REG - Federal Bank Ltd The - Annual Financial Report
09/05/2023 07:00
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RNS Number : 6663Y Federal Bank Ltd (The) 08 May 2023
________________________________________________________________________
SEC/LSE/58/2023-24
08.05.2023
To
The London Stock Exchange
10 Paternoster Square
London
Dear Sir,
We enclose herewith the Audited Standalone and Consolidated Financial Results
of the Bank for the quarter and year ended March 31, 2023 which was approved
at the Bank's Board of Directors meeting held on May 05, 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 CHS, Anand Nagar Lane, Off Nehru Road, Santacruz (East),
Mumbai - 400 055
Off Kunjanbava Road, Vytilla,
Kochi -682019
Independent Auditors' report on Standalone quarterly and year ended Financial
Results of The Federal Bank Limited pursuant to the Regulation 33 and
Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015
To
The Board of Directors
The Federal Bank Limited
Report on Audit of the Standalone Financial Results
Opinion
1. We have audited the accompanying standalone Financial Results of
The Federal Bank Limited ("the Bank") for the quarter and year ended 31(st)
March 2023 ("standalone Financial Results") 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"), except for the disclosures relating to Pillar 3
disclosure as at 31(st) March 2023, 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 standalone
Financial Results and have not been audited by us.
2. 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 and Regulation 52 read with
Regulation 63(2) of the Listing Regulations in this regard
except for the disclosures relating to Pillar 3 disclosure as at
31(st) March 2023, 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 standalone Financial Results and have not been
audited by us; and
ii. give a true and fair view in conformity with the recognition and
measurement principles laid down in the applicable Accounting Standards
prescribed under Section 133 of the Companies Act 2013 (the "Act") read along
with the rules issued thereunder, relevant provisions of the Banking
Regulation Act, 1949, the circulars, guidelines and directions issued by the
Reserve Bank of India (RBI) from time to time ("RBI
Guidelines") and other accounting principles generally accepted in India, of
the net profit and other financial information for the quarter and year ended
31(st) March 2023.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the 'Auditors'
Responsibilities for the Audit of the Standalone Financial Results' section of
our report. We are independent of the Bank in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India together with
the ethical requirements that are relevant to our audit of the standalone
Financial Results, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the
audit evidence obtained by us is sufficient and appropriate to provide a basis
for our opinion.
Board of Directors responsibilities for the standalone financial results.
4. These standalone Financial Results have been prepared on the
basis of the audited standalone annual financial statements for the year ended
31(st) March 2023 and reviewed quarterly standalone unaudited Financial
Results upto the end of the quarter and period ended 31(st) December 2022.
The Bank's Board of Directors are responsible for the preparation of these
standalone Financial Results that give a true and fair view of the net profit
and other financial information in accordance with the recognition and
measurement principles laid down in the Accounting Standards specified under
section 133 of the Act read with rules issued thereunder, the relevant
provisions of the Banking Regulation Act, 1949, the RBI Guidelines and
other accounting principles generally accepted in India and in compliance
with the Listing Regulations. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act/RBI
Guidelines for safeguarding of the assets of the Bank and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
adequate internal financial controls that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the standalone
Financial Results that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
5. In preparing the standalone Financial Results, the Board of
Directors are responsible for assessing the Bank's ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Board of Directors
either intends to liquidate the Bank or to cease operations, or has no
realistic alternative but to do so.
6. The Board of Directors is also responsible for overseeing the
Bank's financial reporting process.
Auditors' Responsibilities for the Audit of the Standalone Financial Results
7. Our objectives are to obtain reasonable assurance about whether
the standalone Financial Results as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors' report
that includes our opinion. Reasonable assurance is a high level of assurance;
but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone Financial Results.
8. As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism throughout the
audit. We also:
· Identify and assess the risks of material misstatement of the
standalone Financial Results, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal
control.
· Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the circumstances.
Under Section 143(3) (i) of the Act, we are also responsible for expressing
our opinion on whether the Bank has in place adequate internal financial
controls with reference to standalone financial statements and the operating
effectiveness of such controls.
· Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by the
Board of Directors.
· Conclude on the appropriateness of the Board of Directors' use of
the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Bank's ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditors' report to the related disclosures
in the standalone Financial Results or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditors' report. However, future events or conditions
may cause the Bank to cease to continue as a going concern.
· Evaluate the overall presentation, structure, and content of the
standalone Financial Results, including the disclosures, and whether the
standalone Financial Results represent the underlying transactions and events
in a manner that achieves fair presentation.
9. We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control
that we identify during our audit.
10. We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable,
related safeguards.
Other Matter
11. The standalone Financial Results includes the results for the quarter
ended 31(st) March 2023, being the derived balancing figures between the
standalone audited figures in respect of the full financial year ended 31(st)
March 2023 and the published standalone unaudited year to date figures upto
the nine months ended 31(st) December 2022, of the current financial year
which have only been reviewed and not subjected to audit by us.
Our opinion on the standalone financial results is not modified in respect of
above 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:
23203094BGXYLZ4263
UDIN: 23100938BGQQRF6902
Kochi
Kochi
05(th) May
2023
05(th) May 2023
Varma & Varma Borkar & Muzumdar,
Chartered Accountants, Chartered Accountants,
No.53/2600, Kerala Varma Tower 21/168 Anand Nagar Om CHS, Anand Nagar Lane, Off Nehru Road, Santacruz (East),
Mumbai - 400 055
Off Kunjanbava Road, Vytilla,
Kochi -682019
Independent Auditors' report on Consolidated quarterly and year ended
Financial Results of The Federal Bank Limited pursuant to the Regulation 33
and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
To
The Board of Directors
The Federal Bank Limited
Report on Audit of the Consolidated Financial Results
Opinion
1. We have audited the accompanying Statement of Consolidated Financial
Results of The Federal Bank Limited ("Parent" or the "Bank"), its subsidiaries
(the Parent and its subsidiaries together referred to as "the Group") and its
associates for the quarter and year ended 31(st) March 2023 ("Consolidated
Financial Results"), 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"), except for the disclosures
relating to Pillar 3 disclosure as at 31(st) March 2023, 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
Consolidated Financial Results and have not been audited by us.
2. 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
the other auditors on separate audited financial statements/financial
results/financial information of the subsidiaries and associates, these
consolidated Financial Results:
i. include the annual audited financial results of the
following entities;
a. The Federal Bank Limited (Parent)
b. Fedbank Financial Services Limited (Subsidiary)
c. Federal Operations and Services Limited (Subsidiary)
d. Ageas Federal Life Insurance Company Limited (Associate)
e. Equirus Capital Private Limited (Associate)
ii. are presented in accordance with
the requirements of the Listing Regulations in this regard
except for the disclosures relating to Pillar 3 disclosure as at
31(st) March 2023, 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 consolidated Financial Results and have not been
audited by us; and
iii. give a true and fair view in conformity with the
recognition and measurement principles laid down in the applicable Accounting
Standards specified under section 133 of the Companies Act, 2013 ("the Act")
read along with the rules issued thereunder, relevant provisions of
the Banking Regulation Act, 1949, the circulars, guidelines and directions
issued by the Reserve Bank of India (RBI) from time to time
("RBI Guidelines") and other accounting principles generally accepted
in India of the consolidated net profit and other financial
information of the Group and its associates for the quarter and year ended
31(st) March 2023.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the 'Auditors'
Responsibilities for the Audit of the Consolidated Financial Results' section
of our report. We are independent of the Bank in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India together with
the ethical requirements that are relevant to our audit of the Consolidated
Financial Results, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the
audit evidence obtained by us and other auditors in terms of their report
referred to in "Other Matters" paragraph below, is sufficient and appropriate
to provide a basis for our opinion.
Board of Directors responsibilities for the consolidated financial results
4. These Consolidated Financial Results have been prepared on the
basis of the audited consolidated annual financial statements for the year
ended 31(st) March 2023 and reviewed quarterly consolidated unaudited
Financial Results upto the end of the quarter and period ended 31(st) December
2022. The Bank's Board of Directors are responsible for the preparation of
these Consolidated Financial Results that give a true and fair view of the
consolidated net profit and other financial information of the Group including
its associates in accordance with the recognition and measurement principles
laid down in the Accounting Standards specified under section 133 of the Act
read along with the rules issued thereunder, the relevant provisions
of the Banking Regulation Act, 1949, the RBI Guidelines and other
accounting principles generally accepted in India and in compliance with the
Listing Regulations. The respective Board of Directors of the entities
included in the Group and of its associates are responsible for the
maintenance of adequate accounting records in accordance with the provisions
of the Act/ RBI Guidelines for safeguarding of the assets of the Group and
its associates and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls that were operating
effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the
consolidated Financial Results that give a true and fair view and are free
from material misstatement, whether due to fraud or error which have been used
for the purpose of preparation of the Consolidated Financial Results by the
Directors of the Bank, as aforesaid.
5. In preparing the Consolidated Financial Results, the respective
Board of Directors of the entities included in the Group and of its associates
are responsible for assessing the ability of the Group and its associates
to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the respective entities in the Group
or to cease operations, or has no realistic alternative but to do so.
6. The respective Board of Directors of the entities included in the
Group and of its associates are responsible for overseeing the financial
reporting process of the Group and of its associates.
Auditors' Responsibilities for the Audit of the Consolidated Financial Results
7. Our objectives are to obtain reasonable assurance about whether
the consolidated Financial Results as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors' report
that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated Financial Results.
As part of an audit in accordance with SAs, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the
consolidated Financial Results, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal
control.
· Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the
circumstances. Under Section 143(3) (i) of the Act, we are also responsible
for expressing our opinion on whether the Bank has in place adequate internal
financial controls with reference to consolidated financial statements and the
operating effectiveness of such controls.
· Evaluate the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related disclosures made by the
Board of Directors.
· Conclude on the appropriateness of the Board of Directors'
use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the ability of the Group and of
its associates to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors' report
to the related disclosures in the consolidated Financial Results or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditors' report.
However, future events or conditions may cause the Group and its associates to
cease to continue as a going concern.
· Evaluate the overall presentation, structure, and content of
the consolidated Financial Results, including the disclosures, and whether the
consolidated Financial Results represent the underlying transactions and
events in a manner that achieves fair presentation.
· Obtain sufficient appropriate audit evidence regarding the
financial results/ financial information of the entities within the Group and
its associates to express an opinion on the Consolidated Financial Results. We
are responsible for the direction, supervision and performance of the audit of
financial information of such entities included in the Consolidated Financial
Results of which we are the independent auditors. For the other entities
included in the Consolidated Financial Results, which have been audited by
other auditors, such other auditors remain responsible for the direction,
supervision and performance of the audits carried out by them. We remain
solely responsible for our audit opinion.
8. We communicate with those charged with governance of the Bank and
such other entities included in the consolidated results of which we are the
independent auditors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
9. We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
10. We also performed procedures in accordance with the circular issued by
the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the
extent applicable.
Other Matters
11. The Consolidated Financial Results include the audited financial
results of one subsidiary, whose financial statements/financial
results/financial information reflect total assets of Rs. 2,607.24 lakhs as at
31(st) March 2023, total revenues of Rs. 6,185.27 lakhs and total net profit
after tax of Rs. 477.67 lakhs for the year ended 31(st) March 2023, and net
cash inflow amounting to Rs. 332.58 lakhs for the year ended on that date, as
considered in the Consolidated Financial Results, which have been audited by
one of the joint auditors of the Bank whose reports have been furnished to us
by the management. The Consolidated Financial Results also include the audited
financial results of one subsidiary, whose financial statements/financial
results/ financial information reflect total assets of Rs. 9,02,048 lakhs as
at 31(st) March 2023, total revenues of Rs. 1,22,597 lakhs and total net
profit after tax of Rs. 16,839 lakhs for the year ended 31(st) March 2023 and
net cash inflow amounting to Rs. 38,492 lakhs for the year ended on that date,
as considered in the Consolidated Financial Results, which have been audited
by other independent auditors whose reports have been furnished to us by the
management. Our opinion on the Consolidated Financial Results, in so far as it
relates to the amounts and disclosures included in respect of these
subsidiaries is based solely on the reports of such auditors and the
procedures performed by us are as stated in section above.
12. The Consolidated Financial Results also include the Group's share of
net profit of Rs. 3,405.97 lakhs for the year ended 31(st) March 2023, as
considered in the Consolidated Financial Results, in respect of two
associates, whose financial statements have not been audited by us. These
financial statements have been audited by other auditors whose report has been
furnished to us by the Management and our opinion on the Consolidated
Financial Results, in so far as it relates to the amounts and disclosures
included in respect of these associates, is based solely on the reports of
such auditors and the procedures performed by us are as stated in section
above.
13. The Consolidated Financial Results includes the results for the
quarter ended 31(st) March 2023, being the derived balancing figures between
the Consolidated audited Financial Results in respect of the full financial
year ended 31(st) March 2023 and the published consolidated unaudited year to
date figures upto the nine months ended 31(st) December 2022, which have only
been reviewed and not subjected to audit by us.
Our opinion on the Consolidated Financial Results is not modified in respect
of the above matters.
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:
23203094BGXYMA8002
UDIN: 23100938BGQQRG6621
Kochi
Kochi
05(th) May
2023
05(th) May 2023
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31,
2023
(₹ in Lakhs)
Particulars Quarter ended Year ended
31.03.2023 31.12.2022 31.03.2022 31.03.2023 31.03.2022
Audited Unaudited Audited Audited Audited
(Refer Note 12 below)
(Refer Note 12 below)
1. Interest earned (a)+(b)+(c)+(d) 472,074 443,325 348,324 1,680,363 1,366,076
(a) Interest/discount on advances/bills 379,743 358,487 275,446 1,349,184 1,082,975
(b) Income on investments 77,802 72,069 59,290 279,557 233,867
(c) Interest on balances with Reserve Bank of India and other inter bank funds 5,151 4,977 5,614 20,625 22,027
(d) Others 9,378 7,792 7,974 30,997 27,207
2. Other income 73,386 53,400 46,500 233,000 208,909
3. TOTAL INCOME (1+2) 545,460 496,725 394,824 1,913,363 1,574,985
4. Interest expended 281,145 247,672 195,803 957,147 769,880
5. Operating expenses (i)+(ii) 130,858 121,632 119,201 476,777 429,320
(i) Employees cost 59,722 56,083 63,725 217,300 232,055
(ii) Other operating expenses 71,136 65,549 55,476 259,477 197,265
6. TOTAL EXPENDITURE (4+5) 412,003 369,304 315,004 1,433,924 1,199,200
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 133,457 127,421 79,820 479,439 375,785
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies 11,666 19,869 7,524 74,989 122,177
9. Exceptional items - - - - -
10. Profit from Ordinary Activities before tax 121,791 107,552 72,296 404,450 253,608
(7-8-9)
11. Tax expense 31,530 27,191 18,242 103,391 64,626
12. Net Profit from Ordinary Activities after tax (10-11) 90,261 80,361 54,054 301,059 188,982
13. Extraordinary items (net of tax expense) - - - - -
14. Net Profit for the period (12-13) 90,261 80,361 54,054 301,059 188,982
15. Paid-up Equity Share Capital 42,324 42,291 42,051 42,324 42,051
(Face value ₹ 2/- per Equity Share)
16. Reserves excluding Revaluation Reserve 2,107,799 1,836,832
17. Analytical Ratios and Other Disclosures:
(i) Percentage of shares held by Government of India NIL NIL NIL NIL NIL
(ii) Capital Adequacy ratio (%)
Under Basel III 14.81 13.35 15.77 14.81 15.77
(iii) Earnings per Share (EPS) (in ₹)
(a) Basic EPS (before and after extraordinary items) 4.27* 3.80* 2.57* 14.27 9.13
(b) Diluted EPS (before and after extraordinary items) 4.21* 3.75* 2.55* 14.13 9.06
(iv) NPA Ratios
a) Gross NPA 418,377 414,785 413,674 418,377 413,674
b) Net NPA 120,501 122,859 139,262 120,501 139,262
c) % of Gross NPA 2.36 2.43 2.80 2.36 2.80
d) % of Net NPA 0.69 0.73 0.96 0.69 0.96
(v) Return on Assets (%) 0.36* 0.33* 0.25* 1.28 0.94
(vi) Net Worth 2,141,949 2,045,675 1,866,098 2,141,949 1,866,098
(vii) Outstanding Redeemable Preference Shares NIL NIL NIL NIL NIL
(viii) Capital Redemption Reserve NIL NIL NIL NIL NIL
(ix) Debenture Redemption Reserve NIL NIL NIL NIL NIL
(x) Debt - Equity Ratio (#) 0.90 0.96 0.82 0.90 0.82
(xi) Total Debts to Total Assets (#) 7.42% 7.86% 6.97% 7.42% 6.97%
(xii) Operating Margin 24.47% 25.65% 20.22% 25.06% 23.86%
(xiii) Net Profit Margin 16.55% 16.18% 13.69% 15.73% 12.00%
(*) Not Annualised
(#) Debt and Total Debts represents Total Borrowings of the Bank
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31,
2023
(₹ in Lakhs)
Particulars
Quarter ended
Year ended
31.03.2023
31.12.2022
31.03.2022
31.03.2023
31.03.2022
Audited
(Refer Note 12 below)
Unaudited
Audited
(Refer Note 12 below)
Audited
Audited
1. Interest earned (a)+(b)+(c)+(d)
472,074
443,325
348,324
1,680,363
1,366,076
(a)
Interest/discount on advances/bills
379,743
358,487
275,446
1,349,184
1,082,975
(b)
Income on investments
77,802
72,069
59,290
279,557
233,867
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
5,151
4,977
5,614
20,625
22,027
(d)
Others
9,378
7,792
7,974
30,997
27,207
2. Other income
73,386
53,400
46,500
233,000
208,909
3. TOTAL INCOME (1+2)
545,460
496,725
394,824
1,913,363
1,574,985
4. Interest expended
281,145
247,672
195,803
957,147
769,880
5. Operating expenses (i)+(ii)
130,858
121,632
119,201
476,777
429,320
(i)
Employees cost
59,722
56,083
63,725
217,300
232,055
(ii)
Other operating expenses
71,136
65,549
55,476
259,477
197,265
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)
412,003
369,304
315,004
1,433,924
1,199,200
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)
133,457
127,421
79,820
479,439
375,785
8. Provisions (other than tax) and contingencies
11,666
19,869
7,524
74,989
122,177
9. Exceptional items
-
-
-
-
-
10. Profit from Ordinary Activities before tax
(7-8-9)
121,791
107,552
72,296
404,450
253,608
11. Tax expense
31,530
27,191
18,242
103,391
64,626
12. Net Profit from Ordinary Activities after tax (10-11)
90,261
80,361
54,054
301,059
188,982
13. Extraordinary items (net of tax expense)
-
-
-
-
-
14. Net Profit for the period (12-13)
90,261
80,361
54,054
301,059
188,982
15. Paid-up Equity Share Capital
(Face value ₹ 2/- per Equity Share)
42,324
42,291
42,051
42,324
42,051
16. Reserves excluding Revaluation Reserve
2,107,799
1,836,832
17. Analytical Ratios and Other Disclosures:
(i)
Percentage of shares held by Government of India
NIL
NIL
NIL
NIL
NIL
(ii)
Capital Adequacy ratio (%)
Under Basel III
14.81
13.35
15.77
14.81
15.77
(iii)
Earnings per Share (EPS) (in ₹)
(a) Basic EPS (before and after extraordinary items)
4.27*
3.80*
2.57*
14.27
9.13
(b) Diluted EPS (before and after extraordinary items)
4.21*
3.75*
2.55*
14.13
9.06
(iv)
NPA Ratios
a) Gross NPA
418,377
414,785
413,674
418,377
413,674
b) Net NPA
120,501
122,859
139,262
120,501
139,262
c) % of Gross NPA
2.36
2.43
2.80
2.36
2.80
d) % of Net NPA
0.69
0.73
0.96
0.69
0.96
(v)
Return on Assets (%)
0.36*
0.33*
0.25*
1.28
0.94
(vi)
Net Worth
2,141,949
2,045,675
1,866,098
2,141,949
1,866,098
(vii)
Outstanding Redeemable Preference Shares
NIL
NIL
NIL
NIL
NIL
(viii)
Capital Redemption Reserve
NIL
NIL
NIL
NIL
NIL
(ix)
Debenture Redemption Reserve
NIL
NIL
NIL
NIL
NIL
(x)
Debt - Equity Ratio (#)
0.90
0.96
0.82
0.90
0.82
(xi)
Total Debts to Total Assets (#)
7.42%
7.86%
6.97%
7.42%
6.97%
(xii)
Operating Margin
24.47%
25.65%
20.22%
25.06%
23.86%
(xiii)
Net Profit Margin
16.55%
16.18%
13.69%
15.73%
12.00%
(*) Not Annualised
(#) Debt and Total Debts represents Total Borrowings of the Bank
Segment Information@
(₹ in Lakhs)
Particulars Quarter ended Year ended
31.03.2023 31.12.2022 31.03.2022 31.03.2023 31.03.2022
Audited Unaudited Audited Audited Audited
(Refer Note 12 below)
(Refer Note 12 below)
Segment Revenue:
Treasury 71,178 60,885 49,475 253,996 235,130
Corporate/Wholesale Banking 154,509 138,045 103,851 524,048 426,734
Retail Banking 315,179 293,526 236,429 1,120,482 898,700
a) Digital Banking 26,366 23,960 17,681 90,354 56,772
b) Other Retail Banking 288,813 269,566 218,748 1,030,128 841,928
Other Banking operations 4,444 4,153 3,400 14,350 10,800
Unallocated 150 116 1,669 487 3,621
Total Revenue 545,460 496,725 394,824 1,913,363 1,574,985
Less: Inter Segment Revenue - - - - -
Income from Operations 545,460 496,725 394,824 1,913,363 1,574,985
Segment Results (net of provisions):
Treasury 9,952 9,576 5,512 50,577 64,135
Corporate/Wholesale Banking 39,889 26,155 17,497 95,399 55,657
Retail Banking 68,022 68,175 44,728 245,789 121,015
a) Digital Banking 4,493 4,071 3,112 11,359 6,880
b) Other Retail Banking 63,529 64,104 41,616 234,430 114,135
Other Banking operations 3,778 3,530 2,890 12,198 9,180
Unallocated 150 116 1,669 487 3,621
Profit before tax 121,791 107,552 72,296 404,450 253,608
Segment Assets:
Treasury 5,230,629 4,907,856 4,768,440 5,230,629 4,768,440
Corporate/Wholesale Banking 9,699,651 9,375,662 7,858,857 9,699,651 7,858,857
Retail Banking 10,441,427 9,982,259 8,798,646 10,441,427 8,798,646
a) Digital Banking 416,592 355,734 204,346 416,592 204,346
b) Other Retail Banking 10,024,835 9,626,525 8,594,300 10,024,835 8,594,300
Other Banking operations - - - - -
Unallocated 662,476 781,411 668,688 662,476 668,688
Total 26,034,183 25,047,188 22,094,631 26,034,183 22,094,631
Segment Liabilities:
Treasury 2,913,818 2,607,512 1,802,189 2,913,818 1,802,189
Corporate/Wholesale Banking 2,424,409 2,245,069 1,867,906 2,424,409 1,867,906
Retail Banking 18,277,723 17,797,499 16,298,555 18,277,723 16,298,555
a) Digital Banking 1,203,720 1,082,117 627,564 1,203,720 627,564
b) Other Retail Banking 17,074,003 16,715,382 15,670,991 17,074,003 15,670,991
Other Banking operations - - - - -
Unallocated 267,609 338,338 246,597 267,609 246,597
Total 23,883,559 22,988,418 20,215,247 23,883,559 20,215,247
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 2,316,811 2,300,344 2,966,251 2,316,811 2,966,251
Corporate/Wholesale Banking 7,275,242 7,130,593 5,990,951 7,275,242 5,990,951
Retail Banking (7,836,296) (7,815,240) (7,499,909) (7,836,296) (7,499,909)
a) Digital Banking (787,128) (726,383) (423,218) (787,128) (423,218)
b) Other Retail Banking (7,049,168) (7,088,857) (7,076,691) (7,049,168) (7,076,691)
Other Banking operations - - - - -
Unallocated 394,867 443,073 422,091 394,867 422,091
Total 2,150,624 2,058,770 1,879,384 2,150,624 1,879,384
@ 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). Accordingly the bank has disclosed the business
involving digital banking products acquired by DBU, together with existing
digital banking products, 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.
Statement of Assets and Liabilities of the Bank as at March 31, 2023 is given
below:
(₹ in Lakhs)
Particulars As at 31.03.2023 As at 31.03.2022
Audited Audited
CAPITAL AND LIABILITIES
Capital 42,324 42,051
Reserves and Surplus 2,108,300 1,837,333
Deposits 21,338,604 18,170,059
Borrowings 1,931,928 1,539,311
Other Liabilities and Provisions 613,027 505,877
Total 26,034,183 22,094,631
ASSETS
Cash and Balances with Reserve Bank of India 1,259,085 1,604,927
Balance with Banks and Money at Call and Short Notice 509,783 496,108
Investments 4,898,335 3,917,946
Advances 17,444,688 14,492,833
Fixed Assets 93,397 63,394
Other Assets 1,828,895 1,519,423
Total 26,034,183 22,094,631
Notes:
1 The above Standalone Audited Financial Results for the quarter and year ended
March 31, 2023 were reviewed by the Audit Committee and approved by the Board
of Directors at its meeting held on May 05, 2023. These Results have been
subjected to Audit by the Statutory Central Auditors of the Bank and an
unqualified audit report has been issued.
2 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, 2023 and 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 year ended March 31, 2023, the Bank has allotted
1,630,775 and 13,637,270 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 The Board of Directors have recommended a dividend of 50% i.e. ` 1.00/- per
Equity Share on face value of ` 2/- each for the year 2022-23 (Previous Year `
1.80/- 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 occurring after the Balance sheet date" the Bank
has not appropriated proposed dividend aggregating to ` 21,162.01 Lakhs from
the Profit and loss account for the year ended March 31, 2023. 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, 2023.
9 Details of resolution plan implemented under the Resolution Framework for
COVID-19-related Stress as per RBI circular dated August 06, 2020 (Resolution
Framework 1.0) and May 05, 2021 (Resolution Framework 2.0) are given below:
(` in Lakhs)
Type of borrower Exposure to accounts Of (A), aggregate debt that slipped into NPA during the Of (A) amount Of (A) amount paid by the borrowers Exposure to accounts
classified as Standard
half-year
written off during the half-year
during the half- year(2)
classified as Standard
consequent to implementation of resolution plan - Position as at the
consequent to implementation of resolution plan - Position as at the
end of the previous half-year ended September 30 , 2022 (A) (1) end of this half-year ended March 31 , 2023 (1)
Personal Loans 191,029.53 8,032.09 - 13,480.56 171,125.31
Corporate persons 23,498.94 528.65 - 4,272.00 18,780.68
Of which, MSMEs - - - - -
Others 33,829.26 2,307.98 - 4,652.49 26,890.61
Total 248,357.73 10,868.72 - 22,405.05 216,796.60
1. Excludes other facilities to the borrowers which have not been
restructured.
2. Represents net movement in balance outstanding.
10 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 year ended March 31, 2023 are given below:
i) Details of loans not in default acquired through assignment during the year
ended March 31, 2023 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 year ended March 31, 2023, the bank has not acquired any
stressed loans and not transferred any loan not in default / Special Mention
Accounts (SMA).
iii) During the year ended March 31, 2023, the bank has not invested in
Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in
respect of stressed loans transferred to ARCs.
11 The bank has raised ` 99,500.00 Lakhs Tier II capital on March 29, 2023, by
way of issuance of unsecured Basel III compliant Tier-II Subordinate Bonds on
private placement basis.
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, which
were subjected to limited review.
13 Previous period's figures have been regrouped / reclassified, wherever
necessary to conform to current period's classification.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 05, 2023 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE AUDITED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2023
(₹ in Lakhs)
Particulars Year ended Year ended
March 31, 2023
March 31, 2022
Cash Flow from Operating Activities
Net Profit Before Taxes 404,450 253,608
Adjustments for:
Depreciation on Bank's Property 16,461 12,296
Provision / Depreciation on Investments 4,113 7,979
Amortisation of Premium on Held to Maturity Investments 17,446 16,923
Provision / Charge for Non Performing Advances 59,134 61,111
Provision for Standard Assets and Contingencies 16,523 61,222
(Profit)/Loss on Sale of Fixed Assets (net) (82) (531)
Dividend From Subsidiaries / Joint ventures / Associates (837) (2,767)
Employees Stock Option Expense 111 51
517,319 409,892
Adjustments for working capital changes:-
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] (65,669) (328,778)
(Increase)/ Decrease in Advances (3,010,990) (1,366,084)
(Increase)/ Decrease in Other Assets (297,492) (279,436)
Increase/ (Decrease) in Deposits 3,168,545 905,611
Increase/ (Decrease) in Other Liabilities and Provisions 90,627 93,340
(114,979) (975,347)
Direct taxes paid (net) (115,370) (84,286)
Net Cash Flow from / (Used in) Operating Activities 286,970 (649,741)
Cash Flow from Investing Activities
Purchase of Fixed Assets (46,683) (26,770)
Proceeds from Sale of Fixed Assets 302 724
Dividend From Subsidiaries / Joint ventures / Associates 837 2,767
Investment in Subsidiary - (14,799)
Investment in Associate - (241)
(Increase)/ Decrease in Held to Maturity Investments (936,280) 119,591
Net Cash generated / (Used in) Investing Activities (981,824) 81,272
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital 273 2,128
Proceeds from Share Premium (Net of Share Issue Expenses) 9,249 90,385
Proceeds from Issue of Subordinate Debt 99,500 70,000
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) 293,117 562,461
Dividend Paid (37,866) (13,974)
Net Cash generated from Financing Activities 364,273 711,000
Effect of Exchange Fluctuation on Translation Reserve (1,586) (635)
Net Increase / (Decrease) in Cash and Cash Equivalents (332,167) 141,896
Cash and Cash Equivalents at the beginning of the year 2,101,035 1,959,139
Cash and Cash Equivalents at the end of the year 1,768,868 2,101,035
Note:
Cash and Cash Equivalents comprise of Cash in hand (including foreign currency
notes), Balances with Reserve Bank of India, Balances with banks and money at
call and short notice.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 05, 2023 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH
31, 2023
(₹ in Lakhs)
Particulars Quarter ended Year ended
31.03.2023 31.12.2022 31.03.2022 31.03.2023 31.03.2022
Audited Unaudited Audited Audited Audited
(Refer Note 10 below)
(Refer Note 10 below)
1. Interest earned (a)+(b)+(c)+(d) 501,226 469,750 368,630 1,781,178 1,438,153
(a) Interest/discount on advances/bills 408,955 384,986 296,150 1,450,788 1,156,431
(b) Income on investments 77,561 71,785 58,821 278,188 231,649
(c) Interest on balances with Reserve Bank of India and other inter bank funds 5,151 4,977 5,614 20,625 22,027
(d) Others 9,559 8,002 8,045 31,577 28,046
2. Other income 76,842 56,508 48,425 243,623 212,094
3. TOTAL INCOME (1+2) 578,068 526,258 417,055 2,024,801 1,650,247
4. Interest expended 293,754 258,490 202,995 997,524 795,938
5. Operating expenses (i)+(ii) 144,915 132,986 127,884 521,120 459,215
(i) Employees cost 67,225 62,915 68,954 244,024 251,166
(ii) Other operating expenses 77,690 70,071 58,930 277,096 208,049
6. TOTAL EXPENDITURE (4+5) 438,669 391,476 330,879 1,518,644 1,255,153
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 139,399 134,782 86,176 506,157 395,094
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies 12,526 21,364 8,394 79,863 130,466
9. Exceptional items - - - - -
10. Profit from Ordinary Activities before tax 126,873 113,418 77,782 426,294 264,628
(7-8-9)
11. Tax expense 32,916 28,190 19,606 108,718 68,088
12. Net Profit from Ordinary Activities after tax (10-11) 93,957 85,228 58,176 317,576 196,540
13. Extraordinary items (net of tax expense) - - - - -
14. Net Profit for the period (12-13) 93,957 85,228 58,176 317,576 196,540
15. Minority interest 964 1,278 1,137 4,510 2,664
16. Share in Profit of Associates 2,398 375 1,715 3,406 3,103
17. Consolidated Net Profit of the group 95,391 84,325 58,754 316,472 196,979
(14-15+16)
18. Paid-up Equity Share Capital 42,324 42,291 42,051 42,324 42,051
(Face value ₹ 2/- per Equity Share)
19. Reserves excluding Revaluation Reserve 2,169,416 1,883,000
20. Analytical Ratios and Other Disclosures:
(i) Percentage of shares held by Government of India NIL NIL NIL NIL NIL
(ii) Capital Adequacy ratio (%)
Under Basel III 15.24 13.81 16.33 15.24 16.33
(iii) Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extraordinary items) 4.51* 3.99* 2.79* 15.01 9.52
(b) Diluted EPS (before and after extraordinary items) 4.45* 3.94* 2.77* 14.85 9.44
(iv) NPA Ratios
a) Gross NPA 434,352 430,899 425,653 434,352 425,653
b) Net NPA 132,344 134,855 147,977 132,344 147,977
c) % of Gross NPA 2.35 2.42 2.78 2.35 2.78
d) % of Net NPA 0.73 0.77 0.98 0.73 0.98
(v) Return on Assets (%) 0.36* 0.34* 0.27* 1.28 0.91
(*) Not Annualised
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH
31, 2023
(₹ in Lakhs)
Particulars
Quarter ended
Year ended
31.03.2023
31.12.2022
31.03.2022
31.03.2023
31.03.2022
Audited
(Refer Note 10 below)
Unaudited
Audited
(Refer Note 10 below)
Audited
Audited
1. Interest earned (a)+(b)+(c)+(d)
501,226
469,750
368,630
1,781,178
1,438,153
(a)
Interest/discount on advances/bills
408,955
384,986
296,150
1,450,788
1,156,431
(b)
Income on investments
77,561
71,785
58,821
278,188
231,649
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
5,151
4,977
5,614
20,625
22,027
(d)
Others
9,559
8,002
8,045
31,577
28,046
2. Other income
76,842
56,508
48,425
243,623
212,094
3. TOTAL INCOME (1+2)
578,068
526,258
417,055
2,024,801
1,650,247
4. Interest expended
293,754
258,490
202,995
997,524
795,938
5. Operating expenses (i)+(ii)
144,915
132,986
127,884
521,120
459,215
(i)
Employees cost
67,225
62,915
68,954
244,024
251,166
(ii)
Other operating expenses
77,690
70,071
58,930
277,096
208,049
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)
438,669
391,476
330,879
1,518,644
1,255,153
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)
139,399
134,782
86,176
506,157
395,094
8. Provisions (other than tax) and contingencies
12,526
21,364
8,394
79,863
130,466
9. Exceptional items
-
-
-
-
-
10. Profit from Ordinary Activities before tax
(7-8-9)
126,873
113,418
77,782
426,294
264,628
11. Tax expense
32,916
28,190
19,606
108,718
68,088
12. Net Profit from Ordinary Activities after tax (10-11)
93,957
85,228
58,176
317,576
196,540
13. Extraordinary items (net of tax expense)
-
-
-
-
-
14. Net Profit for the period (12-13)
93,957
85,228
58,176
317,576
196,540
15. Minority interest
964
1,278
1,137
4,510
2,664
16. Share in Profit of Associates
2,398
375
1,715
3,406
3,103
17. Consolidated Net Profit of the group
(14-15+16)
95,391
84,325
58,754
316,472
196,979
18. Paid-up Equity Share Capital
(Face value ₹ 2/- per Equity Share)
42,324
42,291
42,051
42,324
42,051
19. Reserves excluding Revaluation Reserve
2,169,416
1,883,000
20. Analytical Ratios and Other Disclosures:
(i)
Percentage of shares held by Government of India
NIL
NIL
NIL
NIL
NIL
(ii)
Capital Adequacy ratio (%)
Under Basel III
15.24
13.81
16.33
15.24
16.33
(iii)
Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extraordinary items)
4.51*
3.99*
2.79*
15.01
9.52
(b) Diluted EPS (before and after extraordinary items)
4.45*
3.94*
2.77*
14.85
9.44
(iv)
NPA Ratios
a) Gross NPA
434,352
430,899
425,653
434,352
425,653
b) Net NPA
132,344
134,855
147,977
132,344
147,977
c) % of Gross NPA
2.35
2.42
2.78
2.35
2.78
d) % of Net NPA
0.73
0.77
0.98
0.73
0.98
(v)
Return on Assets (%)
0.36*
0.34*
0.27*
1.28
0.91
(*) Not Annualised
Segment Information@
(₹ in Lakhs)
Particulars Quarter ended Year ended
31.03.2023 31.12.2022 31.03.2022 31.03.2023 31.03.2022
Audited Unaudited Audited Audited Audited
(Refer Note 10 below)
(Refer Note 10 below)
Segment Revenue:
Treasury 71,529 61,099 49,102 253,555 231,327
Corporate/Wholesale Banking 153,767 137,246 102,659 520,704 422,307
Retail Banking 346,307 321,779 258,742 1,228,710 978,155
a) Digital Banking 26,366 23,960 17,681 90,354 56,772
b) Other Retail Banking 319,941 297,819 241,061 1,138,356 921,383
Other Banking operations 6,293 5,920 4,883 21,225 14,837
Unallocated 172 214 1,669 607 3,621
Total Revenue 578,068 526,258 417,055 2,024,801 1,650,247
Less: Inter Segment Revenue - - - - -
Income from Operations 578,068 526,258 417,055 2,024,801 1,650,247
Segment Results (net of provisions):
Treasury 10,832 10,385 5,713 52,460 62,722
Corporate/Wholesale Banking 39,642 25,960 16,397 94,335 54,114
Retail Banking 70,018 72,405 50,418 261,538 133,433
a) Digital Banking 4,493 4,071 3,112 11,359 6,880
b) Other Retail Banking 65,525 68,334 47,306 250,179 126,553
Other Banking operations 4,671 4,455 3,585 15,817 10,738
Unallocated 1,710 213 1,669 2,144 3,621
Profit before tax 126,873 113,418 77,782 426,294 264,628
Segment Assets:
Treasury 5,206,924 4,896,686 4,763,764 5,206,924 4,763,764
Corporate/Wholesale Banking 9,672,729 9,342,502 7,808,465 9,672,729 7,808,465
Retail Banking 11,256,964 10,775,908 9,378,255 11,256,964 9,378,255
a) Digital Banking 416,592 355,734 204,346 416,592 204,346
b) Other Retail Banking 10,840,372 10,420,174 9,173,909 10,840,372 9,173,909
Other Banking operations 1,313 798 401 1,313 401
Unallocated 662,476 781,411 673,219 662,476 673,219
Total 26,800,406 25,797,305 22,624,104 26,800,406 22,624,104
Segment Liabilities:
Treasury 2,942,093 2,658,030 1,859,584 2,942,093 1,859,584
Corporate/Wholesale Banking 2,414,080 2,249,040 1,877,366 2,414,080 1,877,366
Retail Banking 18,928,892 18,402,087 16,684,108 18,928,892 16,684,108
a) Digital Banking 1,203,720 1,082,117 627,564 1,203,720 627,564
b) Other Retail Banking 17,725,172 17,319,970 16,056,544 17,725,172 16,056,544
Other Banking operations 294 314 364 294 364
Unallocated 267,609 338,338 246,597 267,609 246,597
Total 24,552,968 23,647,809 20,668,019 24,552,968 20,668,019
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 2,264,831 2,238,656 2,904,180 2,264,831 2,904,180
Corporate/Wholesale Banking 7,258,649 7,093,462 5,931,099 7,258,649 5,931,099
Retail Banking (7,671,928) (7,626,179) (7,305,853) (7,671,928) (7,305,853)
a) Digital Banking (787,128) (726,383) (423,218) (787,128) (423,218)
b) Other Retail Banking (6,884,800) (6,899,796) (6,882,635) (6,884,800) (6,882,635)
Other Banking operations 1,019 484 37 1,019 37
Unallocated 394,867 443,073 426,622 394,867 426,622
Total 2,247,438 2,149,496 1,956,085 2,247,438 1,956,085
@ 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). Accordingly the bank has disclosed the business
involving digital banking products acquired by DBU, together with existing
digital banking products, 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.
Statement of Assets and Liabilities of the group as at March 31, 2023 is given
below:
(` in Lakhs)
Particulars As at 31.03.2023 As at 31.03.2022
Audited Audited
CAPITAL AND LIABILITIES
Capital 42,324 42,051
Reserves and Surplus 2,169,917 1,883,501
Minority Interest 35,197 30,533
Deposits 21,298,850 18,167,752
Borrowings 2,586,198 1,958,739
Other Liabilities and Provisions 667,920 541,528
Total 26,800,406 22,624,104
ASSETS
Cash and Balances with Reserve Bank of India 1,260,424 1,606,611
Balance with Banks and Money at Call and Short Notice 519,969 507,000
Investments 4,870,224 3,906,519
Advances 18,195,675 14,995,146
Fixed Assets 97,171 67,210
Other Assets 1,856,943 1,541,618
Total 26,800,406 22,624,104
Notes:
1 The above Consolidated Audited Financial Results for the quarter and year
ended March 31, 2023 were reviewed by the Audit Committee and subsequently
approved by the Board of Directors at its meeting held on May 05, 2023. These
Results have been subjected to Audit by the Statutory Central Auditors of the
Bank and an unqualified audit 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 The group has not made any changes in the significant accounting policies
applied in the preparation of the quarterly financial results and its annual
financial statements for the years ended March 31, 2023 and March 31, 2022
having a material impact on the results.
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 The Board of Directors have recommended a dividend of 50% i.e. ` 1.00/- per
Equity Share on face value of ` 2/- each for the year 2022-23 (Previous Year `
1.80/- 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 occurring after the Balance sheet date" the Bank
has not appropriated proposed dividend aggregating to ` 21,162.01 Lakhs from
the Profit and loss account for the year ended March 31, 2023. 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, 2023.
9 The bank has raised ` 99,500.00 Lakhs Tier II capital on March 29, 2023, by
way of issuance of unsecured Basel III compliant Tier-II Subordinate Bonds on
private placement basis.
10 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, which
were subjected to limited review.
11 Previous period's figures have been regrouped / reclassified, wherever
necessary to conform to current period's classification.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 05, 2023 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED AUDITED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2023
(₹ in Lakhs)
Particulars Year ended Year ended
March 31, 2023
March 31, 2022
Cash Flow from Operating Activities
Net Profit Before Taxes 425,190 265,067
Adjustments for:
Depreciation on Group's Property 18,218 13,890
Provision / Depreciation on Investments 4,075 8,063
Amortisation of Premium on Held to Maturity Investments 17,446 16,922
Provision / Charge for Non Performing Advances 65,528 66,154
Provision for Standard Assets and Contingencies 15,003 64,384
(Profit)/ Loss on Sale of Fixed Assets (net) (83) (533)
Employees Stock Option Expense 113 57
545,490 434,004
Adjustments for working capital changes:-
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] (48,947) (377,928)
(Increase)/ Decrease in Advances (3,266,057) (1,509,859)
(Increase)/ Decrease in Other Assets (302,838) (281,657)
Increase/ (Decrease) in Deposits 3,131,098 949,142
Increase/ (Decrease) in Other Liabilities and Provisions 111,388 98,261
(375,356) (1,122,041)
Direct taxes paid (net) (121,204) (89,328)
Net Cash Flow from / (Used in) Operating Activities 48,930 (777,365)
Cash Flow from Investing Activities
Purchase of Fixed Assets (48,402) (29,552)
Proceeds from Sale of Fixed Assets 307 734
(Increase)/ Decrease in Held to Maturity Investments (936,279) 119,592
Net Cash generated / (Used in) Investing Activities (984,374) 90,774
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital 273 2,128
Proceeds from Share Premium (Net of Share Issue Expenses) 9,309 90,573
Increase / (Decrease) in Minority Interest 4,637 8,858
Proceeds from Issue of Subordinate Debt 99,500 70,480
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) 527,959 661,199
Dividend Paid (37,866) (13,974)
Net Cash generated from Financing Activities 603,812 819,264
Effect of Exchange Fluctuation on Translation Reserve (1,586) (635)
Increase/(Decrease) in Cash and Cash Equivalents (333,218) 132,038
Cash and Cash Equivalents at the beginning of the year 2,113,611 1,981,573
Cash and Cash Equivalents at the end of the year 1,780,393 2,113,611
Note:
Cash and Cash Equivalents comprise of Cash in hand (including foreign currency
notes), Balances with Reserve Bank of India, Balances with banks and money at
call and short notice.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 05, 2023 (DIN: 02274773)
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