REG - Federal Bank Ltd The - Half-year Report <Origin Href="QuoteRef">FED.NS</Origin>

Federal BankAnnouncement

18/11/2016 08:25

RNS Number : 5590P
Federal Bank Ltd (The)
18 November 2016
SDF-24/  /2016-17 18th November 2016
   
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Un-Audited Financial Results of the Bank for the period ended September 30, 2016 which was approved at the Bank's Board of Directors meeting held on 25th October 2016.
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 half year ended 30 September 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 30 September 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 25 October 2016. 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 120 branches and Treasury Branch reviewed by either of us and un-reviewed returns in respect of 1162 branches. These branches cover 58.95% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 61.52% 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 31March2016 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 30September2016 of Rs 4,336.58 lakhs.
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
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
25 October 2016 
25 October 2016 

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2016







(` in Lakhs) 
Particulars
Quarter ended 
Half year ended
Year ended 31.03.2016
30.09.2016
30.06.2016
30.09.2015
30.09.2016
30.09.2015
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
1. Interest earned (a)+(b)+(c)+(d)
 206,625 
 201,377 
 190,460 
 408,002 
 381,824 
 774,815 
(a)
Interest/discount on advances/bills
 156,880 
 152,422 
 140,005 
 309,302 
 281,428 
 566,931 
(b)
Income on Investments
 43,552 
 43,084 
 42,590 
 86,636 
 85,676 
 176,309 
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
 1,585 
 1,216 
 1,905 
 2,801 
 3,214 
 5,596 
(d)
Others
 4,608 
 4,655 
 5,960 
 9,263 
 11,506 
 25,979 
2. Other Income
 26,154 
 23,704 
 17,993 
 49,858 
 37,338 
 78,292 
3. TOTAL INCOME (1+2)
 232,779 
 225,081 
 208,453 
 457,860 
 419,162 
 853,107 
4. Interest expended
 134,006 
 132,110 
 129,392 
 266,116 
 260,231 
 524,045 
5. Operating Expenses (i)+(ii)
 51,280 
 50,385 
 45,404 
 101,665 
 88,553 
 186,684 
(i)
Employees Cost
 29,159 
 28,941 
 24,893 
 58,100 
 50,122 
 105,285 
(ii)
Other operating expenses
 22,121 
 21,444 
 20,511 
 43,565 
 38,431 
 81,399 
6. TOTAL EXPENDITURE (4+5)
(excluding Provisions and Contingencies)
 185,286 
 182,495 
 174,796 
 367,781 
 348,784 
 710,729 
7. OPERATING PROFIT (3-6)
(Profit before Provisions and Contingencies)
 47,493 
 42,586 
 33,657 
 90,079 
 70,378 
 142,378 
8. Provisions (other than Tax) and Contingencies
 16,840 
 16,848 
 8,728 
 33,688 
 24,038 
 70,413 
9. Exceptional Items

 - 
 - 
 - 
 - 
 - 
 - 
10. Profit from Ordinary Activities before tax (7-8-9)
 30,653 
 25,738 
 24,929 
 56,391 
 46,340 
 71,965 
11. Tax expense

 10,529 
 9,007 
 8,801 
 19,536 
 16,073 
 24,400 
12. Net Profit from Ordinary Activities after tax (10-11)
 20,124 
 16,731 
 16,128 
 36,855 
 30,267 
 47,565 
13. Extraordinary items (net of tax expense)

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

 20,124 
 16,731 
 16,128 
 36,855 
 30,267 
 47,565 
15. Paid-up Equity Share Capital
(Face value ` 2/- per Equity Share) 
 34,410 
 34,387 
 34,349 
 34,410 
 34,349 
 34,379 
16. Reserves excluding Revaluation Reserve 





 774,242 
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
 12.85 
 13.59 
 14.71 
 12.85 
 14.71 
 13.93 
(iii)
Earnings per Share (EPS) (in `)







(a) Basic EPS (before and after Extra ordinary Items)
1.17*
0.97*
0.94*
2.14*
1.77*
2.77

(b) Diluted EPS (before and after Extra ordinary Items)
1.15*
0.97*
0.92*
2.12*
1.74*
2.75
(iv)
NPA Ratios







a) Gross NPA
 181,972 
 174,731 
 149,873 
 181,972 
 149,873 
 166,777 

b) Net NPA
 103,974 
 99,450 
 67,484 
 103,974 
 67,484 
 95,001 

c) % of Gross NPA
 2.78 
 2.92 
 2.90 
 2.78 
 2.90 
 2.84 

d) % of Net NPA
 1.61 
 1.68 
 1.33 
 1.61 
 1.33 
 1.64 
(v)
Return on Assets (%)
0.22* 
0.19*
0.20* 
0.41* 
0.37* 
 0.57 
Segment Information@













(` in Lakhs) 
Particulars
Quarter ended
Half year ended
Year ended 31.03.2016
30.09.2016
30.06.2016
30.09.2015
30.09.2016
30.09.2015
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
Segment Revenue:







Treasury 
 61,233 
 59,567 
 55,951 
 120,800 
 113,680 
 228,193 

Corporate/Wholesale Banking
 69,657 
 71,890 
 58,469 
 141,547 
 111,531 
 236,094 

Retail Banking
 100,740 
 92,121 
 93,125 
 192,861 
 192,760 
 380,964 

Other Banking operations
 1,149 
 1,503 
 908 
 2,652 
 1,191 
 7,856 

Unallocated
 - 
 - 
 - 
 - 
 - 
 - 

Total Revenue
 232,779 
 225,081 
 208,453 
 457,860 
 419,162 
 853,107 

Less: Inter Segment Revenue
 - 
 - 
 - 
 - 
 - 
 - 
Income from Operations
 232,779 
 225,081 
 208,453 
 457,860 
 419,162 
 853,107 
Segment Results (net of provisions):







Treasury 
 10,954 
 12,825 
 8,159 
 23,779 
 9,958 
 15,852 

Corporate/Wholesale Banking
 2,012 
 3,337 
 2,763 
 5,349 
 4,202 
 1,814 

Retail Banking
 17,533 
 9,020 
 13,802 
 26,553 
 32,240 
 49,459 

Other Banking operations
 1,016 
 944 
 706 
 1,960 
 940 
 7,385 

Unallocated
 (862)
 (388)
 (501)
 (1,250)
 (1,000)
 (2,545)

Profit before tax
 30,653 
 25,738 
 24,929 
 56,391 
 46,340 
 71,965 
Capital employed:







Treasury 
 294,670 
 297,703 
 283,038 
 294,670 
 283,038 
 250,922 

Corporate/Wholesale Banking
 148,545 
 142,200 
 117,539 
 148,545 
 117,539 
 152,771 

Retail Banking
 180,008 
 194,123 
 186,828 
 180,008 
 186,828 
 201,481 

Other Banking operations
 539 
 1,803 
 4,701 
 539 
 4,701 
 2,656 

Unallocated
 222,818 
 190,186 
 213,637 
 222,818 
 213,637 
 201,292 

Total
 846,580 
 826,015 
 805,743 
 846,580 
 805,743 
 809,122 
@
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. 

This information is provided by RNS
The company news service from the London Stock Exchange
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