REG - Federal Bank Ltd The - 1st Quarter Results <Origin Href="QuoteRef">FED.NS</Origin>

Federal BankAnnouncement

27/07/2017 09:50

RNS Number : 2777M
Federal Bank Ltd (The)
27 July 2017
 
 
SDF-24/  /2017-18 27th July 2017
   
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Un-Audited Financial Results of the Bank for the period ended June 30, 2017 which was approved at the Bank's Board of Directors meeting held on 26th July 2017.
Kindly take the same on your record.
For The Federal Bank Limited
Girish Kumar G
COMPANY SECRETARY


B S R & Co. LLP
M.M. Nissim & Co.
Chartered Accountants
Chartered Accountants
5th Floor, Lodha Excelus
Barodawala Mansion, B-Wing,
Apollo Mills Compound
3rd Floor, 81,
N.M. Joshi Marg, Mahalaxmi
Dr. Annie Besant Road,
Mumbai- 400 011
Worli, Mumbai- 400 018
 
Limited Review Report on Quarterly Standalone Financial Results of The Federal Bank Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
To the Board of Directors of 
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results ('theStatement') of The Federal Bank Limited ('the Bank') for the quarter ended 30 June 2017, attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, except for the disclosures relating to consolidated Pillar 3 as at 30 June 2017, including leverage ratio and liquidity coverage 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 quarterly financial results and have not been reviewed by us. Attention is drawn to the fact that the figures for the quarter ended 31 March 2017 reported in these financial results are the balancing figures between audited figures in respect of the financial year ended 31 March 2017 and the published year to date figures up to 31 December 2016, being the date of the end of the third quarter of the relevant financial year, which were subjected to limited review. 
2. This Statement is the responsibility of the Bank's management and has been approved by the Board of Directors of the Bank in their meeting held on 26 July 2017. Our responsibility is to issue a report on the Statement based on our review. The financial results for the quarter ended 30June2016, included in the statement were reviewed earlier by Deloitte Haskins & Sells, Chartered Accountants, and by M P Chitale & Co., Chartered Accountants, the then joint statutory auditors of the Bank, whose reports have been furnished to us, and which have been relied upon for the purpose of the joint review of the Statement. 
3. We conducted our review in accordance with the Standard on Review Engagement (SRE)2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of the Bank's personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
4. The Financial results incorporate the relevant returns of 136 Branches and Treasury Branch reviewed by either of us and un-reviewed returns in respect of 1,136 branches. These Branches cover 52.47% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 53.11% of non-performing advances of the bank. 

5. Based on our review conducted as mentioned in paragraphs 3 and 4 above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters.
For B S R & Co. LLP
For M.M. Nissim & Co.
Chartered Accountants
Chartered Accountants
Firm's Registration No: 101248W / W-100022
Firm's Registration No: 107122W








Venkataramanan Vishwanath
Sanjay Khemani
Partner
Partner
Membership No: 113156
Membership No: 044577
Mumbai
Mumbai
26 July 2017 
26 July 2017 

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2017





(` in Lakhs) 
Particulars
Quarter ended 
Year ended
30.06.2017
31.03.2017
30.06.2016
31.03.2017
Unaudited
Audited
(Refer Note 11 below)
Unaudited
Audited
1. Interest earned (a)+(b)+(c)+(d)
 232,409 
 231,595 
 201,377 
 867,739 
(a)
Interest/discount on advances/bills
 178,775 
 173,644 
 152,422 
 654,568 
(b)
Income on investments
 46,829 
 48,382 
 43,084 
 180,140 
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
 2,367 
 3,598 
 1,216 
 9,893 
(d)
Others
 4,438 
 5,971 
 4,655 
 23,138 
2. Other income
 32,910 
 28,211 
 25,007 
 108,181 
3. TOTAL INCOME (1+2)
 265,319 
 259,806 
 226,384 
 975,920 
4. Interest expended
 152,342 
 147,356 
 132,110 
 562,475 
5. Operating expenses (i)+(ii)
 57,192 
 57,529 
 51,688 
 220,954 
(i)
Employees cost
 29,845 
 26,303 
 28,941 
 116,375 
(ii)
Other operating expenses
 27,347 
 31,226 
 22,747 
 104,579 
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)
 209,534 
 204,885 
 183,798 
 783,429 
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)
 55,785 
 54,921 
 42,586 
 192,491 
8. Provisions (other than Tax) and contingencies
 23,644 
 12,270 
 16,848 
 61,841 
9. Exceptional items

 - 
 - 
 - 
 - 
10. Profit from Ordinary Activities before tax (7-8-9)
 32,141 
 42,651 
 25,738 
 130,650 
11. Tax expense

 11,126 
 16,992 
 9,007 
 47,571 
12. Net Profit from Ordinary Activities after tax (10-11)
 21,015 
 25,659 
 16,731 
 83,079 
13. Extraordinary items (net of tax expense)

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

 21,015 
 25,659 
 16,731 
 83,079 
15. Paid-up Equity Share Capital
(Face value ` 2/- per Equity Share) 
 38,846 
 34,481 
 34,387 
 34,481 
16. Reserves excluding Revaluation Reserve 



 859,256 
17. Analytical Ratios





(i)
Percentage of shares held by Government of India
NIL
NIL
NIL
NIL
(ii)
Capital Adequacy ratio (%)





Under Basel III
 15.28 
 12.39 
 13.59 
 12.39 
(iii)
Earnings per Share (EPS) (in `)





(a) Basic EPS (before and after extra ordinary items)
1.21*
1.49*
0.97*
4.83

(b) Diluted EPS (before and after extra ordinary items)
1.19*
1.46*
0.97*
4.76
(iv)
NPA Ratios





a) Gross NPA
 186,794 
 172,705 
 174,731 
 172,705 

b) Net NPA
 106,126 
 94,120 
 99,450 
 94,120 

c) % of Gross NPA
 2.42 
 2.33 
 2.92 
 2.33 

d) % of Net NPA
 1.39 
 1.28 
 1.68 
 1.28 
(v)
Return on Assets (%)
0.19 * 
0.24 *
0.19* 
 0.84 






* Not Annualised




Segment Information@









(` in Lakhs) 
Particulars
Quarter ended
Year ended
30.06.2017
31.03.2017
30.06.2016
31.03.2017
Unaudited
Audited
(Refer Note 11 below)
Unaudited
Audited
Segment Revenue:





Treasury 
 68,184 
 63,666 
 59,567 
 249,634 

Corporate/Wholesale Banking
 88,796 
 84,065 
 71,890 
 300,671 

Retail Banking
 105,154 
 107,372 
 92,121 
 410,350 

Other Banking operations
 3,185 
 4,703 
 2,806 
 15,265 

Unallocated
 - 
 - 
 - 
 - 

Total Revenue
 265,319 
 259,806 
 226,384 
 975,920 

Less: Inter Segment Revenue
 - 
 - 
 - 
 - 

Income from Operations
 265,319 
 259,806 
 226,384 
 975,920 
Segment Results (net of provisions):





Treasury 
 12,831 
 6,956 
 12,825 
 39,514 

Corporate/Wholesale Banking
 2,996 
 12,044 
 3,337 
 19,641 

Retail Banking
 16,654 
 23,211 
 9,020 
 68,799 

Other Banking operations
 152 
 1,256 
 944 
 5,603 

Unallocated
 (492)
 (816)
 (388)
 (2,907)

Profit before tax
 32,141 
 42,651 
 25,738 
 130,650 
Segment Assets






Treasury 
 3,690,671 
 3,900,028 
 3,184,459 
 3,900,028 

Corporate/Wholesale Banking
 3,812,239 
 3,138,461 
 2,475,534 
 3,138,461 

Retail Banking
 3,871,002 
 4,241,722 
 3,484,078 
 4,241,722 

Other Banking operations
 3,000 
 1,854 
 1,803 
 1,854 

Unallocated
 266,652 
 215,628 
 233,182 
 215,628 

Total
 11,643,564 
 11,497,693 
 9,379,056 
 11,497,693 
Segment Liabilities






Treasury 
 3,329,690 
 3,618,865 
 2,886,756 
 3,618,865 

Corporate/Wholesale Banking
 3,526,307 
 2,950,151 
 2,333,334 
 2,950,151 

Retail Banking
 3,586,057 
 3,992,625 
 3,289,955 
 3,992,625 

Other Banking operations
 - 
 - 
 - 
 - 

Unallocated
 38,729 
 41,814 
 42,996 
 41,814 

Total
 10,480,783 
 10,603,455 
 8,553,041 
 10,603,455 
Capital employed:




(Segment Assets - Segment Liabilities)





Treasury 
 360,981 
 281,163 
 297,703 
 281,163 

Corporate/Wholesale Banking
 285,932 
 188,310 
 142,200 
 188,310 

Retail Banking
 284,945 
 249,097 
 194,123 
 249,097 

Other Banking operations
 3,000 
 1,854 
 1,803 
 1,854 

Unallocated
 227,923 
 173,814 
 190,186 
 173,814 

Total
 1,162,781 
 894,238 
 826,015 
 894,238 
@
For the above segment reporting, the reportable segments are identified into Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines. 
Notes:




1
The above Standalone Unaudited Financial Results for the quarter ended June 30, 2017 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held onJuly 26, 2017. These Results have been subjected to "Limited Review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued.
2
The Bank has made provision for Non Performing Assets as stipulated under Reserve Bank of India (RBI) norms. Further, provision for standard assets including requirements for exposures to entities with Unhedged Foreign Currency Exposures and provision for restructured advances have been made as per RBI guidelines.
3
The Bank has followed the same significant accounting policies in the preparation of the interim financial statements as those followed in the annual financial statements for the year ended March 31, 2017.
4
In accordance with RBI Circular DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015 and RBI Circular DBR.No.BP.BC.80/21.06.201/2014-15 dated March 31, 2015 - 'Prudential Guidelines on Capital Adequacy and Liquidity Standards - amendments', Banks are required to make Pillar 3 disclosure requirements including Leverage Ratio disclosure requirements that are to be made along with the publication of Financial Results. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: http://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to review by the Statutory Central Auditors of the Bank. 
5
The Business operations of the Bank are largely concentrated in India and for purpose of Segmental reporting, the bank considered to operate only in domestic segment, though the bank has its operations in International Finance Service Centre (IFSC) Banking Unit in Gujarat International Finance Tec-city (GIFT). The business conducted from the same is considered as a part of Indian operations.






6
Other income includes fees earned from providing services to customers, commission from non-fund based banking activities, earnings from foreign exchange and derivative transactions, selling of third party products, profit on sale of investments (net), recoveries from advances written off.
7
During the quarter ended June 30, 2017 , the Bank has issued 21,55,17,241 equity shares of ` 2 each for cash pursuant to a Qualified Institution Placement (QIP) as per the relevant provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations at ` 116.00 per share aggregating to ` 250,000 Lakhs (including share premium). This resulted in an increase of ` 4,310.35 Lakhs in Share Capital and ` 242,077.64 Lakhs (net of issue expenses) in Share premium account.
8
During the quarter ended June 30, 2017, the Bank allotted 27,25,967 equity shares of ` 2 each, pursuant to the exercise of stock options by certain employees.
9
Pursuant to RBI Circular FMRD.DIRD.10/14.03.002/2015-16 dated May 19, 2016, as amended, the bank has with effect from October 3, 2016 considered its repo/reverse repo transactions under Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) of RBI as Borrowings/Lendings, as the case may be. Hitherto, the repo/ reverse repo transactions were included under Investments. Figures for the previous periods have been regrouped / reclassified to conform to current period's classification. The above regrouping / reclassification has no impact on the profit of the bank for the quarter ended June 30, 2017 or the previous periods/year.
10
The figures for the quarter ended June 30, 2016 were reviewed by previous statutory auditors.
11
The figures of the quarter ended March 31, 2017 are the balancing figures between the audited figures in respect of the full Financial Year upto March 31, 2017 and the unaudited published year to date figures upto December 31, 2016 being the date of the end of the third quarter of the financial year, which were subjected to Limited Review.
12
Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification.



















































SHYAM SRINIVASAN 
Mumbai

MANAGING DIRECTOR & CEO 
July 26, 2017

(DIN: 02274773) 







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