REG - Federal Bank Ltd The - 1st Quarter Results
18/08/2022 07:16
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RNS Number : 4464W Federal Bank Ltd (The) 18 August 2022
SD/ 119
/2022-23
August 18, 2022
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Un-Audited Financial Results of the Bank for the
quarter ended on June 30, 2022 (both standalone and consolidated) along with
Limited Review Report issued by the Joint Central Statutory Auditors of the
Bank, which were reviewed and recommended by Audit Committee of the Board and
duly approved by the Board of Directors at their respective meetings held on
July 15,2022.
Kindly take the same on your record.
For The Federal Bank Limited
Sd/-
Samir P Rajdev
Company Secretary
Varma & Varma Borkar & Muzumdar,
Chartered Accountants, Chartered Accountants,
No.53/2600, Kerala Varma Tower 21/168 Anand Nagar Om C.H.S,
Off Kunjanbava Road, Vytilla, Anand Nagar Lane, Off Nehru Road, Santacruz (East) Mumbai - 400 055
Kochi -682019
Limited Review Report on Unaudited Standalone Financial Results of The Federal
Bank Limited for the quarter ended 30(th) June 2022, pursuant to the
requirements of Regulation 33 and Regulation 52 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations 2015 (as amended)
The Board of Directors,
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited Standalone
Financial Results of The Federal Bank Limited ('the Bank') for the quarter
ended 30(th) June, 2022 ('the Statement') attached herewith, being submitted
by the Bank pursuant to the requirements of Regulation 33 and Regulation 52
read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations 2015 (as amended), except for the disclosures
relating to Pillar 3 disclosure under Basel III Capital Regulations as at
30(th) June, 2022, including Leverage Ratio, Liquidity Coverage Ratio and
Net Stable Funding 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 aforesaid Statement, which have not been reviewed by us.
2. The Statement, which is the responsibility of the Bank's Management and
has been approved by the Bank's Board of Directors, has been prepared in
accordance with the recognition and measurement principles laid down in
Accounting Standard-25 'Interim Financial Reporting' ('AS-25') prescribed
under section 133 of the Companies Act, 2013 read with relevant rules issued
thereunder, the relevant provisions of the Banking Regulation Act, 1949, the
circulars, guidelines and directions issued by the Reserve Bank of India (the
'RBI') from time to time (the 'RBI Guidelines') and other accounting
principles generally accepted in India. Our responsibility is to issue a
report on the Statement based on our review.
3. We conducted our review of the Statement 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 statements
are free of material misstatement. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with Standards on Auditing and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
4. Our review primarily is conducted on the basis of review of the books of
account and records of the Bank. We have also relied on the information and
explanations furnished to us by the Bank and the returns as considered
necessary by us for the review.
5. Based on our review conducted as above, nothing has come to our attention
that causes us to believe that the accompanying Statement of Unaudited
Standalone Financial Results prepared in accordance with applicable accounting
standards, the RBI Guidelines and other accounting principles generally
accepted in India, has not disclosed the information required to be disclosed
in terms of Regulation 33 and Regulation 52 read with Regulation 63(2) of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as
amended) 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, except for the aforesaid Pillar 3 disclosures as at
30(th) June 2022, including Leverage Ratio, Liquidity Coverage Ratio and Net
Stable Funding 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 aforesaid Statement, which have not been reviewed by us.
For Varma & Varma
For Borkar & Muzumdar
Chartered Accountants
Chartered Accountants
FRN:004532S
FRN:101569W
Vijay Narayan Govind
Kaushal Muzumdar
Partner
Partner
M. No.
203094
M. No. 100938
UDIN:
22203094AMWYTY3663
UDIN: 22100938AMWYSW3493
Kochi-19
Mumbai-55
15(th) July
2022
15(th) July 2022
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022
(Rs. in Lakhs)
Particulars Quarter ended Year ended
30.06.2022 31.03.2022 30.06.2021 31.03.2022
Unaudited Audited Unaudited Audited
(Refer Note 10 below)
1. Interest earned (a)+(b)+(c)+(d) 3,62,886 3,48,324 3,35,571 13,66,076
(a) Interest/discount on advances/bills 2,88,682 2,75,446 2,67,112 10,82,975
(b) Income on investments 62,949 59,290 59,059 2,33,867
(c) Interest on balances with Reserve Bank of India and other inter bank funds 4,480 5,614 3,662 22,027
(d) Others 6,775 7,974 5,738 27,207
2. Other income 45,262 46,500 64,826 2,08,909
3. TOTAL INCOME (1+2) 4,08,148 3,94,824 4,00,397 15,74,985
4. Interest expended 2,02,435 1,95,803 1,93,728 7,69,880
5. Operating expenses (i)+(ii) 1,08,376 1,19,201 93,340 4,29,320
(i) Employees cost 49,932 63,725 52,830 2,32,055
(ii) Other operating expenses 58,444 55,476 40,510 1,97,265
6. TOTAL EXPENDITURE (4+5) 3,10,811 3,15,004 2,87,068 11,99,200
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 97,337 79,820 1,13,329 3,75,785
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies 16,668 7,524 63,994 1,22,177
9. Exceptional items - - - -
10. Profit from Ordinary Activities before tax 80,669 72,296 49,335 2,53,608
(7-8-9)
11. Tax expense 20,603 18,242 12,606 64,626
12. Net Profit from Ordinary Activities after tax (10-11) 60,066 54,054 36,729 1,88,982
13. Extraordinary items (net of tax expense) - - - -
14. Net Profit for the period (12-13) 60,066 54,054 36,729 1,88,982
15. Paid-up Equity Share Capital 42,070 42,051 39,926 42,051
(Face value Rs.2/- per Equity Share)
16. Reserves excluding Revaluation Reserve 18,36,832
17. Analytical Ratios and Other Disclosures:
(i) Percentage of shares held by Government of India NIL NIL NIL NIL
(ii) Capital Adequacy ratio (%)
Under Basel III 14.57 15.77 14.64 15.77
(iii) Earnings per Share (EPS) (in Rs)
(a) Basic EPS (before and after extraordinary items) 2.86* 2.57* 1.84* 9.13
(b) Diluted EPS (before and after extraordinary items) 2.83* 2.55* 1.83* 9.06
(iv) NPA Ratios
a) Gross NPA 4,15,533 4,13,674 4,64,933 4,13,674
b) Net NPA 1,42,025 1,39,262 1,59,324 1,39,262
c) % of Gross NPA 2.69 2.80 3.50 2.80
d) % of Net NPA 0.94 0.96 1.23 0.96
(v) Return on Assets (%) 0.27* 0.25* 0.19* 0.94
(vi) Net Worth 19,26,696 18,66,098 16,47,906 18,66,098
(vii) Outstanding Redeemable Preference Shares NIL NIL NIL NIL
(viii) Capital Redemption Reserve NIL NIL NIL NIL
(ix) Debenture Redemption Reserve NIL NIL NIL NIL
(x) Debt - Equity Ratio (#) 0.82 0.82 0.57 0.82
(xi) Total Debts to Total Assets (#) 7.03% 6.97% 4.67% 6.97%
(xii) Operating Margin 23.85% 20.22% 28.30% 23.86%
(xiii) Net Profit Margin 14.72% 13.69% 9.17% 12.00%
(*) Not Annualised
(#) Debt and Total Debts represents Total Borrowings of the Bank
Segment Information@
(Rs.in Lakhs)
Particulars Quarter ended Year ended
30.06.2022 31.03.2022 30.06.2021 31.03.2022
Unaudited Audited Unaudited Audited
(Refer Note 10 below)
Segment Revenue:
Treasury 54,864 49,475 79,596 2,35,130
Corporate/Wholesale Banking 1,07,758 1,03,851 1,12,056 4,26,734
Retail Banking 2,43,361 2,36,429 2,07,527 8,98,700
Other Banking operations 2,123 3,400 1,218 10,800
Unallocated 42 1,669 - 3,621
Total Revenue 4,08,148 3,94,824 4,00,397 15,74,985
Less: Inter Segment Revenue - - - -
Income from Operations 4,08,148 3,94,824 4,00,397 15,74,985
Segment Results (net of provisions):
Treasury 12,580 5,512 37,914 64,135
Corporate/Wholesale Banking 14,505 17,497 (2,535) 55,657
Retail Banking 51,737 44,728 12,921 1,21,015
Other Banking operations 1,805 2,890 1,035 9,180
Unallocated 42 1,669 - 3,621
Profit before tax 80,669 72,296 49,335 2,53,608
Segment Assets
Treasury 43,74,168 47,68,440 46,11,516 47,68,440
Corporate/Wholesale Banking 82,51,948 78,58,857 70,66,184 78,58,857
Retail Banking 91,77,241 87,98,646 77,40,698 87,98,646
Other Banking operations - - - -
Unallocated 7,31,922 6,68,688 5,85,373 6,68,688
Total 2,25,35,279 2,20,94,631 2,00,03,771 2,20,94,631
Segment Liabilities
Treasury 18,08,289 18,02,189 10,92,816 18,02,189
Corporate/Wholesale Banking 18,10,653 18,67,906 14,68,615 18,67,906
Retail Banking 1,66,17,656 1,62,98,555 1,55,94,228 1,62,98,555
Other Banking operations - - - -
Unallocated 3,59,430 2,46,597 1,99,174 2,46,597
Total 2,05,96,028 2,02,15,247 1,83,54,833 2,02,15,247
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 25,65,879 29,66,251 35,18,700 29,66,251
Corporate/Wholesale Banking 64,41,295 59,90,951 55,97,569 59,90,951
Retail Banking (74,40,415) (74,99,909) (78,53,530) (74,99,909)
Other Banking operations - - - -
Unallocated 3,72,492 4,22,091 3,86,199 4,22,091
Total 19,39,251 18,79,384 16,48,938 18,79,384
@ For the above segment reporting, the reportable segments are identified as
Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking
Operations in compliance with the RBI guidelines. (Also Refer Note 11)
The Business operations of the Bank are substantially concentrated in India
and for the purpose of Segment Reporting as per Accounting Standard-17, the
bank is considered to operate only in domestic segment.
Notes:
1 The above Standalone Financial Results for the quarter ended June 30, 2022
were reviewed by the Audit Committee and approved by the Board of Directors at
its meeting held on July 15, 2022. 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 followed, in all material aspects, the same significant
accounting policies in the preparation of the quarterly financial results as
those followed in the annual financial statements for the year ended March 31,
2022.
3 The financial results have been arrived at after considering provision for
standard assets (including requirements for exposures to entities with
unhedged foreign currency exposures), provision for non-performing assets
(NPAs), provision for non-performing investments, provision for income-tax and
other usual and necessary provisions.
4 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), profit / loss on revaluation of investments,
dividend received from subsidiaries / associates, recoveries from advances
written off etc.
5 The Capital Adequacy Ratio is computed on the basis of RBI guidelines
applicable on the relevant reporting dates and the ratio for the corresponding
previous period is not adjusted to consider the impact of subsequent changes
if any, in the guidelines.
6 During the quarter ended June 30, 2022, the Bank has allotted 945,492 equity
shares of Rs. 2 each, pursuant to the exercise of stock options by employees.
7 As per extant RBI guidelines, banks are required to make Pillar 3 disclosures
including leverage ratio , liquidity coverage ratio and Net Stable Funding
Ratio (NSFR) under the Basel III framework. Accordingly, such applicable
disclosures have been placed on the website of the Bank which can be accessed
at the following link: https://www.federalbank.co.in/regulatory-disclosures.
These disclosures have not been subjected to audit or review by the Statutory
Central Auditors of the Bank.
8 Disclosures as per 'Master Direction - Reserve Bank of India (Transfer of Loan
Exposures) Directions, 2021' dated September 24, 2021 for the loans
transferred / acquired during the quarter ended June 30, 2022 are given below:
i) During the quarter ended June 30, 2022, the bank has not acquired any
"loans not in default" through assignment of loans.
ii) During the quarter ended June 30, 2022, the bank has not acquired any
stressed loans and not transferred any loan not in default / Special Mention
Accounts (SMA).
iii) During the quarter ended June 30, 2022, the bank has not invested in
Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in
respect of stressed loans transferred to ARCs.
9 As permitted vide letter dated October 04, 2021 issued by RBI, during the
quarter ended September 30, 2021 the Bank had opted to amortise the
liability on account of revision in family pension for employees covered under
the 11(th) Bipartite Settlement and Joint Note dated November 11, 2020, over a
period not exceeding five years beginning with the financial year ended March
31, 2022, subject to 1/5 of the liability being expensed every financial
year. Accordingly, during the nine months ended December 31, 2021, the Bank
had charged Rs. 2,364.21 Lakhs to the Profit and Loss account and the balance
unamortised expenditure amounting to Rs. 15,367.34 Lakhs was carried forward.
During the quarter ended March 31, 2022, the bank had charged the entire
balance unamortised family pension expenditure of Rs.15,367.34 lakhs to the
Profit and Loss Account.
10 The figures for the quarter ended March 31, 2022 are the balancing figures
between audited figures in respect of the financial year 2021-22 and the
published year to date figures up to December 31, 2021, which were subjected
to limited review.
11 As per RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022, for
the purpose of disclosure under Accounting Standard 17, Segment reporting,
'Digital Banking' has been identified as a sub-segment under Retail Banking by
Reserve Bank of India (RBI). However, as the proposed Digital Banking Unit
(DBU) of the Bank has not yet commenced operations and having regard to the
discussions of the DBU Working Group formed by Indian Banks' Association (IBA)
(which included representatives of banks and RBI), held on July 14, 2022,
reporting of the Digital Banking as a separate sub-segment in the Segment
reporting will be done from the quarter ending September 30, 2022.
12 Previous period's figures have been regrouped / reclassified, where necessary
to conform to current period's classification and also the amounts / ratios
for the previous period have been regrouped / reclassified pursuant to the
requirements of Master Direction on financial statements - Presentation and
disclosures issued by Reserve Bank of India dated August 30, 2021, as amended
and wherever considered necessary.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
July 15, 2022 (DIN: 02274773)
Varma & Varma Borkar & Muzumdar,
Chartered Accountants, Chartered Accountants,
No.53/2600, Kerala Varma Tower 21/168 Anand Nagar Om C.H.S,
Off Kunjanbava Road, Vytilla, Anand Nagar Lane, Off Nehru Road, Santacruz (East) Mumbai - 400 055
Kochi -682019
Limited Review Report on Unaudited Consolidated Financial Results of The
Federal Bank Limited for the quarter ended 30(th) June 2022, pursuant to the
requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations 2015 (as amended)
The Board of Directors,
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited
Consolidated Financial Results of The Federal Bank Limited (the 'Bank') and
its Subsidiaries (the Bank and its subsidiaries together referred to as 'the
Group') and its share of the net profit after tax of its Associates for the
quarter ended 30(th) June 2022 (the 'Statement'), attached herewith, being
submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as
amended ('Listing Regulations'), except for the disclosures relating to
consolidated Pillar 3 disclosure, as at 30(th) June 2022, including Leverage
Ratio, Liquidity Coverage Ratio and Net Stable Funding 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 aforesaid Statement, which
have not been reviewed by us.
2. The Statement, which is the responsibility of the Bank's
Management and has been approved by the Bank's Board of Directors, has been
prepared in accordance with the recognition and measurement principles laid
down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25')
prescribed under section 133 of the Companies Act, 2013 read with relevant
rules issued thereunder, the relevant provisions of the Banking Regulation
Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank
of India (the 'RBI') from time to time (the 'RBI Guidelines') and other
accounting principles generally accepted in India. Our responsibility is to
express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement 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
statements are free of material misstatement. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with Standards on Auditing and consequently does not enable us to
obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
We also performed procedures in accordance with the circular issued by the
SEBI under Regulation 33(8) of the Listing Regulations, to the extent
applicable.
4. Our review primarily is conducted on the basis of review of the
books of account and records of the Bank. We have also relied on the
information and explanations furnished to us by the Bank and the returns as
considered necessary by us for the review.
5. This Statement includes the results of the following entities:
a. Fedbank Financial Services Limited (Subsidiary)
b. Federal Operations and Services Limited (Subsidiary)
c. Ageas Federal Life Insurance Company Limited (Associate)
d. Equirus Capital Private Limited (Associate)
6. Based on our review conducted and procedures performed as stated
in Paragraphs 3 and 4 above and based on the consideration of the review
reports of other auditor referred to in Paragraph 8 below, nothing has come to
our attention that causes us to believe that the accompanying Statement
prepared in accordance with applicable accounting standards, the RBI
Guidelines and other accounting principles generally accepted in India, has
not disclosed the information required to be disclosed in terms of Regulation
33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 (as amended) 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, except for the aforesaid consolidated Pillar 3
disclosures as at 30(th) June 2022, including Leverage Ratio, Liquidity
Coverage Ratio and Net Stable Funding 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 aforesaid Statement, which have not been
reviewed by us.
7. The Statement of unaudited consolidated financial results
includes the interim financial results of one subsidiary which have not been
reviewed/ audited by their auditors, whose interim financial results reflects
total revenues of ` 26,264.11 Lakhs and net profit after tax of ` 4,133.90
Lakhs for the quarter ended 30(th) June 2022, as considered in the unaudited
consolidated financial results. According to the information and explanations
given to us by the Management, these interim financial results are not
material to the Group.
Our conclusion on the Statement, in so far as it relates to the amounts and
disclosures included in respect of the said subsidiary, is based solely on the
above reports furnished to us by the Management and the procedures performed
by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
8. The Statement of unaudited consolidated financial results
includes the interim financial results of one subsidiary which have been
reviewed by one of the Joint Auditors of the Bank, whose interim financial
results reflects total revenues of ` 1,404.09 Lakhs and net profit after tax
of ` 99.58 Lakhs for the quarter ended 30(th) June 2022, as considered in the
unaudited consolidated financial results.
Our conclusion on the Statement, in so far as it relates to the amounts and
disclosures included in respect of this subsidiary, is based solely on the
reports of the aforesaid Joint Auditor as made available by the Management and
the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
9. The Statement also includes the Group's share of net profit after
tax of ` 850.86 Lakhs for the quarter ended 30(th) June 2022 in respect of two
associates, based on their interim financial results which have not been
reviewed/ audited. According to the information and explanations given to us
by the Management, these interim financial results are not material to the
Group.
Our conclusion on the Statement is not modified in respect of this matter.
For Varma & Varma
For Borkar & Muzumdar
Chartered Accountants
Chartered Accountants
FRN:004532S
FRN:101569W
Vijay Narayan Govind
Kaushal Muzumdar
Partner
Partner
M. No.
203094
M. No. 100938
UDIN:
22203094AMWYYB6862
UDIN: 22100938AMWYZY2142
Kochi-19
Mumbai-55
15(th) July
2022
15(th) July 2022
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022
(Rs in Lakhs)
Particulars Quarter ended Year ended
30.06.2022 31.03.2022 30.06.2021 31.03.2022
Unaudited Audited Unaudited Audited
(Refer Note 9 below)
1. Interest earned (a)+(b)+(c)+(d) 3,84,309 3,68,630 3,52,498 14,38,153
(a) Interest/discount on advances/bills 3,10,420 2,96,150 2,84,295 11,56,431
(b) Income on investments 62,534 58,821 58,463 2,31,649
(c) Interest on balances with Reserve Bank of India and other inter bank funds 4,480 5,614 3,662 22,027
(d) Others 6,875 8,045 6,078 28,046
2. Other income 47,508 48,425 62,090 2,12,094
3. TOTAL INCOME (1+2) 4,31,817 4,17,055 4,14,588 16,50,247
4. Interest expended 2,10,376 2,02,995 2,00,016 7,95,938
5. Operating expenses (i)+(ii) 1,17,580 1,27,884 98,955 4,59,215
(i) Employees cost 55,837 68,954 56,990 2,51,166
(ii) Other operating expenses 61,743 58,930 41,965 2,08,049
6. TOTAL EXPENDITURE (4+5) 3,27,956 3,30,879 2,98,971 12,55,153
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 1,03,861 86,176 1,15,617 3,95,094
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies 17,521 8,394 66,911 1,30,466
9. Exceptional items - - - -
10. Profit from Ordinary Activities before tax 86,340 77,782 48,706 2,64,628
(7-8-9)
11. Tax expense 22,040 19,606 13,150 68,088
12. Net Profit from Ordinary Activities after tax (10-11) 64,300 58,176 35,556 1,96,540
13. Extraordinary items (net of tax expense) - - - -
14. Net Profit for the period (12-13) 64,300 58,176 35,556 1,96,540
15. Minority interest 1,104 1,137 384 2,664
16. Share in Profit of Associates 226 1,715 504 3,103
17. Consolidated Net Profit of the group 63,422 58,754 35,676 1,96,979
(14-15+16)
18. Paid-up Equity Share Capital 42,070 42,051 39,926 42,051
(Face value Rs. 2/- per Equity Share)
19. Reserves excluding Revaluation Reserve 18,83,000
20. Analytical Ratios and Other Disclosures:
(i) Percentage of shares held by Government of India NIL NIL NIL NIL
(ii) Capital Adequacy ratio (%)
Under Basel III 15.12 16.33 15.36 16.33
(iii) Earnings per Share (EPS) (in Rs)
(a) Basic EPS (before and after extraordinary items) 3.02* 2.79* 1.79* 9.52
(b) Diluted EPS (before and after extraordinary items) 2.99* 2.77* 1.77* 9.44
(iv) NPA Ratios
a) Gross NPA 4,27,304 4,25,653 4,79,318 4,25,653
b) Net NPA 1,50,582 1,47,977 1,71,242 1,47,977
c) % of Gross NPA 2.67 2.78 3.51 2.78
d) % of Net NPA 0.96 0.98 1.28 0.98
(v) Return on Assets (%) 0.28* 0.27* 0.17* 0.91
(*) Not Annualised
Segment Information@
(Rs. in Lakhs)
Particulars Quarter ended
30.06.2022 31.03.2022 30.06.2021 31.03.2022
Unaudited Audited Unaudited Audited
(Refer Note 9 below)
Segment Revenue:
Treasury 54,705 49,102 76,408 2,31,327
Corporate/Wholesale Banking 1,06,784 1,02,659 1,10,684 4,22,307
Retail Banking 2,66,605 2,58,742 2,26,278 9,78,155
Other Banking operations 3,681 4,883 1,218 14,837
Unallocated 42 1,669 - 3,621
Total Revenue 4,31,817 4,17,055 4,14,588 16,50,247
Less: Inter Segment Revenue - - - -
Income from Operations 4,31,817 4,17,055 4,14,588 16,50,247
Segment Results (net of provisions):
Treasury 13,000 5,713 35,345 62,722
Corporate/Wholesale Banking 14,362 16,397 (2,737) 54,114
Retail Banking 56,244 50,418 15,063 1,33,433
Other Banking operations 2,692 3,585 1,035 10,738
Unallocated 42 1,669 - 3,621
Profit before tax 86,340 77,782 48,706 2,64,628
Segment Assets
Treasury 43,61,104 47,63,764 45,66,638 47,63,764
Corporate/Wholesale Banking 82,04,925 78,08,465 70,10,074 78,08,465
Retail Banking 98,12,368 93,78,255 82,15,751 93,78,255
Other Banking operations 620 401 - 401
Unallocated 7,31,922 6,73,219 5,85,205 6,73,219
Total 2,31,10,939 2,26,24,104 2,03,77,668 2,26,24,104
Segment Liabilities
Treasury 18,56,739 18,59,584 11,11,142 18,59,584
Corporate/Wholesale Banking 18,13,320 18,77,366 14,80,815 18,77,366
Retail Banking 1,70,60,564 1,66,84,108 1,58,73,983 1,66,84,108
Other Banking operations 460 364 - 364
Unallocated 3,59,430 2,46,597 1,98,594 2,46,597
Total 2,10,90,513 2,06,68,019 1,86,64,534 2,06,68,019
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 25,04,365 29,04,180 34,55,496 29,04,180
Corporate/Wholesale Banking 63,91,605 59,31,099 55,29,259 59,31,099
Retail Banking (72,48,196) (73,05,853) (76,58,232) (73,05,853)
Other Banking operations 160 37 - 37
Unallocated 3,72,492 4,26,622 3,86,611 4,26,622
Total 20,20,426 19,56,085 17,13,134 19,56,085
@ For the above segment reporting, the reportable segments are identified as
Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking
Operations in compliance with the RBI guidelines. (Also Refer Note 10)
The Business operations of the Bank are substantially concentrated in India
and for the purpose of Segment Reporting as per Accounting Standard-17, the
bank is considered to operate only in domestic segment.
Notes:
1 The above Consolidated Financial Results for the quarter ended June 30, 2022
were reviewed by the Audit Committee and subsequently approved by the Board of
Directors at its meeting held on July 15, 2022. 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 Consolidated Financial Results of the Group comprise the financial results
of The Federal Bank Limited and its subsidiaries viz. Fedbank Financial
Services Limited & Federal Operations and Services Limited and its
associates viz. Ageas Federal Life Insurance Company Limited & Equirus
Capital Private Limited.
3 There has been no material change in the accounting policies adopted during
the quarter ended June 30, 2022 as compared to those followed for the year
ended March 31, 2022.
4 The financial results have been arrived at after considering provision for
standard assets (including requirements for exposures to entities with
unhedged foreign currency exposures), provision for non-performing assets
(NPAs), provision for non-performing investments, provision for income-tax and
other usual and necessary provisions.
5 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), profit / loss on revaluation of investments,
dividend received from subsidiaries / associates, recoveries from advances
written off, etc.
6 The Capital Adequacy Ratio is computed on the basis of RBI guidelines
applicable on the relevant reporting dates and the ratio for the corresponding
previous period is not adjusted to consider the impact of subsequent changes
if any, in the guidelines.
7 As per extant RBI guidelines, banks are required to make Pillar 3 disclosures
including leverage ratio , liquidity coverage ratio and Net Stable Funding
Ratio (NSFR) under the Basel III framework. Accordingly, such applicable
disclosures have been placed on the website of the Bank which can be accessed
at the following link: https://www.federalbank.co.in/regulatory-disclosures.
These disclosures have not been subjected to audit or review by the Statutory
Central Auditors of the Bank.
8 As permitted vide letter dated October 04, 2021 issued by RBI, during the
quarter ended September 30, 2021 the Bank had opted to amortise the
liability on account of revision in family pension for employees covered under
the 11(th) Bipartite Settlement and Joint Note dated November 11, 2020, over a
period not exceeding five years beginning with the financial year ended March
31, 2022, subject to 1/5 of the liability being expensed every financial
year. Accordingly, during the nine months ended December 31, 2021, the Bank
had charged Rs. 2,364.21 Lakhs to the Profit and Loss account and the balance
unamortised expenditure amounting to Rs.15,367.34 Lakhs was carried forward.
During the quarter ended March 31, 2022, the bank had charged the entire
balance unamortised family pension expenditure of Rs. 15,367.34 lakhs to the
Profit and Loss Account.
9 The figures for the quarter ended March 31, 2022 are the balancing figures
between audited figures in respect of the financial year 2021-22 and the
published year to date figures upto December 31, 2021, which were subjected to
limited review.
10 As per RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022, for
the purpose of disclosure under Accounting Standard 17, Segment reporting,
'Digital Banking' has been identified as a sub-segment under Retail Banking by
Reserve Bank of India (RBI). However, as the proposed Digital Banking Unit
(DBU) of the Bank has not yet commenced operations and having regard to the
discussions of the DBU Working Group formed by Indian Banks' Association (IBA)
(which included representatives of banks and RBI), held on July 14, 2022,
reporting of the Digital Banking as a separate sub-segment in the Segment
reporting will be done from the quarter ending September 30, 2022.
11 Previous period's figures have been regrouped / reclassified, where necessary
to conform to current period's classification and also the amounts / ratios
for the previous period have been regrouped / reclassified pursuant to the
requirements of Master Direction on financial statements - Presentation and
disclosures issued by Reserve Bank of India dated August 30, 2021, as amended
and wherever considered necessary.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
July 15, 2022 (DIN: 02274773)
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