RNS Number : 3403Y
Federal Bank Ltd (The)
08 May 2019
 

 

                                                                                                                    

SDF-24/         /2019-20                                                                  08th May 2019

 

                                                      

To,

The London Stock Exchange

 

 

Dear Sir,

We enclose herewith the Annual Audited Financial Results of the Bank for the period ended March 31, 2019 which was approved at the Bank's Board of Directors meeting held on 04th May 2019. The Board of the Bank have also recommended the payment of final dividend @ Rs 1.40/- per equity share i.e. 70 % on the equity shares of the Bank and the same will be payable after shareholders approval in the Annual General Meeting of the Bank

 

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 Obligation 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 2019 ('the Standalone 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') have been disclosed on the Bank's website and in respect of which a link has been provided in the Standalone Financial Results and have not been audited by us. Attention is drawn to the fact that the figures for the quarter ended 31 March 2019 and the corresponding quarter ended in the previous year as reported in these Standalone Financial Results are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the end of the third quarter of the relevant financial year. Also the figures up to the end of the third quarter had only been reviewed and not subjected to audit.

 

2.   These Standalone Financial Results have been prepared on the basis of the annual standalone financial statements and reviewed quarterly standalone financial results upto the end of the third quarter which are the responsibility of the Bank's Management. Our responsibility is to express an opinion on these Standalone 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 the 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 Financial Results are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as the Standalone Financial Results. An audit also includes assessing the accounting principles used and significant estimates made by Management. We believe that our audit provides a reasonable basis for our opinion.

 

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 Obligation and Disclosure Requirements) Regulations, 2015 (Continued)

 

4.   In our opinion and to the best of our information and according to the explanations given to us, these Standalone Financial Results:

 

(i)   are 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 standalone net profit and other financial information for the year ended 31 March 2019.

 

5.   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 44.44% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 30.17% 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

04 May 2019                                               

 04 May 2019

 

 

  

 

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 Obligation and Disclosure Requirements) Regulations, 2015

 

 

To the Board of Directors of        

The Federal Bank Limited

 

1.   We have audited the accompanying annual consolidated financial results of The Federal Bank Limited ('the Bank'), its subsidiaries and associates (the Bank, its subsidiaries and associates together referred to as 'the Group') for the year ended 31 March 2019 (the 'Consolidated 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') have been disclosed on the Bank's website and in respect of which a link has been provided in the Consolidated Financial Results and have not been audited by us.

 

2.   These Consolidated Financial Results have been prepared from consolidated annual financial statements which are the responsibility of the Bank's Management. Our responsibility is to express an opinion on these Consolidated Financial Results based on our audit of such consolidated annual financial statements, which have been prepared in accordance with the recognition and measurement principles 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 the 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 Consolidated Financial Results are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as the Consolidated 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 on the Consolidated Financial Results of The Federal Bank Limited pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 (Continued)

 

4.   (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 44.44% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 30.17% of
non-performing advances of the Bank.

 

(b)  We did not audit the financial statements of two subsidiaries included in the consolidated annual financial results, whose annual financial statements reflect total assets of Rs. 2,134.23 crores as at 31 March 2019 as well as the total revenue of Rs. 260.21 crores for the year ended 31 March 2019. The consolidated annual financial results also include the Group's share of net profit of Rs.35.56 crores for the year ended 31 March 2019 in respect of two associates. These annual financial statements and other financial information have been audited by other auditors whose reports have been furnished to us, and our opinion on the Consolidated Financial Results, to the extent they have been derived from such annual financial statements is based solely on the report of such 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 31 March 2019 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.

 

 

 

 

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 Obligation and Disclosure Requirements) Regulations, 2015 (Continued)

 

5.   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 of the subsidiaries and associates as aforesaid, these Consolidated Financial Results:

 

(i)    include the annual financial results of the following entities;

a.   Fedbank Financial Services Limited (the Subsidiary)

b.   Federal Operations and Services Limited (the Subsidiary)

c.   IDBI Federal Life Insurance Company Limited (the Associate)

d.   Equirus Capital Private Limited (the Associate)

 

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

 

(iii)  give a true and fair view of the consolidated net profit and other financial information for the year  ended 31 March 2019.

 

 

 

 

 

 

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

04 May 2019                                              

 04 May 2019

 

 

 

 

 

 

 

 

 

 

 

 

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, 2019

 

 

 

 

 

 

 

 

 

 (` in Lakhs)

 

Particulars

Standalone

Consolidated

 

Quarter ended

Year ended

Year ended

 

31.03.2019

31.12.2018

31.03.2018

31.03.2019

31.03.2018

31.03.2019

31.03.2018

 

Audited
(Refer Note 12 below)

Unaudited

Audited
(Refer Note 12 below)

Audited

Audited

Audited

Audited

 

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

      3,03,232

      2,95,441

      2,54,797

11,41,903

      9,75,286

        11,63,544

          9,91,490

 

(a)

Interest/discount on advances/bills

      2,41,305

      2,38,662

      1,95,106

9,08,962

      7,53,878

          9,30,412

          7,70,098

 

(b)

Income on investments

         53,638

         50,558

         51,695

2,03,745

      1,91,744

          2,03,936

          1,91,727

 

(c)

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

           1,178

           1,557

           1,840

7,347

           9,581

               7,347

               9,582

 

(d)

Others

           7,111

           4,664

           6,156

21,849

         20,083

             21,849

             20,083

 

2. Other income

         41,172

         34,555

         31,417

1,35,102

      1,15,912

          1,33,522

          1,16,022

 

3. TOTAL INCOME (1+2)

    3,44,404

    3,29,996

    2,86,214

12,77,005

  10,91,198

      12,97,066

      11,07,512

 

4. Interest expended

      1,93,579

      1,87,712

      1,61,475

7,24,268

      6,17,005

          7,31,633

          6,22,642

 

5. Operating expenses (i)+(ii)

         75,350

         71,501

         65,882

2,76,427

      2,45,090

          2,83,658

          2,50,474

 

(i)

Employees cost

         37,015

         35,366

         33,081

1,37,776

      1,24,247

          1,42,566

          1,27,682

 

(ii)

Other operating expenses

         38,335

         36,135

         32,801

1,38,651

      1,20,843

          1,41,092

          1,22,792

 

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

    2,68,929

    2,59,213

    2,27,357

10,00,695

      10,15,291

        8,73,116

 

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

       75,475

       70,783

       58,857

2,76,310

    2,29,103

        2,81,775

        2,34,396

 

8. Provisions (other than tax) and contingencies

         17,776

         19,012

         37,153

85,585

         94,717

             85,765

             95,076

 

9. Exceptional items

 

                -  

                -  

                -  

                 -  

                 -  

                     -  

                     -  

 

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

       57,699

       51,771

       21,704

1,90,725

1,34,386

        1,96,010

        1,39,320

 

11. Tax expense

 

         19,548

         18,408

           7,205

66,336

         46,501

             67,758

             48,355

 

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

       38,151

       33,363

       14,499

1,24,389

        1,28,252

           90,965

 

13. Extraordinary items (net of tax expense)

 

                -  

                -  

                -  

                 -  

                 -  

                     -  

                     -  

 

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

 

       38,151

       33,363

       14,499

1,24,389

        87,885

        1,28,252

           90,965

 

15. Minority interest

 

 

 

 

 

 

                  180

                     -  

 

16. Share in Profit of Associates

 

 

 

 

 

 

               3,556

               2,579

 

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

 

 

 

 

 

        1,31,628

           93,544

 

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

         39,701

         39,678

         39,443

39,701

         39,443

             39,701

             39,443

 

19. Reserves excluding Revaluation Reserve

 

 

 

    12,87,102

    11,81,080

        13,09,624

        11,87,480

 

20. 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

           14.14

           12.97

           14.70

14.14

           14.70

                     -  

                     -  

 

(iii)

Earnings per Share (EPS) (in `)

 

 

 

 

 

 

 

 

 

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

1.92*

1.68*

0.74*

6.28

6.65

4.92

 

 

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

1.91*

1.67*

0.73*

6.24

4.56

6.60

4.86

 

(iv)

NPA Ratios

 

 

 

 

 

 

 

 

 

a) Gross NPA

      3,26,068

      3,36,123

      2,79,562

3,26,068

      2,79,562

 

 

 

 

b) Net NPA

      1,62,620

      1,81,729

      1,55,196

1,62,620

      1,55,196

 

 

 

 

c) % of Gross NPA

             2.92

             3.14

             3.00

2.92

             3.00

 

 

 

 

d) % of Net NPA

             1.48

             1.72

             1.69

1.48

             1.69

 

 

 

(v)

Return on Assets (%)

0.25*

0.23*

 0.11 *

0.88

             0.75

 

 

 

 

 

 

 

 

 

 

 

 

 

* Not Annualised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Information@

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (` in Lakhs)

Particulars

Standalone

Consolidated

Quarter ended

Year ended

Year ended

31.03.2019

31.12.2018

31.03.2018

31.03.2019

31.03.2018

31.03.2019

31.03.2018

Audited
(Refer Note 12 below)

Unaudited

Audited
(Refer Note 12 below)

Audited

Audited

Audited

Audited

Segment Revenue:

 

 

 

 

 

 

 

 

Treasury

            66,515

            64,236

           60,888

        2,54,761

           2,39,556

         2,54,761

         2,39,556

 

Corporate/Wholesale Banking

         1,45,079

         1,30,916

        1,03,194

        5,07,376

           3,78,695

         5,07,376

         3,78,695

 

Retail Banking

         1,21,852

         1,28,913

        1,16,178

        4,88,342

           4,54,386

         5,08,403

         4,70,700

 

Other Banking operations

            10,958

              5,931

             5,954

           26,526

              18,561

            26,526

            18,561

 

Unallocated

                    -  

                    -  

                   -  

                   -  

                      -  

                    -  

                    -  

 

Total Revenue

       3,44,404

       3,29,996

      2,86,214

    12,77,005

       10,91,198

     12,97,066

     11,07,512

 

Less: Inter Segment Revenue

                    -  

                    -  

                   -  

                   -  

                      -  

                    -  

                    -  

 

Income from Operations

       3,44,404

       3,29,996

      2,86,214

    12,77,005

       10,91,198

     12,97,066

     11,07,512

Segment Results (net of provisions):

 

 

 

 

 

 

 

 

Treasury

            10,950

            16,870

            (3,063)

           41,085

              25,650

            41,469

            25,650

 

Corporate/Wholesale Banking

            14,328

              4,728

          (18,875)

           25,969

            (13,797)

            25,969

           (13,797)

 

Retail Banking

            28,188

            30,613

           41,735

        1,20,186

           1,20,093

         1,25,087

         1,25,027

 

Other Banking operations

              5,280

                 444

             2,822

             6,690

                5,251

              6,690

              5,251

 

Unallocated

             (1,047)

                (884)

               (915)

            (3,205)

              (2,811)

            (3,205)

             (2,811)

 

Profit before tax

           57,699

           51,771

         21,704

      1,90,725

         1,34,386

       1,96,010

       1,39,320

Segment Assets

 

 

 

 

 

 

 

 

 

Treasury

       35,75,297

       30,72,544

      35,10,841

      35,75,297

         35,10,841

       35,78,232

       35,10,273

 

Corporate/Wholesale Banking

       58,16,960

       56,43,373

      50,72,766

      58,16,960

         50,72,766

       58,16,960

       50,72,766

 

Retail Banking

       56,68,073

       53,95,943

      45,39,627

      56,68,073

         45,39,627

       57,86,386

       46,30,167

 

Other Banking operations

              1,138

              2,057

                533

             1,138

                   533

              1,138

                 533

 

Unallocated

         8,72,531

         8,64,000

        7,07,628

        8,72,531

           7,07,628

         8,72,531

         7,07,628

 

Total

  1,59,33,999

  1,49,77,917

 1,38,31,395

 1,59,33,999

   1,38,31,395

 1,60,55,247

  1,39,21,367

Segment Liabilities

 

 

 

 

 

 

 

 

 

Treasury

       34,76,144

       29,23,393

      33,48,514

      34,76,144

         33,48,514

       34,76,144

       33,48,514

 

Corporate/Wholesale Banking

       56,00,730

       54,71,439

      48,49,217

      56,00,730

         48,49,217

       56,00,730

       48,49,217

 

Retail Banking

       54,61,130

       52,34,444

      43,41,585

      54,61,130

         43,41,585

       55,51,810

       44,25,157

 

Other Banking operations

                     4

                     2

                    1

                    4

                       1

                     4

                     1

 

Unallocated

            68,687

            59,914

           71,055

           68,687

              71,055

            68,687

            71,055

 

Total

  1,46,06,695

  1,36,89,192

 1,26,10,372

 1,46,06,695

   1,26,10,372

 1,46,97,375

  1,26,93,944

Capital employed:

 

 

 

 

 

 

 

(Segment Assets - Segment Liabilities)

 

 

 

 

 

 

 

 

Treasury

            99,153

         1,49,151

        1,62,327

           99,153

           1,62,327

         1,02,088

         1,61,759

 

Corporate/Wholesale Banking

         2,16,230

         1,71,934

        2,23,549

        2,16,230

           2,23,549

         2,16,230

         2,23,549

 

Retail Banking

         2,06,943

         1,61,499

        1,98,042

        2,06,943

           1,98,042

         2,34,576

         2,05,010

 

Other Banking operations

              1,134

              2,055

                532

             1,134

                   532

              1,134

                 532

 

Unallocated

         8,03,844

         8,04,086

        6,36,573

        8,03,844

           6,36,573

         8,03,844

         6,36,573

 

Total

     13,27,304

     12,88,725

    12,21,023

    13,27,304

       12,21,023

     13,57,872

     12,27,423

@

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, 2019 is given below:

 

 

 

 

 

 

 

 

 

 

(` in Lakhs)

 

 

 

Particulars

Standalone

Consolidated

 

 

 

As at 31.03.2019

As at 31.03.2018

As at 31.03.2019

As at 31.03.2018

 

 

 

Audited

Audited

Audited

Audited

 

 

 

CAPITAL AND LIABILITIES

 

 

 

 

 

 

 

Capital

39,701

39,443

39,701

39,443

 

 

 

Reserves and Surplus

12,87,603

11,81,580

13,10,125

11,87,980

 

 

 

Minority Interest

 

 

8,046

                      -  

 

 

 

Deposits

1,34,95,434

1,11,99,249

1,34,87,893

1,11,97,010

 

 

 

Borrowings

7,78,132

11,53,350

8,70,629

12,32,884

 

 

 

Other Liabilities and Provisions

3,33,129

2,57,773

3,38,853

2,64,050

 

 

 

Total

1,59,33,999

1,38,31,395

1,60,55,247

1,39,21,367

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash and Balances with Reserve Bank of India

6,41,917

5,13,276

6,42,267

5,13,678

 

 

 

Balance with Banks and Money at Call and Short Notice

3,64,763

4,07,065

3,63,080

4,05,843

 

 

 

Investments

31,82,447

30,78,107

31,67,570

30,59,468

 

 

 

Advances

1,10,22,295

91,95,747

1,11,53,592

93,01,089

 

 

 

Fixed assets

47,204

45,737

47,993

46,135

 

 

 

Other assets

6,75,373

5,91,463

6,80,745

5,95,154

 

 

 

Total

1,59,33,999

1,38,31,395

1,60,55,247

1,39,21,367

 

 

Notes:

 

 

 

 

 

 

 

1

The above Financial Results for the quarter and year ended March 31, 2019 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on May 04, 2019. The Results for the year ended March 31, 2019 have been subjected to "Audit" by the Statutory Central Auditors of the Bank and an unqualified report has been issued by them.

2

The Consolidated Financial Results include the audited financial results of the subsidiaries Fedbank Financial Services Limited, Federal Operations and Services Limited and the associates IDBI Federal Life Insurance Company Limited, Equirus Capital Private Limited.

3

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.

4

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, 2019 and March 31, 2018.

5

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.

6

The Business operations of the Bank are largely concentrated in India and for the purpose of Segment 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.

7

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.

8

During the quarter and year ended March 31, 2019, the Bank has allotted 1,144,908 and 12,905,764 equity shares of ` 2 each, pursuant to the exercise of stock options by employees.

9

Disclosure in respect of ILFS and ILFS entities with the position as on March 31, 2019 is as follows:

 

 

 

 

 

 

 

 

 

 

(` in Lakhs)

 

 

Amount Outstanding
(1)

Of (1), total amount of exposures which are NPA as per IRAC norms and not classified as NPA
(2)

Provisions required to be made as per IRAC norms
(3)

Provision actually held
(4)

 

 

24,620.17

3,237.15

485.57

2,103.19*

 

 

* This comprises of provision @ 15% provision on exposure, which is NPA as per IRAC norms and not classified as NPA and provision @ 7.5% on exposure, which is standard as per IRAC norms. In respect of balance exposure, the Bank is receiving due payment from Tolls and Annuities from the operating assets through an escrow account. Both these provisions have been considered as provision for standard assets.

 

 

 

 

 

 

 

 

 

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 had availed the option to spread the incremental gratuity expenditure over four quarters beginning with the quarter ended March 31, 2018. Accordingly, during the quarter ended March 31, 2018 the Bank charged to the profit and loss account an amount of ` 1,785.97 Lakhs and there was an unamortised gratuity expenditure of ₹ 5,357.93 Lakhs. Based on the correspondence with the Reserve Bank of India (RBI) during the quarter ended June 30, 2018, the Bank has charged to the profit and loss account the entire unamortised gratuity expenditure of ₹ 5,357.93 Lakhs.

11

The Board of Directors have recommended a dividend of 70% i.e. ` 1.40/- per Equity Share on face value of ` 2/- each for the year 2018-19 (Previous Year 50% i.e ` 1.00/- per Equity Share) subject to the approval of the members at the ensuing Annual General Meeting. In terms of 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 ` 33,503.13 Lakhs from the Profit and loss account for the year ended March 31, 2019. 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, 2019.

12

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.

13

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 4, 2019

 

 

 

 

 (DIN: 02274773)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
                                           

 


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ACSSSASWAFUSESI