REG - Federal Bank Ltd The - Unaudited Financial Results - 30.09.2023
31/10/2023 07:00
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RNS Number : 8356R Federal Bank Ltd (The) 31 October 2023
________________________________________________________________________
SD/LSE/286/2023-24
31.10.2023
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 and Half year ended September 30, 2023
which was approved at the Bank's Board of Directors meeting held on October
16, 2023.
Kindly take the same on your record.
For The Federal Bank Limited
Sd/-
Samir P Rajdev
Company Secretary
M S K A & Associates Suri & Co
602, Floor 6, Raheja Titanium Guna Complex, No.443 & 445,
Western Express Highway, Geetanjali, 4th Floor Main Building,
Railway Colony, Ram Nagar, Goregaon (E), Anna Salai, Teynampet,
Mumbai 400 063. Chennai 600 018.
Independent Auditor's Review Report on standalone unaudited financial results
for the quarter and half year ended September 30, 2023 of The Federal Bank
Limited pursuant to the Regulation 33 and Regulation 52 read with Regulation
63(2) of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, as amended.
The Board of Directors of
The Federal Bank Limited
1. We have reviewed the accompanying statement of standalone unaudited
financial results of The Federal Bank Limited ( )('the Bank') for the quarter
and half year ended September 30, 2023 (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 Securities and Exchange Board
of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 as
amended ('the Regulations') except, for the disclosures relating to Pillar 3
as at September 30, 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 Note 8 to the Statement and have not been reviewed by us.
2. This Statement, which is the responsibility of the Bank's Management
and has been approved by the Bank's Board of Directors, has been prepared in
accordance with the recognition and measurement principles laid down in
Accounting Standard 25 'Interim Financial Reporting' ('AS 25') prescribed
under section 133 of the Companies Act, 2013 read with relevant rules issued
thereunder, in so far as they apply to the Banks, 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 ('RBI
Guidelines'), other recognised accounting principles generally accepted in
India and is in compliance with the Regulations. 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 Engagements (SRE) 2410 "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity", issued by the
Institute of Chartered Accountants of India. 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 under section 143(10) of the Companies
Act 2013 and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
4. Based on our review conducted and procedures performed as stated in
paragraph 3 above, nothing has come to our attention that causes us to believe
that the accompanying Statement prepared in accordance with the recognition
and measurement principles laid down in AS 25, prescribed under Section 133 of
the Companies Act, 2013 read with relevant rules issued thereunder, the RBI
Guidelines and other recognised accounting principles generally accepted in
India has not disclosed the information required to be disclosed in terms of
the Regulations, including the manner in which it is to be disclosed or that
it contains material misstatement or that it has not been prepared in
accordance with the relevant prudential norms issued by the RBI in respect of
income recognition, asset classification, provisioning and other related
matters, except for the disclosures relating to Pillar 3 disclosures as at
September 30, 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 Note 8 to the Statement and have not been reviewed by us.
5. The Statement includes the standalone financial results of the Bank for
the quarter ended June 30, 2023 and corresponding quarter and half year ended
September 30, 2022, which were reviewed by another auditors whose report dated
July 13, 2023 and October 14, 2022 respectively, expressed an unmodified
conclusion on those standalone financial results. The Statement also includes
the standalone financial statements of the Bank for the year ended March 31,
2023 which were audited by another auditors whose report dated May 05, 2023
expressed an unmodified opinion on the standalone financial statements.
Our conclusion is not modified in respect of this matter.
For M S K A & Associates For Suri & Co
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number: 105047W ICAI Firm Registration Number: 004283S
Swapnil Kale G. Rengarajan
Partner Partner
Membership Number: 117812 Membership Number: 219922
UDIN: 23117812BGXRCG7931 UDIN: 23219922BGWKLY5781
Kochi Kochi
October 16, 2023 October 16, 2023
M S K A & Associates Suri & Co
602, Floor 6, Raheja Titanium Guna Complex, No.443 & 445,
Western Express Highway, Geetanjali, 4th Floor Main Building,
Railway Colony, Ram Nagar, Goregaon (E), Anna Salai, Teynampet,
Mumbai 400 063. Chennai 600 018.
Independent Auditor's Review Report on consolidated unaudited financial
results for the quarter and half year ended September 30, 2023 of The Federal
Bank Limited pursuant to the Regulation 33 of the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, as amended.
The Board of Directors of
The Federal Bank Limited
1. We have reviewed the accompanying statement of consolidated
unaudited 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 half year ended September 30, 2023 ('the Statement'), being
submitted by the Bank pursuant to the requirement of Regulation 33 of the
Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended ('the Regulations') except, for
the disclosures relating to consolidated Pillar 3 as at September 30, 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 Note 7 to the
Statement and have not been reviewed by us.
2. This Statement, which is the responsibility of the Bank's
Management and has been approved by the Bank's Board of Directors, has been
prepared in accordance with the recognition and measurement principles laid
down in Accounting Standard 25 "Interim Financial Reporting' ('AS 25'),
prescribed under Section 133 of the Companies Act, 2013, read with relevant
rules issued thereunder, in so far as they apply to the Banks, 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 recognised accounting principles
generally accepted in India and is in compliance with the Regulations. 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 Engagements (SRE) 2410 "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity", issued by the
Institute of Chartered Accountants of India. 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 specified under section 143(10) of the
Companies Act, 2013 and consequently, does not enable us to obtain assurance
that we would become aware of all significant matters that might be identified
in an audit. Accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the
SEBI under Regulation 33(8) of the Regulations, to the extent applicable.
4. The Statement includes the financial results / financial
information of the Bank and the following entities:
Sr. No Name of the Entity Relationship with the Bank
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
5. Based on our review conducted and procedures performed as stated in
paragraph 3 above and based on the consideration of the review report of the
other auditor referred to in paragraph 6 below and based on the financial
information certified by the Management for the subsidiary and the associates
as stated in paragraph 7 below, nothing has come to our attention that causes
us to believe that the accompanying Statement, prepared in accordance with the
recognition and measurement principles laid down in AS 25 prescribed under
Section 133 of the Companies Act, 2013 read with relevant rules issued
thereunder, RBI Guidelines and other recognised accounting principles
generally accepted in India, has not disclosed the information required to be
disclosed in terms of the Regulation, 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
RBI in respect of income recognition, asset classification, provisioning and
other related matters except, for the disclosures relating to consolidated
Pillar 3 disclosure as at September 30, 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 Note 7 to the Consolidated Statement and
have not been reviewed by us.
6. We did not review the interim financial results of one subsidiary
included in the Statement, whose interim financial results reflect total
assets of Rs. 2,940.31 lakhs as at September 30, 2023 and total revenues of
Rs. 1,906.56 lakhs and Rs. 3,692.30 lakhs and total net profit after tax of
Rs. 142.58 lakhs and Rs. 279.58 lakhs for the quarter and half year ended
September 30, 2023, respectively, and net cash flows of Rs. (505.62) lakhs for
the half year ended September 30, 2023, as considered in the Statement. These
interim financial results have been reviewed by other auditors whose reports
have been furnished to us by the Management of the Bank and our conclusion on
the Statement, in so far as it relates to the amounts and disclosures included
in respect of these subsidiaries, is based solely on the reports of the other
auditors.
Our conclusion is not modified in respect of the above matter.
7. The Statement includes the interim financial information of one
subsidiary which have not been reviewed by their auditor, whose interim
financial information reflect total assets of Rs. 10,01,246 lakhs as at
September 30, 2023 and total revenues of Rs. 39,415 lakhs and Rs. 76,721 lakhs
and total net profit after tax of Rs. 4,540 lakhs and Rs. 9,683 lakhs for the
quarter and half year ended September 30, 2023, respectively, and net cash
flows of Rs. 46,042 lakhs for the half year ended September 30, 2023, as
considered in the Statement. The Statement also includes the Group's share of
net profit after tax of Rs. 654.63 lakhs and Rs. 870.57 lakhs for the quarter
and half year ended September 30, 2023 respectively, as considered in the
Statement, in respect of two associates, based on their interim financial
information which have not been reviewed by their auditors. These interim
financial information have been furnished to us by the 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
management prepared unaudited interim financial information. According to the
information and explanations given to us by the Management, these interim
financial information are not material to the Group.
Our conclusion is not modified in respect of the above matter.
8. The Statement includes the consolidated financial results of the Bank
for the quarter ended June 30, 2023 and corresponding quarter and half year
ended September 30, 2022, which were reviewed by another auditors whose report
dated July 13, 2023 and October 14, 2022 respectively, expressed an unmodified
conclusion on those consolidated financial results. The Statement also
includes the consolidated financial statements of the Bank for the year ended
March 31, 2023 which were audited by another auditors whose report dated May
05, 2023 expressed an unmodified opinion on the consolidated financial
statements.
Our conclusion is not modified in respect of the above
matter.
For M S K A & Associates For Suri & Co
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number: 105047W ICAI Firm Registration Number: 004283S
Swapnil Kale G. Rengarajan
Partner Partner
Membership Number: 117812 Membership Number: 219922
UDIN: 23117812BGXRCF4558 UDIN: 23219922BGWKLZ3968
Kochi Kochi
October 16, 2023 October 16, 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 HALF YEAR ENDED
SEPTEMBER 30, 2023
(₹ in Lakhs)
Particulars Quarter ended Half Year ended Year ended
30.09.2023 30.06.2023 30.09.2022 30.09.2023 30.09.2022 31.03.2023
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
1. Interest earned (a)+(b)+(c)+(d) 5,45,528 5,02,453 4,02,078 10,47,981 7,64,964 16,80,363
(a) Interest/discount on advances/bills 4,35,548 4,03,958 3,22,272 8,39,506 6,10,954 13,49,184
(b) Income on investments 89,397 81,486 66,737 1,70,883 1,29,686 2,79,557
(c) Interest on balances with Reserve Bank of India and other inter bank funds 9,028 7,093 6,017 16,121 10,497 20,625
(d) Others 11,555 9,916 7,052 21,471 13,827 30,997
2. Other income 73,042 73,241 60,952 1,46,283 1,06,214 2,33,000
3. TOTAL INCOME (1+2) 6,18,570 5,75,694 4,63,030 11,94,264 8,71,178 19,13,363
4. Interest expended 3,39,886 3,10,594 2,25,895 6,50,480 4,28,330 9,57,147
5. Operating expenses (i)+(ii) 1,46,239 1,34,865 1,15,911 2,81,104 2,24,287 4,76,777
(i) Employees cost 62,631 61,674 51,563 1,24,305 1,01,495 2,17,300
(ii) Other operating expenses 83,608 73,191 64,348 1,56,799 1,22,792 2,59,477
6. TOTAL EXPENDITURE (4+5) 4,86,125 4,45,459 3,41,806 9,31,584 6,52,617 14,33,924
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 1,32,445 1,30,235 1,21,224 2,62,680 2,18,561 4,79,439
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies 4,390 15,558 26,786 19,948 43,454 74,989
9. Exceptional items - - - - - -
10. Profit from Ordinary Activities before tax 1,28,055 1,14,677 94,438 2,42,732 1,75,107 4,04,450
(7-8-9)
11. Tax expense 32,673 29,303 24,067 61,976 44,670 1,03,391
12. Net Profit from Ordinary Activities after tax (10-11) 95,382 85,374 70,371 1,80,756 1,30,437 3,01,059
13. Extraordinary items (net of tax expense) - - - - - -
14. Net Profit for the period (12-13) 95,382 85,374 70,371 1,80,756 1,30,437 3,01,059
15. Paid-up Equity Share Capital 47,032 42,360 42,191 47,032 42,191 42,324
(Face value ₹ 2/- per Equity Share)
16. Reserves excluding Revaluation Reserve 21,07,799
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 15.50 14.28 13.84 15.50 13.84 14.81
(iii) Earnings per Share (EPS) (in ₹)
(a) Basic EPS (before and after extraordinary items) 4.17* 4.03* 3.34* 8.20* 6.20* 14.27
(b) Diluted EPS (before and after extraordinary items) 4.12* 3.98* 3.31* 8.10* 6.14* 14.13
(iv) NPA Ratios
a) Gross NPA 4,43,605 4,43,477 4,03,106 4,43,605 4,03,106 4,18,377
b) Net NPA 1,22,981 1,27,459 1,26,235 1,22,981 1,26,235 1,20,501
c) % of Gross NPA 2.26 2.38 2.46 2.26 2.46 2.36
d) % of Net NPA 0.64 0.69 0.78 0.64 0.78 0.69
(v) Return on Assets (%) 0.34* 0.32* 0.30* 0.66* 0.58* 1.28
(vi) Net Worth 26,03,207 22,24,775 19,61,782 26,03,207 19,61,782 21,41,949
(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 (#) 0.74 0.95 1.04 0.74 1.04 0.90
(xi) Total Debts to Total Assets (#) 6.67% 7.72% 8.61% 6.67% 8.61% 7.42%
(xii) Operating Margin 21.41% 22.62% 26.18% 22.00% 25.09% 25.06%
(xiii) Net Profit Margin 15.42% 14.83% 15.20% 15.14% 14.97% 15.73%
(*) 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 UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED
SEPTEMBER 30, 2023
(₹ in Lakhs)
Particulars
Quarter ended
Half Year ended
Year ended
30.09.2023
30.06.2023
30.09.2022
30.09.2023
30.09.2022
31.03.2023
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
1. Interest earned (a)+(b)+(c)+(d)
5,45,528
5,02,453
4,02,078
10,47,981
7,64,964
16,80,363
(a)
Interest/discount on advances/bills
4,35,548
4,03,958
3,22,272
8,39,506
6,10,954
13,49,184
(b)
Income on investments
89,397
81,486
66,737
1,70,883
1,29,686
2,79,557
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
9,028
7,093
6,017
16,121
10,497
20,625
(d)
Others
11,555
9,916
7,052
21,471
13,827
30,997
2. Other income
73,042
73,241
60,952
1,46,283
1,06,214
2,33,000
3. TOTAL INCOME (1+2)
6,18,570
5,75,694
4,63,030
11,94,264
8,71,178
19,13,363
4. Interest expended
3,39,886
3,10,594
2,25,895
6,50,480
4,28,330
9,57,147
5. Operating expenses (i)+(ii)
1,46,239
1,34,865
1,15,911
2,81,104
2,24,287
4,76,777
(i)
Employees cost
62,631
61,674
51,563
1,24,305
1,01,495
2,17,300
(ii)
Other operating expenses
83,608
73,191
64,348
1,56,799
1,22,792
2,59,477
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)
4,86,125
4,45,459
3,41,806
9,31,584
6,52,617
14,33,924
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)
1,32,445
1,30,235
1,21,224
2,62,680
2,18,561
4,79,439
8. Provisions (other than tax) and contingencies
4,390
15,558
26,786
19,948
43,454
74,989
9. Exceptional items
-
-
-
-
-
-
10. Profit from Ordinary Activities before tax
(7-8-9)
1,28,055
1,14,677
94,438
2,42,732
1,75,107
4,04,450
11. Tax expense
32,673
29,303
24,067
61,976
44,670
1,03,391
12. Net Profit from Ordinary Activities after tax (10-11)
95,382
85,374
70,371
1,80,756
1,30,437
3,01,059
13. Extraordinary items (net of tax expense)
-
-
-
-
-
-
14. Net Profit for the period (12-13)
95,382
85,374
70,371
1,80,756
1,30,437
3,01,059
15. Paid-up Equity Share Capital
(Face value ₹ 2/- per Equity Share)
47,032
42,360
42,191
47,032
42,191
42,324
16. Reserves excluding Revaluation Reserve
21,07,799
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
15.50
14.28
13.84
15.50
13.84
14.81
(iii)
Earnings per Share (EPS) (in ₹)
(a) Basic EPS (before and after extraordinary items)
4.17*
4.03*
3.34*
8.20*
6.20*
14.27
(b) Diluted EPS (before and after extraordinary items)
4.12*
3.98*
3.31*
8.10*
6.14*
14.13
(iv)
NPA Ratios
a) Gross NPA
4,43,605
4,43,477
4,03,106
4,43,605
4,03,106
4,18,377
b) Net NPA
1,22,981
1,27,459
1,26,235
1,22,981
1,26,235
1,20,501
c) % of Gross NPA
2.26
2.38
2.46
2.26
2.46
2.36
d) % of Net NPA
0.64
0.69
0.78
0.64
0.78
0.69
(v)
Return on Assets (%)
0.34*
0.32*
0.30*
0.66*
0.58*
1.28
(vi)
Net Worth
26,03,207
22,24,775
19,61,782
26,03,207
19,61,782
21,41,949
(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 (#)
0.74
0.95
1.04
0.74
1.04
0.90
(xi)
Total Debts to Total Assets (#)
6.67%
7.72%
8.61%
6.67%
8.61%
7.42%
(xii)
Operating Margin
21.41%
22.62%
26.18%
22.00%
25.09%
25.06%
(xiii)
Net Profit Margin
15.42%
14.83%
15.20%
15.14%
14.97%
15.73%
(*) Not Annualised
(#) Debt and Total Debts represents Total Borrowings of the Bank
Segment Information@
(₹ in Lakhs)
Particulars Quarter ended Half Year ended Year ended
30.09.2023 30.06.2023 30.09.2022 30.09.2023 30.09.2022 31.03.2023
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
Segment Revenue:
Treasury 88,824 77,243 67,069 1,66,067 1,21,933 2,53,996
Corporate/Wholesale Banking 1,81,524 1,64,245 1,23,736 3,45,769 2,31,494 5,24,048
Retail Banking 3,42,915 3,31,117 2,68,416 6,74,032 5,11,777 11,20,482
a) Digital Banking 36,622 30,340 22,729 66,962 40,028 90,354
b) Other Retail Banking 3,06,293 3,00,777 2,45,687 6,07,070 4,71,749 10,30,128
Other Banking operations 5,204 2,949 3,630 8,153 5,753 14,350
Unallocated 103 140 179 243 221 487
Total Revenue 6,18,570 5,75,694 4,63,030 11,94,264 8,71,178 19,13,363
Less: Inter Segment Revenue - - - - - -
Income from Operations 6,18,570 5,75,694 4,63,030 11,94,264 8,71,178 19,13,363
Segment Results (net of provisions):
Treasury 16,790 11,255 18,469 28,045 31,049 50,577
Corporate/Wholesale Banking 44,512 40,024 14,850 84,536 29,355 95,399
Retail Banking 62,228 60,751 57,855 1,22,979 1,09,592 2,45,789
a) Digital Banking 4,680 3,520 3,203 8,200 2,795 11,359
b) Other Retail Banking 57,548 57,231 54,652 1,14,779 1,06,797 2,34,430
Other Banking operations 4,423 2,507 3,085 6,930 4,890 12,198
Unallocated 102 140 179 242 221 487
Profit before tax 1,28,055 1,14,677 94,438 2,42,732 1,75,107 4,04,450
Segment Assets:
Treasury 57,46,602 55,44,511 43,88,999 57,46,602 43,88,999 52,30,629
Corporate/Wholesale Banking 1,05,93,983 98,95,207 89,70,342 1,05,93,983 89,70,342 96,99,651
Retail Banking 1,16,79,738 1,12,69,975 95,72,293 1,16,79,738 95,72,293 1,04,41,427
a) Digital Banking 5,54,182 4,82,219 2,69,151 5,54,182 2,69,151 4,16,592
b) Other Retail Banking 1,11,25,556 1,07,87,756 93,03,142 1,11,25,556 93,03,142 1,00,24,835
Other Banking operations - - - - - -
Unallocated 7,22,279 7,09,865 7,79,609 7,22,279 7,79,609 6,62,476
Total 2,87,42,602 2,74,19,558 2,37,11,243 2,87,42,602 2,37,11,243 2,60,34,183
Segment Liabilities:
Treasury 29,66,715 30,91,221 22,74,543 29,66,715 22,74,543 29,13,818
Corporate/Wholesale Banking 29,69,197 26,25,089 19,85,235 29,69,197 19,85,235 24,24,409
Retail Banking 1,98,83,203 1,91,51,679 1,71,10,829 1,98,83,203 1,71,10,829 1,82,77,723
a) Digital Banking 13,71,578 12,74,681 8,90,517 13,71,578 8,90,517 12,03,720
b) Other Retail Banking 1,85,11,625 1,78,76,998 1,62,20,312 1,85,11,625 1,62,20,312 1,70,74,003
Other Banking operations - - - - - -
Unallocated 3,11,604 3,14,055 3,65,759 3,11,604 3,65,759 2,67,609
Total 2,61,30,719 2,51,82,044 2,17,36,366 2,61,30,719 2,17,36,366 2,38,83,559
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 27,79,887 24,53,290 21,14,456 27,79,887 21,14,456 23,16,811
Corporate/Wholesale Banking 76,24,786 72,70,118 69,85,107 76,24,786 69,85,107 72,75,242
Retail Banking (82,03,465) (78,81,704) (75,38,536) (82,03,465) (75,38,536) (78,36,296)
a) Digital Banking (8,17,396) (7,92,462) (6,21,366) (8,17,396) (6,21,366) (7,87,128)
b) Other Retail Banking (73,86,069) (70,89,242) (69,17,170) (73,86,069) (69,17,170) (70,49,168)
Other Banking operations - - - - - -
Unallocated 4,10,675 3,95,810 4,13,850 4,10,675 4,13,850 3,94,867
Total 26,11,883 22,37,514 19,74,877 26,11,883 19,74,877 21,50,624
@ 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 September 30, 2023 is
given below:
(₹ in Lakhs)
Particulars As at 30.09.2023 As at 30.09.2022 As at 31.03.2023
Unaudited Unaudited Audited
CAPITAL AND LIABILITIES
Capital 47,032 42,191 42,324
Reserves and Surplus 25,64,851 19,32,686 21,08,300
Deposits 2,32,86,843 1,89,14,571 2,13,38,604
Borrowings 19,18,084 20,41,318 19,31,928
Other Liabilities and Provisions 9,25,792 7,80,477 6,13,027
Total 2,87,42,602 2,37,11,243 2,60,34,183
ASSETS
Cash and Balances with Reserve Bank of India 15,00,131 12,65,431 12,59,085
Balance with Banks and Money at Call and Short Notice 4,98,462 2,33,946 5,09,783
Investments 55,16,914 43,57,131 48,98,335
Advances 1,92,81,669 1,61,24,032 1,74,44,688
Fixed Assets 93,754 71,693 93,397
Other Assets 18,51,672 16,59,010 18,28,895
Total 2,87,42,602 2,37,11,243 2,60,34,183
Notes:
1 The above Standalone Unaudited Financial Results for the quarter and half year
ended September 30, 2023 were reviewed by the Audit Committee and approved by
the Board of Directors at its meeting held on October 16, 2023. These results
have been subjected to limited review by the Joint Statutory Auditors of the
Bank and an unqualified review report has been issued.
2 The Bank has consistently applied its 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, 2023.
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 half year ended September 30, 2023, the Bank has
allotted 3,098,755 and 4,913,875 equity shares of ` 2 each respectively,
pursuant to the exercise of stock options by employees.
7 During the quarter and half year September 30, 2023, the Bank has issued
230,477,634 equity shares of ` 2 each for cash pursuant to a Qualified
Institution Placement (QIP) as per the relevant provisions of SEBI (Issue of
Capital and Disclosure Requirements) Regulations, 2018 at ` 131.90 per share
aggregating to ` 304,000.00 Lakhs (including share premium). This resulted in
an increase of ` 4,609.55 Lakhs in Share Capital and ` 295,416.80 Lakhs (net
of issue expenses) in Share premium account.
8 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 Joint
Statutory Auditors of the Bank.
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 March 31 , 2023 (A) ((1)) end of this half-year ended September 30 , 2023 ((1),(3))
Personal Loans 1,71,125.31 10,550.34 - 14,932.29 1,46,913.60
Corporate persons 18,780.68 170.67 - 4,836.81 13,902.19
Of which, MSMEs - - - - -
Others 26,890.61 1,145.23 - 3,771.09 22,325.98
Total 2,16,796.60 11,866.24 - 23,540.19 1,83,141.77
1. Excludes other facilities to the borrowers which have not been
restructured.
2. Represents net movement in balance outstanding.
3. Includes accounts which were classified as NPA earlier and subsequently
upgraded to standard during the half year ended September 30, 2023.
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 half year ended September 30, 2023 are given
below:
i) Details of loans not in default acquired through assignment during the half
year ended September 30, 2023 are given below:
Particulars Value
Aggregate amount of loans acquired (` in lakhs) 91,253.22
Weighted average residual maturity (in years) 9.15
Weighted average holding period by originator (in years) 1.35
Retention of beneficial economic interest by the originator (` in lakhs) 10,139.25
Tangible security coverage 172.30%
The loans acquired are not rated as the same are to non-corporate borrowers.
ii) Details of non-performing assets (NPAs) transferred are given below:
(` in lakhs except number of accounts)
Particulars To ARCs To Permitted Transferees To other Transferees
Number of accounts 6 - -
Aggregate principal outstanding of loans transferred 1,824.09 - -
Weighted average residual tenor of the loans transferred (in years) 1.83 - -
Net book value of loans transferred (at the time of transfer) 167.77 - -
Aggregate consideration 1,200.00 - -
Additional consideration realized in respect of accounts transferred in - - -
earlier years
Provisions reversed to the profit and loss account on account of sale of 492.29 - -
stressed loans
iii) During the half year ended September 30, 2023, the Bank has not acquired
any stressed loans and not transferred any loan not in default / Special
Mention Accounts (SMA).
iv) During the half year ended September 30, 2023, the Bank has invested
`510.00 lakhs in Security Receipts (SR) issued by an Asset Reconstruction
Company (ARC) pursuant to transfer of Non-Performing asset to ARC, which is
unrated.
11 On October 11, 2023, the Bank has issued 72,682,048 equity shares of ` 2 each
for cash pursuant to a Preferential Allotment as per the relevant provisions
of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at
`131.91 per share aggregating to ` 95,874.89 Lakhs (including share premium).
12 The figures for the quarter ended June 30, 2023, quarter and half year ended
September 30, 2022 and year ended March 31, 2023 were reviewed / audited by
previous Joint Statutory Auditors.
13 Previous period's figures have been regrouped / reclassified, wherever
necessary to conform to current period's classification.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
October 16, 2023 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE UNAUDITED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30,
2023
(₹ in Lakhs)
Particulars Half Year ended Half Year ended
September 30, 2023
September 30, 2022
Cash Flow from Operating Activities
Net Profit Before Taxes 2,42,732 1,75,107
Adjustments for:
Depreciation on Bank's Property 10,366 7,423
Provision / Depreciation on Investments (1,958) 1,537
Amortisation of Premium on Held to Maturity Investments 8,645 8,687
Provision / Charge for Non Performing Advances 24,250 35,500
Provision for Standard Assets and Contingencies (3,900) 8,104
(Profit)/Loss on Sale of Fixed Assets (net) (156) (5)
Dividend From Subsidiaries / Associates (1,525) (771)
Employees Stock Option Expense 74 50
2,78,528 2,35,632
Adjustments for working capital changes:-
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] (2,36,878) 50,081
(Increase)/ Decrease in Advances (18,61,231) (16,66,700)
(Increase)/ Decrease in Other Assets (19,714) (1,40,188)
Increase/ (Decrease) in Deposits 19,48,239 7,44,512
Increase/ (Decrease) in Other Liabilities and Provisions 3,16,666 2,66,496
1,47,082 (7,45,799)
Direct taxes paid (net) (65,039) (44,069)
Net Cash Flow from / (Used in) Operating Activities 3,60,571 (5,54,236)
Cash Flow from Investing Activities
Purchase of Fixed Assets (10,795) (15,820)
Proceeds from Sale of Fixed Assets 227 103
Dividend From Subsidiaries / Associates 1,525 771
(Increase)/ Decrease in Held to Maturity Investments (3,88,388) (4,99,489)
Net Cash generated / (Used in) Investing Activities (3,97,431) (5,14,435)
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital 4,708 140
Proceeds from Share Premium (Net of Share Issue Expenses) 2,99,486 4,011
Proceeds from Issue of Subordinate Debt - -
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) (13,845) 5,02,006
Dividend Paid (23,491) (37,866)
Net Cash generated from Financing Activities 2,66,858 4,68,291
Effect of Exchange Fluctuation on Translation Reserve (273) (1,278)
Net Increase / (Decrease) in Cash and Cash Equivalents 2,29,725 (6,01,658)
Cash and Cash Equivalents at the beginning of the period 17,68,868 21,01,035
Cash and Cash Equivalents at the end of the period 19,98,593 14,99,377
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
October 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 HALF YEAR ENDED
SEPTEMBER 30, 2023
(₹ in Lakhs)
Particulars Quarter ended Half Year ended Year ended
30.09.2023 30.06.2023 30.09.2022 30.09.2023 30.09.2022 31.03.2023
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
1. Interest earned (a)+(b)+(c)+(d) 5,79,128 5,34,977 4,25,893 11,14,105 8,10,202 17,81,178
(a) Interest/discount on advances/bills 4,69,147 4,36,293 3,46,427 9,05,440 6,56,847 14,50,788
(b) Income on investments 89,237 81,475 66,308 1,70,712 1,28,842 2,78,188
(c) Interest on balances with Reserve Bank of India and other inter bank funds 9,028 7,093 6,017 16,121 10,497 20,625
(d) Others 11,716 10,116 7,141 21,832 14,016 31,577
2. Other income 75,692 74,131 62,765 1,49,823 1,10,273 2,43,623
3. TOTAL INCOME (1+2) 6,54,820 6,09,108 4,88,658 12,63,928 9,20,475 20,24,801
4. Interest expended 3,54,414 3,25,451 2,34,904 6,79,865 4,45,280 9,97,524
5. Operating expenses (i)+(ii) 1,60,378 1,46,944 1,25,639 3,07,322 2,43,219 5,21,120
(i) Employees cost 71,349 69,326 58,047 1,40,675 1,13,884 2,44,024
(ii) Other operating expenses 89,029 77,618 67,592 1,66,647 1,29,335 2,77,096
6. TOTAL EXPENDITURE (4+5) 5,14,792 4,72,395 3,60,543 9,87,187 6,88,499 15,18,644
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 1,40,028 1,36,713 1,28,115 2,76,741 2,31,976 5,06,157
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies 5,757 16,469 28,452 22,226 45,973 79,863
9. Exceptional items - - - - - -
10. Profit from Ordinary Activities before tax 1,34,271 1,20,244 99,663 2,54,515 1,86,003 4,26,294
(7-8-9)
11. Tax expense 34,255 31,070 25,572 65,325 47,612 1,08,718
12. Net Profit from Ordinary Activities after tax (10-11) 1,00,016 89,174 74,091 1,89,190 1,38,391 3,17,576
13. Extraordinary items (net of tax expense) - - - - - -
14. Net Profit for the period (12-13) 1,00,016 89,174 74,091 1,89,190 1,38,391 3,17,576
15. Minority interest 1,260 1,378 1,164 2,638 2,268 4,510
16. Share in Profit of Associates 654 216 407 870 633 3,406
17. Consolidated Net Profit of the group 99,410 88,012 73,334 1,87,422 1,36,756 3,16,472
(14-15+16)
18. Paid-up Equity Share Capital 47,032 42,360 42,191 47,032 42,191 42,324
(Face value ₹ 2/- per Equity Share)
19. Reserves excluding Revaluation Reserve 21,69,416
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 15.92 14.72 14.30 15.92 14.30 15.24
(iii) Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extraordinary items) 4.35* 4.16* 3.48* 8.51* 6.50* 15.01
(b) Diluted EPS (before and after extraordinary items) 4.29* 4.11* 3.45* 8.40* 6.44* 14.85
(iv) NPA Ratios
a) Gross NPA 4,61,712 4,61,079 4,17,310 4,61,712 4,17,310 4,34,352
b) Net NPA 1,36,278 1,40,434 1,36,396 1,36,278 1,36,396 1,32,344
c) % of Gross NPA 2.27 2.37 2.45 2.27 2.45 2.35
d) % of Net NPA 0.68 0.74 0.82 0.68 0.82 0.73
(v) Return on Assets (%) 0.34* 0.32* 0.31* 0.66* 0.58* 1.28
(*) Not Annualised
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED
SEPTEMBER 30, 2023
(₹ in Lakhs)
Particulars
Quarter ended
Half Year ended
Year ended
30.09.2023
30.06.2023
30.09.2022
30.09.2023
30.09.2022
31.03.2023
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
1. Interest earned (a)+(b)+(c)+(d)
5,79,128
5,34,977
4,25,893
11,14,105
8,10,202
17,81,178
(a)
Interest/discount on advances/bills
4,69,147
4,36,293
3,46,427
9,05,440
6,56,847
14,50,788
(b)
Income on investments
89,237
81,475
66,308
1,70,712
1,28,842
2,78,188
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
9,028
7,093
6,017
16,121
10,497
20,625
(d)
Others
11,716
10,116
7,141
21,832
14,016
31,577
2. Other income
75,692
74,131
62,765
1,49,823
1,10,273
2,43,623
3. TOTAL INCOME (1+2)
6,54,820
6,09,108
4,88,658
12,63,928
9,20,475
20,24,801
4. Interest expended
3,54,414
3,25,451
2,34,904
6,79,865
4,45,280
9,97,524
5. Operating expenses (i)+(ii)
1,60,378
1,46,944
1,25,639
3,07,322
2,43,219
5,21,120
(i)
Employees cost
71,349
69,326
58,047
1,40,675
1,13,884
2,44,024
(ii)
Other operating expenses
89,029
77,618
67,592
1,66,647
1,29,335
2,77,096
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)
5,14,792
4,72,395
3,60,543
9,87,187
6,88,499
15,18,644
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)
1,40,028
1,36,713
1,28,115
2,76,741
2,31,976
5,06,157
8. Provisions (other than tax) and contingencies
5,757
16,469
28,452
22,226
45,973
79,863
9. Exceptional items
-
-
-
-
-
-
10. Profit from Ordinary Activities before tax
(7-8-9)
1,34,271
1,20,244
99,663
2,54,515
1,86,003
4,26,294
11. Tax expense
34,255
31,070
25,572
65,325
47,612
1,08,718
12. Net Profit from Ordinary Activities after tax (10-11)
1,00,016
89,174
74,091
1,89,190
1,38,391
3,17,576
13. Extraordinary items (net of tax expense)
-
-
-
-
-
-
14. Net Profit for the period (12-13)
1,00,016
89,174
74,091
1,89,190
1,38,391
3,17,576
15. Minority interest
1,260
1,378
1,164
2,638
2,268
4,510
16. Share in Profit of Associates
654
216
407
870
633
3,406
17. Consolidated Net Profit of the group
(14-15+16)
99,410
88,012
73,334
1,87,422
1,36,756
3,16,472
18. Paid-up Equity Share Capital
(Face value ₹ 2/- per Equity Share)
47,032
42,360
42,191
47,032
42,191
42,324
19. Reserves excluding Revaluation Reserve
21,69,416
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
15.92
14.72
14.30
15.92
14.30
15.24
(iii)
Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extraordinary items)
4.35*
4.16*
3.48*
8.51*
6.50*
15.01
(b) Diluted EPS (before and after extraordinary items)
4.29*
4.11*
3.45*
8.40*
6.44*
14.85
(iv)
NPA Ratios
a) Gross NPA
4,61,712
4,61,079
4,17,310
4,61,712
4,17,310
4,34,352
b) Net NPA
1,36,278
1,40,434
1,36,396
1,36,278
1,36,396
1,32,344
c) % of Gross NPA
2.27
2.37
2.45
2.27
2.45
2.35
d) % of Net NPA
0.68
0.74
0.82
0.68
0.82
0.73
(v)
Return on Assets (%)
0.34*
0.32*
0.31*
0.66*
0.58*
1.28
(*) Not Annualised
Segment Information@
(₹ in Lakhs)
Particulars Quarter ended Half Year ended Year ended
30.09.2023 30.06.2023 30.09.2022 30.09.2023 30.09.2022 31.03.2023
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
Segment Revenue:
Treasury 89,241 76,433 66,222 1,65,674 1,20,927 2,53,555
Corporate/Wholesale Banking 1,80,218 1,63,630 1,22,907 3,43,848 2,29,691 5,20,704
Retail Banking 3,78,773 3,64,558 2,94,019 7,43,331 5,60,624 12,28,710
a) Digital Banking 36,622 30,340 22,729 66,962 40,028 90,354
b) Other Retail Banking 3,42,151 3,34,218 2,71,290 6,76,369 5,20,596 11,38,356
Other Banking operations 6,485 4,347 5,331 10,832 9,012 21,225
Unallocated 103 140 179 243 221 607
Total Revenue 6,54,820 6,09,108 4,88,658 12,63,928 9,20,475 20,24,801
Less: Inter Segment Revenue - - - - - -
Income from Operations 6,54,820 6,09,108 4,88,658 12,63,928 9,20,475 20,24,801
Segment Results (net of provisions):
Treasury 17,793 11,024 18,243 28,817 31,243 52,460
Corporate/Wholesale Banking 44,463 39,858 14,371 84,321 28,733 94,335
Retail Banking 66,419 66,019 62,871 1,32,438 1,19,115 2,61,538
a) Digital Banking 4,680 3,520 3,203 8,200 2,795 11,359
b) Other Retail Banking 61,739 62,499 59,668 1,24,238 1,16,320 2,50,179
Other Banking operations 5,494 3,203 3,999 8,697 6,691 15,817
Unallocated 102 140 179 242 221 2,144
Profit before tax 1,34,271 1,20,244 99,663 2,54,515 1,86,003 4,26,294
Segment Assets:
Treasury 57,25,569 55,42,708 43,66,944 57,25,569 43,66,944 52,06,924
Corporate/Wholesale Banking 1,05,29,830 98,40,909 89,31,093 1,05,29,830 89,31,093 96,72,729
Retail Banking 1,26,26,779 1,21,32,226 1,02,55,021 1,26,26,779 1,02,55,021 1,12,56,964
a) Digital Banking 5,54,182 4,82,219 2,69,151 5,54,182 2,69,151 4,16,592
b) Other Retail Banking 1,20,72,597 1,16,50,007 99,85,870 1,20,72,597 99,85,870 1,08,40,372
Other Banking operations 351 1,413 851 351 851 1,313
Unallocated 7,22,279 7,09,865 7,79,609 7,22,279 7,79,609 6,62,476
Total 2,96,04,808 2,82,27,121 2,43,33,518 2,96,04,808 2,43,33,518 2,68,00,406
Segment Liabilities:
Treasury 30,05,480 31,49,951 23,14,458 30,05,480 23,14,458 29,42,093
Corporate/Wholesale Banking 29,71,838 26,28,875 19,88,499 29,71,838 19,88,499 24,14,080
Retail Banking 2,05,96,656 1,97,95,561 1,76,03,969 2,05,96,656 1,76,03,969 1,89,28,892
a) Digital Banking 13,71,578 12,74,681 8,90,517 13,71,578 8,90,517 12,03,720
b) Other Retail Banking 1,92,25,078 1,85,20,880 1,67,13,452 1,92,25,078 1,67,13,452 1,77,25,172
Other Banking operations 356 330 483 356 483 294
Unallocated 3,11,604 3,14,055 3,65,759 3,11,604 3,65,759 2,67,609
Total 2,68,85,934 2,58,88,772 2,22,73,168 2,68,85,934 2,22,73,168 2,45,52,968
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 27,20,089 23,92,757 20,52,486 27,20,089 20,52,486 22,64,831
Corporate/Wholesale Banking 75,57,992 72,12,034 69,42,594 75,57,992 69,42,594 72,58,649
Retail Banking (79,69,877) (76,63,335) (73,48,948) (79,69,877) (73,48,948) (76,71,928)
a) Digital Banking (8,17,396) (7,92,462) (6,21,366) (8,17,396) (6,21,366) (7,87,128)
b) Other Retail Banking (71,52,481) (68,70,873) (67,27,582) (71,52,481) (67,27,582) (68,84,800)
Other Banking operations (5) 1,083 368 (5) 368 1,019
Unallocated 4,10,675 3,95,810 4,13,850 4,10,675 4,13,850 3,94,867
Total 27,18,874 23,38,349 20,60,350 27,18,874 20,60,350 22,47,438
@ 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 September 30, 2023 is
given below:
(` in Lakhs)
Particulars As at 30.09.2023 As at 30.09.2022 As at 31.03.2023
Unaudited Unaudited Audited
CAPITAL AND LIABILITIES
Capital 47,032 42,191 42,324
Reserves and Surplus 26,33,166 19,85,210 21,69,917
Minority Interest 38,676 32,949 35,197
Deposits 2,32,83,278 1,89,11,141 2,12,98,850
Borrowings 26,35,991 25,49,788 25,86,198
Other Liabilities and Provisions 9,66,665 8,12,239 6,67,920
Total 2,96,04,808 2,43,33,518 2,68,00,406
ASSETS
Cash and Balances with Reserve Bank of India 15,01,697 12,67,727 12,60,424
Balance with Banks and Money at Call and Short Notice 5,90,148 2,43,013 5,19,969
Investments 54,91,392 43,30,736 48,70,224
Advances 2,00,38,969 1,67,29,924 1,81,95,675
Fixed Assets 98,326 75,546 97,171
Other Assets 18,84,276 16,86,572 18,56,943
Total 2,96,04,808 2,43,33,518 2,68,00,406
Notes:
1 The above Consolidated Unaudited Financial Results for the quarter and half
year ended September 30, 2023 were reviewed by the Audit Committee and
subsequently approved by the Board of Directors at its meeting held on October
16, 2023. These results have been subjected to limited review by the Joint
Statutory 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 for
the year ended March 31, 2023.
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 Joint
Statutory Auditors of the Bank.
8 During the quarter and half year September 30, 2023 , the Bank has issued
230,477,634 equity shares of ` 2 each for cash pursuant to a Qualified
Institution Placement (QIP) as per the relevant provisions of SEBI (Issue of
Capital and Disclosure Requirements) Regulations, 2018 at ` 131.90 per share
aggregating to ` 304,000.00 Lakhs (including share premium). This resulted in
an increase of ` 4,609.55 Lakhs in Share Capital and ` 295,416.80 Lakhs (net
of issue expenses) in Share premium account.
9 The figures for the quarter ended June 30, 2023, quarter and half year ended
September 30, 2022 and year ended March 31, 2023 were reviewed / audited by
previous Joint Statutory Auditors.
10 Previous period's figures have been regrouped / reclassified, wherever
necessary to conform to current period's classification.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
October 16, 2023 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED UNAUDITED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER
30, 2023
(₹ in Lakhs)
Particulars Half Year ended Half Year ended
September 30, 2023
September 30, 2022
Cash Flow from Operating Activities
Net Profit Before Taxes 2,52,747 1,84,368
Adjustments for:
Depreciation on Group's Property 11,195 8,215
Provision / Depreciation on Investments (1,954) 1,502
Amortisation of Premium on Held to Maturity Investments 8,645 8,686
Provision / Charge for Non Performing Advances 27,307 39,576
Provision for Standard Assets and Contingencies (4,679) 6,582
(Profit)/ Loss on Sale of Fixed Assets (net) (156) (5)
Employees Stock Option Expense 38 49
2,93,143 2,48,973
Adjustments for working capital changes:-
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] (2,39,471) 65,083
(Increase)/ Decrease in Advances (18,70,601) (17,74,354)
(Increase)/ Decrease in Other Assets (23,776) (1,44,610)
Increase/ (Decrease) in Deposits 19,84,428 7,43,389
Increase/ (Decrease) in Other Liabilities and Provisions 3,03,425 2,64,128
1,54,005 (8,46,364)
Direct taxes paid (net) (68,882) (47,956)
Net Cash Flow from / (Used in) Operating Activities 3,78,266 (6,45,347)
Cash Flow from Investing Activities
Purchase of Fixed Assets (12,421) (16,650)
Proceeds from Sale of Fixed Assets 228 105
(Increase)/ Decrease in Held to Maturity Investments (3,88,388) (4,99,489)
Net Cash generated / (Used in) Investing Activities (4,00,581) (5,16,034)
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital 4,708 140
Proceeds from Share Premium (Net of Share Issue Expenses) 2,99,767 4,074
Increase / (Decrease) in Minority Interest 3,264 2,390
Proceeds from Issue of Subordinate Debt 20,000 -
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) 29,793 5,91,049
Dividend Paid (23,491) (37,866)
Net Cash generated from Financing Activities 3,34,041 5,59,787
Effect of Exchange Fluctuation on Translation Reserve (274) (1,277)
Increase/(Decrease) in Cash and Cash Equivalents 3,11,452 (6,02,871)
Cash and Cash Equivalents at the beginning of the period 17,80,393 21,13,611
Cash and Cash Equivalents at the end of the period 20,91,845 15,10,740
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
October 16, 2023 (DIN: 02274773)
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