REG - Federal Bank Ltd The - 3rd Quarter Results <Origin Href="QuoteRef">FED.NS</Origin>

Federal BankAnnouncement

06/02/2017 07:05

RNS Number : 0476W
Federal Bank Ltd (The)
04 February 2017
SDF-24/  /2016-17 04th February 2017
   
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Un-Audited Financial Results of the Bank for the period ended December 31, 2016 which was approved at the Bank's Board of Directors meeting held on 19th January 2017.
Kindly take the same on your record.
For The Federal Bank Limited
Girish Kumar G
COMPANY SECRETARY


BSR&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 and nine months ended 31 December 2016, 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 disclosure as at 31 December 2016, 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.
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 19 January 2017. Our responsibility is to issue a report on the Statement based on our review. The financial results for all periods prior to the quarter ended 30September2016, included in the statement were reviewed or audited 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 the current joint auditors M.M. Nissim & Co., Chartered Accountants, and B S R & Co. LLP, 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 100 Branches and Treasury Branch reviewed by either of us and un-reviewed returns in respect of 1177 branches. These Branches cover 57.68% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 60.68% of non-performing advances of the bank.
5. Without qualifying our conclusion, we draw attention to Note No. 6 regarding deferment of shortfall arising from the sale of certain non-performing assets during the year ended 31 March 2016 in terms of RBI Master Circular DBR.No.BP.BC.2/21.04.048/2015-16 - Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances, dated July 1, 2015, as amended and the unamortized balance as at 31 December 2016 of Rs. 2,168.29 lakhs.
6. Based on our review conducted as mentioned in paragraphs 3and 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








Akeel Master
Sanjay Khemani
Partner
Partner
Membership No: 046768
Membership No:044577
Mumbai
Mumbai
19 January 2017
19 January 2017

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2016







(` in Lakhs) 
Particulars
Quarter ended 
Nine Months ended
Year ended 31.03.2016
31.12.2016
30.09.2016
31.12.2015
31.12.2016
31.12.2015
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
1. Interest earned (a)+(b)+(c)+(d)
 2,28,142 
 2,06,625 
 1,90,325 
 6,36,144 
 5,72,149 
 7,74,815 
(a)
Interest/discount on advances/bills
 1,71,622 
 1,56,880 
 1,38,554 
 4,80,924 
 4,19,982 
 5,66,931 
(b)
Income on Investments
 45,122 
 43,552 
 44,638 
 1,31,758 
 1,30,314 
 1,76,309 
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
 3,494 
 1,585 
 1,657 
 6,295 
 4,871 
 5,596 
(d)
Others
 7,904 
 4,608 
 5,476 
 17,167 
 16,982 
 25,979 
2. Other Income
 26,333 
 26,154 
 18,282 
 76,191 
 55,620 
 78,292 
3. TOTAL INCOME (1+2)
 2,54,475 
 2,32,779 
 2,08,607 
 7,12,335 
 6,27,769 
 8,53,107 
4. Interest expended
 1,49,003 
 1,34,006 
 1,29,756 
 4,15,119 
 3,89,987 
 5,24,045 
5. Operating Expenses (i)+(ii)
 57,982 
 51,280 
 46,303 
 1,59,647 
 1,34,856 
 1,86,684 
(i)
Employees Cost
 31,972 
 29,159 
 25,859 
 90,072 
 75,981 
 1,05,285 
(ii)
Other operating expenses
 26,010 
 22,121 
 20,444 
 69,575 
 58,875 
 81,399 
6. TOTAL EXPENDITURE (4+5)
(excluding Provisions and Contingencies)
 2,06,985 
 1,85,286 
 1,76,059 
 5,74,766 
 5,24,843 
 7,10,729 
7. OPERATING PROFIT (3-6)
(Profit before Provisions and Contingencies)
 47,490 
 47,493 
 32,548 
 1,37,569 
 1,02,926 
 1,42,378 
8. Provisions (other than Tax) and Contingencies
 15,882 
 16,840 
 7,511 
 49,570 
 31,549 
 70,413 
9. Exceptional Items

 - 
 - 
 - 
 - 
 - 
 - 
10. Profit from Ordinary Activities before tax (7-8-9)
 31,608 
 30,653 
 25,037 
 87,999 
 71,377 
 71,965 
11. Tax expense

 11,043 
 10,529 
 8,765 
 30,579 
 24,838 
 24,400 
12. Net Profit from Ordinary Activities after tax (10-11)
 20,565 
 20,124 
 16,272 
 57,420 
 46,539 
 47,565 
13. Extraordinary items (net of tax expense)

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

 20,565 
 20,124 
 16,272 
 57,420 
 46,539 
 47,565 
15. Paid-up Equity Share Capital
(Face value ` 2/- per Equity Share) 
 34,443 
 34,410 
 34,367 
 34,443 
 34,367 
 34,379 
16. Reserves excluding Revaluation Reserve 





 7,74,242 
17. Analytical Ratios







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







Under Basel III
 12.28 
 12.85 
 14.32 
 12.28 
 14.32 
 13.93 
(iii)
Earnings per Share (EPS) (in `)







(a) Basic EPS (before and after Extra ordinary Items)
1.20*
1.17*
0.95*
3.34*
2.71*
2.77

(b) Diluted EPS (before and after Extra ordinary Items)
1.18*
1.15*
0.94*
3.29*
2.68*
2.75
(iv)
NPA Ratios







a) Gross NPA
 1,95,155 
 1,81,972 
 1,68,411 
 1,95,155 
 1,68,411 
 1,66,777 

b) Net NPA
 1,10,237 
 1,03,974 
 87,610 
 1,10,237 
 87,610 
 95,001 

c) % of Gross NPA
 2.77 
 2.78 
 3.15 
 2.77 
 3.15 
 2.84 

d) % of Net NPA
 1.58 
 1.61 
 1.66 
 1.58 
 1.66 
 1.64 
(v)
Return on Assets (%)
0.2 * 
0.22*
0.19* 
0.6* 
0.56* 
 0.57 








* Not Annualised






Segment Information@













(` in Lakhs) 
Particulars
Quarter ended
Nine Months ended
Year ended 31.03.2016
31.12.2016
30.09.2016
31.12.2015
31.12.2016
31.12.2015
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
Segment Revenue:







Treasury 
 65,168 
 61,233 
 55,321 
 1,85,968 
 1,69,001 
 2,28,193 

Corporate/Wholesale Banking
 75,059 
 69,657 
 56,861 
 2,16,606 
 1,68,392 
 2,36,094 

Retail Banking
 1,10,117 
 1,00,740 
 95,416 
 3,02,978 
 2,88,176 
 3,80,964 

Other Banking operations
 4,131 
 1,149 
 1,009 
 6,783 
 2,200 
 7,856 

Unallocated
 - 
 - 
 - 
 - 
 - 
 - 

Total Revenue
 2,54,475 
 2,32,779 
 2,08,607 
 7,12,335 
 6,27,769 
 8,53,107 

Less: Inter Segment Revenue
 - 
 - 
 - 
 - 
 - 
 - 

Income from Operations
 2,54,475 
 2,32,779 
 2,08,607 
 7,12,335 
 6,27,769 
 8,53,107 
Segment Results (net of provisions):







Treasury 
 8,779 
 10,954 
 2,721 
 32,558 
 12,679 
 15,852 

Corporate/Wholesale Banking
 2,249 
 2,012 
 2,936 
 7,597 
 7,138 
 1,814 

Retail Banking
 19,035 
 17,533 
 19,280 
 45,588 
 51,521 
 49,459 

Other Banking operations
 2,386 
 1,016 
 914 
 4,347 
 1,854 
 7,385 

Unallocated
 (841)
 (862)
 (814)
 (2,091)
 (1,815)
 (2,545)

Profit before tax
 31,608 
 30,653 
 25,037 
 87,999 
 71,377 
 71,965 
Segment Assets








Treasury 
 38,13,929 
 32,64,602 
 32,72,465 
 38,13,929 
 32,72,465 
 33,34,198 

Corporate/Wholesale Banking
 34,00,648 
 28,94,267 
 21,43,600 
 34,00,648 
 21,43,600 
 24,83,667 

Retail Banking
 36,45,243 
 36,24,006 
 31,84,203 
 36,45,243 
 31,84,203 
 33,71,086 

Other Banking operations
 4,398 
 539 
 7,070 
 4,398 
 7,070 
 2,656 

Unallocated
 2,85,520 
 2,64,176 
 2,67,501 
 2,85,520 
 2,67,501 
 2,45,196 

Total
 1,11,49,738 
 1,00,47,590 
 88,74,839 
 1,11,49,738 
 88,74,839 
 94,36,803 
Segment Liabilities








Treasury 
 35,10,701 
 29,69,932 
 29,30,621 
 35,10,701 
 29,30,621 
 30,67,275 

Corporate/Wholesale Banking
 32,59,778 
 27,45,722 
 20,43,520 
 32,59,778 
 20,43,520 
 23,37,684 

Retail Banking
 35,00,018 
 34,43,998 
 30,40,948 
 35,00,018 
 30,40,948 
 31,78,818 

Other Banking operations
 - 
 - 
 - 
 - 
 - 
 - 

Unallocated
 11,396 
 41,358 
 37,383 
 11,396 
 37,383 
 43,904 

Total
 1,02,81,893 
 92,01,010 
 80,52,472 
 1,02,81,893 
 80,52,472 
 86,27,681 
Capital employed:






(Segment Assets - Segment Liabilities)







Treasury 
 3,03,228 
 2,94,670 
 3,41,844 
 3,03,228 
 3,41,844 
 2,66,923 

Corporate/Wholesale Banking
 1,40,870 
 1,48,545 
 1,00,080 
 1,40,870 
 1,00,080 
 1,45,983 

Retail Banking
 1,45,225 
 1,80,008 
 1,43,255 
 1,45,225 
 1,43,255 
 1,92,268 

Other Banking operations
 4,398 
 539 
 7,070 
 4,398 
 7,070 
 2,656 

Unallocated
 2,74,124 
 2,22,818 
 2,30,118 
 2,74,124 
 2,30,118 
 2,01,292 

Total
 8,67,845 
 8,46,580 
 8,22,367 
 8,67,845 
 8,22,367 
 8,09,122 
@
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 December 31, 2016 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on January 19, 2017. These Results have been subjected to "Limited Review" by the Statutory Central Auditors of the Bank and an unmodified 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, 2016.
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
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.
6
During the year ended March 31,2016, the Bank had assigned certain Non performing financial assets to Asset Reconstruction Companies. In terms of RBI Master Circular DBR.No.BP.BC.2/21.04.048/2015-16 - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated July 1, 2015, as amended, the shortfall arrived at by deducting sale consideration from the net book value of the financial assets, is amortised over a period of two years. Accordingly, the bank has charged to the profit and loss account an amount of ` 2,168.29 Lakhs and ` 6,504.87 Lakhs for the Quarter and nine months ended December 31,2016 respectively and the unamortised balance carried forward as on December 31,2016 is ` 2,168.29 Lakhs, to be amortised in the next quarter.
7
During the quarter and nine months ended December 31,2016, the Bank allotted 16,60,996 and 31,95,761 Equity Shares respectively, pursuant to the exercise of stock options by certain employees.
8
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 / Nine months ended December 31, 2016 or the previous periods/year.
9
The figures for the quarter and nine months ended December 31,2015 and year ended March 31,2016 were reviewed / audited by previous statutory auditors.
10
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 
January 19, 2017

(DIN: 02274773) 
 

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