RNS Number : 3750C
Federal Bank Ltd (The)
19 January 2018
 

                                                                                                                    

SDF-24/         /2017-18                                                                    19th January 2018

 

                                                        

To,

The London Stock Exchange

 

 

Dear Sir,

We enclose herewith the Un-Audited Financial Results of the Bank for the period ended December 31, 2017 which was approved at the Bank's Board of Directors meeting held on 15th January 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

                     

Limited Review Report on Quarterly Standalone Financial Results of The Federal Bank Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

 

To the Board of Directors of

The Federal Bank Limited

1.   We have reviewed the accompanying Statement of Unaudited Standalone Financial Results ('the Statement') of The Federal Bank Limited ('the Bank') for the quarter and nine months ended 31 December 2017. This statement has been prepared by the Bank pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, except for the disclosures relating to consolidated Pillar 3 disclosure as at 31 December 2017, including leverage ratio and liquidity coverage ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the standalone quarterly financial results and have not been reviewed by us.

2.   This Statement is the responsibility of the Bank's management and has been approved by the Board of Directors of the Bank in its meeting held on 15 January 2018. Our responsibility is to issue a report on the Statement based on our review. 

3.   We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor 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's 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.

4.   The Financial results incorporate the relevant returns of 108 Branches and Treasury Branch reviewed by either of us and un-reviewed returns in respect of 1,144 branches. The Branches reviewed by either of us covers 50.97 % of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 50.48 % of non-performing advances of the Bank.  

 

 

 

 

 

 

 

 

 

 

 

 

 

Limited Review Report (continued)

 

5.   Based on our review conducted as mentioned in paragraphs 3 and 4 above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 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.

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

Kochi

15 January 2018                                                                             

15 January 2018                                                                              

 

 
















 

THE FEDERAL BANK LIMITED

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

(CIN: L65191KL1931PLC000368)

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2017

Particulars

Quarter ended

Nine Months Ended

Year ended 31.03.2017

31.12.2017

30.09.2017

31.12.2016

31.12.2017

31.12.2016

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

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

        250,120

       237,960

       228,142

720,489

       636,144

       867,739

(a)

Interest/discount on advances/bills

        194,097

       185,900

       171,622

558,772

       480,924

       654,568

(b)

Income on investments

          48,220

         45,000

         45,122

140,049

       131,758

       180,140

(c)

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

            2,788

           2,586

           3,494

7,741

           6,295

           9,893

(d)

Others

            5,015

           4,474

           7,904

13,927

         17,167

         23,138

2. Other income

          22,863

         28,722

         27,541

84,495

         79,755

       108,181

804,984

4. Interest expended

        155,120

       148,069

       149,003

455,530

       415,119

       562,475

5. Operating expenses (i)+(ii)

          61,723

         60,292

         59,190

179,208

       163,211

       220,954

(i)

Employees cost

          30,047

         31,274

         31,972

91,166

         90,072

       116,375

(ii)

Other operating expenses

          31,676

         29,018

         27,218

88,042

         73,139

       104,579

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

634,738

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

170,246

8. Provisions (other than tax) and contingencies

          16,243

         17,677

         15,882

57,564

         49,570

         61,841

9. Exceptional items


                  -  

                -  

                -  

                  -  

                 -  

                 -  

112,682

11. Tax expense


          13,896

         14,274

         11,043

39,296

         30,579

         47,571

73,386

13. Extraordinary items (net of tax expense)


                  -  

                -  

                -  

                  -  

                 -  

                 -  

73,386

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

          39,327

         39,091

         34,443

39,327

         34,443

         34,481

16. Reserves excluding Revaluation Reserve






       859,256

17. Analytical Ratios








(i)

Percentage of shares held by Government of India

NIL

NIL

NIL

NIL

NIL

NIL

(ii)

Capital Adequacy ratio (%)








Under Basel III

            14.41

           14.63

           12.28

14.41

           12.28

           12.39

(iii)

Earnings per Share (EPS) (in `)








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

1.33*

1.35*

1.20*

3.90*

3.34*

4.83


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

1.31*

1.33*

1.18*

3.85*

3.29*

4.76

(iv)

NPA Ratios








a) Gross NPA

        216,119

       194,897

       195,155

216,119

       195,155

       172,705


b) Net NPA

        115,668

       106,638

       110,237

115,668

       110,237

         94,120


c) % of Gross NPA

              2.52

             2.39

             2.77

2.52

             2.77

             2.33


d) % of Net NPA

              1.36

             1.32

             1.58

1.36

             1.58

             1.28

(v)

Return on Assets (%)

 0.22 *

0.24 *

 0.20 *

0.65 *

 0.60*

             0.84









* Not Annualised







 

 

 

Segment Information@














 (` in Lakhs)

Particulars

Quarter ended

Nine Months Ended

Year ended 31.03.2017

31.12.2017

30.09.2017

31.12.2016

31.12.2017

31.12.2016

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited








Treasury

             56,206

             58,686

             60,511

          178,668

           172,362

           231,601


Corporate/Wholesale Banking

             90,703

             94,157

             76,815

          275,501

           221,630

           307,150


Retail Banking

           121,639

           109,591

           112,211

          338,208

           308,948

           417,952


Other Banking operations

               4,435

               4,248

               6,146

            12,607

             12,959

             19,217


Unallocated

                     -  

                     -  

                     -  

                    -  

                     -  

                    -  

Total Revenue

         272,983

         266,682

         255,683

        804,984

         715,899

         975,920


Less: Inter Segment Revenue

                     -  

                     -  

                     -  

                    -  

                     -  

                    -  

         272,983

         266,682

         255,683

        804,984

         715,899

         975,920








Treasury

               5,071

             10,902

               8,785

            28,713

             31,976

             38,816


Corporate/Wholesale Banking

                  495

               6,405

                  268

              5,078

             (1,303)

               8,250


Retail Banking

             34,744

             22,789

             20,204

            78,358

             52,459

             76,938


Other Banking operations

                  492

               1,047

               3,192

              2,429

               6,958

               9,553


Unallocated

                 (905)

                 (499)

                (841)

            (1,896)

             (2,091)

             (2,907)

            39,897

            40,644

           31,608

        112,682

           87,999

         130,650








Treasury

        3,241,455

        3,050,768

        3,112,415

       3,241,455

        3,112,415

        3,165,601


Corporate/Wholesale Banking

        4,597,454

        4,580,074

        3,568,159

       4,597,454

        3,568,159

        3,282,581


Retail Banking

        4,309,837

        3,879,775

        3,824,803

       4,309,837

        3,824,803

        4,436,505


Other Banking operations

                  757

               1,806

               4,398

                 757

               4,398

               1,854


Unallocated

           672,567

           663,369

           639,963

          672,567

           639,963

           611,152

    12,822,070

    12,175,792

   11,149,738

  12,822,070

   11,149,738

   11,497,693








Treasury

        3,022,847

        2,860,293

        2,969,844

       3,022,847

        2,969,844

        3,050,206


Corporate/Wholesale Banking

        4,410,665

        4,379,950

        3,506,679

       4,410,665

        3,506,679

        3,184,798


Retail Banking

        4,131,632

        3,708,703

        3,752,425

       4,131,632

        3,752,425

        4,294,476


Other Banking operations

                      1

                     -  

                     -  

                     1

                     -  

                    -  


Unallocated

             52,815

             53,523

             52,945

            52,815

             52,945

             73,975

    11,617,960

    11,002,469

   10,281,893

  11,617,960

   10,281,893

   10,603,455







(Segment Assets - Segment Liabilities)








Treasury

           218,608

           190,475

           142,571

          218,608

           142,571

           115,395


Corporate/Wholesale Banking

           186,789

           200,124

             61,480

          186,789

             61,480

             97,783


Retail Banking

           178,205

           171,072

             72,378

          178,205

             72,378

           142,029


Other Banking operations

                  756

               1,806

               4,398

                 756

               4,398

               1,854


Unallocated

           619,752

           609,846

           587,018

          619,752

           587,018

           537,177

      1,204,110

      1,173,323

         867,845

     1,204,110

         867,845

         894,238

@

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.






1

The above Standalone Unaudited Financial Results ("Results") for the quarter and nine months ended December 31, 2017 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on January 15, 2018. These Results have been subjected to "Limited Review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued.

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 followed the same significant accounting policies in the preparation of the Results as those followed in the annual financial statements for the year ended 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 review by the Statutory Central Auditors of the Bank.

5

The Business operations of the Bank are largely concentrated in India and for purpose of Segmental reporting, the bank 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.

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 nine months ended December 31, 2017, the Bank allotted 1,17,85,610 and 2,67,93,570 equity shares of ` 2 each respectively, pursuant to the exercise of stock options by employees.

##

The Board of Directors have recommended a dividend of 45% i.e. ` 0.90/- per Equity Share on face value of ` 2/- each for the year 2016-17 (previous year 35% i.e ` 0.70/- 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 ` 18,675 Lakhs from the statement of Profit and loss account for the year ended March 31, 2017. 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, 2017.

9

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 nine months ended December 31, 2017, is summarized in the table below:








 (` in Lakhs)


Quarter ended

Nine months ended

Year ended 31.03.2017


31.12.2017

30.09.2017

31.12.2016

31.12.2017

31.12.2016


Treasury

                 (179)

                 (205)

                      6

               (474)

                (582)

                (698)


Corporate/Wholesale Banking

                 (420)

              (1,206)

             (1,981)

            (6,444)

             (8,900)

           (11,391)


Retail Banking

                 (517)

                  481

               1,169

              4,135

               6,871

               8,139


Other Banking operations

               1,116

                  930

                  806

              2,783

               2,611

               3,950


Unallocated

                     -  

                     -  

                     -  

                    -  

                     -  

                    -  










The above regrouping / reclassification has no impact on the overall profit of the bank for the quarter and nine months ended December 31, 2017 or the previous periods/year.









10

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






































































 SHYAM SRINIVASAN

Kochi




 MANAGING DIRECTOR & CEO

January 15, 2018




 (DIN: 02274773)

 

 

 


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