RNS Number : 1098N
Federal Bank Ltd (The)
23 July 2014
 



 

 

 

 

 

SDF-24/          /2013-14                                                                                  22nd July 2014

                                                                     

London Stock Exchange

 

Dear Sir,

We enclose the Limited Review Report (LRR) of the Auditors of the Bank for the quarter ended 30th June 2014, which was approved at the Bank's Board of Directors meeting, held on 16th July 2014.

Kindly take the same on your record.

Thanking you,

 

Yours faithfully,

COMPANY SECRETARY

Encl: as above

 

  

 

 

Deloitte

Haskins& Sells

M P Chitale & Co.

Chartered Accountants

Wilmont Park Business Centre

1st Floor, Warriam Road

Kochi - 682 016

INDIA

Chartered Accountants
First Floor, Hamam House
Ambalal DoshiMarg, Fort
Mumbai - 400 001
INDIA

Tel:  +91 484 2353694

Fax: +91 484 2380094

Tel: +91-22-22651186
Fax:+91-22-22655334 

 

 

INDEPENDENT AUDITORS' REVIEW REPORT                                                     

TO THE BOARD OF DIRECTORS OF

THE FEDERAL BANK LIMITED

 

1.   We have reviewed the accompanying statement of Unaudited Financial Results of THE FEDERAL BANK LIMITED ("the Bank") for the quarter ended30th June, 2014 ("the Statement")being submitted by theBank pursuant to Clause 41 of the Listing Agreements with the Stock Exchanges, except for the disclosures referred to in paragraph 6 below. This Statement is the responsibility of the Bank's Management and has been approved by the Board of Directors. Our responsibility is to issue a report on the Statement based on our review.

 

2.   We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410,'Review of Interim Financial Information Performed by the Independent Auditors of the Entity',issued by the Institute of Chartered Accountants of India.  This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of the Bank personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

 

3.   In the conduct of our review, 56 branches have been reviewed by one of usand we have relied on the review reports in respect of returns including non-performing assets received from the branch auditors of 34 branches, specifically appointed for this purpose by the bank. These review reports cover 54 Percent of the advances portfolio of the bank. Apart from these review reports, in the conduct of our review, we have also relied upon various returns received from the branches of the bank.

 

4.    Based on our review conducted as stated above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the Accounting Standards specified under the Companies Act, 1956 (which are deemed to be applicable as per Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014) and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Clause 41 of the Listing Agreements with the stock exchanges, including the manner in which it is to be disclosed, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters.

 

….2

 

 

 

 

 

Deloitte

Haskins & Sells

M P Chitale & Co.

 

: 2 :

 

5.   Attention is drawn to Note No.3 of the Statement regarding proportionate charge of pension liability of the bank amounting to ` 842Lakhsfor the quarter ended 30thJune, 2014 and the balance unamortised liability of ` 2526 Lakhs as at 30th June, 2014, pursuant to the exemption granted by the Reserve Bank of India and made applicable to the Bank vide letter no. DBODNo.BP.BC.15896 / 21.04.018 / 2010-11 dated April 8, 2011, from the application of the provisions of the Accounting Standard (AS) 15, Employee Benefits.

 

Our conclusion is not qualified in respect of this matter.

 

6.   Further, we also report that we have traced the number of shares as well as the percentage of shareholding in respect of the aggregate amount of public shareholding, and the number of shares as well as the percentage of shares pledged/encumbered and non-encumbered in respect of the aggregate amount of promoters and promoter group shareholding in terms of Clause 35 of the Listing Agreements with the Stock Exchanges and the particulars relating to investor complaints disclosed in the Statement, from the details furnished by the Registrars. The "Pillar 3 disclosures under Basel III Capital Regulations" disclosed on the Bank's website and in respect of which a link has been provided in the Statement have not been subjected to our review.

 

For DELOITTE HASKINS & SELLS

For M P CHITALE & CO.


Chartered Accountants

Chartered Accountants


(Firm's Registration No.008072S)

(Firm's Registration No. 101851W)











M. Ramachandran

Anagha N. Thatte


Partner

Partner


(Membership No.16399)

(Membership No.105525)


KOCHI, 16 July, 2014.

 

 

 






THE FEDERAL BANK LIMITED

REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101

(CIN: L65191KL1931PLC000368)

UNAUDITED FINANCIAL RESULTS

FOR THE QUARTER ENDED 30th JUNE 2014

 (` in Lakhs)

Particulars

Quarter ended

Year ended 31.03.2014

30.06.2014

31.03.2014

30.06.2013

Unaudited

Audited (Refer note 7)

Unaudited

Audited

1. Interest earned (a)+(b)+(c)+(d)

          177,150

            183,871

        165,326

       694,608

(a)

Interest/discount on advances/bills

          129,987

            123,794

        124,206

       501,108

(b)

Income on Investments

            45,819

              48,080

          39,705

       177,683

(c)

Interest on balances with Reserve Bank of India and other inter bank funds

              1,251

                1,746

            1,324

           5,236

(d)

Others

                   93

              10,251

                 91

         10,581

2. Other Income

            15,654

              17,841

          21,579

         69,385

3. TOTAL INCOME (1+2)

        192,804

          201,712

      186,905

     763,993

4. Interest expended

          120,728

            121,363

        114,365

       471,747

5. Operating Expenses (i)+(ii)

            36,923

              38,345

          33,486

       144,207

(i)

Employees Cost

            20,443

              20,090

          18,351

         77,154

(ii)

Other operating expenses

            16,480

              18,255

          15,135

         67,053

6. TOTAL EXPENDITURE (4)+(5)
(excluding Provisions and Contingencies)

        157,651

          159,708

      147,851

     615,954

7. OPERATING PROFIT (3-6)
 (Profit before Provisions and Contingencies)

          35,153

            42,004

        39,054

     148,039

8. Provisions (other than Tax) and Contingencies

              2,208

                5,503

          23,510

         26,840

9. Exceptional Items


                   -  

                      -  

                  -  

                -  

10. Profit from Ordinary Activities before tax
(7-8-9)

            32,945

              36,501

          15,544

       121,199

11. Tax expense


            10,922

                8,772

            4,978

         37,310

12. Net Profit from Ordinary Activities after tax (10-11)

          22,023

            27,729

        10,566

       83,889

13. Extraordinary items (net of tax expense)


                   -  

                      -  

                  -  

                -  

14. Net Profit for the period (12-13)


          22,023

            27,729

        10,566

       83,889

15. Paid-up Equity Share Capital
(Face value ` 2/- each)

            17,107

              17,106

          17,106

         17,106

16. Reserves excluding Revaluation Reserve

                   -  

                      -  

                  -  

       677,452

17. Analytical Ratios






(i)

Percentage of shares held by Government of India

NIL

NIL

NIL

NIL

(ii)

Capital Adequacy ratio (%)






Under Basel III

              15.16

                15.14

            14.27

           15.14

(iii)

Earnings per Share (EPS) (in `)






(a) Basic and diluted EPS before Extra ordinary Items

2.57*

3.24*

1.24*

9.81


(b) Basic and diluted EPS after Extra ordinary Items

2.57*

3.24*

1.24*

9.81

(iv)

NPA Ratios






a) Gross NPA

          101,643

            108,741

        148,325

       108,741


b) Net NPA

            30,389

              32,156

          37,362

         32,156


c) % of Gross NPA

                2.22

                  2.46

              3.51

             2.46


d) % of Net NPA

                0.68

                  0.74

              0.91

             0.74

(v)

Return on Assets (%)

0.30*

 0.38*

 0.15*

             1.20

18. Public Shareholding:







Number of Shares (in Lakhs)

         8,365.62

           8,342.86

       8,383.90

      8,342.86


Percentage of shareholding #

              97.80

                97.54

            98.02

           97.54

19. Promoters and Promoter group share holding






(a)

Pledged/Encumbered





-

Number of Shares

NIL

NIL

NIL

NIL

-

Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

NIL

NIL

NIL

NIL

-

Percentage of Shares (as a % of the total share capital of the company)

NIL

NIL

NIL

NIL

(b)

Non-encumbered





-

Number of Shares

NIL

NIL

NIL

NIL

-

Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

NIL

NIL

NIL

NIL

-

Percentage of Shares (as a % of the total share capital of the company)

NIL

NIL

NIL

NIL







* Not annualised





# excludes shares held by custodian against which Global Depository Receipts issued.


 

Segment Information@











 (` in Lakhs)


Particulars

Quarter ended

Year ended


30.06.2014

31.03.2014

30.06.2013

31.03.2014




Unaudited

Audited
(Refer note 7)

Unaudited

Audited


Segment Revenue:







Treasury

       53,430

          55,930

       53,376

        211,792



Corporate/Wholesale Banking

       55,626

          47,735

       57,985

        223,340



Retail Banking

       82,931

          86,627

       74,580

        314,658



Other Banking operations

            817

          11,420

           964

          14,203



Unallocated

             -  

                -  

            -  

                -  



Total Revenue

      192,804

         201,712

     186,905

         763,993



Less: Inter Segment Revenue

             -  

                -  

            -  

                -  


Income from Operations

      192,804

         201,712

     186,905

         763,993


Segment Results (net of provisions):







Treasury

         7,881

            2,003

       10,721

          14,990



Corporate/Wholesale Banking

       12,503

            4,087

       (4,957)

          29,162



Retail Banking

       12,445

          20,033

        9,151

          66,346



Other Banking operations

            415

          10,807

           860

          12,180



Unallocated

          (299)

             (429)

         (231)

          (1,479)



Profit before tax

        32,945

            36,501

       15,544

         121,199


Capital employed:







Treasury

      274,704

         262,520

     279,913

        262,520



Corporate/Wholesale Banking

       97,932

         108,720

     106,775

        108,720



Retail Banking

      132,320

         152,266

     124,392

        152,266



Other Banking operations

         1,430

            1,539

        1,860

            1,539



Unallocated

      210,729

         170,014

     134,093

        170,014



Total

      717,115

         695,059

     647,033

         695,059


@

For the above segment reporting, the reportable segments are identified into Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the revised RBI guidelines. The Bank mainly operates in India.


Notes:













1

The above financial results, subjected to Limited Review by statutory central auditors, have been taken on record by the Audit Committee and approved by the Board of Directors at their meeting on 16th July 2014.









2

As a prudent policy, the Bank holds provisions for Non Performing Assets over and above the minimum required under the Reserve Bank of India (RBI) norms. Further, provision for standard assets including requirements for exposures to entities with Unhedged Foreign Currency Exposures and provision for restructured advances has been made as per RBI guidelines.









3

The Pension liability arising on exercise of second option by employees (other than separated/retired employees) is being amortized equally over a period of 5 years commencing from the year ended on 31.03.2011, and accordingly an amount of ` 842 Lakhs, being the proportionate liability in respect thereof, for the quarter ended 30.06.2014 have been charged to  Profit and Loss Account and the balance amount of ` 2526 lakhs is carried forward to be amortised during the ensuing quarters of the year as permitted by the Reserve Bank of India vide letter No. DBOD.BP.BC.15896/21.04.018/2010-11 dated 08th April,2011.









4

RBI circular DBOD.No.BP.BC.2/21.06.201/2013-14 dated July 01, 2013 on Basel III Capital Regulations contains guidelines on certain Pillar 3 disclosure requirements that are to be made along with the publication of financial results. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: http://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to review by the statutory central auditors of the bank.









5

Number of Investor complaints received and disposed off during the quarter ended 30th June 2014:



a) Pending at the beginning  of the quarter

: NIL




b) Received during the quarter    

: 11




c) Disposed off during the quarter 

: 11




d) Pending at the end of the quarter      

: NIL

















6

During the quarter ended 30th June 2014, the Bank had allotted 37920 Shares pursuant to the exercise of stock options by certain employees.





7

The figures for the quarter ended March 31, 2014 are the balancing figures between audited figures in respect of financial year 2013-14 and the published year to date figures upto December 31, 2013.









8

Previous period/ year figures have been regrouped / reclassified, where necessary to conform to current period classification.


KOCHI


 MANAGING DIRECTOR & CEO


16th JULY 2014


 (DIN: 02274773)

 

 


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