REG - Federal Bank Ltd The - 3rd Quarter Results
20/01/2023 10:15
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RNS Number : 4162N Federal Bank Ltd (The) 20 January 2023
________________________________________________________________________
SD/LSE/272/2022-23
20.01.2023
To
The London Stock Exchange
10 Paternoster Square
London
Dear Sir,
We enclose herewith the Un-Audited Standalone and Consolidated Financial
Results of the Bank for the Quarter ended December 31, 2022 which was approved
at the Bank's Board of Directors meeting held on January 16, 2023.
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 Co-op
Off Kunjanbava Road,
Hsg Society, Anand Nagar Lane
Vytilla,
Off
Nehru Road, Santacruz(East)
Kochi -682019
Mumbai - 400 055
Limited Review Report on unaudited standalone financial results of The Federal
Bank Limited for the quarter and nine months ended 31(st) December 2022,
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)
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 and nine months ended 31(st) December, 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,
("Listing Regulations, 2015") except for the disclosures relating to Pillar
3 disclosure under Basel III Capital Regulations, as at 31(st) December 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, 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 and is in compliance with the presentation and disclosure requirements
of the Listing Regulations, 2015 including relevant circulars issued by the
SEBI from time to time. 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
statement is free of material misstatement. A review is limited primarily to
inquiries of bank personnel and analytical procedures applied to financial
data and thus provides less assurance than an audit. We have not performed an
audit and accordingly we do not express an audit opinion.
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 Listing 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, except for the
aforesaid Pillar 3 disclosures as at 31(st) December 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
Membership No.203094 Membership No.100938
UDIN: 23203094BGXYLS8593 UDIN: 23100938BGQQQQ4576
Kochi Kochi
16(th) January 2023 16(th) January 2023
Varma & Varma
Borkar &
Muzumdar
Chartered Accountants,
Chartered Accountants
No.53/2600, Kerala Varma Tower
121/168, Anand Nagar, Om Co-op
Off Kunjanbava Road,
Hsg Society, Anand Nagar Lane
Vytilla,
Off Nehru
Road, Santacruz(East)
Kochi -682019
Mumbai - 400 055
Limited Review Report on Unaudited Consolidated Financial Results of The
Federal Bank Limited for the quarter and nine months ended 31(st) December
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 and nine months ended 31(st) December 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 2015"), except for the
disclosures relating to consolidated Pillar 3 disclosure, as at 31(st)
December 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, 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 and is in compliance with the presentation and disclosure requirements
of the Listing Regulations, 2015 including relevant circulars issued by the
SEBI from time to time. 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
statement is 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 an 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 2015, 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 auditors referred to in Paragraphs 7 and, 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 the Listing
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, except for the disclosures relating to consolidated
Pillar 3 disclosure, as at 31(st) December 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 consolidated unaudited financial results includes
the interim financial results of one subsidiary whose unaudited financial
results reflects total revenues of ` 32,201.74 Lakhs and ` 87,508.88 Lakhs and
net profit after tax of ` 4,771.42 Lakhs and ` 13,239.26 Lakhs for the quarter
and nine months ended 31st December 2022 respectively. These interim financial
results have been reviewed by other auditors, whose reports have been
furnished to us by the Bank's management. 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 consolidated unaudited financial results includes
the interim financial results of one subsidiary whose unaudited financial
results reflects total revenues of ` 1581.52 Lakhs and ` 4257.39 Lakhs and net
profit after tax of ` 93.66 Lakhs and ` 315.96 Lakhs for the quarter and nine
months ended 31(st) December 2022 respectively. These interim financial
results have been reviewed by one of the joint auditors, whose reports have
been furnished to us by the Bank's management and 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 their reports 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 of consolidated unaudited financial results also
includes the Group's share of net profit after tax of ` 375.39 Lakhs and `
1,008.14 Lakhs for the quarter and nine months ended 31(st) December 2022
respectively, in respect of the two associates, based on their interim
financial results which have not been reviewed. These interim financial
results have been furnished to us by the Bank's Management and our conclusion
on the statement, in so far as it relates to the amounts and disclosures
included in respect of these associates, is based solely on such interim
financial results. In our opinion and
according to the information and explanations given to us by the Bank's
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
Membership No. 203094 Membership No.100938
UDIN: 23203094BGXYLT5087 UDIN: 23100938BGQQQR3798
Kochi Kochi
16(th) January 2023 16(th) January 2023
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, 2022
(` in Lakhs)
Particulars Quarter ended Nine months ended Year ended
31.12.2022 30.09.2022 31.12.2021 31.12.2022 31.12.2021 31.03.2022
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
1. Interest earned (a)+(b)+(c)+(d) 4,43,325 4,02,078 3,44,256 12,08,289 10,17,752 13,66,076
(a) Interest/discount on advances/bills 3,58,487 3,22,272 2,72,927 9,69,441 8,07,529 10,82,975
(b) Income on investments 72,069 66,737 57,402 2,01,755 1,74,577 2,33,867
(c) Interest on balances with Reserve Bank of India and other inter bank funds 4,977 6,017 6,089 15,474 16,413 22,027
(d) Others 7,792 7,052 7,838 21,619 19,233 27,207
2. Other income 53,400 60,952 48,419 1,59,614 1,62,409 2,08,909
3. TOTAL INCOME (1+2) 4,96,725 4,63,030 3,92,675 13,67,903 11,80,161 15,74,985
4. Interest expended 2,47,672 2,25,895 1,90,366 6,76,002 5,74,077 7,69,880
5. Operating expenses (i)+(ii) 1,21,632 1,15,911 1,10,880 3,45,919 3,10,119 4,29,320
(i) Employees cost 56,083 51,563 58,307 1,57,578 1,68,330 2,32,055
(ii) Other operating expenses 65,549 64,348 52,573 1,88,341 1,41,789 1,97,265
6. TOTAL EXPENDITURE (4+5) 3,69,304 3,41,806 3,01,246 10,21,921 8,84,196 11,99,200
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 1,27,421 1,21,224 91,429 3,45,982 2,95,965 3,75,785
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies 19,869 26,786 21,398 63,323 1,14,653 1,22,177
9. Exceptional items - - - - - -
10. Profit from Ordinary Activities before tax 1,07,552 94,438 70,031 2,82,659 1,81,312 2,53,608
(7-8-9)
11. Tax expense 27,191 24,067 17,858 71,861 46,384 64,626
12. Net Profit from Ordinary Activities after tax (10-11) 80,361 70,371 52,173 2,10,798 1,34,928 1,88,982
13. Extraordinary items (net of tax expense) - - - - - -
14. Net Profit for the period (12-13) 80,361 70,371 52,173 2,10,798 1,34,928 1,88,982
15. Paid-up Equity Share Capital 42,291 42,191 42,041 42,291 42,041 42,051
(Face value ` 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 NIL NIL
(ii) Capital Adequacy ratio (%)
Under Basel III 13.35 13.84 14.37 13.35 14.37 15.77
(iii) Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extraordinary items) 3.80* 3.34* 2.48* 10.00* 6.56* 9.13
(b) Diluted EPS (before and after extraordinary items) 3.75* 3.31* 2.46* 9.91* 6.51* 9.06
(iv) NPA Ratios
a) Gross NPA 4,14,785 4,03,106 4,40,126 4,14,785 4,40,126 4,13,674
b) Net NPA 1,22,859 1,26,235 1,47,118 1,22,859 1,47,118 1,39,262
c) % of Gross NPA 2.43 2.46 3.06 2.43 3.06 2.80
d) % of Net NPA 0.73 0.78 1.05 0.73 1.05 0.96
(v) Return on Assets (%) 0.33* 0.30* 0.26* 0.92* 0.68* 0.94
(vi) Net Worth 20,45,675 19,61,782 18,08,919 20,45,675 18,08,919 18,66,098
(vii) Outstanding Redeemable Preference Shares NIL NIL NIL NIL NIL NIL
(viii) Capital Redemption Reserve NIL NIL NIL NIL NIL NIL
(ix) Debenture Redemption Reserve NIL NIL NIL NIL NIL NIL
(x) Debt - Equity Ratio (#) 0.96 1.04 0.45 0.96 0.45 0.82
(xi) Total Debts to Total Assets (#) 7.86% 8.61% 3.90% 7.86% 3.90% 6.97%
(xii) Operating Margin 25.65% 26.18% 23.28% 25.29% 25.08% 23.86%
(xiii) Net Profit Margin 16.18% 15.20% 13.29% 15.41% 11.43% 12.00%
(*) Not Annualised
(#) Debt and Total Debts represents Total Borrowings of the Bank
Segment Information@
(` in Lakhs)
Particulars Quarter ended Nine months ended Year ended
31.12.2022 30.09.2022 31.12.2021 31.12.2022 31.12.2021 31.03.2022
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
Segment Revenue:
Treasury 60,885 67,069 52,104 1,82,818 1,85,655 2,35,130
Corporate/Wholesale Banking 1,38,045 1,23,736 1,04,829 3,69,539 3,22,883 4,26,734
Retail Banking 2,93,526 2,68,416 2,30,357 8,05,303 6,62,271 8,98,700
a) Digital Banking 23,960 22,729 14,801 63,988 39,091 56,772
b) Other Retail Banking 2,69,566 2,45,687 2,15,556 7,41,315 6,23,180 8,41,928
Other Banking operations 4,153 3,630 3,500 9,906 7,400 10,800
Unallocated 116 179 1,885 337 1,952 3,621
Total Revenue 4,96,725 4,63,030 3,92,675 13,67,903 11,80,161 15,74,985
Less: Inter Segment Revenue - - - - - -
Income from Operations 4,96,725 4,63,030 3,92,675 13,67,903 11,80,161 15,74,985
Segment Results (net of provisions):
Treasury 9,576 18,469 11,022 40,625 58,623 64,135
Corporate/Wholesale Banking 26,155 14,850 21,396 55,510 38,160 55,657
Retail Banking 68,175 57,855 32,753 1,77,767 76,287 1,21,015
a) Digital Banking 4,071 3,203 (667) 6,866 3,768 6,880
b) Other Retail Banking 64,104 54,652 33,420 1,70,901 72,519 1,14,135
Other Banking operations 3,530 3,085 2,975 8,420 6,290 9,180
Unallocated 116 179 1,885 337 1,952 3,621
Profit before tax 1,07,552 94,438 70,031 2,82,659 1,81,312 2,53,608
Segment Assets:
Treasury 49,07,856 43,88,999 41,05,806 49,07,856 41,05,806 47,68,440
Corporate/Wholesale Banking 93,75,662 89,70,342 77,61,124 93,75,662 77,61,124 78,58,857
Retail Banking 99,82,259 95,72,293 83,65,479 99,82,259 83,65,479 87,98,646
a) Digital Banking 3,55,734 2,69,151 1,87,578 3,55,734 1,87,578 2,04,346
b) Other Retail Banking 96,26,525 93,03,142 81,77,901 96,26,525 81,77,901 85,94,300
Other Banking operations - - - - - -
Unallocated 7,81,411 7,79,609 6,55,228 7,81,411 6,55,228 6,68,688
Total 2,50,47,188 2,37,11,243 2,08,87,637 2,50,47,188 2,08,87,637 2,20,94,631
Segment Liabilities:
Treasury 26,07,512 22,74,543 10,66,903 26,07,512 10,66,903 18,02,189
Corporate/Wholesale Banking 22,45,069 19,85,235 16,70,529 22,45,069 16,70,529 18,67,906
Retail Banking 1,77,97,499 1,71,10,829 1,60,75,581 1,77,97,499 1,60,75,581 1,62,98,555
a) Digital Banking 10,82,117 8,90,517 5,32,804 10,82,117 5,32,804 6,27,564
b) Other Retail Banking 1,67,15,382 1,62,20,312 1,55,42,777 1,67,15,382 1,55,42,777 1,56,70,991
Other Banking operations - - - - - -
Unallocated 3,38,338 3,65,759 2,49,306 3,38,338 2,49,306 2,46,597
Total 2,29,88,418 2,17,36,366 1,90,62,319 2,29,88,418 1,90,62,319 2,02,15,247
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 23,00,344 21,14,456 30,38,903 23,00,344 30,38,903 29,66,251
Corporate/Wholesale Banking 71,30,593 69,85,107 60,90,595 71,30,593 60,90,595 59,90,951
Retail Banking (78,15,240) (75,38,536) (77,10,102) (78,15,240) (77,10,102) (74,99,909)
a) Digital Banking (7,26,383) (6,21,366) (3,45,226) (7,26,383) (3,45,226) (4,23,218)
b) Other Retail Banking (70,88,857) (69,17,170) (73,64,876) (70,88,857) (73,64,876) (70,76,691)
Other Banking operations - - - - - -
Unallocated 4,43,073 4,13,850 4,05,922 4,43,073 4,05,922 4,22,091
Total 20,58,770 19,74,877 18,25,318 20,58,770 18,25,318 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.
As per the RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022
on establishment of Digital Banking Unit (DBU), for the purpose of disclosure
under 'Accounting Standard 17 - Segment Reporting', 'Digital Banking' has been
identified as a sub-segment of the existing 'Retail Banking' segment by
Reserve Bank of India (RBI). The DBU of the Bank has commenced operations
during the quarter and nine months ended December 31, 2022 and accordingly the
bank has disclosed the business involving digital banking products acquired by
DBU, together with existing digital banking products (including for
comparative periods, which are not audited), under the Digital Banking
segment.
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 Unaudited Financial Results for the quarter and nine
months ended December 31, 2022 were reviewed by the Audit Committee and
approved by the Board of Directors at its meeting held on January 16, 2023.
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 interim 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 and nine months ended December 31, 2022, the Bank has
allotted 5,017,460 and 12,006,495 equity shares of ` 2 each respectively,
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 nine months ended December 31, 2022 are
given below:
i) Details of loans not in default acquired through assignment during the nine
months ended December 31, 2022 are given below:
Particulars Value
Aggregate amount of loans acquired (` in lakhs) 9,225.00
Weighted average residual maturity (in years) 6.50
Weighted average holding period by originator (in years) 0.50
Retention of beneficial economic interest by the originator NIL
Tangible security coverage 93.56%
Rating-wise distribution AA-
ii) During the nine months ended December 31, 2022, the bank has not
acquired any stressed loans and not transferred any loan not in default /
Special Mention Accounts (SMA).
iii) During the nine months ended December 31, 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 Previous period's figures have been regrouped / reclassified, wherever
necessary to conform to current period's classification.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
January 16, 2023 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED
DECEMBER 31, 2022
(` in Lakhs)
Particulars Quarter ended Nine months ended Year ended
31.12.2022 30.09.2022 31.12.2021 31.12.2022 31.12.2021 31.03.2022
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
1. Interest earned (a)+(b)+(c)+(d) 4,69,750 4,25,893 3,60,398 12,79,952 10,69,523 14,38,153
(a) Interest/discount on advances/bills 3,84,986 3,46,427 2,89,480 10,41,833 8,60,281 11,56,431
(b) Income on investments 71,785 66,308 56,833 2,00,627 1,72,828 2,31,649
(c) Interest on balances with Reserve Bank of India and other inter bank funds 4,977 6,017 6,089 15,474 16,413 22,027
(d) Others 8,002 7,141 7,996 22,018 20,001 28,046
2. Other income 56,508 62,765 52,132 1,66,781 1,63,669 2,12,094
3. TOTAL INCOME (1+2) 5,26,258 4,88,658 4,12,530 14,46,733 12,33,192 16,50,247
4. Interest expended 2,58,490 2,34,904 1,96,980 7,03,770 5,92,943 7,95,938
5. Operating expenses (i)+(ii) 1,32,986 1,25,639 1,19,089 3,76,205 3,31,331 4,59,215
(i) Employees cost 62,915 58,047 63,437 1,76,799 1,82,212 2,51,166
(ii) Other operating expenses 70,071 67,592 55,652 1,99,406 1,49,119 2,08,049
6. TOTAL EXPENDITURE (4+5) 3,91,476 3,60,543 3,16,069 10,79,975 9,24,274 12,55,153
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 1,34,782 1,28,115 96,461 3,66,758 3,08,918 3,95,094
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies 21,364 28,452 23,980 67,337 1,22,072 1,30,466
9. Exceptional items - - - - - -
10. Profit from Ordinary Activities before tax 1,13,418 99,663 72,481 2,99,421 1,86,846 2,64,628
(7-8-9)
11. Tax expense 28,190 25,572 18,472 75,802 48,482 68,088
12. Net Profit from Ordinary Activities after tax (10-11) 85,228 74,091 54,009 2,23,619 1,38,364 1,96,540
13. Extraordinary items (net of tax expense) - - - - - -
14. Net Profit for the period (12-13) 85,228 74,091 54,009 2,23,619 1,38,364 1,96,540
15. Minority interest 1,278 1,164 458 3,546 1,527 2,664
16. Share in Profit of Associates 375 407 426 1,008 1,388 3,103
17. Consolidated Net Profit of the group 84,325 73,334 53,977 2,21,081 1,38,225 1,96,979
(14-15+16)
18. Paid-up Equity Share Capital 42,291 42,191 42,041 42,291 42,041 42,051
(Face value ` 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 NIL NIL
(ii) Capital Adequacy ratio (%)
Under Basel III 13.81 14.30 14.97 13.81 14.97 16.33
(iii) Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extraordinary items) 3.99* 3.48* 2.57* 10.49* 6.72* 9.52
(b) Diluted EPS (before and after extraordinary items) 3.94* 3.45* 2.55* 10.39* 6.67* 9.44
(iv) NPA Ratios
a) Gross NPA 4,30,899 4,17,310 4,59,280 4,30,899 4,59,280 4,25,653
b) Net NPA 1,34,855 1,36,396 1,61,315 1,34,855 1,61,315 1,47,977
c) % of Gross NPA 2.42 2.45 3.10 2.42 3.10 2.78
d) % of Net NPA 0.77 0.82 1.11 0.77 1.11 0.98
(v) Return on Assets (%) 0.34* 0.31* 0.25* 0.91* 0.66* 0.91
(*) Not Annualised
Segment Information@
(` in Lakhs)
Particulars Quarter ended Nine months ended Year ended
31.12.2022 30.09.2022 31.12.2021 31.12.2022 31.12.2021 31.03.2022
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
Segment Revenue:
Treasury 61,099 66,222 51,768 1,82,026 1,82,225 2,31,327
Corporate/Wholesale Banking 1,37,246 1,22,907 1,03,817 3,66,937 3,19,648 4,22,307
Retail Banking 3,21,779 2,94,019 2,50,466 8,82,403 7,19,413 9,78,155
a) Digital Banking 23,960 22,729 14,801 63,988 39,091 56,772
b) Other Retail Banking 2,97,819 2,71,290 2,35,665 8,18,415 6,80,322 9,21,383
Other Banking operations 5,920 5,331 4,594 14,932 9,954 14,837
Unallocated 214 179 1,885 435 1,952 3,621
Total Revenue 5,26,258 4,88,658 4,12,530 14,46,733 12,33,192 16,50,247
Less: Inter Segment Revenue - - - - - -
Income from Operations 5,26,258 4,88,658 4,12,530 14,46,733 12,33,192 16,50,247
Segment Results (net of provisions):
Treasury 10,385 18,243 11,276 41,628 57,009 62,722
Corporate/Wholesale Banking 25,960 14,371 21,370 54,693 37,717 54,114
Retail Banking 72,405 62,871 35,570 1,91,520 83,015 1,33,433
a) Digital Banking 4,071 3,203 (667) 6,866 3,768 6,880
b) Other Retail Banking 68,334 59,668 36,237 1,84,654 79,247 1,26,553
Other Banking operations 4,455 3,999 2,380 11,146 7,153 10,738
Unallocated 213 179 1,885 434 1,952 3,621
Profit before tax 1,13,418 99,663 72,481 2,99,421 1,86,846 2,64,628
Segment Assets:
Treasury 48,96,686 43,66,944 40,59,405 48,96,686 40,59,405 47,63,764
Corporate/Wholesale Banking 93,42,502 89,31,093 77,07,515 93,42,502 77,07,515 78,08,465
Retail Banking 1,07,75,908 1,02,55,021 89,37,571 1,07,75,908 89,37,571 93,78,255
a) Digital Banking 3,55,734 2,69,151 1,87,578 3,55,734 1,87,578 2,04,346
b) Other Retail Banking 1,04,20,174 99,85,870 87,49,993 1,04,20,174 87,49,993 91,73,909
Other Banking operations 798 851 286 798 286 401
Unallocated 7,81,411 7,79,609 6,54,674 7,81,411 6,54,674 6,73,219
Total 2,57,97,305 2,43,33,518 2,13,59,451 2,57,97,305 2,13,59,451 2,26,24,104
Segment Liabilities:
Treasury 26,58,030 23,14,458 10,83,754 26,58,030 10,83,754 18,59,584
Corporate/Wholesale Banking 22,49,040 19,88,499 16,81,586 22,49,040 16,81,586 18,77,366
Retail Banking 1,84,02,087 1,76,03,969 1,64,51,320 1,84,02,087 1,64,51,320 1,66,84,108
a) Digital Banking 10,82,117 8,90,517 5,32,804 10,82,117 5,32,804 6,27,564
b) Other Retail Banking 1,73,19,970 1,67,13,452 1,59,18,516 1,73,19,970 1,59,18,516 1,60,56,544
Other Banking operations 314 483 103 314 103 364
Unallocated 3,38,338 3,65,759 2,47,486 3,38,338 2,47,486 2,46,597
Total 2,36,47,809 2,22,73,168 1,94,64,249 2,36,47,809 1,94,64,249 2,06,68,019
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 22,38,656 20,52,486 29,75,651 22,38,656 29,75,651 29,04,180
Corporate/Wholesale Banking 70,93,462 69,42,594 60,25,929 70,93,462 60,25,929 59,31,099
Retail Banking (76,26,179) (73,48,948) (75,13,749) (76,26,179) (75,13,749) (73,05,853)
a) Digital Banking (7,26,383) (6,21,366) (3,45,226) (7,26,383) (3,45,226) (4,23,218)
b) Other Retail Banking (68,99,796) (67,27,582) (71,68,523) (68,99,796) (71,68,523) (68,82,635)
Other Banking operations 484 368 183 484 183 37
Unallocated 4,43,073 4,13,850 4,07,188 4,43,073 4,07,188 4,26,622
Total 21,49,496 20,60,350 18,95,202 21,49,496 18,95,202 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.
As per the RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022
on establishment of Digital Banking Unit (DBU), for the purpose of disclosure
under 'Accounting Standard 17 - Segment Reporting', 'Digital Banking' has been
identified as a sub-segment of the existing 'Retail Banking' segment by
Reserve Bank of India (RBI). The DBU of the Bank has commenced operations
during the quarter and nine months ended December 31, 2022 and accordingly the
bank has disclosed the business involving digital banking products acquired by
DBU, together with existing digital banking products (including for
comparative periods, which are not audited), under the Digital Banking
segment.
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 Unaudited Financial Results for the quarter and nine
months ended December 31, 2022 were reviewed by the Audit Committee and
subsequently approved by the Board of Directors at its meeting held on January
16, 2023. 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 in the
preparation of the interim financial results as compared to those followed
in the consolidated annual financial statements 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,
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 Previous period's figures have been regrouped / reclassified, wherever
necessary to conform to current period's classification.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
January 16, 2023 (DIN: 02274773)
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