the Government
to divest its stake in public sector banks from the
existing stake to 51% and still further to 33%, these
banks are again moving towards partial privatization.
Apart from this, the entry of new generation private
sector banks and the conversion of development banks
added a new complexion to the industry. As per RBI’s
new policy frame work foreign banks are given an option
to undertake the banking activity in the country either
through its branch network or through subsidiaries.
There have been emergence of new trends in the
industry thanks to the reform process initiated by the
Government. These trends include:
B.
the bank. Massive credit expansion has been a trend
observed over a period of time.
Based on the economic factors as also on the
performance during the fiscal 2004-05, it is estimated
that the aggregate deposits of the commercial banks
would grow around 15% over the previous fiscal. The
non-food credit including non-SLR investments is also
expected to increase by around 19%.
Against this backdrop the banks have converted
constraints into opportunities which include the
following:
• Changing customer needs resulted in product
innovation which has become the order of the day.
Banks evolved a clear cut strategy to price and to
market the products to withstand the competition
from others and thereby achieving the targets and
maintaining the income streams.
-
universal banking
-
increased customer orientation and focus
• Declining interest rates on loan products led
narrowing down of spreads. Banks are forced to focus
attention on spread management.
-
emphasis on risk based management from process/
transaction based management
• Banks assumed vigorous posture on NPAs and thrust
was given on quality of assets.
-
measuring the performance of a bank with various
yardsticks viz., strength of the balance sheet, low
NPA ratios, return on assets, profitability, quality
of assets, capital adequacy etc
• Balance sheet management and Asset Liabilities
Management were given prime importance.
-
replacing brick and mortar banking, pen and ink
banking by hi-tech banking
-
emergence of good corporate governance practices
• Banks have been pro-active and focussed on
emerging challenges and quickly responded to these
challenges so as to perform well and prosper. While
meeting the emerging challenges banks started
ensuring financial soundness.
There has been a shift from the traditional financing.
Extending credit to consumption purpose was
considered a taboo in earlier days. Now retail lending
takes precedence over other credits.
• Intense competition among the bankers has taken
aggressiveness to that of industries to attract and
retain better rated borrowers as also to meet the
ever increasing needs of customers.
With the entry of new generation private sector banks
with a lean and clean structure, backed by initial
technology advantage, the existing players have been
forced to change their style of functioning to compete
with the new entrants as also to attract customers.
• Because of high credit growth and low deposit
accretion, banks are forced to seek innovative means
to access float funds or low cost funds for long
durations.
OPPORTUNITIES AND THREATS
The post liberalization era has opened up plenty of
opportunities for the commercial banks to diversify its
activities into new areas with new products and services.
Deregulation of interest rates on deposits, lowering of
reserve requirements etc led to improved efficiency.
There is vast retail market for the various products of
Retail credit has assumed magnificent growth in recent
times. Housing sector and non-priority loans grew
42.1% and 26% respectively during 2003-2004. However
banks would turn cautious in respect of Housing finance
in future in view of increasing defaults as also asset
liability mismatches.
Agricultural sector is being viewed as a sound business
proposition in recent years.
Annual Report 2004-05
Banks are in the forefront to tap the services sector
such as health care, trade, hospitality, IT and Tourism
in the years to come.
Your bank is aware of all these developments and
modulating and meeting the needs of clientele and thus
sustaining income streams.
C.
l.
connecting to the National Financial Switch (NFS)
developed by Institute for Development and Research
in Banking Technology (IDRBT) - enabling the clientele
to operate his account through any bank ATM in the
country.
E.
RISKS AND CONCERNS
Being financial intermediaries banks face all kinds of
risks such as interest rate risk, market risk, credit risk,
country risk, operational risk etc.
SEGMENT WISE AND PRODUCT WISE
PERFORMANCE
The segment wise performance of the bank in terms of
deposits and advances is furnished below:
DEPOSITS
(Rs. in Crs)
Savings Deposits
845.25
Cash Credits,
Overdrafts and
Demand Loans
Demand Deposits
785.23
Bills Purchased and
Discounted
279.80
Term Deposits
D.
(Rs.in Crs) ADVANCES
5041.71
Term Loans
The Internal Audit Department of the bank in the Central
Office takes care of the operational risks in the
functioning of the bank. The technology risk is being
addressed with the systems audit. Bank also opened
Disaster Recovery Site in Hyderabad to address the
risks arising out of technology. Credit risk is being
effectively addressed by a Risk Management
Department at the Central Office. Market Risk
measurement techniques such as duration gap analysis
and value at risk are fully in place.
1808.53
2652.68
OUTLOOK
F.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
Your Bank has a well knit Internal Audit Department
which is supervising the internal control mechanism.
The Department conducts internal audit of various
branches every year. It also conducts the systems audit
since the computerized environment is in place in all
branches. Apart from the regular inspection of
branches, the Department is also conducting Revenue
Audit and Risk Based Internal Audit of select branches
and offices. Large branches are covered under
Concurrent Audit by Chartered Accountant Firms. All
large, very large and exceptionally large branches are
covered under Information Systems Audit by outside
Chartered Accountant Firms with members possessing
SISA/DISA qualifications. Bank is also engaging the
services of Chartered Accountant Firms with specialists
in Stock Audit for the purpose of stock audit of its large
working capital borrowal accounts.
G.
FINANCIAL PERFORMANCE WITH RESPECT TO
OPERATIONAL PERFROMANCE
Your Bank has posted an operating profit of Rs.199.23
crs (Rs.214.55 crs) during the year under report. The
net profit of the bank registered Rs.105.34 crs for
2004-05 as against Rs.161.97 crs during the fiscal 200304. The profits would have been higher but for charging
of Rs.67.86 crs to the Profit and Loss account covering
depreciation of Rs. 44.01 crs. on account of shifting of
securities from Available for Sale (AFS) to Held to
Maturity (HTM) category in view of rising interest rates,
Rs.12.89 crs towards revaluation of Government
Backed by the technological advancements and by
keeping a vigil on the happenings in the banking sector,
your bank is embarking upon the following:
a.
having achieved 100% computerization of all its
operations and established inter connectivity to 183
branches, the bank is marching ahead in establishing
inter-connectivity to the remaining branches.
b.
expanding the logistical presence to other areas to reach
out new clients and expand its operations.
c.
to garner low cost deposits and achieve Rs.1000 cr
mark each in Savings and Current deposits in the
current fiscal 2005-06.
d.
utility payments through ATMs.
e.
operational cost reduction to sustain the income.
f.
increase in cross selling of para banking products.
g.
new areas of business such as derivatives trading.
h.
Internet banking to facilitate banking from the desk of
the customer by the click of the mouse.
i.
Mobile Banking : helps the clientele to have the banking
operations at his doorstep.
j.
Installation of additional 50 ATMs to add to the existing
156 ATMs.
k.
Cheque Truncation System.
securities under AFS and Held for Trading (HFT)
categories and amortization of premium of Rs.10.96
crs on securities under HTM category. Also the bank
has made a provision of Rs.7 crs towards wage revision
for employees and officers of the bank in addition to
Rs. 8 crs provided in the fiscal 2003-04.
The aggregate deposits stood at Rs.6672.19 crs as at
31.03.2005 up by Rs.760.72 crs from Rs.5911.47 crs
as on 31.03.2004.
Credit portfolio was up by Rs. 639.87crs registering
15.60% growth to reach at Rs.4741.01 crs over the
previous fiscal (Rs.4101.14 crs).
Continuous thrust given to the recovery of overdue loan
assets yielded results with the Gross and Net NPAs
declined to 5.10% and 1.66% as on 31.03.05 as against
5.83% and 2.32% respectively in the previous fiscal.
Net worth rose from Rs.712.03 crs as at 31.03.04 to
Rs.760.88 crs as at 31.03.05 registering a growth rate
of 6.86 % over the previous fiscal.
Book value of the share and the Earnings per share
were at Rs. 423.23 and Rs. 58.59 respectively as on
31.03.2005.
H.
HUMAN RESOURCES, INDUSTRIAL RELATIONS
It is very essential that in order to meet the challenges
and opportunities in future, the man power available
within the bank has to be given constant training and
development in order to update their skills. Banking
being a service industry, personnel play a vital role in
its business for making the same enduring. Your Bank
is constantly upgrading the skills of the human
resources in all respects including in the context of the
computerized environment.
Incentives are being extended to the staff for efficient
performance based on various parameters. The bank
continues its focus on talent management. The Staff
Training College imparts training to our employees and
also conducts talent tests on the systems and
procedures and awards are distributed to the
performers. Besides, the Executives and Officials are
being deputed for training at country’s renowned external
training institutions such as BTC, SIBSTC, IDRBT etc.
Since the Bank’s operations are fully computerized and
218 branches/offices migrated to Core Banking
Solution, 2087 personnel were trained in the ‘Flex cube’
software during the fiscal 2004-05. The Bank has 2811
employees as on 31.03.2005.
AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
To the members of The Karur Vysya Bank Limited
We have examined the compliance of conditions of Corporate Governance by The Karur Vysya Bank Limited for the year
ended on 31st March, 2005 as stipulated in clause 49 of the Listing Agreement of the said Bank with stock exchange(s).
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was
limited to procedures and implementation thereof, adopted by the Bank for ensuring the compliance of the conditions of the
Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Bank.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Bank has
complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.
We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or
effectiveness with which the management has conducted the affairs of the Bank.
For Balu and Swamy Associates
Chartered Accountants
Karur
27.05.2005
S.RAMASWAMY
Partner
Annual Report 2004-05
Auditors’ Report to Shareholders
1. We have audited the attached Balance sheet of The
Karur Vysya Bank Limited, Karur as at 31st March,
2005 and also the annexed Profit and Loss account of
the Bank and the cash flow statement for the year ended
on that date in which are incorporated the returns of 14
Offices/Branches audited by us and 254 Offices/
Branches (including Extension Counters/Satellite
Branches) audited by Branch Auditors. These financial
statements are the responsibilities of the Banks’
Management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with Auditing
Standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
3. The Balance sheet and the Profit and Loss account have
been drawn up in accordance with the provisions of
Section 29 of the Banking Regulation Act, 1949 read
with Section 211 of the Companies Act, 1956.
proper returns adequate for the purpose of our audit
have been received from the branches of the Bank.
(d) The Balance Sheet and Profit and Loss Account of
the Bank dealt with by this report are in agreement
with the books of account and with the audited returns
from the branches.
(e) On the basis of written representations received from
the directors and taken on record by the Board of
Directors, we report that none of the directors is
disqualified as on 31st March 2005 from being
appointed as a director in terms of clause (g) of Subsection (1) of Section 274 of the Companies Act,
1956.
(f) In our Opinion, the Profit and Loss Account and the
Balance Sheet dealt with by this report are in
compliance with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the
Companies Act, 1956, in so far as they apply to the
Banks.
(g) In our opinion and to the best of our information and
according to the explanations given to us, the said
accounts read together with the Significant
Accounting policies and Notes thereon give the
information required by the Companies Act, 1956,
in the manner so required for banking companies,
and on such basis, give a true and fair view:
4. The reports on the accounts of the Branches audited by
Branch Auditors have been dealt with in preparing our
report in the manner considered necessary by us.
a)
in the case of the said Balance Sheet, of the
state of affairs of the Bank as at 31st March
2005;
5. We report that:
b)
in the case of the Profit and Loss Account,
of the profit for the year ended on that date
and
c)
in the case of the cash flow statement, of the
cash flow of the Bank for the year ended on
that date.
(a) We have obtained all the information and
explanations, which, to the best of our knowledge
and belief, were necessary for the purpose of our
audit and have found them to be satisfactory.
(b) The transactions of the Bank, which have come to
our notice, have been within the powers of the Bank.
(c) In our opinion, proper books of account as required
by law have been kept by the Bank so far as it
appears from our examination of those books and
For Balu and Swamy Associates
Chartered Accountants
Karur – 639 002
27th May, 2005
(S Ramaswamy)
Partner
Balance Sheet as at 31st March 2005
(000’s omitted)
CAPITAL & LIABILITIES
SCHEDULE
As on
31.03.2005
Rs.
As on
31.03.2004
Rs.
Capital
1
17,97,84
17,97,77
Reserves & Surplus
2
742,89,65
694,04,93
Deposits
3
6672,18,95
5911,47,83
Borrowings
4
92,31,47
103,18,60
Other Liabilities and Provisions
5
359,46,90
380,74,09
7884,84,81
7107,43,22
TOTAL
ASSETS
Cash and Balances with Reserve Bank of India
6
381,49,16
327,03,91
Balances with Banks and Money
at call and short notice
7
273,67,92
270,74,96
Investments
8
2219,02,97
2173,01,38
Advances
9
4619,80,04
4023,24,31
Fixed Assets
10
102,15,59
92,17,95
Other Assets
11
288,69,13
221,20,71
7884,84,81
7107,43,22
2003,48,07
1958,65,78
381,66,91
432,87,25
TOTAL
Contingent Liabilities
12
Bills for collection
P T Kuppuswamy
Chairman
G Rajasekaran
Director
K S Ramabadran
Director
Athi S Janarthanan
Director
K Ramadurai
Director
K P Kumar
Director
M G Sankkaranarayanan
Director
V G Mohan Prasad
Director
N S Venkatarama Guptha
Executive Director
S Nagarajan
Senior General Manager
KARUR - 639 002.
27th May 2005
R Venkataramana
Company Secretary
As per our report
For Balu and Swamy Associates
Chartered Accountants
S Ramaswamy
Partner
Annual Report 2004-05
Profit and Loss Account
for the year ended 31st March, 2005
(000’s omitted)
SCHEDULE
I
II
III
IV
INCOME
Interest earned
Other Income
TOTAL
EXPENDITURE
Interest expended
Operating expenses
Provisions and Contingencies
TOTAL
Year ended
31.03.2005
Rs.
Year ended
31.03.2004
Rs.
13
14
590,76,60
113,15,40
703,92,00
647,62,38
74,24,55
721,86,93
15
16
334,07,32
170,61,48
93,89,06
598,57,86
350,41,61
156,90,17
53,50,54
560,82,32
105,34,14
1,09,83
106,43,97
161,04,61
1,33,37
162,37,98
31,75,00
Nil
Nil
Nil
54,00,00
17,97,84
2,52,15
106,24,99
18,98
106,43,97
48,50,00
Nil
40,00,00
11,00,00
41,50,00
17,97,84
2,30,35
161,28,19
1,09,79
162,37,98
PROFIT
Net Profit for the year
Profit brought forward **
TOTAL
APPROPRIATIONS
Transfers to
Statutory Reserve
Capital Reserve
Investment Fluctuation Reserve
Contingency Reserve
Revenue & Other Reserves
Proposed Dividend
Dividend Tax
BALANCE OF PROFIT
TOTAL
** includes excess provision of Rs. 4,581/- transferred from proposed Dividend for the year 2003-2004
Significant Accounting Policies
Notes on Accounts
17
18
P T Kuppuswamy
Chairman
G Rajasekaran
Director
K S Ramabadran
Director
Athi S Janarthanan
Director
K Ramadurai
Director
K P Kumar
Director
M G Sankkaranarayanan
Director
V G Mohan Prasad
Director
N S Venkatarama Guptha
Executive Director
S Nagarajan
Senior General Manager
KARUR - 639 002.
27th May 2005
R Venkataramana
Company Secretary
As per our report
For Balu and Swamy Associates
Chartered Accountants
S Ramaswamy
Partner
Schedules
(000’s omitted)
As on
31.03.2005
Rs.
As on
31.03.2004
Rs.
50,00,00
50,00,00
17,97,84
17,97,84
17,97,84
17,97,84
Nil
7
17,97,84
17,97,77
227,18,31
178,68,31
31,75,00
48,50,00
258,93,31
227,18,31
6,67,16
6,67,16
Nil
Nil
6,67,16
6,67,16
29,88,76
18,90,52
53
10,98,24
29,89,29
29,88,76
322,36,16
280,86,16
54,00,00
41,50,00
376,36,16
322,36,16
SCHEDULE 1 - CAPITAL
Authorised Capital
5,00,00,000 Equity Shares of Rs.10/- each
Issued Capital:
1,79,78,435 Equity Shares of Rs.10/- each
Paid up Capital:
1,79,78,435 Equity Shares of Rs.10/- each
Less: Allotment/Call Money due
TOTAL
SCHEDULE 2 - RESERVES AND SURPLUS
I
Statutory Reserve
Opening Balance
Addition during the year
II
Capital Reserve
Opening Balance
Addition during the year
III
Share Premium
Opening Balance
Addition during the year
IV
General Reserve
Opening Balance
Addition during the year
Annual Report 2004-05
Schedules
(000’s omitted)
As on
31.03.2005
Rs.
As on
31.03.2004
Rs.
70,84,75
30,84,75
Nil
40,00,00
70,84,75
70,84,75
36,00,00
25,00,00
Nil
11,00,00
36,00,00
Nil
Nil
36,00,00
18,98
1,09,79
742,89,65
694,04,93
i) From Banks
14,69,71
18,59,01
ii) From Others
770,53,23
634,72,23
785,22,94
653,31,24
845,25,12
698,61,86
i) From Banks
531,01,14
584,77,17
ii) From Others
4510,69,75
3974,77,56
5041,70,89
4559,54,73
6672,18,95
5911,47,83
6672,18,95
5911,47,83
Nil
Nil
6672,18,95
5911,47,83
SCHEDULE 2 - RESERVES AND SURPLUS (Contd.)
V
Investment Fluctuation Reserve
Opening Balance
Addition during the year
VI
Contingency Reserve
Opening Balance
Addition during the year
Amount transferred to Provision for bad
and doubtful debts
VII Balance of Profit
TOTAL
SCHEDULE 3 - DEPOSITS
A
I. Demand Deposits
II. Savings Bank Deposits
III. Term Deposits
TOTAL OF I, II & III
B
Deposits of Branches
i) In India
ii) Outside India
TOTAL
Schedules
(000’s omitted)
As on
31.03.2005
Rs.
As on
31.03.2004
Rs.
i) Reserve Bank of India
Nil
Nil
ii) Other Banks
10
1,58
85,32,65
29,47,87
85,32,75
29,49,45
6,98,72
73,69,15
92,31,47
103,18,60
Nil
Nil
150,53,87
151,65,21
Nil
23,62,41
35,30,16
35,20,97
Nil
6,00,90
V Others (including provisions)
173,62,87
164,24,60
TOTAL
359,46,90
380,74,09
64,78,20
48,98,65
316,70,96
278,05,26
381,49,16
327,03,91
SCHEDULE 4 - BORROWINGS
I Borrowings in India
iii) Other Institutions and Agencies
II
Borrowings outside India
TOTAL
Secured Borrowings included in
I and II above
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
I
Bills Payable
II Inter Office Adjustments (Net)
III Interest Accrued
IV Deferred Tax
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
I
Cash in Hand
(Including Foreign Currency Notes)
II Balances with Reserve Bank of India
In Current Account
TOTAL
Annual Report 2004-05
Schedules
(000’s omitted)
As on
31.03.2005
Rs.
As on
31.03.2004
Rs.
24,96,04
19,64,76
225,28,77
236,28,73
20,00,00
Nil
270,24,81
255,93,49
3,43,11
14,81,47
273,67,92
270,74,96
1841,86,46
1685,79,83
ii) Other Approved Securities
32,33,37
36,33,37
iii) Shares
43,93,50
21,59,32
266,14,13
358,37,27
34,75,51
70,91,59
2219,02,97
2173,01,38
2243,29,64
2185,67,86
24,26,67
12,66,48
2219,02,97
2173,01,38
Nil
Nil
SCHEDULE 7 - BALANCES WITH BANKS
AND MONEY AT CALL & SHORT NOTICE
I In India
i) Balances with Banks
a) In Current Accounts
b) In Other Deposit Accounts
ii) Money at Call and Short Notice with Banks
II Outside India
In Current Accounts
TOTAL
SCHEDULE 8 - INVESTMENTS
I Investments in India in
i) Government Securities
iv) Debentures and Bonds
v) Others : Mutual Fund Units
TOTAL
Gross Investments in India
Less : Provision for Investment
Depreciation and impairment
Net Investments in India
II Investments outside India
Schedules
(000’s omitted)
As on
31.03.2005
Rs.
As on
31.03.2004
Rs.
269,43,67
200,60,50
ii) Cash Credits, Overdrafts and Loans
repayable on Demand
1755,56,69
1422,75,96
iii) Term Loans
2594,79,68
2399,87,85
4619,80,04
4023,24,31
3505,67,89
3000,44,83
ii) Covered by Bank / Government guarantees
350,08,64
446,13,08
iii) Unsecured
764,03,51
576,66,40
TOTAL
4619,80,04
4023,24,31
i) Priority Sector
1803,16,91
1508,87,09
ii) Public Sector
531,89,68
591,77,72
iii) Banks
8,08
6,50
iv) Others
2284,65,37
1922,53,00
TOTAL
4619,80,04
4023,24,31
Nil
Nil
4619,80,04
4023,24,31
65,74,79
59,65,55
1,02,79
6,10,67
66,77,58
65,76,22
1,96,72
1,43
64,80,86
65,74,79
SCHEDULE 9 - ADVANCES
A
i) Bills purchased and discounted
TOTAL
B
C
i) Secured by tangible assets (incl. Book Debts)
I
Advances in India
II Advances Outside India
TOTAL
SCHEDULE 10 - FIXED ASSETS
I
Premises :
At cost as on 31st March of the preceding year
Addition during the year
Deduction during the year
Annual Report 2004-05
Schedules
(000’s omitted)
As on
31.03.2005
Rs.
As on
31.03.2004
Rs.
12,63,10
10,54,89
52,17,76
55,19,90
35,38
22,16
84,82,04
64,85,13
30,44,99
20,17,39
115,27,03
85,02,52
15,64
20,48
115,11,39
84,82,04
65,48,94
48,06,15
49,62,45
36,75,89
102,15,59
92,17,95
41,13,04
Nil
II Interest Accrued
65,70,09
68,33,46
III Tax paid in advance /
Tax deducted at source
88,08,18
82,06,89
IV Stationery and Stamps
2,20,68
1,95,04
Nil
Nil
1,59,87
1,59,87
VII Others
89,97,27
67,25,45
TOTAL
288,69,13
221,20,71
SCHEDULE 10 - FIXED ASSETS (Contd.)
Depreciation to date
II Building under construction
III Other Fixed Assets :
(Including Furniture & Fixtures)
At cost as on 31st March of the preceding year
Addition during the year
Deduction during the year
Depreciation to date
TOTAL
SCHEDULE 11 - OTHER ASSETS
I
Inter Office Adjustments (Net)
V Deferred Tax
VI Non Banking Assets acquired in
satisfaction of claims
Schedules
(000’s omitted)
As on
31.03.2005
Rs.
As on
31.03.2004
Rs.
4,86,24
4,87,33
1068,99,92
1125,71,00
III Guarantees given on behalf of
Constituents in India
367,62,50
423,28,84
IV Acceptances, Endorsements and
other Obligations
561,99,41
404,78,61
Nil
Nil
2003,48,07
1958,65,78
Year ended
31.03.2005
Rs.
Year ended
31.03.2004
Rs.
385,73,91
361,00,53
189,88,07
265,93,22
15,14,15
20,03,61
IV Others
47
65,02
TOTAL
590,76,60
647,62,38
58,83,04
55,60,63
27,55,75
68,09
4,24
- 3,04
IV Profit on exchange transactions - Net
10,30,27
8,77,21
V Miscellaneous Income
16,42,10
9,21,66
113,15,40
74,24,55
SCHEDULE 12 - CONTINGENT LIABILITIES
I
Claims against the Bank not
acknowledged as debts
II Liability on account of outstanding
Forward Exchange Contracts
V Other items for which the Bank
is contingently liable/Bills of exchange
rediscounted with IDBI
TOTAL
SCHEDULE 13 - INTEREST EARNED
I
Interest / discount on advances/bills
II Income on Investments
III Interest on balances with Reserve Bank
Of India and other inter-bank funds
SCHEDULE 14 - OTHER INCOME
I
Commission, Exchange and Brokerage
II Profit/Loss on sale of investments-Net
III Profit on sale of land, buildings and other assets
TOTAL
Annual Report 2004-05
Schedules
(000’s omitted)
Year ended
31.03.2005
Rs.
Year ended
31.03.2004
Rs.
322,94,16
333,11,62
SCHEDULE 15 - INTEREST EXPENDED
I
Interest on Deposits
II
Interest on Reserve Bank of India/
Inter-bank borrowings
7,79,37
11,59,84
Others
3,33,79
5,70,15
TOTAL
334,07,32
350,41,61
76,35,81
78,87,01
10,93,56
2,24,55
8,34,46
19,51,00
32,56
29,21
9,28,72
2,22,65
3,37,31
14,65,42
28,04
25,68
68,77
9,04,21
2,82,94
5,20,11
34,84,30
3,57,90
6,36,74
2,49,95
2,87,46
32,63,29
170,61,48
156,90,17
III
SCHEDULE 16 - OPERATING EXPENSES
I
Payments to and Provisions
for employees
II
III
IV
V
VI
VII
Rent, Taxes and Lighting
Printing and Stationery
Advertisement and Publicity
Depreciation on Bank’s Property
Directors’ fees, allowances and expenses
Auditors’ fees and expenses
(includes for branch auditors)
VIII Law Charges
IX
Postages, Telegrams, Telephones, etc.
X
Repairs and maintenance
XI
Insurance
XII Other Expenditure
TOTAL
Schedules
SCHEDULE 17
SIGNIFICANT ACCOUNTING POLICIES
1.
GENERAL
The accompanying financial statements have been prepared on historical cost basis in conformity with prevalent
statutory provisions and standard accounting practices except wherever otherwise stated.
2.
FOREIGN EXCHANGE TRANSACTIONS
2.1 Monetary assets and liabilities have been translated at the year end exchange rates as advised by FEDAI.
2.2 Income and Expenditure items have been translated at the exchange rates prevailing on the date of transactions.
2.3 Profit or loss on pending forward exchange contracts is accounted for at the rates prevailing at the close of the
year as advised by FEDAI.
3.
INVESTMENTS
Investments of the Bank have been grouped under three categories viz., Held to Maturity, Available for Sale and Held
for Trading and valued as per Reserve Bank of India guidelines.
4.
ADVANCES
All advances have been classified as per prudential norms prescribed by the Reserve Bank of India. Advances shown
in the Balance Sheet are net of provisions.
5.
FIXED ASSETS
5.1 Premises and other fixed assets have been accounted for at historical cost as reduced by depreciation
written off.
5.2 Depreciation has been provided on diminishing balance method at the rates specified in the schedule XIV of the
Companies Act, 1956, except on computers. On computers including software, depreciation has been provided
on straight line method at 33.33% as advised by Reserve Bank of India. In respect of leased assets, depreciation
has been provided by charging the cost of the assets over the primary lease period.
6.
STAFF BENEFITS
Provisions for Gratuity, Pension and Leave encashment on retirement are made on accrual basis as per Actuarial
valuation as at the year end.
7.
REVENUE/EXPENDITURE RECOGNITION
7.1 Interest income on all advances other than non-performing assets is recognised on accrual basis. In respect of
non-performing assets interest is recognised on cash basis.
7.2 Commission (including commission received on Insurance business), exchange, brokerage and locker rent are
accounted on cash basis.
7.3 Expenditure is generally accounted on accrual basis.
8.
NET PROFIT
The net profit disclosed in the Profit and Loss Account is arrived at after providing for contingencies which include,
Provision for taxes on income in accordance with statutory requirements
Provision for Non-Performing Assets and
Provision for depreciation on investments.
Annual Report 2004-05
Schedules
SCHEDULE 18
NOTES FORMING PART OF BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
1.
INTER-BRANCH TRANSACTIONS:
Inter-branch/Office Accounts Reconciliation has been completed upto 31.03.2005 and all the inter-branch entries have
been reconciled upto 31.03.2005.
2.
BALANCING OF BOOKS:
The books of account have been balanced and tallied in all branches of the Bank upto 31.03.2005. The reconciliation
of accounts with other banks has been completed upto 31.03.2005.
3.
INVESTMENTS:
3.1 The Investment portfolio of the Bank has been classified into three categories viz. Held to Maturity, Available for
Sale, Held for Trading and the valuation of securities as on 31.03.2005 has been made as per the quotations of
FIMMDA and in conformity with the guidelines of Reserve Bank of India.
3.2 As permitted by Reserve Bank of India, the Bank had shifted certain securities from Available for Sale category
to Held to Maturity category and provided depreciation to the tune of Rs.44.01 crore arising out of shifting of
securities.
3.3 Investment Fluctuation Reserve as at 31.03.2005 stands at Rs.70.85 crore and this works out to 8.28% of our
Investment portfolio (excluding investments under Held To Maturity category), which is higher than Reserve Bank
of India’s prescription level of 5% to be achieved in March 2006.
3.4 The Bank has not transferred the amount in excess of the said 5 per cent in the Investment Fluctuation Reserve
to Statutory Reserve, eventhough the same is permitted as per Reserve Bank of India circular, RBI / 2004-05/448
DBOD. No. BP. BC. 85 / 21.04.141 / 2004-05 dated April 30, 2005.
4.
ADVANCES:
Income recognition, asset classification and provisioning have been carried out as per the prudential accounting
norms prescribed by the Reserve Bank of India.
5.
STAFF BENEFITS :
Pending wage revision, negotiation for which is in progress, Rs.7.00 crore has been provided towards salary revision
during the year 2004-05, along with previous year’s provision of Rs.8.00 crore. With this, the total provision towards
wage arrears will be Rs.15.00 crore.
6.
COMPLIANCE WITH ACCOUNTING STANDARDS :
6.1 There are no material prior period income and expenditure included in the Profit & Loss account which requires
a disclosure as per AS-5 (Net profit or Loss for the period. Prior period items and changes in Accounting
policies).
6.2 Income / Expenditure items recognised on cash basis were either not material or did not require disclosure under
AS 9 (Revenue recognition).
6.3 The Bank has been consistently following FEDAI guidelines with regard to foreign exchange transactions. Reserve
Bank of India has issued guidelines on 15.03.2005 vide circular DBOD No.BP.BC.76 / 21.04.018 / 2004-05 on the
compliance with AS11(revised 2003) with effect from 01.04.2004. Hitherto EEFC, RFC and FCNR(B) deposits
were translated at notional rates prevailing on the date of transactions. During this year, the Bank has followed
AS11 (revised 2003) read with RBI circular referred above and has translated the EEFC, RFC and FCNR(B)
deposits at year end exchange rate as advised by FEDAI. The net effect of the above change on revenue, assets
and liabilities is not material.
Schedules
6.4 SEGMENT REPORTING:
PART A: BUSINESS SEGMENTS :
BUSINESS
SEGMENT
PARTICULARS
(Rs in crore)
TREASURY
OTHER BANKING
OPERATIONS
TOTAL
Quarter
Ended
Mar 05
Year
Ended
Mar 05
Year
Ended
Mar 04
Quarter
Ended
Mar 05
Year
Ended
Mar 05
Year
Ended
Mar 04
Quarter
Ended
Mar 05
REVENUE
75.89
242.88
296.02
111.81
461.04
425.85
187.70
703.92
721.87
RESULT
40.29
103.83
153.73
30.63
114.91
75.48
70.92
218.74
229.21
5.48
19.51
14.66
65.44
199.23
214.55
9.49
20.49
41.60
OTHER PROVISIONS
25.87
73.40
11.90
NET PROFIT
30.08
105.34
161.05
UNALLOCATED
EXPENSES
OPERATING PROFIT
INCOME TAXES
SEGMENT ASSETS
2781.03
2781.03
2687.35
4619.80
4619.80
4023.24
7400.83
Year
Ended
Mar 05
Year
Ended
Mar 04
7400.83 6710.59
UNALLOCATED
ASSETS
484.02
TOTAL ASSETS
7884.85
7884.85 7107.43
7525.38
7525.38 6726.71
SEGMENT
LIABILITIES
1003.76
1003.76
1043.98
6521.62
6521.62
5682.73
UNALLOCATED
LIABILITIES
359.47
TOTAL LIABILITIES
7884.85
484.02
359.47
396.84
380.72
7884.85 7107.43
There are no significant residual operations carried on by the Bank.
PART B: GEOGRAPHIC SEGMENTS :
There is only one segment i.e., Domestic Segment.
6.5 RELATED PARTY TRANSACTIONS:
In compliance with Accounting Standard 18 issued by ICAI and the RBI guidelines, details pertaining to related party
transactions are disclosed as under:
Name of the Key Management Personnel
Shri P T Kuppuswamy
Designation
Item
Amount
Chairman
Remuneration
Rs.15,79,859/-
Annual Report 2004-05
Schedules
(Rs.in crore)
6.6 EARNINGS PER SHARE :
S.No.
Particulars
1.
Basic EPS (Rs.)
2.
Diluted EPS
2004-05
2003-04
58.59
89.58
NA
NA
Timing Difference
Leave encashment on retirement
Depreciation on fixed assets
Computation of Basic EPS
A
B
C
D
Net Profit for the year
(Rs in crore)
Weighted number of
shares (Nos)
Basic Earnings Per Share
(A/B) (Rs.)
Nominal Value Per
Share (Rs.)
105.34
161.05
17978435 17978435
58.59
10.00
2004-05
2003-04
-1.91
-1.25
4.98
5.79
Interest accrued but not due on
securities
-3.74
12.23
Total
-0.67
16.77
Since the net timing difference is Deferred Tax Asset, it is
not recognised in the books.
6.8 Depreciation on software is calculated on straight line
method at 33.33% in compliance with Accounting
Standard 26.
89.58
10.00
6.7 TAXATION:
6.7.1 In respect of income tax, the assessment has been
completed upto AY 2002-03. Appeals are pending with
Income Tax Appellate Tribunal and Commissioner of
Income Tax (Appeals) for various years. No provision
is considered necessary for the disputed income tax
on the basis of favourable judicial decisions.
6.7.2 The Bank has complied with the Accounting Standard
22 “Accounting for Taxes on Income” issued by the
Institute of Chartered Accountants of India.
The tax effect on components of Deferred Tax for the
year are as follows:
7. COUNTRY RISK EXPOSURE:
The net funded exposure of the bank in respect of foreign
exchange transactions with each country is within 1%
of the total assets of the Bank and hence no provision
and disclosure is required to be made as per RBI
circular DBOD.BP.BC.96/21.04.103/2003-04 dated
17.06.2004.
8. CAPITAL ADEQUACY:
The Capital to Risk Weighted Assets Ratio assessed
by the Bank, in terms of the Reserve Bank of India
guidelines, as on 31.03.2005 is 16.07% as against
previous year’s 17.11%.
2004-05
2003-04
Capital Adequacy Ratio
16.07%
17.11%
Tier I
14.36%
15.10%
Tier II
1.71%
2.01%
Schedules
9. ADDITIONAL DISCLOSURES:
S.No.
I
II
Particulars
2004-05
2003-04
1.66%
2.32%
(Rs in crore)
(Rs in crore)
Provisions and Contingencies include
Provision for NPAs
Provision for Standard Assets
Provision for Income-tax
Provision for Deferred Tax
Provision for depreciation on Investments
14.90
1.60
26.50
(6.01)
56.90
16.27
1.73
36.90
4.70
(6.09)
Total
93.89
53.51
Percentage of Net NPAs to Net Advances
III
Subordinated debt raised as Tier-II Capital
Nil
Nil
IV
Gross Value of Investments in India
Less Depreciation on Investments in India
Net Value of Investments in India
Investments outside India
2243.30
24.27
2219.03
Nil
2185.68
12.67
2173.01
Nil
V
Business Ratios
Interest income to Average Working Funds
Non-Interest income to Average Working Funds
Operating Profit to Average Working Funds
Return on Average Assets
Business per employee (Rs.in crore)
(Deposits excluding Bank Deposits plus Advances)
Profit per employee (Rupees in lacs)
8.13%
1.56%
2.74%
1.45%
3.87
9.79%
1.12%
3.24%
2.43%
3.30
3.75
5.65
VI. MATURITY PATTERN:
(Rs.in crore)
1-14
days
15-28
days
29days
& upto 3
months
Over 3
mon &
upto 6
months
Over 6
mon &
upto12
months
Over 1
year &
upto 3
years
Over 3
years &
upto 5
years
Over 5
years
Total
212.18
63.20
503.03
183.47
155.17
1597.69
820.71
1205.56
4741.01
0.44
—
26.87
6.56
13.17
58.83
171.75
1965.68
2243.30
509.31
303.84
1239.37
771.38
1362.27
765.96
88.84
1631.22
6672.19
—
2.62
56.93
32.46
0.12
0.18
—
—
92.31
Foreign Currency Assets
28.45
27.29
81.71
39.47
0.01
—
—
0.28
177.21
Foreign Currency
Liabilities
13.62
0.35
64.53
4.43
11.06
—
—
—
93.99
Loans & Advances
Investment Securities
Deposits
Borrowings
Notes:
Assets and Liabilities are classified as per the guidelines issued by the Reserve Bank of India.
Advances are gross of Bills rediscounted and general provisions.
Investments are gross of provisions.
Compiled from the data received from branches covering 100% of total business.
Annual Report 2004-05
Schedules
As on
31.03.2005
(Rs. in crore)
As on
31.03.2004
(Rs. in crore)
4.43
1.23
ii. Real Estate Sector
235.90
239.90
iii. Commodities Sector
162.43
221.34
239.23
255.46
Additions during the year
51.81
47.65
Reductions during the year
49.13
63.88
241.91
239.23
Net NPAs - Opening Balance
91.60
139.07
Net NPAs - Closing Balance
75.75
91.60
104.65
84.04
Add: Provisions made during the year
14.90
16.27
Add: Excess provision held(incl transfer of Rs.36.00 crore from
Contingency Reserve)
37.89
4.34
Nil
Nil
157.44
104.65
43.93
21.59
—
—
Nil
Nil
34.76
35.79
4.43
1.23
Nil
Nil
VII. LENDING TO SENSITIVE SECTORS:
i. Capital Market Sector
VIII. MOVEMENT OF NPAs
Gross NPAs - Opening balance
Gross NPAs - Closing balance
IX.
MOVEMENT OF PROVISIONS ON NPAs:
(excluding provisions on standard assets)
Opening Balance
Less: Write off, write back of excess provisions
Closing Balance
X.
INVESTMENTS AND ADVANCES (SHARES, DEBENTURES, ETC.)
Investments:
i. Equity Shares
ii. Preference Shares
iii. Convertible Debentures
iv. Equity Oriented Mutual Funds
Advances:
v. Aggregate advances against shares
vi. Margin Trading
Schedules
XI.
As on
31.03.2005
(Rs. in crore)
As on
31.03.2004
(Rs. in crore)
8.90
56.90
44.01
21.79
14.99
Nil
6.09
8.90
42.47
35.68
6.79
21.40
21.40
Nil
Nil
Nil
Nil
104.42
104.42
Nil
8.32
—
1.34
6.98
2.48
5.28
3.11
0.07
8.32
3.77
MOVEMENT OF PROVISIONS FOR DEPRECIATION ON INVESTMENT:
Opening Balance
Add: Provisions made during the year
Less: Write-off, write back of excess provisions during the year
Closing Balance
XII. RESTRUCTURED LOANS:
Total amount of loan assets subjected to restructuring, etc
Total amount of standard assets subjected to restructuring, etc
Total amount of sub-standard assets subjected to restructuring, etc
XIII. LOANS SUBJECTED TO CORPORATE DEBT RESTRUCTURING:
Total amount of loan assets subjected to CDR
Total amount of standard assets subjected to CDR
Total amount of sub-standard assets subjected to CDR
XIV. NON PERFORMING NON SLR INVESTMENTS
Opening Balance
Additions during the year since 1st April
Reductions during the above period
Closing Balance
Total provision held
XV. Issuer composition of Non SLR investment as on 31.03.2005
No.
Issuer
1
2
3
4
5
6
7
PSUs
FIs
Banks
Private Corporates
Subsidiaries/Jt ventures
Others
Provision held towards
depreciation
Total
Amount
(Book
Value)
(Rs in crore)
Extent of
private
placement
Extent of
below
investment
grade
securities
Extent
of unrated
securities
Extent of
unlisted
securities
208.90
5.00
63.76
35.22
36.40
187.69
5.00
56.50
14.45
-
-
14.83
31.00
8.06
-
97.83
10.00
8.06
-
4.45
344.83
263.64
-
53.89
115.89
Annual Report 2004-05
Schedules
XVI.
Repo / Reverse Repo Transactions
(Rs. In crore)
Minimum
outstanding
during the year
Securities sold under repos
Securities purchased
under reverse repos
XVII.
Maximum
outstanding
during the year
Daily Average
outstanding
during the year
As on
March
31, 2005
27.55
523.00
127.22
Nil
Nil
100.00
0.27
Nil
Details of credit exposure where the Bank had exceeded the prudential exposure during the year:
(Rs. In crore)
Sl.No.
10.
Name of the Borrower
Exposure
Ceiling
Limit
sanctioned
Position
as on
31.03.2005
1.
Sardar Sarovar Narmada Nigam Ltd
142.40
155.00
155.00
2.
Sterlite Industries Ltd
106.80
125.00
97.88
Previous year figures have been regrouped/recast wherever considered necessary.
P T Kuppuswamy
Chairman
G Rajasekaran
Director
K S Ramabadran
Director
Athi S Janarthanan
Director
K Ramadurai
Director
K P Kumar
Director
M G Sankkaranarayanan
Director
V G Mohan Prasad
Director
N S Venkatarama Guptha
Executive Director
S Nagarajan
Senior General Manager
KARUR - 639 002.
27th May 2005
R Venkataramana
Company Secretary
As per our report
For Balu and Swamy Associates
Chartered Accountants
S Ramaswamy
Partner
Cash Flow Statement for the year ended 31st March, 2005
(000’s omitted)
As on
31.03.2005
As on
31.03.2004
1053414
1610461
Depreciation
195100
146542
Provisions and contingencies
938906
535054
19118
12513
Loss/profit on sale of assets
-275575
304
Profit on sale of investments
-424
-6809
1930539
2298065
-740717
-3198373
-6398648
-6780686
-203409
7557
-5412235
-7673437
Deposits from customers
7607112
7895579
Borrowings from banks
-108714
-1645713
Other operating liabilities
-691659
1218336
Cash generated from operations
1394504
-205235
Direct taxes paid
-325129
-464365
Net cash generated from operations
1069375
-669600
-296427
-231041
1988
1743
-294439
-229298
Cash Flow from Operating Activities
Net profit as per profit and loss account
Adjustments for
Leave encashment
Operating profit before working capital changes
Increase/decrease in operating assets
Purchase and sale of investments
Funds advanced to customers
Other operating assets
Increase/decrease in operating liabilities
Cash Flow from Investing Activities
Purchase of fixed assets
Sale of fixed assets
Net cash generated from investing activities
Annual Report 2004-05
Cash Flow Statement (Contd.)
(000’s omitted)
As on
31.03.2005
As on
31.03.2004
8
15689
53
109824
Dividend paid
-201176
-139250
Net cash generated from financing activities
-201115
-13737
Cash Flow from Operating Activities
1069375
-669600
Cash Flow from Investing Activities
-294439
-229298
Cash Flow from Financing Activities
-201115
-13737
Increase in cash & cash equivalents
573821
-912635
Cash and cash equivalents as at 31.03.2004 / 31.03.2003
5977887
6890522
Cash and cash equivalents as at 31.03.2005 / 31.03.2004
6551708
5977887
Cash Flow from Financing Activities
Proceeds from share capital
Proceeds from share premium
Karur - 639 002.
May 27,2005
P. T. Kuppuswamy
Chairman
Auditors’ certificate
We have verified the cash flow statement of The Karur Vysya Bank Limited for the year ended 31.03.2005. The statement
has been prepared by the bank in accordance with the requirements of listing agreement, clause 32, with the stock
exchange and is based on and in agreement with corresponding Profit & Loss Account and Balance Sheet of the bank
covered by the report of 27th May 2005 to the shareholders of the bank.
Karur - 639 002.
May 27,2005
For Balu and Swamy Associates,
Chartered accountants,
S. Ramaswamy
Partner
Network of Branches
International Division :
Registered and Central Office:
Erode Road, KARUR - 639 002
Ph. : 04324-226520, 225521/25
2nd Floor, 568, Anna Salai,
Teynampet, CHENNAI - 600 018.
Divisional Offices :
Bangalore
Chennai
Coimbatore
Madurai
Mumbai
Salem
Vijayawada
:
:
:
:
:
:
:
230/2, 1st Floor, 15th Cross, Sampige Road, Malleswaram, BANGALORE - 560 003.
1st Floor, 568 Anna Salai, Teynampet, CHENNAI 600 018.
577, IInd Floor, Oppanakkara Street, COIMBATORE 641 001
16, A.A. Road, 1st Floor, Gnanaolivupuram, MADURAI 625 016.
954, Appa Saheb Marathe Marg, Prabhadevi, MUMBAI 400 025.
269-A, Bharathi Street, Swarnapuri, SALEM - 636 004.
38-8-46, Bunder Road, Labbipet, VIJAYAWADA - 520 002.
Data Centre
ATM Cell
Data Recovery Site
:
:
:
Tidal Park, Chennai - 600 113.
37, Whites Road, Chennai - 600 014.
Hi-Tech City, Hyderabad.
Central Clearing Offices:
Bangalore
Chennai
Coimbatore
Hyderabad
Salem
Tiruppur
Trichy
Vijayawada
Karur
Madurai
Mumbai
New Delhi
Currency Chests:
Chennai
Karur
Madurai
Vijayawada
28.
Vijayawada Bunder Road*
Guntur - Eluru Bazar*
29.
Vijayawada Governorpet
16.
Guntur - Lakshmipuram*
30.
Vijayawada No.1 Town*
17.
Tenali
Guntur District
ANDHRA PRADESH
Anantapur District
1.
Anantapur*
2.
Dharmavaram*
3.
Hindupur*
Chittoor District
4.
Chittoor
5.
Nagari (Sathrawada)
6.
Rallabuduguru
7.
Tirupathi - Khadi Colony*
8.
Tirupathi - Main*
Cuddapah District
9.
Cuddapah*
10.
Proddatur*
15.
Hyderabad District
18.
Hyderabad
19.
Hyderabad - Abids*
20.
Hyderabad - Jubillee Hills*
21.
Hyderabad - Nallakunta*
22.
Hyderabad - S R Nagar*
23.
Hyderabad - Kalyanagar*
24.
Secunderabad*
Karimnagar District
25.
Kakinada*
12.
Mandapeta*
13.
Peddapuram
14.
Rajahmundry*
Karimnagar*
31.
Kurnool*
32.
Nandyal*
Nellore District
33.
26.
34.
Nizamabad*
Prakasam District
35.
Chirala*
36.
Ongole*
Visakhapatnam District
Khammam*
Krishna District
27.
Nellore*
Nizamabad District
Khammam District
East Godavari District
11.
Kurnool District
Gudivada*
37.
Anakapalle*
38.
Visakhapatnam Main*
39.
Visakhapatnam Pedawaltair*
Annual Report 2004-05
Vizianagaram District
40.
Vizianagaram
Warangal District
41.
Warangal - Hanamakonda*
42.
Warangal - Main*
West Godavari District
43.
Bhimavaram*
44.
Eluru*
45.
Jangareddygudem
46.
Nidadavolu*
47.
Palakol
48.
Tadepalligudem*
MAHARASHTRA
64.
Bangalore - Main*
65.
Bangalore - Malleswaram*
66.
Bangalore - Rajajinagar*
83. Mumbai - Borivali*
67.
Bangalore - Ulsoor*
84. Mumbai - Fort
Davangere District
68.
Davangere
69.
Hubli
Mumbai City
85. Mumbai - Prabhadevi
Pune District
86. Pune*
Kolar District
70.
Kolar Gold Fields*
Mysore District
71.
Thane District
87. Mumbai - Vashi
88. Mumbai - Thane (W)*
PONDICHERY
Mysore
Karaikal District
South Canara District
NEW DELHI
49.
New Delhi - East Of Kailash*
50.
New Delhi - Karol Bagh
51.
New Delhi - Kashmere Gate
52.
New Delhi - Lawrence Roadelhi*
53.
New Delhi - Rohini*
GUJARAT
72.
89. Karaikal*
Mangalore
Tumkur District
73.
90. Pondicherry*
Tumkur
Alappuzha District
74.
Chengannur
Ernakulam District
Ahmedabad
55.
Ahmedabad - Satellite Area*
75.
Ernakulam - Kochi*
76.
Unjha
Kottayam District
78.
Surat*
Kottayam
Kozhikode District
Surat District
58.
Chennai District
92. Chennai - Adyar*
94. Chennai - Kodambakkam*
96. Chennai - Moogappair*
97. Chennai - Mylapore*
77.
Rajkot*
91. Ullavoor
95. Chennai - Armenian Road*
Kollam
Rajkot District
57.
Chengalpet District
93. Chennai - Anna Nagar*
Kollam District
Mahsana District
56.
TAMILNADU
KERALA
Ahmedabad District
54.
Pondicherry District
Kozhikode
98. Chennai - Nanganallur*
99. Chennai - Purasawalkam*
100. Chennai - Royapuram
101. Chennai - T.Nagar*
Palakkad District
Vadodara District
59.
79.
Vadodara*
Palakkad*
HARYANA
Thrissur District
102. Chennai - Teynampet*
103. Chennai - Triplicane*
104. Chennai - Usman Road*
105. Chennai - Valasaravakkam*
60.
Gurgaon
80.
61.
Bangalore - ISRO Layout*
62.
Bangalore - J.C. Road
63.
Bangalore - Jayanagar*
106. Chennai - Velachery*
Trivandrum District
KARNATAKA
Bangalore District
Thrissur
81.
Thiruvananthapuram*
MADHYA PRADESH
Indore District
107. Chennai - Whites Road*
Coimbatore District
108. Anaimalai
109. Coimbatore - Ganapathy
82. Indore*
110. Coimbatore - Dr. Nanjappa Road*
111. Coimbatore - Main*
146. Chennai - Chromepet*
112. Coimbatore - R.S. Puram*
147. Chennai - St. Thomas Mt.*
113. Coimbatore - Saibaba Colony*
148. Chennai - Tambaram*
114. Kolumam
149. Kancheepuram
115. Pappankulam
Pudukottai District
179. Kothamangalam
Ramanathapuram District
180. Ramanathapuram*
Kanyakumari District
116. Pollachi*
Salem District
117. Tirupur - Main*
150. Nagercoil*
181. Attur*
118. Tirupur - Overseas
119. Tirupur - P.N.Road*
Karur District
182. Idappadi*
151. Karur - Central*
183. Karipatti
152. Karur - Gandhigramam*
184. Karuppur
153. Karur - Main*
185. Mettur Dam R.S.*
154. Karur - West*
186. Salem - Alagapuram*
122. Chidambaram*
155. Kulithalai*
187. Salem - Main*
123. Cuddalore*
156. Veerarakkiyam
188. Salem - Shevapet*
120. Udumalpet*
121. Erisanampatti
Cuddalore District
124. Neyveli*
Sivagangai District
Madurai District
125. Vridhachalam*
Dharmapuri District
157. Alanganallur
158. Elumalai
Thanjavur District
126. Kambainallur
159. Madurai - Gnanaolivapuram*
127. Samalpatti
160. Madurai - Main
Dindigul District
190. Kumbakonam*
191. Thanjavur*
161. Madurai - South*
Theni District
162. Madurai - Tallakulam*
128. Batlagundu*
129. Chinnalapatti
189. Karaikudi*
Nagapattinam District
192. Aundipatti*
193. Bodinayakanur*
130. Dindigul*
163. Mayiladuthurai
131. Neikarapatti
164. Nagapattinam*
195. Cumbum
132. Palani
165. Neermulai
196. Gudalur
Erode District
Namakkal District
194. Chinnamanur
197. Kathirnarasingapuram
198. Kombai
133. Bhavani*
166. Belukurichi
134. Dharapuram*
167. Kalappanaickenpatti
135. Erode*
168. Komarapalayam*
136. Ganapathipalayam
169. Mangalapuram
137. Gobichettipalayam*
170. Namagiripet
201. Arni*
138. Kangeyam*
171. Namakkal Main*
202. Perunduraipattu
139. Kavindapadi*
172. Namakkal West*
203. Polur
140. Kolathupalayam
173. Paundamangalam*
141. Mettukadai
174. Puduchatram
142. Mulanur*
175. Tiruchengode*
143. Perundurai*
176. Valayapatti
144. Sathyamangalam*
177. Vellapillaiarkoil
199. Periyakulam*
200. Theni*
Thiruvannamalai District
Tiruchirapalli District
204. Jeeyapuram
205. Kannanur
206. Musiri*
207. Thathiengarpet
Kancheepuram District
145. Chennai - Alandur*
Nilgiris District
178. Coonoor
208. Trichy - Cantonment*
209. Trichy - Main
Annual Report 2004-05
210. Trichy - Thillai Nagar*
217. Vandavasi*
Tuticorin District
Tirunelveli District
211. Palayamkottai*
218. Kovilpatti*
212. Tenkasi*
219. Tuticorin*
213. Tirunelveli Town*
Tiruvallur District
Vellore District
224. Thottiyam
225. Tindivanam*
226. Villupuram*
Virudhunagar District
227. Sivakasi*
220. Kaniyambadi
228. Rajapalayam*
214. Chennai - Tiruverkadu*
221. Vaniyambadi - Perumalpet
229. Virudhunagar
215. Chennai - Velappanchavadi*
222. Vellore*
Tiruvannamalai District
216. Tiruvannamalai*
* ATM facility available
Villupuram District
223. Kaduvanur
WEST BENGAL
230. Kolkata - Strand Road
231. Kolkata - Shakespeare Sarani*
PRINCIPAL CORRESPONDENT BANKS
Name of the Bank and address
Name of the Bank and address
Name of the Bank and address
HSBC Bank (USA)
452, 5th Avenue
New York, NY 10018, USA
HSBC Bank PLC
8 Canada Square
London E 14 5 HQ
United Kingdom
Bank of India
2-3 Marunochi 2-Chome
Chiyoda-Ku, Tokyo
JAPAN
Standard Chartered Bank
One Madison Avenue
New York, NY 10010-3603
USA
American Express Bank Gmbh
Postfach 110162
Theodor-Heuss-Allee 112
D-60036, Frankfurt am Main
GERMANY
Australia & Newzealand Banking
Corporation
55 Collins Street
Melbourne, Victoria
AUSTRALIA
American Express Bank
3 World Financial Centre
New York, NY 10285, USA
Hongkong & Shanghai
Banking Corporation Ltd.,
Ocean Tower, Level 2
20 Russel’s Place
SINGAPORE 048620
Hongkong Bank of Canada
International Services
70 York Street
Suite 500, Toronto
Ontario, CANADA
The Bank Of New York
1 Wall Street
New York, NY 10286, USA
UBS AG
PO 8098
Zurich, Switzerland
Skandinaviska Enskilda Banken
S-106, 40 Stockholm
SWEDEN
Danske Bank AS
2-12 Holmens Kanal
DK-1092 Copenhagen K
DENMARK
A DECADE OF PROGRESS
(Rs. in Crore)
Year
Capital
1995-96 1996-97 1997-98
1998-99
1999-00 2000-01
2001-02 2002-03 2003-04 2004-05
5.98
6.00
6.00
6.00
6.00
6.00
6.00
16.41
17.98
17.98
Reserves
83.03
115.48
155.29
188.66
254.70
322.78
424.11
542.27
694.05
742.90
Owned funds
89.01
121.48
161.29
194.66
260.70
328.78
430.11
558.68
712.03
760.88
Capital Adequacy Ratio 10.92% 12.76%
14.47%
14.53%
15.16%
15.56%
16.90%
17.01%
17.11%
16.07%
1158.80 1575.49 2137.85
2537.93
3090.61 3615.25
4180.06 5121.92 5911.48 6672.19
Deposits
824.30
956.26 1154.70
1447.88
1807.30 2254.15
2460.03 3344.40 4023.24 4619.80
Investments
407.83
575.17
767.62
1019.04
1184.31 1234.39
1538.91 1845.08 2173.01 2219.03
Gross Income
209.29
253.27
332.44
378.36
475.83
515.05
587.01
648.07
721.87
703.92
Net Profit
32.24
36.06
43.54
37.04
71.14
72.05
108.51
124.97
161.05
105.34
Dividend
45%
50%
50%
50%
60%
60%
70%
70%
100%
100%*
Branches
181
191
198
202
205
206
211
214
223
231
EPS (Rs.)
53.87
60.12
72.57
61.73
118.57
120.08
180.85
156.28•
89.58•
58.59•
148.23
202.50
268.81
324.43
434.50
547.97
716.85
340.45•
396.05•
423.22•
2341
2446
2458
2667
2738
2856
2865
2833
2849
2811
Book Value (Rs.)
No. of Employees
* Proposed • Weighted average basis
Annual Report 2004-05
Advances