Last checked at 18 Aug 2022 07:06
SD/ 119 /2022-23 August 18, 2022
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Un-Audited Financial Results of the Bank for the quarter ended on June 30, 2022 (both standalone and consolidated) along with Limited Review 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 July 15,2022.
Kindly take the same on your record.
For The Federal Bank Limited
Sd/-
Samir P Rajdev
Company Secretary
Varma & Varma Chartered Accountants, No.53/2600, Kerala Varma Tower Off Kunjanbava Road, Vytilla, Kochi -682019 | Borkar & Muzumdar, Chartered Accountants, 21/168 Anand Nagar Om C.H.S, Anand Nagar Lane, Off Nehru Road, Santacruz (East) Mumbai - 400 055 |
Limited Review Report on Unaudited Standalone Financial Results of The Federal Bank Limited for the quarter ended 30th June 2022, pursuant to the requirements of Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (as amended)
The Board of Directors,
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of The Federal Bank Limited ('the Bank') for the quarter ended 30th June, 2022 ('the Statement') 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), except for the disclosures relating to Pillar 3 disclosure under Basel III Capital Regulations as at 30th June, 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 aforesaid Statement, which have not been reviewed by us.
2. The Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard-25 'Interim Financial Reporting' ('AS-25') prescribed under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines') and other accounting principles generally accepted in India. Our responsibility is to issue a report on the Statement based on our review.
3. We conducted our review of the Statement 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 statements are free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
4. Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.
5. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of Unaudited Standalone Financial Results prepared in accordance with applicable accounting standards, the RBI Guidelines and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) 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, except for the aforesaid Pillar 3 disclosures as at 30th June 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 aforesaid Statement, which have not been reviewed by us.
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: 22203094AMWYTY3663 UDIN: 22100938AMWYSW3493
Kochi-19 Mumbai-55
15th July 2022 15th July 2022
THE FEDERAL BANK LIMITED | |||||
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | |||||
(CIN: L65191KL1931PLC000368) | |||||
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022 | |||||
(Rs. in Lakhs) | |||||
Particulars | Quarter ended | Year ended | |||
30.06.2022 | 31.03.2022 | 30.06.2021 | 31.03.2022 | ||
Unaudited | Audited(Refer Note 10 below) | Unaudited | Audited | ||
1. Interest earned (a)+(b)+(c)+(d) | 3,62,886 | 3,48,324 | 3,35,571 | 13,66,076 | |
(a) | Interest/discount on advances/bills | 2,88,682 | 2,75,446 | 2,67,112 | 10,82,975 |
(b) | Income on investments | 62,949 | 59,290 | 59,059 | 2,33,867 |
(c) | Interest on balances with Reserve Bank of India and other inter bank funds | 4,480 | 5,614 | 3,662 | 22,027 |
(d) | Others | 6,775 | 7,974 | 5,738 | 27,207 |
2. Other income | 45,262 | 46,500 | 64,826 | 2,08,909 | |
3. TOTAL INCOME (1+2) | 4,08,148 | 3,94,824 | 4,00,397 | 15,74,985 | |
4. Interest expended | 2,02,435 | 1,95,803 | 1,93,728 | 7,69,880 | |
5. Operating expenses (i)+(ii) | 1,08,376 | 1,19,201 | 93,340 | 4,29,320 | |
(i) | Employees cost | 49,932 | 63,725 | 52,830 | 2,32,055 |
(ii) | Other operating expenses | 58,444 | 55,476 | 40,510 | 1,97,265 |
6. TOTAL EXPENDITURE (4+5)(excluding provisions and contingencies) | 3,10,811 | 3,15,004 | 2,87,068 | 11,99,200 | |
7. OPERATING PROFIT (3-6) (Profit before provisions and contingencies) | 97,337 | 79,820 | 1,13,329 | 3,75,785 | |
8. Provisions (other than tax) and contingencies | 16,668 | 7,524 | 63,994 | 1,22,177 | |
9. Exceptional items | - | - | - | - | |
10. Profit from Ordinary Activities before tax(7-8-9) | 80,669 | 72,296 | 49,335 | 2,53,608 | |
11. Tax expense | 20,603 | 18,242 | 12,606 | 64,626 | |
12. Net Profit from Ordinary Activities after tax (10-11) | 60,066 | 54,054 | 36,729 | 1,88,982 | |
13. Extraordinary items (net of tax expense) | - | - | - | - | |
14. Net Profit for the period (12-13) | 60,066 | 54,054 | 36,729 | 1,88,982 | |
15. Paid-up Equity Share Capital(Face value Rs.2/- per Equity Share) | 42,070 | 42,051 | 39,926 | 42,051 | |
16. Reserves excluding Revaluation Reserve | 18,36,832 | ||||
17. Analytical Ratios and Other Disclosures: | |||||
(i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL |
(ii) | Capital Adequacy ratio (%) | ||||
Under Basel III | 14.57 | 15.77 | 14.64 | 15.77 | |
(iii) | Earnings per Share (EPS) (in Rs) | ||||
(a) Basic EPS (before and after extraordinary items) | 2.86* | 2.57* | 1.84* | 9.13 | |
(b) Diluted EPS (before and after extraordinary items) | 2.83* | 2.55* | 1.83* | 9.06 | |
(iv) | NPA Ratios | ||||
a) Gross NPA | 4,15,533 | 4,13,674 | 4,64,933 | 4,13,674 | |
b) Net NPA | 1,42,025 | 1,39,262 | 1,59,324 | 1,39,262 | |
c) % of Gross NPA | 2.69 | 2.80 | 3.50 | 2.80 | |
d) % of Net NPA | 0.94 | 0.96 | 1.23 | 0.96 | |
(v) | Return on Assets (%) | 0.27* | 0.25* | 0.19* | 0.94 |
(vi) | Net Worth | 19,26,696 | 18,66,098 | 16,47,906 | 18,66,098 |
(vii) | Outstanding Redeemable Preference Shares | NIL | NIL | NIL | NIL |
(viii) | Capital Redemption Reserve | NIL | NIL | NIL | NIL |
(ix) | Debenture Redemption Reserve | NIL | NIL | NIL | NIL |
(x) | Debt - Equity Ratio # | 0.82 | 0.82 | 0.57 | 0.82 |
(xi) | Total Debts to Total Assets # | 7.03% | 6.97% | 4.67% | 6.97% |
(xii) | Operating Margin | 23.85% | 20.22% | 28.30% | 23.86% |
(xiii) | Net Profit Margin | 14.72% | 13.69% | 9.17% | 12.00% |
* Not Annualised | |||||
# Debt and Total Debts represents Total Borrowings of the Bank | |||||
Segment Information@ |
|
|
|
| ||||
|
|
|
|
| (Rs.in Lakhs) | |||
Particulars | Quarter ended | Year ended | ||||||
30.06.2022 | 31.03.2022 | 30.06.2021 | 31.03.2022 | |||||
Unaudited | Audited(Refer Note 10 below) | Unaudited | Audited | |||||
Segment Revenue: |
|
|
|
| ||||
Treasury | 54,864 | 49,475 | 79,596 | 2,35,130 | ||||
Corporate/Wholesale Banking | 1,07,758 | 1,03,851 | 1,12,056 | 4,26,734 | ||||
Retail Banking | 2,43,361 | 2,36,429 | 2,07,527 | 8,98,700 | ||||
Other Banking operations | 2,123 | 3,400 | 1,218 | 10,800 | ||||
Unallocated | 42 | 1,669 | - | 3,621 | ||||
Total Revenue | 4,08,148 | 3,94,824 | 4,00,397 | 15,74,985 | ||||
Less: Inter Segment Revenue | - | - | - | - | ||||
Income from Operations | 4,08,148 | 3,94,824 | 4,00,397 | 15,74,985 | ||||
Segment Results (net of provisions): | ||||||||
Treasury | 12,580 | 5,512 | 37,914 | 64,135 | ||||
Corporate/Wholesale Banking | 14,505 | 17,497 | (2,535) | 55,657 | ||||
Retail Banking | 51,737 | 44,728 | 12,921 | 1,21,015 | ||||
Other Banking operations | 1,805 | 2,890 | 1,035 | 9,180 | ||||
Unallocated | 42 | 1,669 | - | 3,621 | ||||
Profit before tax | 80,669 | 72,296 | 49,335 | 2,53,608 | ||||
Segment Assets | ||||||||
Treasury | 43,74,168 | 47,68,440 | 46,11,516 | 47,68,440 | ||||
Corporate/Wholesale Banking | 82,51,948 | 78,58,857 | 70,66,184 | 78,58,857 | ||||
Retail Banking | 91,77,241 | 87,98,646 | 77,40,698 | 87,98,646 | ||||
Other Banking operations | - | - | - | - | ||||
Unallocated | 7,31,922 | 6,68,688 | 5,85,373 | 6,68,688 | ||||
Total | 2,25,35,279 | 2,20,94,631 | 2,00,03,771 | 2,20,94,631 | ||||
Segment Liabilities | ||||||||
Treasury | 18,08,289 | 18,02,189 | 10,92,816 | 18,02,189 | ||||
Corporate/Wholesale Banking | 18,10,653 | 18,67,906 | 14,68,615 | 18,67,906 | ||||
Retail Banking | 1,66,17,656 | 1,62,98,555 | 1,55,94,228 | 1,62,98,555 | ||||
Other Banking operations | - | - | - | - | ||||
Unallocated | 3,59,430 | 2,46,597 | 1,99,174 | 2,46,597 | ||||
Total | 2,05,96,028 | 2,02,15,247 | 1,83,54,833 | 2,02,15,247 | ||||
Capital Employed: | ||||||||
(Segment Assets - Segment Liabilities) | ||||||||
Treasury | 25,65,879 | 29,66,251 | 35,18,700 | 29,66,251 | ||||
Corporate/Wholesale Banking | 64,41,295 | 59,90,951 | 55,97,569 | 59,90,951 | ||||
Retail Banking | (74,40,415) | (74,99,909) | (78,53,530) | (74,99,909) | ||||
Other Banking operations | - | - | - | - | ||||
Unallocated | 3,72,492 | 4,22,091 | 3,86,199 | 4,22,091 | ||||
Total | 19,39,251 | 18,79,384 | 16,48,938 | 18,79,384 | ||||
@ | 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. (Also Refer Note 11)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. | |||||||
Notes: | ||||||||
1 | The above Standalone Financial Results for the quarter ended June 30, 2022 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on July 15, 2022. These Results have been subjected to limited review by the Statutory Central Auditors of the Bank and an unqualified review report has been issued. |
| ||||||
| ||||||||
2 | The Bank has followed, in all material aspects, the same significant accounting policies in the preparation of the quarterly financial results as those followed in the annual financial statements for the year ended March 31, 2022. |
| ||||||
| ||||||||
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 ended June 30, 2022, the Bank has allotted 945,492 equity shares of Rs. 2 each, pursuant to the exercise of stock options by employees. |
| ||||||
| ||||||||
7 | As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. 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 | 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 quarter ended June 30, 2022 are given below: |
| ||||||
| ||||||||
i) During the quarter ended June 30, 2022, the bank has not acquired any "loans not in default" through assignment of loans. |
| |||||||
| ||||||||
ii) During the quarter ended June 30, 2022, the bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA). |
| |||||||
| ||||||||
iii) During the quarter ended June 30, 2022, the bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of stressed loans transferred to ARCs. |
| |||||||
| ||||||||
9 | As permitted vide letter dated October 04, 2021 issued by RBI, during the quarter ended September 30, 2021 the Bank had opted to amortise 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 Rs. 2,364.21 Lakhs to the Profit and Loss account and the balance unamortised expenditure amounting to Rs. 15,367.34 Lakhs was carried forward. During the quarter ended March 31, 2022, the bank had charged the entire balance unamortised family pension expenditure of Rs.15,367.34 lakhs to the Profit and Loss Account. |
| ||||||
| ||||||||
10 | The figures for the quarter ended March 31, 2022 are the balancing figures between audited figures in respect of the financial year 2021-22 and the published year to date figures up to December 31, 2021, which were subjected to limited review. |
| ||||||
| ||||||||
11 | As per RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022, for the purpose of disclosure under Accounting Standard 17, Segment reporting, 'Digital Banking' has been identified as a sub-segment under Retail Banking by Reserve Bank of India (RBI). However, as the proposed Digital Banking Unit (DBU) of the Bank has not yet commenced operations and having regard to the discussions of the DBU Working Group formed by Indian Banks' Association (IBA) (which included representatives of banks and RBI), held on July 14, 2022, reporting of the Digital Banking as a separate sub-segment in the Segment reporting will be done from the quarter ending September 30, 2022. |
| ||||||
| ||||||||
12 | Previous period's figures have been regrouped / reclassified, where necessary to conform to current period's classification and also the amounts / ratios for the previous period have been regrouped / reclassified pursuant to the requirements of Master Direction on financial statements - Presentation and disclosures issued by Reserve Bank of India dated August 30, 2021, as amended and wherever considered necessary. |
| ||||||
| ||||||||
SHYAM SRINIVASAN | ||||||||
Kochi | MANAGING DIRECTOR & CEO | |||||||
July 15, 2022 | (DIN: 02274773) | |||||||
Varma & Varma Chartered Accountants, No.53/2600, Kerala Varma Tower Off Kunjanbava Road, Vytilla, Kochi -682019 | Borkar & Muzumdar, Chartered Accountants, 21/168 Anand Nagar Om C.H.S, Anand Nagar Lane, Off Nehru Road, Santacruz (East) Mumbai - 400 055 |
Limited Review Report on Unaudited Consolidated Financial Results of The Federal Bank Limited for the quarter ended 30th June 2022, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (as amended)
The Board of Directors,
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of The Federal Bank Limited (the 'Bank') and its Subsidiaries (the Bank and its subsidiaries together referred to as 'the Group') and its share of the net profit after tax of its Associates for the quarter ended 30th June 2022 (the 'Statement'), attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations'), except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30th June 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 aforesaid Statement, which have not been reviewed by us.
2. The Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25') prescribed under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines') and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement 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 statements are free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, to the extent applicable.
4. Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.
5. This Statement includes the results of the following entities:
a. Fedbank Financial Services Limited (Subsidiary)
b. Federal Operations and Services Limited (Subsidiary)
c. Ageas Federal Life Insurance Company Limited (Associate)
d. Equirus Capital Private Limited (Associate)
6. Based on our review conducted and procedures performed as stated in Paragraphs 3 and 4 above and based on the consideration of the review reports of other auditor referred to in Paragraph 8 below, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards, the RBI Guidelines and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) 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, except for the aforesaid consolidated Pillar 3 disclosures as at 30th June 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 aforesaid Statement, which have not been reviewed by us.
7. The Statement of unaudited consolidated financial results includes the interim financial results of one subsidiary which have not been reviewed/ audited by their auditors, whose interim financial results reflects total revenues of ` 26,264.11 Lakhs and net profit after tax of ` 4,133.90 Lakhs for the quarter ended 30th June 2022, as considered in the unaudited consolidated financial results. According to the information and explanations given to us by the Management, these interim financial results are not material to the Group.
Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said subsidiary, is based solely on the above reports furnished to us by the Management and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
8. The Statement of unaudited consolidated financial results includes the interim financial results of one subsidiary which have been reviewed by one of the Joint Auditors of the Bank, whose interim financial results reflects total revenues of ` 1,404.09 Lakhs and net profit after tax of ` 99.58 Lakhs for the quarter ended 30th June 2022, as considered in the unaudited consolidated financial results.
Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of this subsidiary, is based solely on the reports of the aforesaid Joint Auditor as made available by the Management and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
9. The Statement also includes the Group's share of net profit after tax of ` 850.86 Lakhs for the quarter ended 30th June 2022 in respect of two associates, based on their interim financial results which have not been reviewed/ audited. According to the information and explanations given to us by the Management, these interim financial results are not material to the Group.
Our conclusion on the Statement is not modified in respect of this matter.
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: 22203094AMWYYB6862 UDIN: 22100938AMWYZY2142
Kochi-19 Mumbai-55
15th July 2022 15th July 2022
THE FEDERAL BANK LIMITED | |||||
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | |||||
(CIN: L65191KL1931PLC000368) | |||||
CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022 | |||||
(Rs in Lakhs) | |||||
Particulars | Quarter ended | Year ended | |||
30.06.2022 | 31.03.2022 | 30.06.2021 | 31.03.2022 | ||
Unaudited | Audited(Refer Note 9 below) | Unaudited | Audited | ||
1. Interest earned (a)+(b)+(c)+(d) | 3,84,309 | 3,68,630 | 3,52,498 | 14,38,153 | |
(a) | Interest/discount on advances/bills | 3,10,420 | 2,96,150 | 2,84,295 | 11,56,431 |
(b) | Income on investments | 62,534 | 58,821 | 58,463 | 2,31,649 |
(c) | Interest on balances with Reserve Bank of India and other inter bank funds | 4,480 | 5,614 | 3,662 | 22,027 |
(d) | Others | 6,875 | 8,045 | 6,078 | 28,046 |
2. Other income | 47,508 | 48,425 | 62,090 | 2,12,094 | |
3. TOTAL INCOME (1+2) | 4,31,817 | 4,17,055 | 4,14,588 | 16,50,247 | |
4. Interest expended | 2,10,376 | 2,02,995 | 2,00,016 | 7,95,938 | |
5. Operating expenses (i)+(ii) | 1,17,580 | 1,27,884 | 98,955 | 4,59,215 | |
(i) | Employees cost | 55,837 | 68,954 | 56,990 | 2,51,166 |
(ii) | Other operating expenses | 61,743 | 58,930 | 41,965 | 2,08,049 |
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies) | 3,27,956 | 3,30,879 | 2,98,971 | 12,55,153 | |
7. OPERATING PROFIT (3-6) (Profit before provisions and contingencies) | 1,03,861 | 86,176 | 1,15,617 | 3,95,094 | |
8. Provisions (other than tax) and contingencies | 17,521 | 8,394 | 66,911 | 1,30,466 | |
9. Exceptional items | - | - | - | - | |
10. Profit from Ordinary Activities before tax(7-8-9) | 86,340 | 77,782 | 48,706 | 2,64,628 | |
11. Tax expense | 22,040 | 19,606 | 13,150 | 68,088 | |
12. Net Profit from Ordinary Activities after tax (10-11) | 64,300 | 58,176 | 35,556 | 1,96,540 | |
13. Extraordinary items (net of tax expense) | - | - | - | - | |
14. Net Profit for the period (12-13) |
| 64,300 | 58,176 | 35,556 | 1,96,540 |
15. Minority interest | 1,104 | 1,137 | 384 | 2,664 | |
16. Share in Profit of Associates | 226 | 1,715 | 504 | 3,103 | |
17. Consolidated Net Profit of the group(14-15+16) | 63,422 | 58,754 | 35,676 | 1,96,979 | |
18. Paid-up Equity Share Capital(Face value Rs. 2/- per Equity Share) | 42,070 | 42,051 | 39,926 | 42,051 | |
19. Reserves excluding Revaluation Reserve | 18,83,000 | ||||
20. Analytical Ratios and Other Disclosures: | |||||
(i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL |
(ii) | Capital Adequacy ratio (%) | ||||
Under Basel III | 15.12 | 16.33 | 15.36 | 16.33 | |
(iii) | Earnings per Share (EPS) (in Rs) | ||||
(a) Basic EPS (before and after extraordinary items) | 3.02* | 2.79* | 1.79* | 9.52 | |
(b) Diluted EPS (before and after extraordinary items) | 2.99* | 2.77* | 1.77* | 9.44 | |
(iv) | NPA Ratios | ||||
a) Gross NPA | 4,27,304 | 4,25,653 | 4,79,318 | 4,25,653 | |
b) Net NPA | 1,50,582 | 1,47,977 | 1,71,242 | 1,47,977 | |
c) % of Gross NPA | 2.67 | 2.78 | 3.51 | 2.78 | |
d) % of Net NPA | 0.96 | 0.98 | 1.28 | 0.98 | |
(v) | Return on Assets (%) | 0.28* | 0.27* | 0.17* | 0.91 |
* Not Annualised | |||||
Segment Information@ |
| ||||
(Rs. in Lakhs) | |||||
Particulars | Quarter ended |
| |||
30.06.2022 | 31.03.2022 | 30.06.2021 | 31.03.2022 | ||
Unaudited | Audited(Refer Note 9 below) | Unaudited | Audited | ||
Segment Revenue: | |||||
Treasury | 54,705 | 49,102 | 76,408 | 2,31,327 | |
Corporate/Wholesale Banking | 1,06,784 | 1,02,659 | 1,10,684 | 4,22,307 | |
Retail Banking | 2,66,605 | 2,58,742 | 2,26,278 | 9,78,155 | |
Other Banking operations | 3,681 | 4,883 | 1,218 | 14,837 | |
Unallocated | 42 | 1,669 | - | 3,621 | |
| Total Revenue | 4,31,817 | 4,17,055 | 4,14,588 | 16,50,247 |
Less: Inter Segment Revenue | - | - | - | - | |
| Income from Operations | 4,31,817 | 4,17,055 | 4,14,588 | 16,50,247 |
Segment Results (net of provisions): | |||||
Treasury | 13,000 | 5,713 | 35,345 | 62,722 | |
Corporate/Wholesale Banking | 14,362 | 16,397 | (2,737) | 54,114 | |
Retail Banking | 56,244 | 50,418 | 15,063 | 1,33,433 | |
Other Banking operations | 2,692 | 3,585 | 1,035 | 10,738 | |
Unallocated | 42 | 1,669 | - | 3,621 | |
| Profit before tax | 86,340 | 77,782 | 48,706 | 2,64,628 |
Segment Assets |
|
|
|
|
|
Treasury | 43,61,104 | 47,63,764 | 45,66,638 | 47,63,764 | |
Corporate/Wholesale Banking | 82,04,925 | 78,08,465 | 70,10,074 | 78,08,465 | |
Retail Banking | 98,12,368 | 93,78,255 | 82,15,751 | 93,78,255 | |
Other Banking operations | 620 | 401 | - | 401 | |
Unallocated | 7,31,922 | 6,73,219 | 5,85,205 | 6,73,219 | |
| Total | 2,31,10,939 | 2,26,24,104 | 2,03,77,668 | 2,26,24,104 |
Segment Liabilities |
| ||||
Treasury | 18,56,739 | 18,59,584 | 11,11,142 | 18,59,584 | |
Corporate/Wholesale Banking | 18,13,320 | 18,77,366 | 14,80,815 | 18,77,366 | |
Retail Banking | 1,70,60,564 | 1,66,84,108 | 1,58,73,983 | 1,66,84,108 | |
Other Banking operations | 460 | 364 | - | 364 | |
Unallocated | 3,59,430 | 2,46,597 | 1,98,594 | 2,46,597 | |
| Total | 2,10,90,513 | 2,06,68,019 | 1,86,64,534 | 2,06,68,019 |
Capital Employed: | |||||
(Segment Assets - Segment Liabilities) | |||||
Treasury | 25,04,365 | 29,04,180 | 34,55,496 | 29,04,180 | |
Corporate/Wholesale Banking | 63,91,605 | 59,31,099 | 55,29,259 | 59,31,099 | |
Retail Banking | (72,48,196) | (73,05,853) | (76,58,232) | (73,05,853) | |
Other Banking operations | 160 | 37 | - | 37 | |
Unallocated | 3,72,492 | 4,26,622 | 3,86,611 | 4,26,622 | |
| Total | 20,20,426 | 19,56,085 | 17,13,134 | 19,56,085 |
@ | 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. (Also Refer Note 10) | ||||
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. | |||||
Notes: |
| ||||
1 | The above Consolidated Financial Results for the quarter ended June 30, 2022 were reviewed by the Audit Committee and subsequently approved by the Board of Directors at its meeting held on July 15, 2022. These Results have been subjected to limited review by the Statutory Central Auditors of the Bank and an unqualified review 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 ended June 30, 2022 as compared to those followed for the year ended March 31, 2022. | ||||
4 | 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. | ||||
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 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 | As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. 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 | As permitted vide letter dated October 04, 2021 issued by RBI, during the quarter ended September 30, 2021 the Bank had opted to amortise 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 Rs. 2,364.21 Lakhs to the Profit and Loss account and the balance unamortised expenditure amounting to Rs.15,367.34 Lakhs was carried forward. During the quarter ended March 31, 2022, the bank had charged the entire balance unamortised family pension expenditure of Rs. 15,367.34 lakhs to the Profit and Loss Account. | ||||
9 | The figures for the quarter ended March 31, 2022 are the balancing figures between audited figures in respect of the financial year 2021-22 and the published year to date figures upto December 31, 2021, which were subjected to limited review. | ||||
10 | As per RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022, for the purpose of disclosure under Accounting Standard 17, Segment reporting, 'Digital Banking' has been identified as a sub-segment under Retail Banking by Reserve Bank of India (RBI). However, as the proposed Digital Banking Unit (DBU) of the Bank has not yet commenced operations and having regard to the discussions of the DBU Working Group formed by Indian Banks' Association (IBA) (which included representatives of banks and RBI), held on July 14, 2022, reporting of the Digital Banking as a separate sub-segment in the Segment reporting will be done from the quarter ending September 30, 2022. | ||||
11 | Previous period's figures have been regrouped / reclassified, where necessary to conform to current period's classification and also the amounts / ratios for the previous period have been regrouped / reclassified pursuant to the requirements of Master Direction on financial statements - Presentation and disclosures issued by Reserve Bank of India dated August 30, 2021, as amended and wherever considered necessary. | ||||
SHYAM SRINIVASAN | |||||
Kochi | MANAGING DIRECTOR & CEO | ||||
July 15, 2022 | (DIN: 02274773) | ||||