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

Federal BankAnnouncement

05/01/2016 13:13

RNS Number : 3267E
Federal Bank Ltd (The)
03 November 2015
SDF-24/  /2015-16 03rd November 2015
   
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the UnAudited Financial Results of the Bank alongwith Limited Review Report for the period ended September 30, 2015 which was approved at the Bank's Board of Directors meeting held on 20th October 2015.
Kindly take the same on your record.
For The Federal Bank Limited
Girish Kumar G
COMPANY SECRETARY
Deloitte
Haskins & Sells 
M P Chitale & Co.
Chartered Accountants
Wilmont Park Business Centre
1st Floor, Warriam Road
Kochi - 682 016
INDIA
Chartered Accountants
First Floor, Hamam House
Ambalal Doshi Marg, Fort
Mumbai - 400 001
INDIA 
Tel: +91 484 2353694
Fax: +91 484 2380094
Tel: +91-22-22651186
Fax:+91-22-22655334
INDEPENDENT AUDITORS' REVIEW REPORT 
TO THE BOARD OF DIRECTORS OF
THE FEDERAL BANK LIMITED
1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of THE FEDERAL BANK LIMITED ("the Bank") for the Quarter and Half Year ended 30th September, 2015 ("the Statement"), being submitted by the Bank pursuant to the requirement of Clause 41 of the Listing Agreements with the Stock Exchanges, except for the disclosures referred to in paragraph 6 below. This Statement is the responsibility of the Bank's Management and has been approved by the Board of Directors. Our responsibility is to issue a report on the Statement based on our review.
2. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of Bank personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.
3. In the conduct of our review, 111 branches have been reviewed by one of us which covers 55 percent of the advances portfolio of the bank as at 30th September, 2015. We have also relied upon various returns received from the branches of the bank.
4. Based on our review conducted as stated above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Clause 41 of the Listing Agreements with the Stock Exchanges, 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 prescribed by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters.
.2
Deloitte 
Haskins & Sells 
M P Chitale & Co.
: 2 :
5. Attention is drawn to Note No. 11 of the Statement regarding deferment of shortfall of Rs.569.78 Lakhs arising from the sale of certain non-performing assets during the quarter ended 30th September, 2015 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, and the unamortised balance as at 30th September, 2015 of Rs.488.38 Lakhs. 
Our conclusion is not modified in respect of this matter.
6. Further, we also report that we have traced the number of shares as well as the percentage of shareholding in respect of the aggregate amount of public shareholding, and the number of shares as well as the percentage of shares pledged/encumbered and non-encumbered in respect of the aggregate amount of promoters and promoter group shareholding in terms of Clause 35 of the Listing Agreements with the Stock Exchanges and the particulars relating to investor complaints disclosed in the Statement, from the details furnished by the Registrars. The "Pillar 3 disclosures including Leverage Ratio under Basel III Capital Regulations" disclosed on the Bank's website and in respect of which a link has been provided in the Statement have not been subjected to our review.
For DELOITTE HASKINS & SELLS
For M P CHITALE & CO.

Chartered Accountants
Chartered Accountants

(Firm's Registration No.008072S)
(Firm's Registration No. 101851W)







M. Ramachandran
Ashutosh Pednekar

Partner
Partner

(Membership No.16399)
(Membership No. 041037)

KOCHI, 20thOctober, 2015.



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, 2015
(` in Lakhs) 
Particulars
Quarter ended 
Half year ended
Year ended 31.03.2015
30.09.2015
30.06.2015
30.09.2014
30.09.2015
30.09.2014
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
1. Interest earned (a)+(b)+(c)+(d)
 190,226 
 191,315 
 186,958 
 381,541 
 364,108 
 741,946 
(a)
Interest/discount on advances/bills
 140,005 
 141,423 
 136,294 
 281,428 
 266,281 
 544,683 
(b)
Income on Investments
 42,356 
 43,037 
 40,989 
 85,393 
 82,346 
 164,968 
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
 1,905 
 1,309 
 2,327 
 3,214 
 3,578 
 6,236 
(d)
Others
 5,960 
 5,546 
 7,348 
 11,506 
 11,903 
 26,059 
2. Other Income
 18,227 
 19,394 
 19,586 
 37,621 
 35,240 
 87,831 
3. TOTAL INCOME (1+2)
 208,453 
 210,709 
 206,544 
 419,162 
 399,348 
 829,777 
4. Interest expended
 129,392 
 130,839 
 126,378 
 260,231 
 247,106 
 503,905 
5. Operating Expenses (i)+(ii)
 45,404 
 43,149 
 39,190 
 88,553 
 76,113 
 163,093 
(i)
Employees Cost
 24,893 
 25,229 
 20,380 
 50,122 
 40,823 
 89,196 
(ii)
Other operating expenses
 20,511 
 17,920 
 18,810 
 38,431 
 35,290 
 73,897 
6. TOTAL EXPENDITURE (4+5)
(excluding Provisions and Contingencies)
 174,796 
 173,988 
 165,568 
 348,784 
 323,219 
 666,998 
7. OPERATING PROFIT (3-6)
(Profit before Provisions and Contingencies)
 33,657 
 36,721 
 40,976 
 70,378 
 76,129 
 162,779 
8. Provisions (other than Tax) and Contingencies
 8,728 
 15,310 
 4,571 
 24,038 
 6,779 
 10,675 
9. Exceptional Items

 - 
 - 
 - 
 - 
 - 
 - 
10. Profit from Ordinary Activities before tax
(7-8-9)
 24,929 
 21,411 
 36,405 
 46,340 
 69,350 
 152,104 
11. Tax expense

 8,801 
 7,272 
 12,375 
 16,073 
 23,297 
 51,529 
12. Net Profit from Ordinary Activities after tax (10-11)
 16,128 
 14,139 
 24,030 
 30,267 
 46,053 
 100,575 
13. Extraordinary items (net of tax expense)

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

 16,128 
 14,139 
 24,030 
 30,267 
 46,053 
 100,575 
15. Paid-up Equity Share Capital (Refer Note 10)
(Face value ` 2/- per Equity Share)
 34,349 
 17,159 
 17,111 
 34,349 
 17,111 
 17,133 
16. Reserves excluding Revaluation Reserve 





 756,180 
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
 14.71 
 15.07 
 14.45 
 14.71 
 14.45 
 15.46 
(iii)
Earnings per Share (EPS) (in `) (Refer Note 10)







(a) Basic EPS (before and after Extra ordinary Items)
0.94*
0.83*
1.40*
1.77*
2.69*
5.87

(b) Diluted EPS (before and after Extra ordinary Items)
0.92*
0.82*
1.38*
1.74*
2.65*
5.82
(iv)
NPA Ratios







a) Gross NPA
 149,873 
 130,458 
 103,105 
 149,873 
 103,105 
 105,773 

b) Net NPA
 67,484 
 48,447 
 31,850 
 67,484 
 31,850 
 37,327 

c) % of Gross NPA
 2.90 
 2.59 
 2.10 
 2.90 
 2.10 
 2.04 

d) % of Net NPA
 1.33 
 0.98 
 0.66 
 1.33 
 0.66 
 0.73 
(v)
Return on Assets (%)
0.20*
0.17*
0.32* 
0.37* 
0.62* 
 1.32 
18. Public Shareholding:








Number of Shares (in Lakhs) (Refer Note 10)
 16,859.26 
 8,418.54 
 8,383.51 
 16,859.26 
 8,383.51 
 8,399.88 

Percentage of shareholding #
 98.17 
 98.12 
 97.99 
 98.17 
 97.99 
 98.05 
19. Promoters and Promoter group share holding







(a)
Pledged/Encumbered






-
Number of Shares
NIL
NIL
NIL
NIL
NIL
NIL
-
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)
NIL
NIL
NIL
NIL
NIL
NIL
-
Percentage of Shares (as a % of the total share capital of the company)
NIL
NIL
NIL
NIL
NIL
NIL
(b)
Non-encumbered






-
Number of Shares
NIL
NIL
NIL
NIL
NIL
NIL
-
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)
NIL
NIL
NIL
NIL
NIL
NIL
-
Percentage of Shares (as a % of the total share capital of the company)
NIL
NIL
NIL
NIL
NIL
NIL








* Not Annualised






# excludes shares held by custodian against Global Depository Receipts.





Segment Information@













(` in Lakhs) 
Particulars
Quarter ended
Half year ended
Year ended 31.03.2015
30.09.2015
30.06.2015
30.09.2014
30.09.2015
30.09.2014


Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
Segment Revenue:







Treasury 
 55,951 
 57,729 
 54,718 
 113,680 
 108,148 
 225,027 

Corporate/Wholesale Banking
 58,469 
 53,062 
 60,409 
 111,531 
 116,035 
 234,993 

Retail Banking
 93,125 
 99,635 
 86,356 
 192,760 
 169,287 
 357,797 

Other Banking operations
 908 
 283 
 5,061 
 1,191 
 5,878 
 11,960 

Unallocated
 - 
 - 
 - 
 - 

 - 

Total Revenue
 208,453 
 210,709 
 206,544 
 419,162 
 399,348 
 829,777 

Less: Inter Segment Revenue
 - 
 - 
 - 
 - 
 - 
 - 
Income from Operations
 208,453 
 210,709 
 206,544 
 419,162 
 399,348 
 829,777 
Segment Results (net of provisions):







Treasury 
 8,159 
 1,799 
 4,595 
 9,958 
 12,476 
 34,218 

Corporate/Wholesale Banking
 2,763 
 1,439 
 12,763 
 4,202 
 25,266 
 33,399 

Retail Banking
 13,802 
 18,438 
 14,791 
 32,240 
 27,236 
 76,112 

Other Banking operations
 706 
 234 
 4,749 
 940 
 5,164 
 10,372 

Unallocated
 (501)
 (499)
 (493)
 (1,000)
 (792)
 (1,997)

Profit before tax
 24,929 
 21,411 
 36,405 
 46,340 
 69,350 
 152,104 
Capital employed:







Treasury 
 283,038 
 308,062 
 278,726 
 283,038 
 278,726 
 257,003 

Corporate/Wholesale Banking
 117,539 
 108,880 
 118,900 
 117,539 
 118,900 
 133,845 

Retail Banking
 186,828 
 172,157 
 157,774 
 186,828 
 157,774 
 196,520 

Other Banking operations
 4,701 
 4,449 
 1,037 
 4,701 
 1,037 
 2,432 

Unallocated
 213,637 
 195,436 
 184,614 
 213,637 
 184,614 
 184,013 

Total
 805,743 
 788,984 
 741,051 
 805,743 
 741,051 
 773,813 
@
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 September 30, 2015 is given below:









(` in Lakhs)

Particulars
As at 30.09.2015 Unaudited
As at 30.09.2014 Unaudited
As at 31.03.2015 Audited

CAPITAL AND LIABILITIES




Capital 
 34,349 
 17,111 
 17,133 

Reserves and Surplus
 771,394 
 723,940 
 756,680 

Deposits
 7,378,320 
 6,456,386 
 7,082,499 

Borrowings
 162,095 
 345,527 
 230,825 

Other Liabilities and Provisions
 280,333 
 294,279 
 197,911 

Total
 8,626,491 
 7,837,243 
 8,285,048 

ASSETS




Cash and Balances with Reserve Bank of India
 369,100 
 317,890 
 337,954 

Balance with Banks and Money at Call and Short Notice
 274,010 
 180,918 
 140,045 

Investments
 2,319,935 
 1,939,046 
 2,056,882 

Advances
 5,086,667 
 4,846,614 
 5,128,499 

Fixed Assets
 50,282 
 42,959 
 46,663 

Other Assets
 526,497 
 509,816 
 575,005 

Total
 8,626,491 
 7,837,243 
 8,285,048 
















2
The above Standalone Unaudited Financial Results for the quarter and half year ended September 30, 2015 were reviewed by the Audit Committee and recommended for approval to and approved by the Board of Directors at its meeting held on October 20, 2015. These Results have been subjected to "Limited Review" by the Statutory Central Auditors of the Bank and an unqualified report has been issued by them.








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, 2015.








4
As a prudent policy, the Bank holds provisions for Non Performing Assets over and above the minimum required under the 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.








5
RBI Master Circular DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015 contains guidelines on certain 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. 








6
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 Thrid party products, profit / loss on sale of investments (net), recoveries from accounts written off.








7
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 half year ended September 30, 2015.








8
Number of Investor complaints received and disposed off during the quarter ended September 30, 2015:

a) Pending at the beginning of the quarter
: NIL




b) Received during the quarter 
: 16




c) Disposed off during the quarter 
: 16




d) Pending at the end of the quarter 
: NIL



















9
During the quarter and half year ended September 30, 2015, the Bank allotted 15,47,982 and 28,37,991 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 quarter ended September 30, 2015 the Bank had assigned certain Non performing financial assets to an Asset Reconstruction Company. 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 ` 569.78 Lakhs, is amortised over a period of two years. Accordingly, the bank has charged to the profit and loss account an amount of ` 81.40 Lakhs during the current quarter and the balance of ` 488.38 Lakhs will be amortised over the next six quarters.








12
Previous period / year figures have been regrouped / reclassified, where necessary to conform to current period classification.



































SHYAM SRINIVASAN 
Kochi

MANAGING DIRECTOR & CEO 
20th October, 2015

(DIN: 02274773) 

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