RNS Number : 1615O
Federal Bank Ltd (The)
15 May 2018
 

 

                                                                                                                    

SDF-24/         /2018-19                                                                    15th May 2018

 

                                                        

To,

The London Stock Exchange

 

 

Dear Sir,

We enclose herewith the Annual Audited Financial Results of the Bank for the period ended March 31, 2018 which was approved at the Bank's Board of Directors meeting held on 09th May 2018.

 

Kindly take the same on your record.

 

For The Federal Bank Limited

 

 

Girish Kumar G

COMPANY SECRETARY

 

 

 

 

B S R & Co. LLP

M.M. Nissim & Co.

Chartered Accountants

Chartered Accountants

5th Floor, Lodha Excelus

Barodawala Mansion, B-Wing

Apollo Mills Compound

3rd Floor, 81

N.M. Joshi Marg, Mahalaxmi

Dr. Annie Besant Road

Mumbai - 400 011

Worli, Mumbai - 400 018

 

Independent Auditors' Report on the Standalone Financial Results of The Federal Bank Limited pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

 

To the Board of Directors of 

The Federal Bank Limited

 

1.   We have audited the accompanying annual standalone financial results of The Federal Bank Limited ('the Bank') for the year ended 31 March 2018 (the 'Financial Results'), attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('the Listing Regulations'). The disclosures relating to "Pillar 3 under Basel III Capital Regulations" and those relating to "Leverage Ratio", "Liquidity Coverage Ratio" under Capital Adequacy and Liquidity Standards issued by Reserve Bank of India ('RBI') as have been disclosed on the Bank's website and in respect of which a link has been provided in the financial results and have not been audited by us. Attention is drawn to the fact that the figures for the quarter ended 31 March 2018 and the corresponding quarter ended in the previous year as reported in these financial results are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the end of the third quarter of the relevant financial year. Also the figures up to the end of the third quarter have only been reviewed and not subjected to audit.

 

2.   These financial results have been prepared on the basis of the annual standalone financial statements and reviewed quarterly financial results up to the end of the third quarter which are the responsibility of the Bank's Management and approved by the Board of Directors in their meeting held on
09 May 2018. Our responsibility is to express an opinion on these Financial Results based on our audit of the annual standalone financial statements, which have been prepared in accordance with the recognition and measurement principles prescribed under Section 133 of the Companies
Act, 2013 read with the relevant rules issued thereunder, provisions of Section 29 of the Banking Regulation Act, 1949, circulars, guidelines and directions issued by RBI from time to time and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.

 

3.   We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the standalone financial results are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by the management. We believe that our audit provides a reasonable basis for our opinion.

 

 

 

 

 

Independent Auditors' Report (continued)

The Federal Bank Limited

 

4.   In our opinion and to the best of our information and according to the explanations given to us, these financial results:

i)         have been presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and

ii)        give a true and fair view of the net profit and other financial information for the year ended 31 March 2018.

 

5.   Without modifying our opinion, we draw attention to Note No. 10 regarding deferment of additional provision requirement on account of the enhancement in gratuity limits as per the amendment dated 29 March 2018 in Payment of Gratuity Act, 1972 in terms of RBI approval vide letter no. DBR.BP.9730/21.04.018/2017-18 dated 27 April 2018, and the unamortized balance as at 31 March 2018 of Rs 5,358 lakhs.

 

6.   The standalone financial results incorporate the relevant returns of 40 Branches and Treasury Branch audited by either of us and audited returns in respect of 1,234 branches audited by other branch auditors. The Branches audited by us cover 43.56% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 36.45% of non-performing advances of the Bank.

 

 

For B S R & Co. LLP

For M.M. Nissim & Co.

Chartered Accountants

Chartered Accountants

Firm's Registration No: 101248W / W-100022

Firm's Registration No: 107122W

 

 

 

 

 

 

 

 

Akeel Master

Sanjay Khemani

Partner

Partner

Membership No: 046768

Membership No: 044577

Mumbai

Mumbai

09 May 2018                                                                             

09 May 2018                                                                              

 

 

 

Independent Auditors' Report on the Consolidated Financial Results of
The Federal Bank Limited pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

 

To the Board of Directors of 

The Federal Bank Limited

 

7.   We have audited the accompanying annual consolidated financial results of The Federal Bank Limited ('the Bank'), its subsidiary and associate for the year ended 31 March 2018
(the Bank, its subsidiary and its associate together referred to as 'the Group'), attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('the Listing Regulations'). The disclosures relating to "Pillar 3 under Basel III Capital Regulations", and those relating to "Leverage Ratio", "Liquidity Coverage Ratio" under Capital Adequacy and Liquidity Standards issued by Reserve Bank of India ('RBI') as have been disclosed on the Bank's website and in respect of which a link has been provided in the aforesaid financial results have not been audited by us.

 

8.   These financial results have been prepared on the basis of the annual consolidated financial statements which are the responsibility of the Bank's Management and approved by the Board of Directors in their meeting held on 09 May 2018. Our responsibility is to express an opinion on these Financial Results based on our audit of the annual consolidated financial statements, which have been prepared in accordance with the recognition and measurement principles prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder, provisions of Section 29 of the Banking Regulation Act, 1949, circulars, guidelines and directions issued by RBI from time to time and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.

 

9.   We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial results are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as Financial Results. An audit also includes assessing the accounting principles used and significant estimates made by the management. We believe that our audit provides a reasonable basis for our opinion.

 

 

Independent Auditors' Report (Continued)     

The Federal Bank Limited

 

10.  (a) The consolidated financial results incorporate the relevant returns of 40 Branches and Treasury Branch audited by either of us and audited returns in respect of 1,234 branches audited by other branch auditors. The Branches audited by us cover 43.56% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 36.45% of non-performing advances of the Bank.

 

 (b) We did not audit the financial statements of the subsidiary included in the consolidated annual financial results, whose annual financial statements reflect total assets of Rs. 147,968 lakhs as at 31 March 2018 as well as the total revenue of Rs. 19,766 lakhs for the year ended 31 March 2018. The consolidated financial results also include the Group's share of net profit of
Rs. 2,579 lakhs for the year ended 31 March 2018, in respect of an associate. These annual financial statements have been audited by other auditors whose reports have been furnished to us, and our opinion on the annual consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of the subsidiary and associate, is based solely on the report of the other auditors.

 

(c)  The auditors of IDBI-Federal Life Insurance Company Limited ('the associate') have reported, 'The actuarial valuation of the liabilities for life policies in force and for discontinued policies where liability exists is the responsibility of the Company's Appointed Actuary (''the appointed Actuary''). The actuarial valuation of these liabilities as at March 31, 2018 has been duly certified by the Appointed Actuary and in his opinion, the assumption for such valuation are in accordance with guidelines and norms issued by the Insurance Regulatory and Development Authority of India and the Actuarial Society of India in concurrence with the Authority. We have relied upon on the Appointed Actuary's certificate in this regard for forming our opinion on the financial statements of the Company'.

 

Our opinion on the consolidated financial results is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.

 

11.  Without modifying our opinion, we draw attention to Note No. 10 regarding deferment of additional provision requirement on account of the enhancement in gratuity limits as per the amendment dated 29 March 2018 in Payment of Gratuity Act, 1972 in terms of RBI approval vide letter no. DBR.BP.9730/21.04.018/2017-18 dated 27 April 2018, and the unamortized balance as at
31 March 2018 of Rs 5,358 lakhs.

 

 

 

12.  In our opinion and to the best of our information and according to the explanations given to us and based on consideration of reports of other auditors on separate financial statements and on other information of the subsidiary and associate as aforesaid, these consolidated annual  financial results:

iii)       include the annual financial results of Fedbank Financial Services Limited ('the subsidiary') and proportionate share of IDBI-Federal Life Insurance Company Limited ('the associate').

iv)       have been presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and

v)        give a true and fair view of the consolidated net profit and other financial information of the Group for the year ended 31 March 2018 in accordance with the framework as explained in paragraph 2 above.

 

 

 

 

 

For B S R & Co. LLP

For M.M. Nissim & Co.

Chartered Accountants

Chartered Accountants

Firm's Registration No: 101248W / W-100022

Firm's Registration No: 107122W

 

 

 

 

 

 

 

Akeel Master

Sanjay Khemani

Partner

Partner

Membership No: 046768

Membership No: 044577

Mumbai

Mumbai

09 May 2018                                                                             

09 May 2018                                                                              

 

 

 

THE FEDERAL BANK LIMITED

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

(CIN: L65191KL1931PLC000368)

AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2018

 

 

 

 

 

 

 

 

 (` in Lakhs)

Particulars

Quarter ended

Year ended

Consolidated figures for the year ended

31.03.2018

31.12.2017

31.03.2017

31.03.2018

31.03.2017

31.03.2018

31.03.2017

Audited
(Refer Note 13 below)

Unaudited

Audited
(Refer Note 13 below)

Audited

Audited

Audited

Audited

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

        254,797

       250,120

       231,595

975,286

       867,739

       991,490

       878,327

(a)

Interest/discount on advances/bills

        195,106

       194,097

       173,644

753,878

       654,568

       770,098

       665,610

(b)

Income on investments

          51,695

         48,220

         48,382

191,744

       180,140

       191,727

       179,686

(c)

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

            1,840

           2,788

           3,598

9,581

           9,893

           9,582

           9,893

(d)

Others

            6,156

           5,015

           5,971

20,083

         23,138

         20,083

         23,138

2. Other income

          31,417

         22,863

         28,211

115,912

       108,181

       116,022

       108,377

3. TOTAL INCOME (1+2)

      286,214

     272,983

     259,806

1,091,198

     975,920

  1,107,512

     986,704

4. Interest expended

        161,475

       155,120

       147,356

617,005

       562,475

       622,642

       565,258

5. Operating expenses (i)+(ii)

          65,882

         61,723

         57,529

245,090

       220,954

       250,474

       225,250

(i)

Employees cost

          33,081

         30,047

         26,303

124,247

       116,375

       127,682

       118,934

(ii)

Other operating expenses

          32,801

         31,676

         31,226

120,843

       104,579

       122,792

       106,316

6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)

      227,357

     216,843

     204,885

862,095

     783,429

     873,116

     790,508

7. OPERATING PROFIT (3-6)
 (Profit before provisions and contingencies)

        58,857

       56,140

       54,921

229,103

     192,491

     234,396

     196,196

8. Provisions (other than tax) and contingencies

          37,153

         16,243

         12,270

94,717

         61,841

         95,076

         61,999

9. Exceptional items

 

                  -  

                -  

                -  

                  -  

                 -  

                 -  

                -  

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

        21,704

       39,897

       42,651

134,386

     130,650

     139,320

     134,197

11. Tax expense

 

            7,205

         13,896

         16,992

46,501

         47,571

         48,355

         48,866

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

        14,499

       26,001

       25,659

87,885

        83,079

        90,965

       85,331

13. Extraordinary items (net of tax expense)

 

                  -  

                -  

                -  

                  -  

                 -  

                 -  

                -  

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

 

        14,499

       26,001

       25,659

87,885

        83,079

        90,965

       85,331

15. Share in Profit/(Loss) of Associate

 

 

 

 

 

 

           2,579

           1,355

16. Consolidated Net Profit of the group (14+15)

 

 

 

 

 

        93,544

       86,686

17. Paid-up Equity Share Capital
(Face value ` 2/- per Equity Share)

          39,443

         39,327

         34,481

39,443

         34,481

         39,443

         34,481

18. Reserves excluding Revaluation Reserve

 

 

 

     1,181,080

       859,256

    1,187,480

       860,155

19. Analytical Ratios

 

 

 

 

 

 

 

 

(i)

Percentage of shares held by Government of India

NIL

NIL

NIL

NIL

NIL

NIL

NIL

(ii)

Capital Adequacy ratio (%)

 

 

 

 

 

 

 

 

Under Basel III

            14.70

           14.41

           12.39

14.70

           12.39

                 -  

                -  

(iii)

Earnings per Share (EPS) (in `)

 

 

 

 

 

 

 

 

(a) Basic EPS  (before and after extra ordinary items)

0.74*

1.33*

1.49*

4.62

4.83

4.92

5.04

 

(b) Diluted EPS (before and after extra ordinary items)

0.73*

1.31*

1.46*

4.56

4.76

4.86

4.96

(iv)

NPA Ratios

 

 

 

 

 

 

 

 

a) Gross NPA

        279,562

       216,119

       172,705

279,562

       172,705

 

 

 

b) Net NPA

        155,196

       115,668

         94,120

155,196

         94,120

 

 

 

c) % of Gross NPA

              3.00

             2.52

             2.33

3.00

             2.33

 

 

 

d) % of Net NPA

              1.69

             1.36

             1.28

1.69

             1.28

 

 

(v)

Return on Assets (%)

 0.11 *

0.22 *

 0.24 *

0.75

             0.84

 

 

 

 

 

 

 

 

 

 

 

* Not Annualised

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Segment Information@

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (` in Lakhs)

Particulars

Quarter ended

Year ended

Consolidated figures for the year ended

31.03.2018

31.12.2017

31.03.2017

31.03.2018

31.03.2017

31.03.2018

31.03.2017

Audited
(Refer Note 13 below)

Unaudited

Audited
(Refer Note 13 below)

Audited

Audited

Audited

Audited

Segment Revenue:

 

 

 

 

 

 

 

 

Treasury

             60,888

             56,206

            59,239

           239,556

           231,601

           239,556

          231,601

 

Corporate/Wholesale Banking

           103,194

             90,703

            85,519

           378,695

           307,150

           378,695

          307,150

 

Retail Banking

           116,178

           121,639

          109,005

           454,386

           417,952

           470,700

          428,736

 

Other Banking operations

               5,954

               4,435

              6,043

             18,561

             19,217

             18,561

            19,217

 

Unallocated

                     -  

                     -  

                    -  

                     -  

                     -  

                     -  

                    -  

 

Total Revenue

         286,214

         272,983

        259,806

      1,091,198

         975,920

      1,107,512

        986,704

 

Less: Inter Segment Revenue

                     -  

                     -  

                    -  

                     -  

                     -  

                     -  

                    -  

 

Income from Operations

         286,214

         272,983

        259,806

      1,091,198

         975,920

      1,107,512

        986,704

Segment Results (net of provisions):

 

 

 

 

 

 

 

 

Treasury

              (3,063)

               5,071

              6,840

             25,650

             38,816

             25,650

            38,816

 

Corporate/Wholesale Banking

            (18,875)

                  495

              9,552

           (13,797)

               8,250

           (13,797)

              8,250

 

Retail Banking

             41,735

             34,744

            24,479

           120,093

             76,938

           125,027

            80,485

 

Other Banking operations

               2,822

                  492

              2,596

               5,251

               9,553

               5,251

              9,553

 

Unallocated

                 (915)

                 (905)

                (816)

             (2,811)

             (2,907)

             (2,811)

             (2,907)

 

Profit before tax

            21,704

            39,897

          42,651

         134,386

         130,650

         139,320

        134,197

Segment Assets

 

 

 

 

 

 

 

 

 

Treasury

        3,510,841

        3,241,455

       3,165,601

        3,510,841

        3,165,601

        3,510,273

       3,162,453

 

Corporate/Wholesale Banking

        5,072,766

        4,597,454

       3,282,581

        5,072,766

        3,282,581

        5,072,766

       3,282,581

 

Retail Banking

        4,539,627

        4,309,837

       4,436,505

        4,539,627

        4,436,505

        4,630,167

       4,490,534

 

Other Banking operations

                  533

                  757

              1,854

                  533

               1,854

                  533

              1,854

 

Unallocated

           707,628

           672,567

          611,152

           707,628

           611,152

           707,628

          611,152

 

Total

    13,831,395

    12,822,070

   11,497,693

   13,831,395

   11,497,693

   13,921,367

   11,548,574

Segment Liabilities

 

 

 

 

 

 

 

 

 

Treasury

        3,348,514

        3,022,847

       3,050,206

        3,348,514

        3,050,206

        3,348,514

       3,050,206

 

Corporate/Wholesale Banking

        4,849,217

        4,410,665

       3,184,798

        4,849,217

        3,184,798

        4,849,217

       3,184,798

 

Retail Banking

        4,341,585

        4,131,632

       4,294,476

        4,341,585

        4,294,476

        4,425,157

       4,344,458

 

Other Banking operations

                      1

                      1

                    -  

                      1

                     -  

                      1

                    -  

 

Unallocated

             71,055

             52,815

            73,975

             71,055

             73,975

             71,055

            73,975

 

Total

    12,610,372

    11,617,960

   10,603,455

   12,610,372

   10,603,455

   12,693,944

   10,653,437

Capital employed:

 

 

 

 

 

 

 

(Segment Assets - Segment Liabilities)

 

 

 

 

 

 

 

 

Treasury

           162,327

           218,608

          115,395

           162,327

           115,395

           161,759

          112,247

 

Corporate/Wholesale Banking

           223,549

           186,789

            97,783

           223,549

             97,783

           223,549

            97,783

 

Retail Banking

           198,042

           178,205

          142,029

           198,042

           142,029

           205,010

          146,076

 

Other Banking operations

                  532

                  756

              1,854

                  532

               1,854

                  532

              1,854

 

Unallocated

           636,573

           619,752

          537,177

           636,573

           537,177

           636,573

          537,177

 

Total

      1,221,023

      1,204,110

        894,238

      1,221,023

         894,238

      1,227,423

        895,137

@

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  RBI guidelines.

 

Statement of Assets and Liabilities of the bank as on March 31, 2018 is given below:

 

 

 

 

 

 

 

 

 

 

(` in Lakhs)

 

 

 

Particulars

Standalone

Consolidated

 

 

 

As at 31.03.2018

As at 31.03.2017

As at 31.03.2018

As at 31.03.2017

 

 

 

Audited

Audited

Audited

Audited

 

 

 

CAPITAL AND LIABILITIES

 

 

 

 

 

 

 

Capital

39,443

34,481

39,443

34,481

 

 

 

Reserves and Surplus

1,181,580

859,757

1,187,980

860,656

 

 

 

Deposits

11,199,249

9,766,456

11,197,010

9,766,208

 

 

 

Borrowings

1,153,350

589,732

1,232,884

634,549

 

 

 

Other Liabilities and Provisions

257,773

247,267

264,050

252,680

 

 

 

Total

13,831,395

11,497,693

13,921,367

11,548,574

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash and Balances with Reserve Bank of India

513,276

457,657

513,678

457,827

 

 

 

Balance with Banks and Money at Call and Short Notice

407,065

287,560

405,843

287,637

 

 

 

Investments

3,078,107

2,819,609

3,059,468

2,791,226

 

 

 

Advances

9,195,747

7,333,627

9,301,089

7,408,623

 

 

 

Fixed Assets

45,737

48,947

46,135

49,235

 

 

 

Other Assets

591,463

550,293

595,154

554,026

 

 

 

Total

13,831,395

11,497,693

13,921,367

11,548,574

 

 

Notes:

 

 

 

 

 

 

 

1

The above Financial Results for the quarter and year ended March 31, 2018 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on May 09, 2018. The Results for the year ended March 31, 2018 have been subjected to "Audit" by the Statutory Central Auditors of the Bank and an unqualified report has been issued by them.

2

The Bank has made provision for Non Performing Assets as stipulated under 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 have been made as per RBI guidelines.

3

The bank has consistently applied its significant accounting policies in the preparation of the quarterly financial results and its annual financial statements during the years ended March 31, 2018 and March 31, 2017.

4

In accordance with RBI Circular  DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015 and RBI Circular DBR.No.BP.BC.80/21.06.201/2014-15 dated March 31, 2015  - 'Prudential Guidelines on Capital Adequacy and Liquidity Standards - amendments', Banks are required to make Pillar 3 disclosure requirements including Leverage Ratio 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 audit or review by the Statutory Central Auditors of the Bank.

5

The Business operations of the Bank are largely concentrated in India and for the purpose of Segmental reporting, the bank is considered to operate only in domestic segment, though the bank has its operations in International Finance Service Centre (IFSC) Banking Unit in Gujarat International Finance Tec-city (GIFT). The business conducted from the same is considered as a part of Indian operations.

 

6

Other income includes fees earned from providing services to customers, commission from non-fund based banking activities, earnings from foreign exchange and derivative transactions, selling of third party products, profit on sale of investments (net), recoveries from advances written off etc.

 

 

7

During the quarter ended June 30, 2017 , the Bank had issued 21,55,17,241 equity shares of ` 2 each for cash pursuant to a Qualified Institution Placement (QIP) as per the relevant provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations at ` 116.00 per share aggregating to ` 250,000 Lakhs (including share premium). This resulted in an increase of ` 4,310.35 Lakhs in Share Capital and ` 242,077.64 Lakhs (net of issue expenses) in Share premium account.

 

 

8

During the quarter and year ended March 31, 2018, the Bank has allotted 57,83,464 and 3,25,77,034 equity shares of ` 2 each respectively, pursuant to the exercise of stock options by employees.

 

 

9

RBI circular DBR.No.BP.BC.102/21.04.048/2017-18 dated April 2, 2018 grants banks an option to spread provisioning for mark to market losses on investments held in AFS and HFT for the quarters ended December 31, 2017 and March 31, 2018. The circular states that the provisioning for each of these quarters may be spread equally over up to four quarters, commencing with the quarter in which the loss was incurred. The Bank has recognised the entire mark to market loss on investments in the respective quarters and has not availed the said option.

 

 

10

Ministry of Labour and Employment, Government of India on March 29, 2018 has enhanced the gratuity ceiling to an employee under Payment of Gratuity Act, 1972 to ` 20 Lakhs from earlier limit of ` 10 lakhs. This change has resulted  to an incremental gratuity liability amounting to ` 7,143.90 lakhs. As per the RBI circular DBR.BP.9730/21.04.018/2017-18 dated April 27, 2018 the bank has an option to spread the impact of change in gratuity ceiling over four quarters beginning with the quarter ended March 31, 2018. The bank has availed the option to spread the incremental gratuity expenditure over four quarters beginning with the quarter ended March 31, 2018. Accordingly, during the quarter and year ended March 31, 2018 the bank has charged to the profit and loss account an amount of ` 1,785.97 Lakhs and the unamortised gratuity expenditure as on March 31, 2018 is ₹ 5,357.93 Lakhs.

 

 

11

The Board of Directors have recommended a dividend of 50% i.e. ` 1.00/- per Equity Share on face value of ` 2/- each for the year 2017-18 (Previous Year 45% i.e ` 0.90/- per Equity Share) subject to the approval of the members at the ensuing Annual General Meeting. In terms of revised Accounting Standard (AS) 4 "Contingencies  and Events occuring after the Balance sheet date" as notified by the Ministry of Corporate affairs through amendments to Companies (Accounting Standards) Amendment Rules, 2016, the Bank has not appropriated proposed dividend (including tax) aggregating to ` 23,774.86 Lakhs from the statement of Profit and loss account for the year ended March 31, 2018. However the effect of the proposed dividend has been reckoned in determining capital funds in the computation of Capital adequacy ratio as on March 31, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

12

Pursuant to Board approved policy on preparation of segment information, the Bank, with effect from quarter ended September 30, 2017, has revised the basis of preparation of segment information related to the allocation of RIDF deposits from Treasury segment to Corporate/Wholesale Banking and Retail Banking segments and allocation of provision related to advances on a direct identification basis for more appropriate presentation of the segment results. Figures for the previous periods have been regrouped / reclassified to conform to current period's classification. The impact of above regrouping / reclassification on segment results for the quarter and year ended March 31, 2017, is summarized in the table below:

 

 

 

 

 

 

 (` in Lakhs)

 

 

 

 

 

 

 

(Decrease) / Increase

Standalone

Consolidated

 

 

 

 

 

 

 

Quarter ended

Year ended

Year ended

 

 

 

 

 

 

 

31.03.2017

31.03.2017

31.03.2017

 

 

 

 

 

 

 

Treasury

                 (116)

                 (698)

                (698)

 

 

 

 

 

 

 

Corporate/Wholesale Banking

              (2,492)

            (11,391)

           (11,391)

 

 

 

 

 

 

 

Retail Banking

               1,268

               8,139

              8,139

 

 

 

 

 

 

 

Other Banking operations

               1,340

               3,950

              3,950

 

 

 

 

 

 

 

Unallocated

                     -  

                     -  

                    -  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The above regrouping / reclassification has no impact on the overall profit of the bank for the quarter and year ended March 31, 2018 or the previous periods/year.

 

 

 

 

 

 

13

The figures of the last quarter are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the respective financial year.

 

 

14

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 SHYAM SRINIVASAN

 

 

 

Mumbai

 

 

 

 

 MANAGING DIRECTOR & CEO

 

 

 

May 09, 2018

 

 

 

 

 (DIN: 02274773)

 

 
                                   

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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