REG - Federal Bank Ltd The - 1st Quarter Results
SDF-24/ /2019-20 20th July 2019
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Un- Audited Financial Results of the Bank for the period ended June 30, 2019 which was approved at the Bank's Board of Directors meeting held on 16th July 2019.
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 unaudited quarterly standalone financial results of The Federal Bank Limited pursuant to 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 of
The Federal Bank Limited ('the Bank') for the quarter ended 30 June 2019 ('the Statement'), attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'), except for the disclosures relating to Pillar 3 disclosure as at 30 June 2019, 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 Statement and have not been reviewed by us.
2. This Statement is the responsibility of the Bank's Management and has been approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard 25 "Interim Financial Reporting" (AS 25), prescribed under
Section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation
Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (RBI) from time to time ('RBI Guidelines') and other accounting principles generally accepted in India. Our responsibility is to issue a report on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of bank personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
4. Attention is drawn to the fact that the figures for the 3 months ended 31 March 2019 as reported in these Standalone Financial Results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.
5. The Standalone Financial Results incorporate the relevant returns of 112 Branches and Treasury Branch reviewed by either of us and un-reviewed returns in respect of 1,139 branches. These Branches cover 56.05% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 50.22% of non-performing advances of the Bank.
6. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of Unaudited Standalone Financial Results prepared in accordance with applicable accounting standards and other recognised accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations including the manner in which it is to be disclosed, except for the disclosures relating to Pillar 3 disclosure as at 30 June 2019, 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 Statement and have not been reviewed by us, 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
Akeel Master
Sanjay Khemani
Partner
Partner
Membership No: 046768
Membership No: 044577
UDIN: 19046768AAAAOF1599
UDIN: 19044577AAAAAP2114
Mumbai
Mumbai
16 July 2019
16 July 2019
Limited review report on unaudited quarterly consolidated financial results of The Federal Bank Limited pursuant to 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 Unaudited Consolidated Financial Results of
The Federal Bank Limited ('the Bank'), its subsidiaries (the Bank and its subsidiaries together referred to as 'the Group') and its share of the net profit after tax of its associates for the quarter ended 30 June 2019 ('the Statement'), attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 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 30 June 2019, 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 Statement and have not been reviewed by us. Attention is drawn to the fact that the consolidated figures for the corresponding quarters ended 31 March 2019 and 30 June 2018, as reported in these financial results, have been approved by the Bank's Board of Directors, but have not been subjected to review by us since the requirement of submission of quarterly consolidated financial results has become mandatory only from 1 April 2019.
2. This Statement, which is the responsibility of the Bank's Management and approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard 25 "Interim Financial Reporting" (AS 25), prescribed under Section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation
Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India ('RBI') from time to time ('RBI Guidelines') and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under
Regulation 33 (8) of the Listing Regulations, as amended, to the extent applicable.
4. The Statement includes the results of the following entities:
i. Fedbank Financial Services Limited ('the Subsidiary')
ii. Federal Operations and Services Limited ('the Subsidiary')
iii. IDBI Federal Life Insurance Company Limited ('the Associate')
iv. Equirus Capital Private Limited ('the Associate')
5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to 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 the aforesaid Accounting Standard, RBI Guidelines and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, as amended, including the manner in which it is to be disclosed except for the disclosures relating to Pillar 3 disclosure as at 30 June 2019, 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 Statement and have not been reviewed by us, or that it contains any material misstatement.
6. We did not review the interim financial results of two subsidiaries included in the Statement, whose unaudited interim financial results reflect total revenues of Rs. 8,928.71 Lakh and total net profit after tax of Rs. 1,064.25 Lakh for the quarter ended 30 June 2019. These interim financial results have been reviewed by other auditors whose reports 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 subsidiaries, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.
Our conclusion on the Statement is not modified in respect of the above matter.
7. The Unaudited Consolidated Financial Results also includes the Group's share of net profit after tax of Rs. 230.59 Lakh for the quarter ended 30 June 2019 as considered in the unaudited consolidated financial results, in respect of two associates, based on their interim financial results which have neither been reviewed by their auditors nor by us. According to the information and explanations given to us by the management, the interim financial results of these Associates are not material to the Group.
Our conclusion on the Statement is not modified in respect of the above matter.
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
Akeel Master
Sanjay Khemani
Partner
Partner
Membership No: 046768
Membership No: 044577
ICAI UDIN: 19046768AAAAOG8361
ICAI UDIN: 19044577AAAAAQ9752
19044577AAAAAQ9752
19044577AAAAAQ9752
19044577AAAAAQ9752
19044577AAAAAQ9752
19044577AAAAAQ9752
19044577AAAAAQ9752
19044577AAAAAQ
19044577AAAAAQ975
Mumbai
Mumbai
16 July 2019
16 July 2019
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, 2019
(` in Lakhs)
Particulars
Quarter ended
Year ended
30.06.2019
31.03.2019
30.06.2018
31.03.2019
Unaudited
Audited
(Refer Note 12 below)Unaudited
Audited
1. Interest earned (a)+(b)+(c)+(d)
3,22,930
3,03,232
2,66,738
11,41,903
(a)
Interest/discount on advances/bills
2,60,608
2,41,305
2,07,944
9,08,962
(b)
Income on investments
55,523
53,638
50,715
2,03,745
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
1,972
1,178
2,523
7,347
(d)
Others
4,827
7,111
5,556
21,849
2. Other income
39,152
41,172
27,086
1,35,102
3. TOTAL INCOME (1+2)
3,62,082
3,44,404
2,93,824
12,77,005
4. Interest expended
2,07,513
1,93,579
1,68,732
7,24,268
5. Operating expenses (i)+(ii)
76,293
75,350
64,800
2,76,427
(i)
Employees cost
39,784
37,015
34,502
1,37,776
(ii)
Other operating expenses
36,509
38,335
30,298
1,38,651
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)2,83,806
2,68,929
2,33,532
10,00,695
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)78,276
75,475
60,292
2,76,310
8. Provisions (other than tax) and contingencies
19,204
17,776
19,915
85,585
9. Exceptional items
-
-
-
-
10. Profit from Ordinary Activities before tax
(7-8-9)59,072
57,699
40,377
1,90,725
11. Tax expense
20,651
19,548
14,106
66,336
12. Net Profit from Ordinary Activities after tax (10-11)
38,421
38,151
26,271
1,24,389
13. Extraordinary items (net of tax expense)
-
-
-
-
14. Net Profit for the period (12-13)
38,421
38,151
26,271
1,24,389
15. Paid-up Equity Share Capital
(Face value ` 2/- per Equity Share)39,720
39,701
39,552
39,701
16. Reserves excluding Revaluation Reserve
12,87,102
17. Analytical Ratios
(i)
Percentage of shares held by Government of India
NIL
NIL
NIL
NIL
(ii)
Capital Adequacy ratio (%)
Under Basel III
14.10
14.14
14.50
14.14
(iii)
Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extra ordinary items)
1.94*
1.92*
1.33*
6.28
(b) Diluted EPS (before and after extra ordinary items)
1.92*
1.91*
1.32*
6.24
(iv)
NPA Ratios
a) Gross NPA
3,39,469
3,26,068
2,86,882
3,26,068
b) Net NPA
1,67,282
1,62,620
1,62,022
1,62,620
c) % of Gross NPA
2.99
2.92
3.00
2.92
d) % of Net NPA
1.49
1.48
1.72
1.48
(v)
Return on Assets (%)
0.24*
0.25*
0.20*
0.88
* Not Annualised
Segment Information@
(` in Lakhs)
Particulars
Quarter ended
Year ended
30.06.2019
31.03.2019
30.06.2018
31.03.2019
Unaudited
Audited
(Refer Note 12 below)Unaudited
Audited
Segment Revenue:
Treasury
72,964
66,515
62,296
2,54,761
Corporate/Wholesale Banking
1,48,081
1,45,079
1,12,799
5,07,376
Retail Banking
1,35,331
1,21,852
1,14,264
4,88,342
Other Banking operations
5,706
10,958
4,465
26,526
Unallocated
-
-
-
-
Total Revenue
3,62,082
3,44,404
2,93,824
12,77,005
Less: Inter Segment Revenue
-
-
-
-
Income from Operations
3,62,082
3,44,404
2,93,824
12,77,005
Segment Results (net of provisions):
Treasury
15,452
10,950
9,796
41,085
Corporate/Wholesale Banking
18,774
14,328
1,914
25,969
Retail Banking
26,319
28,188
28,323
1,20,186
Other Banking operations
(927)
5,280
750
6,690
Unallocated
(546)
(1,047)
(406)
(3,205)
Profit before tax
59,072
57,699
40,377
1,90,725
Segment Assets
Treasury
34,94,567
35,75,297
31,45,414
35,75,297
Corporate/Wholesale Banking
57,61,147
58,16,960
52,49,962
58,16,960
Retail Banking
59,11,252
56,68,073
45,93,053
56,68,073
Other Banking operations
934
1,138
1,184
1,138
Unallocated
8,65,911
8,72,531
6,78,484
8,72,531
Total
1,60,33,811
1,59,33,999
1,36,68,097
1,59,33,999
Segment Liabilities
Treasury
33,46,484
34,76,144
29,81,393
34,76,144
Corporate/Wholesale Banking
55,54,101
56,00,730
50,05,327
56,00,730
Retail Banking
57,02,225
54,61,130
43,80,781
54,61,130
Other Banking operations
5
4
4
4
Unallocated
64,833
68,687
50,716
68,687
Total
1,46,67,648
1,46,06,695
1,24,18,221
1,46,06,695
Capital employed:
(Segment Assets - Segment Liabilities)
Treasury
1,48,083
99,153
1,64,021
99,153
Corporate/Wholesale Banking
2,07,046
2,16,230
2,44,635
2,16,230
Retail Banking
2,09,027
2,06,943
2,12,272
2,06,943
Other Banking operations
929
1,134
1,180
1,134
Unallocated
8,01,078
8,03,844
6,27,768
8,03,844
Total
13,66,163
13,27,304
12,49,876
13,27,304
@
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, 2019 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on July 16, 2019. These Results have been subjected to "Limited review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued.
2
The Bank has followed the same significant accounting policies in the preparation of the interim financial results as those followed in the annual financial statements for the year ended March 31, 2019.
3
The working results have been arrived at after considering provision for standard assets, including requirements for exposures to entities with Unhedged Foreign Currency Exposures, non-performing assets (NPAs), depreciation on investments, 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), recoveries from advances written off etc.
5
During the quarter ended June 30, 2018, as per RBI Circular, the Bank had exercised the option of spreading the provision for Mark to Market (MTM) losses of ` 5,893.97 Lakhs equally over 4 quarters and accordingly unamortised MTM losses of ` 4,420.48 Lakhs were deferred to be amortised in remaining quarters of FY 2019, which was fully amortised in FY 2019.
6
Consequent upon change in the Gratuity limit from ` 10 Lakhs to ` 20 Lakhs, incremental liability of `7,143.90 Lakhs was determined. As permitted by RBI, the Bank chose to amortise incremental liability over 4 quarters beginning with quarter ended March 31, 2018. However, during the quarter ended June 30, 2018, the Bank decided to amortise entire unamortised amount (` 5,357.93 Lakhs) then outstanding instead of amortising over remaining 3 quarters.
7
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.
8
The Business operations of the Bank are largely concentrated in India and for the purpose of Segment reporting, the bank is 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 part of Indian operations.
9
During the quarter ended June 30, 2019, the Bank has allotted 931,859 equity shares of ` 2 each, pursuant to the exercise of stock options by employees.
10
During the quarter ended June 30, 2019, the bank has raised ` 30,000.00 Lakhs Tier II capital by way of issuance of Basel III compliant Tier II Bonds.
11
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 audit or review by the Statutory Central Auditors of the Bank.
12
The figures of the last quarter of the previous year 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 previous year.
13
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 16, 2019
(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 ENDED JUNE 30, 2019
(` in Lakhs)
Particulars
Quarter ended
Year ended
30.06.2019
31.03.2019
30.06.2018
31.03.2019
Unaudited
Unaudited
(Refer Note 13 below)Unaudited
(Refer Note 13 below)Audited
1. Interest earned (a)+(b)+(c)+(d)
3,29,521
3,10,665
2,71,306
11,63,544
(a)
Interest/discount on advances/bills
2,67,052
2,48,706
2,12,489
9,30,412
(b)
Income on investments
55,669
53,670
50,739
2,03,936
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
1,973
1,178
2,522
7,347
(d)
Others
4,827
7,111
5,556
21,849
2. Other income
37,097
39,512
27,108
1,33,522
3. TOTAL INCOME (1+2)
3,66,618
3,50,177
2,98,414
12,97,066
4. Interest expended
2,09,707
1,95,369
1,70,519
7,31,633
5. Operating expenses (i)+(ii)
79,077
77,691
66,303
2,83,658
(i)
Employees cost
41,541
38,510
35,484
1,42,566
(ii)
Other operating expenses
37,536
39,181
30,819
1,41,092
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)2,88,784
2,73,060
2,36,822
10,15,291
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)77,834
77,117
61,592
2,81,775
8. Provisions (other than tax) and contingencies
19,332
18,032
19,994
85,765
9. Exceptional items
-
-
-
-
10. Profit from Ordinary Activities before tax
(7-8-9)58,502
59,085
41,598
1,96,010
11. Tax expense
21,131
19,978
14,473
67,758
12. Net Profit from Ordinary Activities after tax (10-11)
37,371
39,107
27,125
1,28,252
13. Extraordinary items (net of tax expense)
-
-
-
-
14. Net Profit for the period (12-13)
37,371
39,107
27,125
1,28,252
15. Minority interest
182
44
-
180
16. Share in Profit of Associates
231
3,229
169
3,556
17. Consolidated Net Profit of the group
(14-15+16)37,420
42,292
27,294
1,31,628
18. Paid-up Equity Share Capital
(Face value ` 2/- per Equity Share)39,720
39,701
39,552
39,701
19. Reserves excluding Revaluation Reserve
13,09,624
20. Analytical Ratios
(i)
Percentage of shares held by Government of India
NIL
NIL
NIL
NIL
(ii)
Capital Adequacy ratio (%)
Under Basel III
14.41
14.43
14.66
14.43
(iii)
Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extra ordinary items)
1.88*
2.13*
1.38*
6.65
(b) Diluted EPS (before and after extra ordinary items)
1.87*
2.12*
1.37*
6.60
(iv)
NPA Ratios
a) Gross NPA
3,43,375
3,30,178
2,88,398
3,30,178
b) Net NPA
1,70,726
1,66,218
1,63,316
1,66,218
c) % of Gross NPA
2.98
2.92
2.98
2.92
d) % of Net NPA
1.50
1.49
1.71
1.49
(v)
Return on Assets (%)
0.23*
0.27*
0.20*
0.88
* Not Annualised
Segment Information@
(` in Lakhs)
Particulars
Quarter ended
Year ended
30.06.2019
31.03.2019
30.06.2018
31.03.2019
Unaudited
Unaudited
(Refer Note 13 below)Unaudited
(Refer Note 13 below)Audited
Segment Revenue:
Treasury
70,881
66,515
62,296
2,54,761
Corporate/Wholesale Banking
1,48,081
1,45,079
1,12,799
5,07,376
Retail Banking
1,41,950
1,27,625
1,18,854
5,08,403
Other Banking operations
5,706
10,958
4,465
26,526
Unallocated
-
-
-
-
Total Revenue
3,66,618
3,50,177
2,98,414
12,97,066
Less: Inter Segment Revenue
-
-
-
-
Income from Operations
3,66,618
3,50,177
2,98,414
12,97,066
Segment Results (net of provisions):
Treasury
13,338
10,950
9,796
41,469
Corporate/Wholesale Banking
18,774
14,328
1,914
25,969
Retail Banking
27,845
29,574
29,544
1,25,087
Other Banking operations
(909)
5,280
750
6,690
Unallocated
(546)
(1,047)
(406)
(3,205)
Profit before tax
58,502
59,085
41,598
1,96,010
Segment Assets
Treasury
34,96,055
35,78,232
31,45,015
35,78,232
Corporate/Wholesale Banking
57,61,147
58,16,960
52,49,962
58,16,960
Retail Banking
60,33,252
57,86,386
46,91,081
57,86,386
Other Banking operations
725
1,138
1,184
1,138
Unallocated
8,65,911
8,72,531
6,78,484
8,72,531
Total
1,61,57,090
1,60,55,247
1,37,65,726
1,60,55,247
Segment Liabilities
Treasury
33,46,484
34,76,144
29,81,393
34,76,144
Corporate/Wholesale Banking
55,54,101
56,00,730
50,05,328
56,00,730
Retail Banking
57,95,756
55,51,810
44,70,828
55,51,810
Other Banking operations
5
4
4
4
Unallocated
64,833
68,687
50,716
68,687
Total
1,47,61,179
1,46,97,375
1,25,08,269
1,46,97,375
Capital employed:
(Segment Assets - Segment Liabilities)
Treasury
1,49,571
1,02,088
1,63,622
1,02,088
Corporate/Wholesale Banking
2,07,046
2,16,230
2,44,634
2,16,230
Retail Banking
2,37,496
2,34,576
2,20,253
2,34,576
Other Banking operations
720
1,134
1,180
1,134
Unallocated
8,01,078
8,03,844
6,27,768
8,03,844
Total
13,95,911
13,57,872
12,57,457
13,57,872
@
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 Consolidated Financial Results for the quarter ended June 30, 2019 were reviewed by the Audit Committee and subsequently taken on record and approved by the Board of Directors at its meeting held on July 16, 2019. These Results have been subjected to "Limited review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued.
2
The Consolidated Financial Results of the Group comprise the financial results of The Federal Bank Limited and its subsidiaries viz. Fedbank Financial Services Limited & Federal Operations and Services Limited and its associates viz. IDBI Federal Life Insurance Company Limited & Equirus Capital Private Limited.
3
There has been no material change in the accounting policies adopted during the quarter ended June 30, 2019 as compared to those followed for the year ended March 31, 2019.
4
The working results have been arrived at after considering provision for standard assets, including requirements for exposures to entities with Unhedged Foreign Currency Exposures, non-performing assets (NPAs), depreciation on investments, 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), recoveries from advances written off etc.
6
During the quarter ended June 30, 2018, as per RBI Circular, the Bank had exercised the option of spreading the provision for Mark to Market (MTM) losses of ` 5,893.97 Lakhs equally over 4 quarters and accordingly unamortised MTM losses of ` 4,420.48 Lakhs were deferred to be amortised in remaining quarters of FY 2019, which was fully amortised in FY 2019.
7
Consequent upon change in the Gratuity limit from ` 10 Lakhs to ` 20 Lakhs, incremental liability of `7,143.90 Lakhs was determined. As permitted by RBI, the Bank chose to amortise incremental liability over 4 quarters beginning with quarter ended March 31, 2018. However, during the quarter ended June 30, 2018, the Bank decided to amortise entire unamortised amount (` 5,357.93 Lakhs) then outstanding instead of amortising over remaining 3 quarters.
8
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.
9
The Business operations of the Bank are largely concentrated in India and for the purpose of Segment reporting, the bank is 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.
10
During the quarter ended June 30, 2019, the Bank has allotted 931,859 equity shares of ` 2 each, pursuant to the exercise of stock options by employees.
11
During the quarter ended June 30, 2019, the bank has raised ` 30,000.00 Lakhs Tier II capital by way of issuance of Basel III compliant Tier II Bonds.
12
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 audit or review by the Statutory Central Auditors of the Bank.
13
The figures for the quarters ended June 30, 2018 and March 31, 2019 have been approved by the Bank's Board of Directors, but have not been subjected to review since the requirement of submission of quarterly consolidated financial results has become mandatory only from April 01, 2019.
14
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 16, 2019
(DIN: 02274773)
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