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

Federal BankAnnouncement

17/05/2016 13:45

RNS Number : 5004Y
Federal Bank Ltd (The)
17 May 2016
SDF-24/  /2016-17 17th May 2016
   
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Audited Financial Results of the Bank for the period ended March 31, 2016 which was approved at the Bank's Board of Directors meeting held on 30th April 2016.
Kindly take the same on your record.
For The Federal Bank Limited
Girish Kumar G
COMPANY SECRETARY
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2016
(` in Lakhs) 
Particulars
Quarter ended 
Year ended
Consolidated figures for the year ended
31.03.2016
31.12.2015
31.03.2015
31.03.2016
31.03.2015
31.03.2016
31.03.2015
Audited
(Refer Note 12 below)
Unaudited
Audited
(Refer Note 12 below)
Audited
Audited
Audited
Audited
1. Interest earned (a)+(b)+(c)+(d)
 202,652 
 190,276 
 190,828 
 774,469 
 741,946 
 782,280 
 748,777 
(a)
Interest/discount on advances/bills
 146,949 
 138,554 
 138,506 
 566,931 
 544,683 
 574,818 
 551,011 
(b)
Income on Investments
 45,981 
 44,589 
 42,453 
 175,963 
 164,968 
 175,887 
 165,471 
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
 725 
 1,657 
 598 
 5,596 
 6,236 
 5,596 
 6,236 
(d)
Others
 8,997 
 5,476 
 9,271 
 25,979 
 26,059 
 25,979 
 26,059 
2. Other Income
 22,686 
 18,331 
 30,600 
 78,638 
 87,831 
 78,655 
 87,854 
3. TOTAL INCOME (1+2)
 225,338 
 208,607 
 221,428 
 853,107 
 829,777 
 860,935 
 836,631 
4. Interest expended
 134,058 
 129,756 
 128,505 
 524,045 
 503,905 
 525,935 
 505,633 
5. Operating Expenses (i)+(ii)
 51,828 
 46,303 
 46,008 
 186,684 
 163,093 
 190,632 
 167,521 
(i)
Employees Cost
 29,304 
 25,859 
 24,866 
 105,285 
 89,196 
 107,422 
 91,305 
(ii)
Other operating expenses
 22,524 
 20,444 
 21,142 
 81,399 
 73,897 
 83,210 
 76,216 
6. TOTAL EXPENDITURE (4+5)
(excluding Provisions and Contingencies)
 185,886 
 176,059 
 174,513 
 710,729 
 666,998 
 716,567 
 673,154 
7. OPERATING PROFIT (3-6)
(Profit before Provisions and Contingencies)
 39,452 
 32,548 
 46,915 
 142,378 
 162,779 
 144,368 
 163,477 
8. Provisions (other than Tax) and Contingencies
 38,864 
 7,511 
 3,978 
 70,413 
 10,675 
 70,517 
 10,520 
9. Exceptional Items

 - 
 - 
 - 
 - 
 - 
 - 
 - 
10. Profit from Ordinary Activities before tax
(7-8-9)
 588 
 25,037 
 42,937 
 71,965 
 152,104 
 73,851 
 152,957 
11. Tax expense

 (438)
 8,765 
 14,884 
 24,400 
 51,529 
 25,061 
 51,748 
12. Net Profit from Ordinary Activities after tax (10-11)
 1,026 
 16,272 
 28,053 
 47,565 
 100,575 
 48,790 
 101,209 
13. Extraordinary items (net of tax expense)

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

 1,026 
 16,272 
 28,053 
 47,565 
 100,575 
 48,790 
 101,209 
15. Share in Profit/(Loss) of Associate






 (148)
 4,572 
16. Consolidated Net Profit of the group (14+15)





 48,642 
 105,781 
17. Paid-up Equity Share Capital (Refer Note 10)
(Face value ` 2/- per Equity Share)
 34,379 
 34,367 
 17,133 
 34,379 
 17,133 
 34,379 
 17,133 
18. Reserves excluding Revaluation Reserve 



 774,242 
 756,180 
 771,533 
 752,393 
19. Analytical Ratios








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








Under Basel III
 13.93 
 14.32 
 15.46 
 13.93 
 15.46 
 - 
 - 
(iii)
Earnings per Share (EPS) (in `) (Refer Note 10)








(a) Basic EPS (before and after Extra ordinary Items)
0.06*
0.95*
1.64*
2.77
5.87
2.83
6.17

(b) Diluted EPS (before and after Extra ordinary Items)
0.06*
0.94*
1.62*
2.75
5.82
2.82
6.12
(iv)
NPA Ratios








a) Gross NPA
 166,777 
 168,411 
 105,773 
 166,777 
 105,773 



b) Net NPA
 95,001 
 87,610 
 37,327 
 95,001 
 37,327 



c) % of Gross NPA
 2.84 
 3.15 
 2.04 
 2.84 
 2.04 



d) % of Net NPA
 1.64 
 1.66 
 0.73 
 1.64 
 0.73 


(v)
Return on Assets (%)
0.01* 
0.19*
0.35* 
 0.57 
 1.32 



























Segment Information@


















(` in Lakhs) 



Particulars
Quarter ended
Year ended
Consolidated figures for the year ended



31.03.2016
31.12.2015
31.03.2015
31.03.2016
31.03.2015
31.03.2016
31.03.2015





Audited
(Refer Note 12 below)
Unaudited
Audited
(Refer Note 12 below)
Audited
Audited
Audited
Audited



Segment Revenue:











Treasury 
 59,193 
 55,321 
 60,377 
 228,193 
 225,027 
 228,193 
 225,027 




Corporate/Wholesale Banking
 67,702 
 56,861 
 59,886 
 236,094 
 234,993 
 236,094 
 234,993 




Retail Banking
 92,787 
 95,416 
 96,621 
 380,964 
 357,797 
 388,792 
 364,651 




Other Banking operations
 5,656 
 1,009 
 4,544 
 7,856 
 11,960 
 7,856 
 11,960 




Unallocated
 - 
 - 
 - 
 - 
 - 
 - 
 - 




Total Revenue
 225,338 
 208,607 
 221,428 
 853,107 
 829,777 
 860,935 
 836,631 




Less: Inter Segment Revenue
 - 
 - 
 - 
 - 
 - 
 - 
 - 



Income from Operations
 225,338 
 208,607 
 221,428 
 853,107 
 829,777 
 860,935 
 836,631 



Segment Results (net of provisions):











Treasury 
 3,172 
 2,721 
 9,623 
 15,851 
 34,218 
 15,851 
 34,218 




Corporate/Wholesale Banking
 (5,324)
 2,936 
 3,190 
 1,814 
 33,399 
 1,814 
 33,399 




Retail Banking
 (2,062)
 19,280 
 26,658 
 49,459 
 76,112 
 51,345 
 76,965 




Other Banking operations
 5,532 
 914 
 4,167 
 7,385 
 10,372 
 7,385 
 10,372 




Unallocated
 (730)
 (814)
 (701)
 (2,545)
 (1,997)
 (2,545)
 (1,997)




Profit before tax
 588 
 25,037 
 42,937 
 71,964 
 152,104 
 73,850 
 152,957 



Capital employed:











Treasury 
 250,922 
 340,276 
 257,003 
 250,922 
 257,003 
 250,922 
 257,003 




Corporate/Wholesale Banking
 152,771 
 100,711 
 133,845 
 152,771 
 133,845 
 152,771 
 133,845 




Retail Banking
 201,481 
 144,191 
 196,520 
 201,481 
 196,520 
 198,772 
 192,734 




Other Banking operations
 2,656 
 7,070 
 2,432 
 2,656 
 2,432 
 2,656 
 2,432 




Unallocated
 201,292 
 230,118 
 184,013 
 201,292 
 184,013 
 201,292 
 184,013 




Total
 809,122 
 822,366 
 773,813 
 809,122 
 773,813 
 806,413 
 770,027 



@
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 revised RBI guidelines. The Bank mainly operates in India.



Notes:










1
Statement of Assets and Liabilities of the bank as on March 31, 2016 is given below:












(` in Lakhs)








Standalone
Consolidated






Particulars
As at 31.03.2016 Audited
As at 31.03.2015 Audited
As at 31.03.2016 Audited
As at 31.03.2015 Audited






CAPITAL AND LIABILITIES










Capital 
 34,379 
 17,133 
34379
17133






Reserves and Surplus
 774,743 
 756,680 
772033
752894






Deposits
 7,917,171 
 7,082,499 
7917090
7082269






Borrowings
 217,656 
 230,825 
229832
239298






Other Liabilities and Provisions
 199,054 
 197,911 
202105
199235






Total
 9,143,003 
 8,285,048 
 9,155,439 
 8,290,829 






ASSETS










Cash and Balances with Reserve Bank of India
 377,454 
 337,954 
377696
338198






Balance with Banks and Money at Call and Short Notice
 164,527 
 140,045 
164618
140246






Investments
 2,221,749 
 2,056,882 
2198247
2034944






Advances
 5,809,014 
 5,128,499 
5841977
5152919






Fixed Assets
 51,998 
 46,663 
52364
47268






Other Assets
 518,261 
 575,004 
520537
577254






Total
 9,143,003 
 8,285,048 
 9,155,439 
 8,290,829 

















2
The above Audited Financial Results for the quarter and year ended March 31, 2016 were reviewed by the Audit Committee and recommended for approval to and approved by the Board of Directors at its meeting held on April 30, 2016. These Results have been subjected to "Audit" by the Statutory Central Auditors of the Bank and an unqualified report has been issued by them.




























3
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.
















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 on 'Prudential Guidelines on Capital Adequacy and Liquidity Standards ammendments' , 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 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 / loss on sale of investments (net), recoveries from accounts written off.
















6
Pursuant to RBI Circular DBR.BP.BC.No.31/21.04.018/2015-16 dated July 16, 2015, the Bank has, effective from September 30, 2015 included its deposits placed with NABARD, SIDBI, and NHB on account of shorfall in lending to priority sector under 'Other Assets'. Hitherto these were included under 'Investments' and Interest income thereon was included under 'Interest Earned - Income on Investments'. Arising out of regrouping in line with the above mentioned RBI guidelines, interest income on deposits placed with NABARD, SIDBI and NHB is included under 'Interest Earned - Others'. Figures for the previous periods / year have been regrouped / reclassified to conform to current period classification. The above change in classification has no impact on the profit of the Bank for the quarter and year ended March 31, 2016.
















7
As per the directions given by RBI, the Bank has completed the Review of certain loan accounts and their classifications within the time frame stipulated as on 31 March, 2016.






































8
The Board of Directors have recommended a dividend of 35% i.e. ` 0.70/- per Equity Share on face value of ` 2/- each for the year 2015-16 (previous year 110% i.e ` 2.20 per Equity Share) subject to the approval of the members at the ensuing Annual General Meeting.
















9
During the quarter and year ended March 31, 2016, the Bank allotted 5,96,500 and 43,46,441 Equity Shares respectively, pursuant to the exercise of stock options by certain employees.




10
The shareholders of the Bank had approved the issue of Bonus Shares at the Annual General Meeting held on June 29, 2015, in the Ratio of 1:1 for Shares held as on the record date of July 9, 2015. Pursuant to which 85,79,45,206 fully paid up Equity Shares had been allotted by the bank as bonus shares and One Global Depositary share (GDS) had been issued as bonus for every GDS held to the existing holders as on the record date. Consequently, as per the extant ESOS 2010 Scheme bonus options had been provided to the existing ESOS option holders and the exercise price had been adjusted accordingly. The earnings per share have been adjusted for previous periods / year in accordance with Accounting Standard 20, Earnings per share.
















11
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 on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated July 1, 2015, the shortfall arrived at by deducting sale consideration from the Net Book value of the financial assets,amounting to ` 12,214.15 Lakhs (` 7,829.27 Lakhs upto the period ended December 31, 2015) , 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 ( ` 1,291.31 Lakhs for the quarter ended December 31, 2015)for the Quarter and ` 3,541 Lakhs during the year ended March 31,2016 respectively and the balance of ` 8,673.15 Lakhs will be amortised over the next four quarters.




























12
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.




























13
Previous period / year figures have been regrouped / reclassified, where necessary to conform to current period classification.



























































































SHYAM SRINIVASAN 




Kochi

MANAGING DIRECTOR & CEO 




April 30, 2016

(DIN: 02274773) 




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