REG - Federal Bank Ltd The - Annual Financial Report
11/05/2022 07:30
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RNS Number : 0729L Federal Bank Ltd (The) 11 May 2022
SD/ 28
/2022-23
May 11, 2022
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Audited Financial Results of the Bank for the quarter
and financial year ended March 31, 2022 (both standalone and consolidated)
along with Audit Report issued by the Joint Central Statutory Auditors of the
Bank, which were reviewed and recommended by Audit Committee of the Board and
duly approved by the Board of Directors at their respective meetings held on
May 06,2022.
Kindly take the same on your record.
For The Federal Bank Limited
Sd/-
Samir P Rajdev
Company Secretary
Varma & Varma Borkar & Muzumdar,
Chartered Accountants, Chartered Accountants,
No.53/2600, Kerala Varma Tower 21/168 Anand Nagar Om C.H.S,
Off Kunjanbava Road, Vytilla, Anand Nagar Lane, Off Nehru Road, Santacruz (East) Mumbai - 400 055
Kochi -682019
Independent Auditors' report on audited standalone quarterly and year ended
financial results of The Federal Bank Limited pursuant to the Regulation 33
and Regulation 52 read with 63(2) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015
To
The Board of Directors
The Federal Bank Limited
Opinion
1. We have audited the accompanying standalone Financial Results of The
Federal Bank Limited ("the Bank") for the quarter and year ended 31(st) March
2022 ('Financial Results') attached herewith, being submitted by the Bank
pursuant to the requirements of Regulation 33 and Regulation 52 read with
Regulation 63(2) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended ("Listing
Regulations"), except for the disclosures relating to Pillar 3
disclosure as at 31(st) March 2022, including leverage ratio, liquidity
coverage ratio and net stable funding ratio under Basel III
Capital Regulations as have been disclosed on the Bank's
website and in respect of which a link has been provided in the standalone
Financial Results and have not been audited by us.
2. In our opinion and to the best of our information and according to
the explanations given to us, these standalone Financial Results:
i. are presented in accordance with the
requirements of Regulation 33 and Regulation 52 read with
Regulation 63(2) of the Listing Regulations in this regard
except for the disclosures relating to Pillar 3 disclosure as at
31(st) March 2022, including leverage ratio, liquidity coverage ratio and net
stable funding ratio under Basel III Capital Regulations as have
been disclosed on the Bank's website and in respect of which a link
has been provided in the standalone Financial Results and have not been
audited by us; and
ii. give a true and fair view in conformity with the recognition and
measurement principles laid down in the applicable accounting standards, RBI
guidelines and other accounting principles generally accepted in India, of the
net profit and other financial information for the quarter and year ended
31(st) March 2022.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing
(SAs) specified under section 143(10) of the Companies Act, 2013. ("the Act").
Our responsibilities under those Standards are further described in the
Auditors' Responsibilities for the Audit of the standalone Financial Results
section of our report. We are independent of the Bank in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants of India
together with the ethical requirements that are relevant to our audit of the
standalone Financial Results, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics.
We believe that the audit evidence obtained by us is sufficient and
appropriate to provide a basis for our opinion.
Emphasis of Matter
4. We draw attention to Note No.9 of the accompanying standalone
Financial Results, regarding the impact of COVID-19 pandemic on the Bank's
Financial Results for the quarter and year ended 31(st) March 2022. As stated
therein, in view of continuing uncertainties, the extent of impact of the
pandemic on the Bank's operations and financial position would depend on
several factors including actions taken to mitigate its impact and other
regulatory measures.
Our opinion is not modified in respect of this matter.
Board of Directors responsibilities for the standalone financial results.
5. The Bank's Board of Directors are responsible for the preparation of
these standalone Financial Results that give a true and fair view of the net
profit and other financial information in accordance with the recognition and
measurement principles laid down in the Accounting Standards specified under
section 133 of the Act, 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 and in compliance with Regulation 33 and Regulation 52 of the Listing
Regulations. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act/RBI Guidelines
for safeguarding of the assets of the Bank and for preventing
and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the
preparation and presentation of the standalone Financial Results that
give a true and fair view and are free from material misstatement, whether due
to fraud or error.
6. In preparing the standalone Financial Results, the Board of Directors
are responsible for assessing the Bank's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Board of Directors either
intends to liquidate the Bank or to cease operations, or has no realistic
alternative but to do so.
7. The Board of Directors is also responsible for overseeing the Bank's
financial reporting process.
Auditors' Responsibilities for the Audit of the standalone Financial Results
8. Our objectives are to obtain reasonable assurance about whether the
standalone Financial Results as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors' report that includes
our opinion. Reasonable assurance is a high level of assurance; but is not a
guarantee that an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone Financial Results. As part of an audit
in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the
standalone Financial Results, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal
control.
· Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the circumstances.
Under Section 143(3) (i) of the Act, we are also responsible for expressing
our opinion on whether the Bank has in place an adequate internal financial
controls system over financial reporting and the operating effectiveness of
such controls.
· Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by the
Board of Directors.
· Conclude on the appropriateness of the Board of Directors' use of
the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Bank's ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditors' report to the related disclosures
in the standalone Financial Results or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditors' report. However, future events or conditions
may cause the Bank to cease to continue as a going concern.
· Evaluate the overall presentation, structure, and content of the
standalone Financial Results, including the disclosures, and whether the
standalone Financial Results represent the underlying transactions and events
in a manner that achieves fair presentation.
9. We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we
identify during our audit.
10. We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable,
related safeguards.
Other Matters
11. These standalone Financial Results incorporate the relevant returns of
331 branches audited by the branch auditors. The branches audited by such
branch auditors cover 15.80% of advances, 26.11% of deposits and 23.33% of
Non-performing assets (Net) as on 31(st) March 2022 and 13.89% / 13.27% of
revenue for the quarter/year ended 31(st) March 2022. Our opinion on the
standalone Financial Results of the Bank, in so far as it relates to the
amounts and disclosures included in respect of such branches, is based solely
on the reports of such branch auditors.
12. The standalone Financial Results includes the results for the quarter
ended 31(st) March 2022, being the derived balancing figures between the
standalone audited figures in respect of the full financial year ended 31(st)
March 2022 and the published standalone unaudited year to date figures upto
the nine months ended 31(st) December 2021, of the current financial year
which have only been reviewed and not subjected to audit by us.
Our opinion on the standalone financial results is not modified in respect of
above matters.
For Varma &
Varma
For Borkar & Muzumdar
Chartered Accountants
Chartered Accountants
FRN: 004532S
FRN: 101569W
Vijay Narayan
Govind
Kaushal Muzumdar
Partner
Partner
M. No.
203094
M. No. 100938
UDIN:
22203094AIMWIG7238
UDIN: 22100938AIMWUM1658
Kochi
Kochi
06(th) May
2022
06(th) May 2022
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31,
2022
(Rs in Lakhs)
Particulars Quarter ended Year ended
31.03.2022 31.12.2021 31.03.2021 31.03.2022 31.03.2021
Audited Unaudited Audited Audited Audited
(Refer Note 15 below)
(Refer Note 15 below)
1. Interest earned (a)+(b)+(c)+(d) 3,48,324
3,44,256 3,36,634 13,66,076 13,75,791
(a) Interest/discount on advances/bills 2,75,446
2,72,927 2,65,844 10,82,975 10,79,512
(b) Income on investments 59,290 57,402 57,669 2,33,867 2,34,894
(c) Interest on balances with Reserve Bank of India and other inter bank funds 5,614 6,089 6,620 22,027 36,817
(d) Others 7,974 7,838 6,501 27,207 24,568
2. Other income 46,500 48,419 47,753 2,08,909 1,95,870
3. TOTAL INCOME (1+2) 3,94,824 3,92,675 3,84,387 15,74,985 15,71,661
4. Interest expended 1,95,803 1,90,366 1,94,596 7,69,880 8,22,420
5. Operating expenses (i)+(ii) 1,19,201 1,10,880 1,00,066 4,29,320
3,69,172
(i) Employees cost 63,725 58,307 52,523 2,32,055 2,03,418
(ii) Other operating expenses 55,476 52,573 47,543 1,97,265 1,65,754
6. TOTAL EXPENDITURE (4+5) 3,15,004 3,01,246 2,94,662 11,99,200 11,91,592
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 79,820 91,429 89,725 3,75,785 3,80,069
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies 7,524 21,398 25,449 1,22,177 1,66,342
9. Exceptional items - - - - -
10. Profit from Ordinary Activities before tax 72,296 70,031 64,276 2,53,608 2,13,727
(7-8-9)
11. Tax expense 18,242 17,858 16,495 64,626 54,697
12. Net Profit from Ordinary Activities after tax (10-11) 54,054 52,173 47,781 1,88,982 1,59,030
13. Extraordinary items (net of tax expense) - - - - -
14. Net Profit for the period (12-13) 54,054 52,173 47,781 1,88,982 1,59,030
15. Paid-up Equity Share Capital 42,051 42,041 39,923 42,051 39,923
(Face value Rs. 2/- per Equity Share)
16. Reserves excluding Revaluation Reserve 18,36,832 15,72,023
17. Analytical Ratios and Other Disclosures:
(i) Percentage of shares held by Government of India NIL NIL NIL NIL NIL
(ii) Capital Adequacy ratio (%)
Under Basel III 15.77 14.37 14.62 15.77 14.62
(iii) Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extraordinary items) 2.57* 2.48* 2.39* 9.13 7.97
(b) Diluted EPS (before and after extraordinary items) 2.55* 2.46* 2.38* 9.06 7.94
(iv) NPA Ratios
a) Gross NPA 4,13,674 4,40,126 4,60,239 4,13,674 4,60,239
b) Net NPA 1,39,262 1,47,118 1,56,928 1,39,262 1,56,928
c) % of Gross NPA 2.80 3.06 3.41 2.80 3.41
d) % of Net NPA 0.96 1.05 1.19 0.96 1.19
(v) Return on Assets (%) 0.25* 0.26* 0.25* 0.94 0.85
(vi) Net Worth 18,66,098 18,08,919 16,11,120 18,66,098 16,11,120
(vii) Outstanding Redeemable Preference Shares NIL NIL NIL NIL NIL
(viii) Capital Redemption Reserve NIL NIL NIL NIL NIL
(ix) Debenture Redemption Reserve NIL NIL NIL NIL NIL
(x) Debt - Equity Ratio # 0.82 0.45 0.56 0.82 0.56
(xi) Total Debts to Total Assets (%) # 6.97% 3.90% 4.50% 6.97% 4.50%
(xii) Operating Margin (%) 20.22% 23.28% 23.34% 23.86% 24.18%
(xiii) Net Profit Margin (%) 13.69% 13.29% 12.43% 12.00% 10.12%
* Not Annualised
# Debt and Total Debts represents Total Borrowings of the Bank
Segment Information@
(Rs in Lakhs)
Particulars Quarter ended Year ended
31.03.2022 31.12.2021 31.03.2021 31.03.2022 31.03.2021
Audited Unaudited Audited Audited Audited
(Refer Note 15 below)
(Refer Note 15 below)
Segment Revenue:
Treasury 49,475 52,104 58,808 2,35,130 2,75,375
Corporate/Wholesale Banking 1,03,851 1,04,829 1,03,540 4,26,734 4,56,152
Retail Banking 2,36,429 2,30,357 2,18,695 8,98,700 8,31,690
Other Banking operations 3,400 3,500 3,100 10,800 8,200
Unallocated 1,669 1,885 244 3,621 244
Total Revenue 3,94,824 3,92,675 3,84,387 15,74,985 15,71,661
Less: Inter Segment Revenue - - - - -
Income from Operations 3,94,824 3,92,675 3,84,387 15,74,985 15,71,661
Segment Results (net of provisions):
Treasury 5,512 11,022 13,207 64,135 72,223
Corporate/Wholesale Banking 17,497 21,396 17,355 55,657 22,275
Retail Banking 38,438 32,753 30,835 1,21,015 1,12,015
Other Banking operations 9,180 2,975 2,635 9,180 6,970
Unallocated 1,669 1,885 244 3,621 244
Profit before tax 72,296 70,031 64,276 2,53,608 2,13,727
Segment Assets
Treasury 47,68,440 41,05,806 45,25,111 47,68,440 45,25,111
Corporate/Wholesale Banking 78,58,857 77,61,124 71,46,590 78,58,857 71,46,590
Retail Banking 87,98,646 83,65,479 78,13,657 87,98,646 78,13,657
Other Banking operations - - - - -
Unallocated 6,68,688 6,55,228 6,51,381 6,68,688 6,51,381
Total 2,20,94,631 2,08,87,637 2,01,36,739 2,20,94,631 2,01,36,739
Segment Liabilities
Treasury 18,02,189 10,66,903 14,13,771 18,02,189 14,13,771
Corporate/Wholesale Banking 18,67,906 16,70,529 16,02,533 18,67,906 16,02,533
Retail Banking 1,62,98,555 1,60,75,581 1,53,06,693 1,62,98,555 1,53,06,693
Other Banking operations - - - - -
Unallocated 2,46,597 2,49,306 2,01,295 2,46,597 2,01,295
Total 2,02,15,247 1,90,62,319 1,85,24,292 2,02,15,247 1,85,24,292
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 29,66,251 30,38,903 31,11,340 29,66,251 31,11,340
Corporate/Wholesale Banking 59,90,951 60,90,595 55,44,057 59,90,951 55,44,057
Retail Banking (74,99,909) (77,10,102) (74,93,036) (74,99,909) (74,93,036)
Other Banking operations - - - - -
Unallocated 4,22,091 4,05,922 4,50,086 4,22,091 4,50,086
Total 18,79,384 18,25,318 16,12,447 18,79,384 16,12,447
@ 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.
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 on March 31, 2022 is given
below:
(Rs in Lakhs)
Particulars As at 31.03.2022 As at 31.03.2021
Audited Audited
CAPITAL AND LIABILITIES
Capital 42,051 39,923
Reserves and Surplus 18,37,333 15,72,524
Deposits 1,81,70,059 1,72,64,448
Borrowings 15,39,311 9,06,850
Other Liabilities and Provisions 5,05,877 3,52,994
Total 2,20,94,631 2,01,36,739
ASSETS
Cash and Balances with Reserve Bank of India 9,99,927 7,64,704
Balance with Banks and Money at Call and Short Notice 11,01,108 11,94,435
Investments 39,17,946 37,18,621
Advances 1,44,92,833 1,31,87,860
Fixed Assets 63,394 49,113
Other Assets 15,19,423 12,22,006
Total 2,20,94,631 2,01,36,739
Notes:
1 The above Standalone Financial Results for the quarter and year ended March
31, 2022 were reviewed by the Audit Committee and approved by the Board of
Directors at its meeting held on May 06, 2022. These Results have been
subjected to "Audit" by the Statutory Central Auditors of the Bank and an
unqualified audit report has been issued.
2 The Bank has not made any changes in the significant accounting policies
applied in the preparation of the quarterly financial results and its annual
financial statements for the years ended March 31, 2022 and March 31, 2021
having a material impact on the results.
3 The financial results have been arrived at after considering provision for
standard assets (including requirements for exposures to entities with
unhedged foreign currency exposures), provision for non-performing assets
(NPAs), provision for non-performing investments, provision for income-tax and
other usual and necessary provisions
4 Other income includes fees earned from providing services to customers,
commission from non-fund-based banking activities, earnings from foreign
exchange and derivative transactions, selling of third-party products, profit
on sale of investments (net), profit / loss on revaluation of investments,
dividend received from subsidiaries / associates, recoveries from advances
written off etc.
5 The Capital Adequacy Ratio is computed on the basis of RBI guidelines
applicable on the relevant reporting dates and the ratio for the corresponding
previous period is not adjusted to consider the impact of subsequent changes
if any, in the guidelines.
6 During the quarter and year ended March 31, 2022, the Bank has allotted
517,931 and 1,547,231 equity shares of ` 2 each respectively, pursuant to the
exercise of stock options by employees. On August 30, 2021, RBI issued a
clarification on Guidelines on Compensation of Whole Time Directors/Chief
Executive Officers /Material Risk Takers and Control Function Staff. advising
banks that the share-linked instruments are required to be fair valued on the
date of grant using the Black-Scholes model. The fair value thus arrived
should be recognised as an expense for all options granted after the
accounting period ending March 31, 2021, over the vesting period. Accordingly,
Bank has estimated the fair value of such stock-based compensations on the
date of grant using Black-Scholes model (as against intrinsic value method
adopted earlier) and recognised the same as an expense over the vesting
period, which does not have a material impact on the results for the quarter/
year ended March 31, 2022
7 In accordance with RBI Circular DBR.No.BP.BC.1/21.06.201/2015-16 on Basel
III Capital Regulations dated July 01, 2015, 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' and RBI
Circular DBR.BP.BC.No.106/21.04.098/2017-18 dated May 17, 2018 - 'Basel III
Framework on Liquidity Standards - Net Stable Funding Ratio (NSFR) - Final
Guidelines', 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: https://www.federalbank.co.in/regulatory-disclosures.
These disclosures have not been subjected to audit or review by the Statutory
Central Auditors of the Bank.
8 During the quarter ended September 30, 2021 , the Bank had issued 104,846,394
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 at ` 87.39 per share aggregating to ` 91,625.26 Lakhs (including
share premium). This resulted in an increase of ` 2,096.93 Lakhs in Share
Capital and ` 89,476.54 Lakhs (Net of share issue expenses) in Share
premium account.
9 On account of uncertainties prevailing due to COVID-19 pandemic across the
world and in India, the extent to which the same will impact the Bank's
operations and financial position in future will depend on various aspects
including actions taken to mitigate its impact and other regulatory measures.
The Bank's capital and liquidity position is strong and would continue to be
the focus area for the Bank during this period.
10 The Board of Directors have recommended a dividend of 90% i.e. ` 1.80/- per
Equity Share on face value of ` 2/- each for the year 2021-22 (Previous Year `
0.70/- per Equity Share) subject to the approval of the members at the ensuing
Annual General Meeting. In terms of Accounting Standard (AS) 4
"Contingencies and Events occurring after the Balance sheet date" the Bank
has not appropriated proposed dividend aggregating to ` 37,845.79 Lakhs from
the Profit and loss account for the year ended March 31, 2022. However the
effect of the proposed dividend has been reckoned in determining capital funds
in the computation of Capital adequacy ratio as on March 31, 2022.
11 i) Details of resolution plan implemented under the Resolution Framework for
COVID-19-related Stress as per RBI circular dated August 6, 2020 (Resolution
Framework 1.0) and May 05,2021 (Resolution Framework 2.0) are given below:
(Rs in lakhs except number of accounts)
Type of borrower Exposure to accounts Of (A), aggregate debt that slipped into NPA during the Of (A) amount Of (A) amount paid by the borrowers Exposure to accounts
classified as Standard
half-year
written off during the half-year
during the half- year((2))
classified as Standard
consequent to implementation of resolution plan - Position as at the
consequent to implementation of resolution plan - Position as at the
end of the previous half-year ended September 30 , 2021 (A) ((1,3)) end of this half-year ended March 31 , 2022 ((3))
Personal Loans 2,14,698.84 4,312.20 - 1,929.05 2,09,370.59
Corporate persons 19,841.14 - - 11.41 19,829.73
Of which, MSMEs - - - - -
Others 56,943.89 1,909.32 - 15,114.82 39,990.28
Total 2,91,483.87 6,221.52 - 17,055.28 2,69,190.60
1. Includes restructuring done in respect of requests received as of September
30,2021 processed subsequently
2. Represents net movement in balance outstanding
3. Excludes other facilities to the borrowes which have not been restructured.
ii) In accordance with the RBI Cir. No. DOR.STR.REC.11/21.04.048/2021-22 dated
May 05, 2021 on "Resolution Framework - 2.0: Resolution of Covid - 19 related
stress of Individuals and Small Business", the number of borrower accounts
where modifications were sanctioned and implemented and the aggregate exposure
to such borrowers are as under
(Rs in lakhs except number of accounts)
No. of Accounts 190
Aggregate Exposure as on March 31, 2022 7,851.86
iii)During the year ended March 31, 2022, based on internal assessment, the
Bank has created additional provision over and above the regulatory minimum
provision required for restructured advances, against the accounts
restructured under the resolution frameworks. As on March 31, 2022, the bank
holds ` 13,939.00 Lakhs provision against the accounts restructured under the
resolution frameworks over and above the regulatory minimum provision required
for restructured advances.
12 Disclosures as per 'Master Direction - Reserve Bank of India (Transfer of Loan
Exposures) Directions, 2021' dated September 24, 2021 for the loans
transferred / acquired during the year ended March 31, 2022 are given below:
i) Details of loans not in default acquired through assignment are given
below:
Aggregate amount of loans acquired (` in lakhs) 10,826.85
Weighted average residual maturity (in years) 2.46
Weighted average holding period by originator (in years) 1.20
Retention of beneficial economic interest by the originator (` in lakhs) 1,202.98
Tangible security coverage Unsecured loans
The loans acquired are not rated as the same are to non-corporate borrowers.
ii) Details of non-performing assets (NPAs) (excluding prudentially written
off advances) transferred are given below:
(Rs in lakhs except number of accounts)
To ARCs To other Transferees
Number of accounts 44 -
Aggregate principal outstanding of loans transferred 27,547.06 -
Weighted average residual tenor of the loans transferred (in years) 7.44 -
Net book value of loans transferred (at the time of transfer) 6,995.57 -
Aggregate consideration 15,826.48 -
Additional consideration realized in respect of accounts transferred in - -
earlier years
Provisions reversed to the profit and loss account on account of sale of 8,830.91 -
stressed loans
iii) During the year ended March 31, 2022, the bank has not acquired any
stressed loans and not transferred any loan not in default / Special Mention
Accounts (SMA).
iv) During the year ended March 31, 2022, the bank has not invested in
Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in
respect of stressed loans transferred to ARCs.
13 As permitted vide letter dated October 4, 2021 issued by RBI, during the
quarter ended September 30, 2021 the Bank had opted to amortize the
liability on account of revision in family pension for employees covered under
the 11th Bipartite Settlement and Joint Note dated November 11, 2020, over a
period not exceeding five years beginning with the financial year ended March
31, 2022, subject to 1/5 of the liability being expensed every financial
year. Accordingly, during the nine months ended December 31, 2021, the Bank
had charged ` 2,364.21 Lakhs to the Profit and Loss account and the balance
unamortised expenditure amounting to ` 15,367.34 Lakhs was carried forward.
During the quarter ended March 31, 2022, the bank has opted to charge the
entire balance unamortised family pension expenditure of ` 15,367.34 lakhs to
the Profit and Loss Account.
14 The bank has raised ` 70,000.00 Lakhs Tier II capital on January 20, 2022, by
way of issuance of unsecured Basel III compliant Tier II Bonds on private
placement basis.
15 The figures of the last quarter are the balancing figures between the audited
figures in respect of the full financial year and the published year to date
figures upto the end of third quarter of the respective financial year, which
was subjected to limited review.
16 Previous period's / year's figures have been regrouped / reclassified, where
necessary to conform to current period's classification and also the amounts /
ratios for the previous period / year have been regrouped /reclassified
pursuant to the requirement of Master Direction on financial statements -
Presentation and disclosure issued by Reserve Bank of India dated August 30,
2021 (updated as on November 15, 2021), as amended and wherever considered
necessary.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 06, 2022 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022
(Rs. in Lakhs)
Year ended Year ended
March 31, 2022
March 31, 2021
Cash Flow from Operating Activities
Net Profit Before Taxes 2,53,608 2,13,727
Adjustments for:
Depreciation on Bank's Property 12,296 10,450
Provision / Depreciation on Investments 7,979 1,511
Amortisation of Premium on Held to Maturity Investments 16,923 14,219
Provision / Charge for Non Performing Advances 61,111 1,51,573
Provision for Standard Assets and Contingencies 61,222 11,879
(Profit)/Loss on Sale of Fixed Assets (net) (531) (178)
Dividend From Subsidiaries / Joint ventures / Associates (2,767) -
Employees Stock Option Expense 51 1
4,09,892 4,03,182
Adjustments for working capital changes:-
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] (3,28,778) 2,33,748
(Increase)/ Decrease in Advances (13,66,084) (11,12,641)
(Increase)/ Decrease in Other Assets (2,79,436) (2,74,050)
Increase/ (Decrease) in Deposits 9,05,611 20,35,439
Increase/ (Decrease) in Other Liabilities and Provisions 93,340 (5,159)
(9,75,347) 8,77,337
Direct taxes paid (net) (84,286) (59,799)
Net Cash Flow from / (Used in) Operating Activities (6,49,741) 12,20,720
Cash Flow from Investing Activities
Purchase of Fixed Assets (26,770) (11,779)
Proceeds from Sale of Fixed Assets 724 392
Dividend From Subsidiaries / Joint ventures / Associates 2,767 -
Investment in Subsidiary (14,799) 5,861
Investment in Associate (241) 80
(Increase)/ Decrease in Held to Maturity Investments 1,19,591 (3,84,772)
Net Cash generated / (Used in) Investing Activities 81,272 (3,90,218)
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital 2,128 70
Proceeds from Share Premium (Net of Share Issue Expenses) 90,385 1,310
Proceeds from Issue of Subordinate Debt 70,000 -
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) 5,62,461 (1,30,392)
Dividend Paid (13,974) -
Net Cash generated from Financing Activities 7,11,000 (1,29,012)
Effect of Exchange Fluctuation on Translation Reserve (635) 191
Net Increase in Cash and Cash Equivalents 1,41,896 7,01,681
Cash and Cash Equivalents at the beginning of the year 19,59,139 12,57,458
Cash and Cash Equivalents at the end of the year 21,01,035 19,59,139
Note:
Cash and Cash Equivalents comprise of Cash in hand (including foreign currency
notes), Balances with Reserve Bank of India, Balances with banks and money at
call and short notice.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 06, 2022 (DIN: 02274773)
Varma & Varma Borkar & Muzumdar,
Chartered Accountants, Chartered Accountants,
No.53/2600, Kerala Varma Tower 21/168 Anand Nagar Om C.H.S,
Off Kunjanbava Road, Vytilla, Anand Nagar Lane, Off Nehru Road, Santacruz (East) Mumbai - 400 055
Kochi -682019
Independent Auditors' report on Audited Consolidated quarterly and year ended
Financial Results of The Federal Bank Limited pursuant to the Regulation 33
and Regulation 52 read with 63(2) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015
To
The Board of Directors
The Federal Bank Limited
Opinion
1. We have audited the accompanying Statement of Consolidated Financial
Results of The Federal Bank Limited ("the Bank"), its subsidiaries (the
parent and its subsidiaries together referred to as 'the Group') and its
associates for the quarter and year ended 31(st) March 2022 ('Consolidated
Financial Results'), being submitted by the Bank pursuant to the requirements
of Regulation 33 and Regulation 52 read with 63(2) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as
amended ("Listing Regulations"), except for the disclosures relating
to Pillar 3 disclosure as at 31(st) March 2022, 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 Financial
Results and have not been audited by us.
2. In our opinion and to the best of our information and according to
the explanations given to us, and based on consideration of reports of the
other auditors on separate audited financial statements/financial
results/financial information of the subsidiaries and associates, these
consolidated Financial Results:
iii. include the annual audited financial results of the following
entities;
a. The Federal Bank Limited ( Parent)
b. Fedbank Financial Services Limited (Subsidiary)
c. Federal Operations and Services Limited (Subsidiary)
d. Ageas Federal Life Insurance Company Limited (Associate)
e. Equirus Capital Private Limited (Associate)
iv. are presented in accordance with the
requirements of Regulation 33 and Regulation 52 read with 63(2)
of the Listing Regulations in this regard except for the
disclosures relating to Pillar 3 disclosure as at 31(st) March 2022,
including leverage ratio, liquidity coverage ratio and net stable funding
ratio under Basel III Capital Regulations as have been
disclosed on the Bank's website and in respect of which a link has been
provided in the consolidated Financial Results and have not been audited by
us; and
v. give a true and fair view in conformity with the recognition and
measurement principles laid down in the applicable accounting standards, RBI
guidelines and other accounting principles generally accepted in
India of the consolidated net profit and other financial information of
the Group and its associates for the quarter and year ended 31(st) March 2022.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing
(SAs) specified under section 143(10) of the Companies Act, 2013. ("the Act").
Our responsibilities under those Standards are further described in the
Auditors' Responsibilities for the Audit of the Consolidated Financial Results
section of our report. We are independent of the Group and its associates in
accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant
to our audit of the Consolidated Financial Results, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence obtained by us and other
auditors in terms of their report referred to in "Other Matter" paragraph
below, is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
4. We draw attention to Note No. 9 of the accompanying Consolidated
Financial Results, regarding the impact of COVID-19 pandemic in the accounts
for the quarter and year ended 31st March 2022. As stated therein, in view of
continuing uncertainties, the extent of impact of the pandemic on the Bank's
operations and financial position would depend on various aspects including
actions taken to mitigate its impact and other regulatory measures.
Our opinion is not modified in respect of this matter.
Board of Directors responsibilities for the Consolidated Financial Results
5. The Bank's Board of Directors are responsible for the preparation of
these Consolidated Financial Results that give a true and fair view of the
consolidated net profit and other financial information of the Group including
its associates in accordance with the recognition and measurement principles
laid down in the Accounting Standards specified under section 133 of the
Act, 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 and in compliance with
Regulation 33 and Regulation 52 of the Listing Regulations. The respective
Board of Directors of the entities included in the Group and of its associates
are responsible for the maintenance of adequate accounting records in
accordance with the provisions of the Act/RBI Guidelines for safeguarding of
the assets of the Group and its associates and for preventing
and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the
preparation and presentation of the consolidated Financial Results
that give a true and fair view and are free from material misstatement,
whether due to fraud or error which have been used for the purpose of
preparation of the Consolidated Financial Results by the Directors of the
Bank, as aforesaid.
6. In preparing the Consolidated Financial Results, the respective Board
of Directors of the entities included in the Group and of its associates are
responsible for assessing the ability of the Group and its associates to
continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Group and its associates or to
cease operations, or has no realistic alternative but to do so.
7. The respective Board of Directors of the entities included in the
Group and of its associates are responsible for overseeing the financial
reporting process of the Group and of its associates.
Auditors' Responsibilities for the Audit of the Consolidated Financial Results
8. Our objectives are to obtain reasonable assurance about whether the
consolidated Financial Results as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors' report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated Financial Results. As part of an
audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the
consolidated Financial Results, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal
control.
· Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the
circumstances. Under Section 143(3) (i) of the Act, we are also responsible
for expressing our opinion on whether the Bank has in place an adequate
internal financial controls system over financial reporting and the operating
effectiveness of such controls.
· Evaluate the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related disclosures made by the
Board of Directors.
· Conclude on the appropriateness of the Board of Directors'
use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the ability of the Group and of
its associates to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors' report
to the related disclosures in the consolidated Financial Results or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditors' report.
However, future events or conditions may cause the Group and its associates to
cease to continue as a going concern.
· Evaluate the overall presentation, structure, and content of
the consolidated Financial Results, including the disclosures, and whether the
consolidated Financial Results represent the underlying transactions and
events in a manner that achieves fair presentation.
· Obtain sufficient appropriate audit evidence regarding the
financial results/ financial information of the entities within the Group and
its associates to express an opinion on the Consolidated Financial Results. We
are responsible for the direction, supervision and performance of the audit of
financial information of such entities included in the Consolidated Financial
Results of which we are the independent auditors. For the other entities
included in the Consolidated Financial Results, which have been audited by
other auditors, such other auditors remain responsible for the direction,
supervision and performance of the audits carried out by them. We remain
solely responsible for our audit opinion.
9. We communicate with those charged with governance of the Bank and
such other entities included in the consolidated results of which we are the
independent auditors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
10. We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable,
related safeguards.
11. We also performed procedures in accordance with the circular issued by
the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the
extent applicable.
Other Matters
12. These Consolidated Financial Results incorporate the relevant returns of
331 branches of the Bank audited by the branch auditors, whose reports have
been furnished to us by the management. The branches audited by such branch
auditors of the Bank cover 15.80% of advances, 26.11% of deposits and 23.33%
of Non-performing assets (Net) as on 31(st) March 2022 and 13.89% / 13.27% of
revenue for the quarter/year ended 31(st) March 2022 of the Bank. Our opinion
on the Consolidated Financial Results of the Bank, in so far as it relates to
the amounts and disclosures included in respect of such branches, is based
solely on the reports of such branch auditors.
13. The Consolidated Financial Results include the audited financial results
of one subsidiary, whose financial statements/financial results/financial
information reflect total assets of Rs. 1,982.53 lakhs as at 31(st) March
2022, total revenues of Rs. 4,409.56 lakhs and total net profit after tax of
Rs. 345.50 lakhs for the year ended 31(st) March 2022, and net cash inflow
amounting to Rs 370.53 lakhs for the year ended on that date, as considered in
the Consolidated Financial Results have been audited by one of the joint
auditors of the Bank whose reports have been furnished to us by the
management. The Consolidated Financial Results also include the audited
financial results of one subsidiary, whose financial statements/financial
results/ financial information reflect total assets of Rs 6,53,836 lakhs as at
31(st) March 2022, total revenues of Rs 89,230.15 lakhs and total net profit
after tax of Rs 9,978.52 lakhs for the year ended 31(st) March 2022 and net
cash outflow amounting to Rs 46,009 lakhs for the year ended on that date,
as considered in the Consolidated Financial Results, which have been audited
by another independent auditor, whose reports have been furnished to us by the
management. Our opinion on the Consolidated Financial Results, in so far as it
relates to the amounts and disclosures included in respect of these
subsidiaries is based solely on the reports of such auditors and the
procedures performed by us are as stated in section above.
14. The Consolidated Financial Results also include the Group's share of net
profit of Rs. 3,102.81 lakhs for the year ended 31(st) March 2022, as
considered in the Consolidated Financial Results, in respect of two
associates, whose financial statements have not been audited by us. These
financial statements have been audited by other auditors whose report has been
furnished to us by the Management and our opinion on the Consolidated
Financial Results, in so far as it relates to the amounts and disclosures
included in respect of these associates, is based solely on the reports of
such auditors and the procedures performed by us are as stated in section
above.
15. The Consolidated Financial Results includes the results for the quarter
ended 31(st) March 2022, being the derived balancing figures between the
Consolidated audited Financial Results in respect of the full financial year
ended 31(st) March 2022 and the published consolidated unaudited year to date
figures upto the nine months ended 31(st) December 2021, which have only been
reviewed and not subjected to audit by us.
Our opinion on the consolidated financial results is not modified in respect
of above matters.
For Varma & Varma
For Borkar & Muzumdar
Chartered Accountants
Chartered Accountants
FRN:
004532S
FRN: 101569W
Vijay Narayan
Govind
Kaushal Muzumdar
Partner
Partner
M. No.
203094
M. No. 100938
UDIN:
22203094AIMWYJ4289
UDIN: 22100938AIMWZO7341
Kochi
Kochi
06(th) May
2022
06(th) May 2022
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH
31, 2022
(Rs. in Lakhs)
Particulars Quarter ended Year ended
31.03.2022 31.12.2021 31.03.2021 31.03.2022 31.03.2021
Audited Unaudited Audited Audited Audited
(Refer Note 13 below)
(Refer Note 13 below)
1. Interest earned (a)+(b)+(c)+(d) 3,68,630 3,60,398 3,51,586 14,38,153 14,31,408
(a) Interest/discount on advances/bills 2,96,150 2,89,480 2,81,071 11,56,431 11,35,314
(b) Income on investments 58,821 56,833 57,110 2,31,649 2,33,829
(c) Interest on balances with Reserve Bank of India and other inter bank funds 5,614 6,089 6,619 22,027 36,816
(d) Others 8,045 7,996 6,786 28,046 25,449
2. Other income 48,425 52,132 49,273 2,12,094 1,97,165
3. TOTAL INCOME (1+2) 4,17,055 4,12,530 4,00,859 16,50,247 16,28,573
4. Interest expended 2,02,995 1,96,980 2,00,321 7,95,938 8,43,496
5. Operating expenses (i)+(ii) 1,27,884 1,19,089 1,06,484 4,59,215 3,89,867
(i) Employees cost 68,954 63,437 56,200 2,51,166 2,17,202
(ii) Other operating expenses 58,930 55,652 50,284 2,08,049 1,72,665
6. TOTAL EXPENDITURE (4+5) 3,30,879 3,16,069 3,06,805 12,55,153 12,33,363
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 86,176 96,461 94,054 3,95,094 3,95,210
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies 8,394 23,980 26,779 1,30,466 1,74,354
9. Exceptional items - - - - -
10. Profit from Ordinary Activities before tax 77,782 72,481 67,275 2,64,628 2,20,856
(7-8-9)
11. Tax expense 19,606 18,472 17,250 68,088 56,136
12. Net Profit from Ordinary Activities after tax (10-11) 58,176 54,009 50,025 1,96,540 1,64,720
13. Extraordinary items (net of tax expense) - - - - -
14. Net Profit for the period (12-13) 58,176 54,009 50,025 1,96,540 1,64,720
15. Minority interest 1,137 458 567 2,664 1,524
16. Share in Profit of Associates 1,715 426 2,666 3,103 3,237
17. Consolidated Net Profit of the group 58,754 53,977 52,124 1,96,979 1,66,433
(14-15+16)
18. Paid-up Equity Share Capital 42,051 42,041 39,923 42,051 39,923
(Face value ` 2/- per Equity Share)
19. Reserves excluding Revaluation Reserve 18,83,000 16,09,971
20. Analytical Ratios and Other Disclosures:
(i) Percentage of shares held by Government of India NIL NIL NIL NIL NIL
(ii) Capital Adequacy ratio (%)
Under Basel III 16.33 14.97 15.19 16.33 15.19
(iii) Earnings per Share (EPS) (in Rs)
(a) Basic EPS (before and after extraordinary items) 2.79* 2.57* 2.61* 9.52 8.34
(b) Diluted EPS (before and after extraordinary items) 2.77* 2.55* 2.59* 9.44 8.31
(iv) NPA Ratios
a) Gross NPA 4,25,653 4,59,280 4,64,639 4,25,653 4,64,639
b) Net NPA 1,47,977 1,61,315 1,60,471 1,47,977 1,60,471
c) % of Gross NPA 2.78 3.10 3.35 2.78 3.35
d) % of Net NPA 0.98 1.11 1.18 0.98 1.18
(v) Return on Assets (%) 0.27* 0.25* 0.26* 0.91 0.86
* Not Annualised
Segment Information@
(Rs. in Lakhs)
Particulars Quarter ended Year ended
31.03.2022 31.12.2021 31.03.2021 31.03.2022 31.03.2021
Audited Unaudited Audited Audited Audited
(Refer Note 13 below)
(Refer Note 13 below)
Segment Revenue:
Treasury 49,102 51,768 58,330 2,31,327 2,74,514
Corporate/Wholesale Banking 1,02,659 1,03,817 1,02,437 4,22,307 4,51,907
Retail Banking 2,58,742 2,50,466 2,36,748 9,78,155 8,93,708
Other Banking operations 4,883 4,594 3,100 14,837 8,200
Unallocated 1,669 1,885 244 3,621 244
Total Revenue 4,17,055 4,12,530 4,00,859 16,50,247 16,28,573
Less: Inter Segment Revenue - - - - -
Income from Operations 4,17,055 4,12,530 4,00,859 16,50,247 16,28,573
Segment Results (net of provisions):
Treasury 5,713 11,276 13,322 62,722 72,226
Corporate/Wholesale Banking 16,397 21,370 16,289 54,113 21,547
Retail Banking 44,128 35,570 34,785 1,33,433 1,19,869
Other Banking operations 9,875 2,380 2,635 10,738 6,970
Unallocated 1,669 1,885 244 3,621 244
Profit before tax 77,782 72,481 67,275 2,64,628 2,20,856
Segment Assets
Treasury 47,63,764 40,59,405 44,79,657 47,63,764 44,79,657
Corporate/Wholesale Banking 78,08,466 77,07,515 70,83,959 78,08,466 70,83,959
Retail Banking 93,78,255 89,37,571 82,82,563 93,78,255 82,82,563
Other Banking operations 401 286 - 401 -
Unallocated 6,73,219 6,54,674 6,50,474 6,73,219 6,50,474
Total 2,26,24,105 2,13,59,451 2,04,96,653 2,26,24,105 2,04,96,653
Segment Liabilities
Treasury 18,59,584 10,83,754 14,03,276 18,59,584 14,03,276
Corporate/Wholesale Banking 18,77,366 16,81,586 16,09,960 18,77,366 16,09,960
Retail Banking 1,66,84,109 1,64,51,320 1,56,11,703 1,66,84,109 1,56,11,703
Other Banking operations 364 103 - 364 -
Unallocated 2,46,597 2,47,747 1,99,615 2,46,597 1,99,615
Total 2,06,68,020 1,94,64,510 1,88,24,554 2,06,68,020 1,88,24,554
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 29,04,180 29,75,651 30,76,381 29,04,180 30,76,381
Corporate/Wholesale Banking 59,31,100 60,25,929 54,73,999 59,31,100 54,73,999
Retail Banking (73,05,854) (75,13,749) (73,29,140) (73,05,854) (73,29,140)
Other Banking operations 37 183 - 37 -
Unallocated 4,26,622 4,06,927 4,50,859 4,26,622 4,50,859
Total 19,56,085 18,94,941 16,72,099 19,56,085 16,72,099
@ 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.
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.
(Rs in Lakhs)
Particulars As at 31.03.2022 As at 31.03.2021
Audited Audited
CAPITAL AND LIABILITIES
Capital 42,051 39,923
Reserves and Surplus 18,83,501 16,10,472
Minority Interest 30,533 21,704
Deposits 1,81,67,752 1,72,18,611
Borrowings 19,58,739 12,27,060
Other Liabilities and Provisions 5,41,529 3,78,883
Total 2,26,24,105 2,04,96,653
ASSETS
Cash and Balances with Reserve Bank of India 10,01,611 7,65,451
Balance with Banks and Money at Call and Short Notice 11,12,000 12,16,123
Investments 39,06,519 36,73,167
Advances 1,49,95,146 1,35,51,441
Fixed Assets 67,210 51,749
Other Assets 15,41,618 12,38,722
Total 2,26,24,105 2,04,96,653
Notes:
1 The above Consolidated Financial Results for the quarter and year ended March
31, 2022 were reviewed by the Audit Committee and subsequently approved by the
Board of Directors at its meeting held on May 06, 2022. These Results have
been subjected to "Audit" by the Statutory Central Auditors of the Bank and an
unqualified audit report has been issued.
2 The Consolidated Financial Results of the Group comprise the financial results
of The Federal Bank Limited and its subsidiaries viz. Fedbank Financial
Services Limited & Federal Operations and Services Limited and its
associates viz. Ageas Federal Life Insurance Company Limited & Equirus
Capital Private Limited.
3 There has been no material change in the accounting policies adopted during
the quarter and year ended March 31, 2022 as compared to those followed for
the year ended March 31, 2021 except.
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), provision
for non-performing 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), profit / loss on revaluation of of investments,
dividend received from subsidiaries / associates, 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 In accordance with RBI Circular DBR.No.BP.BC.1/21.06.201/2015-16 on Basel
III Capital Regulations dated July 01, 2015, 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' and RBI
Circular DBR.BP.BC.No.106/21.04.098/2017-18 dated May 17, 2018 - 'Basel III
Framework on Liquidity Standards - Net Stable Funding Ratio (NSFR) - Final
Guidelines', 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: https://www.federalbank.co.in/regulatory-disclosures.
These disclosures have not been subjected to audit or review by the Statutory
Central Auditors of the Bank.
8 During the quarter ended September 30, 2021 , the Bank had issued 104,846,394
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 at ` 87.39 per share aggregating to ` 91,625.26 Lakhs (including
share premium). This resulted in an increase of ` 2,096.93 Lakhs in Share
Capital and ` 89,476.54 Lakhs (Net of share issue expenses) in Share premium
account.
9 On account of uncertainties prevailing due to COVID-19 pandemic across the
world and in India, the extent to which the same will impact the Bank's
operations and financial position in future will depend on various aspects
including actions taken to mitigate its impact and other regulatory measures.
The Bank's capital and liquidity position is strong and would continue to be
the focus area for the Bank during this period.
10 The Board of Directors have recommended a dividend of 90% i.e. ` 1.80/- per
Equity Share on face value of ` 2/- each for the year 2021-22 (Previous Year `
0.70/- per Equity Share) subject to the approval of the members at the ensuing
Annual General Meeting. In terms of Accounting Standard (AS) 4
"Contingencies and Events occurring after the Balance sheet date" the Bank
has not appropriated proposed dividend aggregating to ` 37,845.79 Lakhs from
the Profit and loss account for the year ended March 31, 2022. However the
effect of the proposed dividend has been reckoned in determining capital funds
in the computation of Capital adequacy ratio as on March 31, 2022.
11 As permitted vide letter dated October 4, 2021 issued by RBI, during the
quarter ended September 30, 2021 the Bank had opted to amortize the
liability on account of revision in family pension for employees covered under
the 11th Bipartite Settlement and Joint Note dated November 11, 2020, over a
period not exceeding five years beginning with the financial year ended March
31, 2022, subject to 1/5 of the liability being expensed every financial
year. Accordingly, during the nine months ended December 31, 2021, the Bank
had charged ` 2,364.21 Lakhs to the Profit and Loss account and the balance
unamortised expenditure amounting to ` 15,367.34 Lakhs was carried forward.
During the quarter ended March 31, 2022, the bank has opted to charge the
entire balance unamortised family pension expenditure of ` 15,367.34 lakhs to
the Profit and Loss Account.
12 The bank has raised ` 70,000.00 Lakhs Tier II capital on January 20, 2022, by
way of issuance of unsecured Basel III compliant Tier II Bonds on private
placement basis.
13 The figures of the last quarter are the balancing figures between the audited
figures in respect of the full financial year and the published year to date
figures upto the end of third quarter of the respective financial year, which
was subjected to limited review.
14 Previous period's / year's figures have been regrouped / reclassified, where
necessary to conform to current period's classification and also the amounts /
ratios for the previous period / year have been regrouped / reclassified
pursuant to the requirement of Master Direction on financial statements -
Presentation and disclosure issued by Reserve Bank of India dated August 30,
2021 (updated as on November 15, 2021), as amended and wherever considered
necessary.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 06, 2022 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022
(Rs. in Lakhs)
Year ended Year ended
March 31, 2022
March 31, 2021
Cash Flow from Operating Activities
Net Profit Before Taxes 2,65,067 2,22,569
Adjustments for:
Depreciation on Group's Property 13,890 11,492
Provision / Depreciation on Investments 8,063 1,864
Amortisation of Premium on Held to Maturity Investments 16,922 14,219
Provision / Charge for Non Performing Advances 66,154 1,54,368
Provision for Standard Assets and Contingencies 64,384 16,743
(Profit)/ Loss on Sale of Fixed Assets (net) (533) (180)
Employees Stock Option Expense 57 34
4,34,004 4,21,109
Adjustments for working capital changes:-
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] (3,77,928) 2,61,200
(Increase)/ Decrease in Advances (15,09,859) (12,20,859)
(Increase)/ Decrease in Other Assets (2,81,657) (2,80,017)
Increase/ (Decrease) in Deposits 9,49,142 19,93,420
Increase/ (Decrease) in Other Liabilities and Provisions 98,261 5,921
(11,22,041) 7,59,665
Direct taxes paid (net) (89,328) (62,871)
Net Cash Flow from / (Used in) Operating Activities (7,77,365) 11,17,903
Cash Flow from Investing Activities
Purchase of Fixed Assets (29,552) (12,993)
Proceeds from Sale of Fixed Assets 734 413
(Increase)/ Decrease in Held to Maturity Investments 1,19,592 (3,78,911)
Net Cash generated / (Used in) Investing Activities 90,774 (3,91,491)
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital 2,128 70
Proceeds from Share Premium (Net of Share Issue Expenses) 90,573 1,293
Increase / (Decrease) in Minority Interest 8,858 3,588
Proceeds from Issue of Subordinate Debt 70,480 -
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) 6,61,199 (25,712)
Dividend Paid (13,974) -
Net Cash generated from Financing Activities 8,19,264 (20,761)
Effect of Exchange Fluctuation on Translation Reserve (635) 191
Increase/(Decrease) in Cash and Cash Equivalents 1,32,038 7,05,842
Cash and Cash Equivalents at the beginning of the year 19,81,573 12,75,731
Cash and Cash Equivalents at the end of the year 21,13,611 19,81,573
Note:
Cash and Cash Equivalents comprise of Cash in hand (including foreign currency
notes), Balances with Reserve Bank of India, Balances with banks and money at
call and short notice.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 06, 2022 (DIN: 02274773)
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