Last checked at 29 May 2020 14:13
SDF-24/ /2020-21 May 29, 2020
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Audited Financial Results of the Bank for the quarter and year ended March 31, 2020 (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 28, 2020.
Kindly take the same on your record.
For The Federal Bank Limited
Sd/-
Samir P Rajdev
Company Secretary
B S R & 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 |
Auditor's Report on the Standalone Annual Financial Results ofThe Federal Bank Limited pursuant to the Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Independent Auditor's Report
To the Board of Directors of
The Federal Bank Limited
Report on the audit of the Standalone Annual Financial Results
Opinion
We have audited the accompanying standalone annual financial results of The Federal Bank Limited ("the Bank") for the year ended 31 March 2020, attached herewith, (the "standalone Financial Results"), 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 Pillar 3 disclosure as at 31 March 2020, 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 Financial Results and have not been audited by us. Attention is drawn to the fact that the figures for the last quarter ended 31 March 2020 and the corresponding quarter ended in the previous year as reported in these standalone Financial Results are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the end of the third quarter of the relevant financial year. Also the figures up to the end of the third quarter had only been reviewed and not subjected to audit.
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 of the Listing Regulations in this regard except for the disclosures relating to Pillar 3 disclosure as at 31 March 2020, 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 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 year ended 31 March 2020.
Basis for Opinion
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 SAs are further described in the Auditor's Responsibilities for the Audit of the Standalone Annual 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 we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
As more fully described in Note 11 to the standalone Financial Results, the Bank has recognized provision on certain loans that were though overdue but standard as at 29 February 2020, for which moratorium benefit has been granted, based on the days past due status as on that date in accordance with the Reserve Bank of India COVID-19 Regulatory Package.
As more fully described in Note 11 to the standalone Financial Results, the extent to which the COVID-19 pandemic will have impact on the Bank's financial performance is dependent on future developments, which are highly uncertain.
Our opinion on the standalone financial results is not modified in respect of the above matters.
Responsibilities of Management and those Charged with Governance for the Standalone Annual Financial Results
These standalone Financial Results have been prepared on the basis of the standalone annual financial statements and reviewed quarterly standalone Financial Results upto the end of the third quarter. The Bank's Management and the 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 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act 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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring 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.
In preparing the standalone Financial Results, the Management and 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 Management and Board of Directors either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Bank's financial reporting process
Auditor's Responsibilities for the Audit of the Standalone Annual Financial Results
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 auditor's 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 adequate internal financial controls with reference to standalone financial statements in place 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 auditor's 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 auditor's 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.
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.
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
The standalone Financial Results incorporate the relevant returns of 80 Branches and Treasury Branch audited by either of us and audited returns in respect of 1,169 branches audited by other branch auditors. The Branches audited by us cover 47.76% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 32.73% of non-performing advances of the Bank.
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 |
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Akeel Master | Varun P Kothari |
Partner | Partner |
Membership No: 046768 | Membership No: 115089 |
ICAI UDIN:20046768AAAAIJ4071 | ICAI UDIN: 20115089AAAAIM3669 |
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Mumbai | Mumbai |
28 May 2020 | 28 May 2020 |
B S R & 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 |
Auditor's Report on the Consolidated Annual Financial Results of The Federal Bank Limited pursuant to the Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Independent Auditor's Report
To the Board of Directors of
The Federal Bank Limited
Report on the audit of the Consolidated Annual Financial Results
Opinion
We have audited the accompanying Consolidated Annual Financial Results of The Federal Bank Limited ('the Bank'), its subsidiaries and associates (the parent and its subsidiaries together referred to as 'the Group') for the year ended 31 March 2020 (the 'Consolidated Financial Results'), attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('the Listing Regulations') except for the disclosures relating to consolidated Pillar 3 disclosure as at 31 March 2020, 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 consolidated financial results and have not been audited by us. Attention is drawn to the fact that the figures for the last quarter ended 31 March 2020 and the corresponding quarter ended in the previous year as reported in these consolidated financial results are the balancing figures between consolidated audited figures in respect of the full financial year and the published year to date consolidated figures up to the end of the third quarter of the relevant financial year. Also the figures up to the end of the third quarter had only been reviewed and not subjected to audit.
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 other auditors on separate audited financial statements of the subsidiaries and associates, the aforesaid Consolidated Financial Results:
iii. include the annual audited financial results of the following entities;
a. Federal Bank Limited (the parent)
b. Fedbank Financial Services Limited (the Subsidiary)
c. Federal Operations and Services Limited (the Subsidiary)
d. IDBI-Federal Life Insurance Company Limited (the Associate)
e. Equirus Capital Private Limited (the Associate)
iv. are presented in accordance with the requirements of Regulation 33 of the Listing Regulations except for the disclosures relating to Pillar 3 disclosure as at 31 March 2020, 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 consolidated Financial Results and have not been audited by us; and
v. give a true and fair view, in conformity with 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 including its associate for the year ended 31 March 2020.
Basis for Opinion
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 SAs are further described in the Auditor's Responsibilities for the Audit of the Consolidated Annual Financial Results section of our report. We are independent of the Group 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
As more fully described in Note 12 to the Consolidated Financial Results, the Bank has recognized provision on certain loans that were though overdue but standard as at 29 February 2020, for which moratorium benefit has been granted, based on the days past due status as on that date in accordance with the Reserve Bank of India COVID-19 Regulatory Package.
As more fully described in Note 12 to the Consolidated Financial Results, the extent to which the COVID-19 pandemic will have impact on the Bank's financial performance is dependent on future developments, which are highly uncertain.
Our opinion on the Consolidated Financial Results is not modified in respect of the above matters.
Responsibilities of Management and those Charged with Governance for the Consolidated Annual Financial Results
These Consolidated Financial Results have been prepared on the basis of the consolidated annual financial statements and reviewed quarterly consolidated financial results up to the end of the third quarter. The Bank's Management and Board of Directors are responsible for the preparation and presentation 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 associate in accordance with 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 of the Listing Regulations. The respective Board of Directors of the entities included in the Group and of its associate are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group 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
Auditor's Report on the Consolidated Annual Financial Results of The Federal Bank Limited pursuant to the Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Continued)
The Federal Bank Limited
Responsibilities of Management and those Charged with Governance for the Consolidated Annual Financial Results (continued)
effectively for ensuring 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.
In preparing the Consolidated Financial Results, the respective Management and Board of Directors of the entities included in the Group and its associate are responsible for assessing the ability of the Group and of its associate to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management and Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the entities included in the Group and of its associate are responsible for overseeing the financial reporting process of the Group and of its associate.
Auditor's Responsibilities for the Audit of the Consolidated Annual Financial Results
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 auditor's 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 adequate internal financial controls with reference to financial statements in place 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.
Auditor's Report on the Consolidated Annual Financial Results of The Federal Bank Limited pursuant to the Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Continued)
The Federal Bank Limited
Auditor's Responsibilities for the Audit of the Consolidated Annual Financial Results (continued)
§ 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 its associate to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's 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 auditor's report. However, future events or conditions may cause the Group and its associate 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 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.
We communicate with those charged with governance of the Bank 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.
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.
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.
Auditor's Report on the Consolidated Annual Financial Results of The Federal Bank Limited pursuant to the Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Continued)
The Federal Bank Limited
Other Matters
· We did not audit the financial statements/ information of two subsidiaries, whose financial statements reflect total assets of Rs. 404,183 lakhs as at 31 March 2020, total revenues of Rs. 49,005 lakhs and total net profit after tax of Rs. 4,080 lakhs for the year ended 31 March 2020, and net cash inflow amounting to Rs. 15,882 lakhs for the year ended on that date, as considered in the Consolidated Financial Results. The Consolidated Financial Results also include the Group's share of net profit of Rs. 3,771 lakhs for the year ended 31 March 2020, 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 its subsidiaries and its associates, is based solely on the reports of the such auditors and the procedures performed by us are as stated in section above.
· The auditors of IDBI-Federal Life Insurance Company Limited ('the associate') have reported, 'The actuarial valuation of the liabilities for life policies in force and for discontinued policies where liability exists is the responsibility of the Company's Appointed Actuary ("the appointed Actuary").The actuarial valuation of these liabilities as at 31 March 2020 has been duly certified by the Appointed Actuary and in his opinion, the assumption for such valuation are in accordance with guidelines and norms issued by the Insurance regulatory and Development Authority of India and the Actuarial Society of India in concurrence with the Authority. We have relied upon the Appointed Actuary's certificate in this regard for forming our opinion on the financial statements of the Company'.
Our opinion on the Consolidated Financial Results is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.
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 |
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Akeel Master | Varun P Kothari |
Partner | Partner |
Membership No: 046768 | Membership No: 115089 |
ICAI UDIN:20046768AAAAIK7207 | ICAI UDIN: 20115089AAAAIN2079 |
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Mumbai | Mumbai |
28 May 2020 | 28 May 2020 |
THE FEDERAL BANK LIMITED | |||||||||||
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | |||||||||||
(CIN: L65191KL1931PLC000368) | |||||||||||
STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2020 | |||||||||||
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Particulars | Quarter ended | Year ended | |||||||||
31.03.2020 | 31.12.2019 | 31.03.2019 | 31.03.2020 | 31.03.2019 | |||||||
Audited(Refer Note 14 below) | Unaudited | Audited(Refer Note 14 below) | Audited | Audited | |||||||
1. Interest earned (a)+(b)+(c)+(d) | 339,684 | 333,036 | 303,232 | 1,321,075 | 1,141,903 | ||||||
(a) | Interest/discount on advances/bills | 272,435 | 270,278 | 241,305 | 1,067,087 | 908,962 | |||||
(b) | Income on investments | 56,529 | 53,611 | 53,638 | 218,407 | 203,745 | |||||
(c) | Interest on balances with Reserve Bank of India and other inter bank funds | 4,686 | 3,527 | 1,178 | 13,996 | 7,347 | |||||
(d) | Others | 6,034 | 5,620 | 7,111 | 21,585 | 21,849 | |||||
2. Other income | 71,111 | 40,786 | 41,172 | 193,141 | 135,102 | ||||||
3. TOTAL INCOME (1+2) | 410,795 | 373,822 | 344,404 | 1,514,216 | 1,277,005 | ||||||
4. Interest expended | 218,083 | 217,543 | 193,579 | 856,185 | 724,268 | ||||||
5. Operating expenses (i)+(ii) | 96,780 | 81,897 | 75,350 | 337,561 | 276,427 | ||||||
(i) | Employees cost | 51,906 | 41,476 | 37,015 | 177,236 | 137,776 | |||||
(ii) | Other operating expenses | 44,874 | 40,421 | 38,335 | 160,325 | 138,651 | |||||
6. TOTAL EXPENDITURE (4+5)(excluding provisions and contingencies) | 314,863 | 299,440 | 268,929 | 1,193,746 | 1,000,695 | ||||||
7. OPERATING PROFIT (3-6) (Profit before provisions and contingencies) | 95,932 | 74,382 | 75,475 | 320,470 | 276,310 | ||||||
8. Provisions (other than tax) and contingencies | 56,750 | 16,086 | 17,776 | 117,217 | 85,585 | ||||||
9. Exceptional items |
| - | - | - | - | - | |||||
10. Profit from Ordinary Activities before tax(7-8-9) | 39,182 | 58,296 | 57,699 | 203,253 | 190,725 | ||||||
11. Tax expense |
| 9,059 | 14,232 | 19,548 | 48,975 | 66,336 | |||||
12. Net Profit from Ordinary Activities after tax (10-11) | 30,123 | 44,064 | 38,151 | 154,278 | 124,389 | ||||||
13. Extraordinary items (net of tax expense) |
| - | - | - | - | - | |||||
14. Net Profit for the period (12-13) |
| 30,123 | 44,064 | 38,151 | 154,278 | 124,389 | |||||
15. Paid-up Equity Share Capital(Face value ` 2/- per Equity Share) | 39,853 | 39,846 | 39,701 | 39,853 | 39,701 | ||||||
16. Reserves excluding Revaluation Reserve |
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| 1,411,407 | 1,287,102 | ||||||
17. Analytical Ratios |
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(i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | |||||
(ii) | Capital Adequacy ratio (%) |
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| Under Basel III | 14.35 | 13.64 | 14.14 | 14.35 | 14.14 | |||||
(iii) | Earnings per Share (EPS) (in `) |
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| (a) Basic EPS (before and after extra ordinary items) | 1.51* | 2.21* | 1.92* | 7.76 | 6.28 | |||||
| (b) Diluted EPS (before and after extra ordinary items) | 1.50* | 2.20* | 1.91* | 7.70 | 6.24 | |||||
(iv) | NPA Ratios |
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| a) Gross NPA | 353,083 | 361,869 | 326,068 | 353,083 | 326,068 | |||||
| b) Net NPA | 160,717 | 194,101 | 162,620 | 160,717 | 162,620 | |||||
| c) % of Gross NPA | 2.84 | 2.99 | 2.92 | 2.84 | 2.92 | |||||
| d) % of Net NPA | 1.31 | 1.63 | 1.48 | 1.31 | 1.48 | |||||
(v) | Return on Assets (%) | 0.17* | 0.26* | 0.25* | 0.94 | 0.88 | |||||
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* Not Annualised |
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Segment Information@ |
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Particulars | Quarter ended | Year ended | ||||
31.03.2020 | 31.12.2019 | 31.03.2019 | 31.03.2020 | 31.03.2019 | ||
Audited(Refer Note 14 below) | Unaudited | Audited(Refer Note 14 below) | Audited | Audited | ||
Segment Revenue: |
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| Treasury | 102,236 | 70,179 | 66,515 | 314,209 | 254,761 |
| Corporate/Wholesale Banking | 139,527 | 135,913 | 145,079 | 562,327 | 507,376 |
| Retail Banking | 161,319 | 160,131 | 121,852 | 609,272 | 488,342 |
| Other Banking operations | 7,713 | 7,599 | 10,958 | 28,408 | 26,526 |
| Unallocated | - | - | - | - | - |
| Total Revenue | 410,795 | 373,822 | 344,404 | 1,514,216 | 1,277,005 |
| Less: Inter Segment Revenue | - | - | - | - | - |
| Income from Operations | 410,795 | 373,822 | 344,404 | 1,514,216 | 1,277,005 |
Segment Results (net of provisions): |
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| Treasury | 39,033 | 15,456 | 10,950 | 82,200 | 41,085 |
| Corporate/Wholesale Banking | (35,680) | (11,340) | 14,328 | (32,879) | 25,969 |
| Retail Banking | 36,349 | 54,381 | 28,188 | 156,061 | 120,186 |
| Other Banking operations | 1,968 | 620 | 5,280 | 3,817 | 6,690 |
| Unallocated | (2,488) | (821) | (1,047) | (5,946) | (3,205) |
| Profit before tax | 39,182 | 58,296 | 57,699 | 203,253 | 190,725 |
Segment Assets |
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| Treasury | 4,183,243 | 3,519,353 | 3,575,297 | 4,183,243 | 3,575,297 |
| Corporate/Wholesale Banking | 6,264,764 | 6,000,398 | 5,816,960 | 6,264,764 | 5,816,960 |
| Retail Banking | 6,669,709 | 6,535,673 | 5,668,073 | 6,669,709 | 5,668,073 |
| Other Banking operations | 375 | 2,049 | 1,138 | 375 | 1,138 |
| Unallocated | 945,714 | 1,221,607 | 872,531 | 945,714 | 872,531 |
| Total | 18,063,805 | 17,279,080 | 15,933,999 | 18,063,805 | 15,933,999 |
Segment Liabilities |
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| Treasury | 4,075,361 | 3,406,295 | 3,476,144 | 4,075,361 | 3,476,144 |
| Corporate/Wholesale Banking | 6,024,101 | 5,922,863 | 5,600,730 | 6,024,101 | 5,600,730 |
| Retail Banking | 6,421,436 | 6,458,732 | 5,461,130 | 6,421,436 | 5,461,130 |
| Other Banking operations | 24 | 14 | 4 | 24 | 4 |
| Unallocated | 91,122 | 70,038 | 68,687 | 91,122 | 68,687 |
| Total | 16,612,044 | 15,857,942 | 14,606,695 | 16,612,044 | 14,606,695 |
Capital employed: |
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(Segment Assets - Segment Liabilities) |
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| Treasury | 107,882 | 113,058 | 99,153 | 107,882 | 99,153 |
| Corporate/Wholesale Banking | 240,663 | 77,535 | 216,230 | 240,663 | 216,230 |
| Retail Banking | 248,273 | 76,941 | 206,943 | 248,273 | 206,943 |
| Other Banking operations | 351 | 2,035 | 1,134 | 351 | 1,134 |
| Unallocated | 854,592 | 1,151,569 | 803,844 | 854,592 | 803,844 |
| Total | 1,451,761 | 1,421,138 | 1,327,304 | 1,451,761 | 1,327,304 |
@ | 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. | |||||
|
Statement of Assets and Liabilities of the Bank as on March 31, 2020 is given below: |
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| |||
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|
|
| (` in Lakhs) |
|
|
| Particulars | As at 31.03.2020 | As at 31.03.2019 |
|
| |
| Audited | Audited |
|
| ||
| CAPITAL AND LIABILITIES |
|
|
|
| |
| Capital | 39,853 | 39,701 |
|
| |
| Reserves and Surplus | 1,411,908 | 1,287,603 |
|
| |
| Deposits | 15,229,008 | 13,495,434 |
|
| |
| Borrowings | 1,037,243 | 778,132 |
|
| |
| Other Liabilities and Provisions | 345,793 | 333,129 |
|
| |
| Total | 18,063,805 | 15,933,999 |
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| |
| ASSETS |
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|
| |
| Cash and Balances with Reserve Bank of India | 617,491 | 641,917 |
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| |
| Balance with Banks and Money at Call and Short Notice | 639,967 | 364,763 |
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| |
| Investments | 3,589,268 | 3,182,447 |
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| |
| Advances | 12,226,791 | 11,022,295 |
|
| |
| Fixed assets | 47,999 | 47,204 |
|
| |
| Other assets | 942,289 | 675,373 |
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| |
| Total | 18,063,805 | 15,933,999 |
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Notes: |
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| |
1 | The above Financial Results for the quarter and year ended March 31, 2020 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on May 28, 2020. These Results have been subjected to "Audit" by the Statutory Central Auditors of the Bank and an unqualified report has been issued by them. | |||||
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2 | The Bank has consistently applied its significant accounting policies in the preparation of the quarterly financial results and its annual financial statements during the years ended March 31, 2020 and March 31, 2019. | |||||
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3 | 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), depreciation on investments, income-tax and other usual and necessary provisions. | |||||
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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), recoveries from advances written off etc. | |||||
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5 | During the quarter ended June 30, 2018, as per RBI Circular, the Bank had exercised the option of spreading the provision for Mark to Market (MTM) losses of ` 5,893.97 Lakhs equally over 4 quarters and accordingly unamortised MTM losses of ` 4,420.48 Lakhs were deferred to be amortised in remaining quarters of FY 2019, which was fully amortised in FY 2019. | |||||
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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. | |||||
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7 | The Business operations of the Bank are largely concentrated in India and for the purpose of Segment reporting, the bank is considered to operate only in domestic segment, though the bank has its operations in International Finance Service Centre (IFSC) Banking Unit in Gujarat International Finance Tec-city (GIFT). The business conducted from the same is considered as part of Indian operations. | |||||
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8 | During the quarter and year ended March 31, 2020, the Bank has allotted 386,640 and 7,612,869 equity shares of ` 2 each, pursuant to the exercise of stock options by employees. | |||||
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9 | During the quarter ended September 30, 2019, the Bank had elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Bank has recognised Provision for Income Tax for quarter and year ended March 31, 2020 and re-measured its Deferred tax liability, basis the rate prescribed in the aforesaid section and recognized the effect of change by revising the annual effective income tax rate. | |||||
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10 | 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 - 'Prudential Guidelines on Capital Adequacy and Liquidity Standards - Amendments', 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 or review by the Statutory Central Auditors of the Bank. | |||||
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11 | The SARS-CoV-2 virus responsible for COVID-19 continues to spread across the globe and India, which has contributed to a significant volatility in global and Indian Financial markets and a significant decrease in the global and local economic activities. COVID-19 outbreak was declared as a global pandemic on March 11, 2020 by World Health Organisation. The Government of India had announced a series of lock-down measures on March 24, 2020 which has been extended from time to time up to May 31, 2020. The recent directions from the Government indicates calibrated and gradual withdrawal of lockdown and partial resumption of economic activities, though major economic centres still continue to be under strict lockdown. The extent to which the COVID-19 pandemic will impact the Bank's results will depend on future developments, which are highly uncertain, including among other things, any new information concerning the severity of the COVID-19 pandemic and action to contain its spread or mitigate its impact whether government mandated or elected by the Bank. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during this period. In accordance with the 'COVID-19 Regulatory Packages' announced by the RBI on March 27, 2020 and April 17, 2020 ('the RBI guidelines'), with regard to providing relief to borrowers' on account of COVID-19 pandemic whose accounts were standard as on February 29, 2020 , the Bank, in accordance with the Board approved policy had offered moratorium on repayment of loan instalments and/or deferment of interest due between March 1, 2020 and May 31, 2020 including relaxation in certain parameters, to all eligible borrowers, without considering the same as restructuring. Further on May 22, 2020, RBI has permitted the Banks to extend such benefits to eligible borrowers for another three months, from June 1, 2020 to August 31, 2020. In accordance with the RBI guidelines, the Bank is required to make provision @ 10% of outstanding advances over two quarters beginning with quarter ending March 31, 2020 in respect of such borrowers whose accounts, though classified as standard as on March 31, 2020, would have become non-performing but for these benefits/relaxations extended as per RBI guidelines. The Bank, as a prudent measure, has made the entire 10% provision amounting to ` 3,026.60 Lakhs in the current quarter. Further, in addition to the above, as a prudent measure, the Bank has made additional provision of ` 6,303.40 Lakhs as at March 31, 2020 against the likely impact of COVID-19 pandemic in respect of exposure of the Bank to certain specified sectors based on assessment of presently available information. The entire provision of ` 9,330.00 Lakhs in respect of COVID-19 impact is grouped under Other liabilities and provisions in the Balance sheet of the Bank. | |||||
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12 | The Reserve Bank of India, vide its circular dated April 17, 2020, has decided that banks shall not make any further dividend payouts from profits pertaining to the financial year ended March 31, 2020 until further instructions, with a view that banks must conserve capital in an environment of heightened uncertainty caused by COVID-19 pandemic. Accordingly, the Board of Directors of the Bank have not recommended any dividend for the year 2019-20 (Previous Year 70% i.e ` 1.40/- per Equity Share). | |||||
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13 | During the quarter and year ended March 31, 2020, the Bank has invested ` 5,920.00 Lakhs and ` 6,420.00 Lakhs respectively in its subsidiaries (` 500.00 Lakhs in Preference shares with face value ` 10 each of Federal Operations and Services Limited & ` 5,920.00 Lakhs in equity shares with face value ` 10 each of Fedbank Financial Services Limited) and ` Nil and ` 66.61 Lakhs in Preference shares with face value ` 5 each respectively in its associate Equirus Capital Private Limited. | |||||
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14 | 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 subject to limited review. | |||||
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15 | Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification. | |||||
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|
| SHYAM SRINIVASAN | |||
Kochi |
| MANAGING DIRECTOR & CEO | ||||
May 28, 2020 |
| (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, 2020 | ||
|
| (` in Lakhs) |
| Year ended March 31, 2020 | Year ended March 31, 2019 |
Cash Flow from Operating Activities |
|
|
Net Profit before taxes | 203,253 | 190,725 |
Adjustments for: |
|
|
Depreciation on Bank's Property | 11,946 | 12,037 |
Depreciation on Investments | 6,319 | 10,293 |
Amortisation of Premium on Held to Maturity Investments | 7,401 | 5,289 |
Provision for Non Performing Investments | 537 | 2,028 |
Provision / Charge for Non Performing Assets | 101,047 | 63,055 |
Provision for Standard Assets | 9,908 | 9,786 |
(Profit)/Loss on sale of fixed assets (net) | (535) | (1,819) |
Provision for Restructured assets | (1,030) | - |
Provision for Other Contingencies | 435 | 424 |
| 339,281 | 291,818 |
Adjustments for working capital changes:- |
|
|
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] | 33,635 | 203,789 |
(Increase)/ Decrease in Advances | (1,305,543) | (1,889,603) |
(Increase)/ Decrease in Other Assets | (257,121) | (70,323) |
Increase/ (Decrease) in Deposits | 1,733,574 | 2,296,186 |
Increase/ (Decrease) in Other liabilities and provisions | 12,216 | 55,166 |
| 216,761 | 595,215 |
Direct taxes paid | (67,635) | (69,944) |
Net Cash Flow from / (Used in) Operating Activities | 488,407 | 817,089 |
|
|
|
Cash Flow from Investing Activities |
|
|
Purchase of Fixed Assets | (13,046) | (13,836) |
Proceeds from Sale of Fixed Assets | 842 | 2,150 |
Investment in Subsidiary | (6,420) | (500) |
Investment in Associate | (67) | (685) |
(Increase)/ Decrease in Held to Maturity Investments | (448,227) | (324,553) |
Net Cash generated / (Used in) Investing Activities | (466,918) | (337,424) |
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|
Cash Flow from Financing Activities |
|
|
Proceeds from Issue of Share Capital | 152 | 258 |
Proceeds from Share Premium | 3,131 | 5,279 |
Proceeds from Issue of Subordinate Debt | 30,000 | - |
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) | 229,110 | (375,217) |
Dividend Paid (Including Tax on Dividend) | (33,541) | (23,871) |
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|
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Net Cash generated from Financing Activities | 228,852 | (393,551) |
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Effect of exchange fluctuation on translation reserve | 437 | 225 |
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Net Increase in Cash and Cash Equivalents | 250,778 | 86,339 |
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Cash and Cash Equivalents at the beginning of year | 1,006,680 | 920,341 |
Cash and Cash Equivalents at the end of year | 1,257,458 | 1,006,680 |
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Note: |
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|
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. | ||
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| SHYAM SRINIVASAN | |
Kochi | MANAGING DIRECTOR & CEO | |
May 28, 2020 | (DIN: 02274773) | |
|
|
|
THE FEDERAL BANK LIMITED | ||||||||||
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | ||||||||||
(CIN: L65191KL1931PLC000368) | ||||||||||
CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2020 | ||||||||||
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| (` in Lakhs) | ||||
Particulars | Quarter ended | Year ended | ||||||||
31.03.2020 | 31.12.2019 | 31.03.2019 | 31.03.2020 | 31.03.2019 | ||||||
Audited(Refer Note 15 below) | Unaudited | Audited(Refer Note 15 below) | Audited | Audited | ||||||
1. Interest earned (a)+(b)+(c)+(d) | 354,448 | 341,395 | 310,665 | 1,359,039 | 1,163,544 | |||||
(a) | Interest/discount on advances/bills | 286,778 | 278,601 | 248,706 | 1,104,518 | 930,412 | ||||
(b) | Income on investments | 56,560 | 53,647 | 53,670 | 218,550 | 203,936 | ||||
(c) | Interest on balances with Reserve Bank of India and other inter bank funds | 4,686 | 3,527 | 1,178 | 13,996 | 7,347 | ||||
(d) | Others | 6,424 | 5,620 | 7,111 | 21,975 | 21,849 | ||||
2. Other income | 67,839 | 42,076 | 39,512 | 188,181 | 133,522 | |||||
3. TOTAL INCOME (1+2) | 422,287 | 383,471 | 350,177 | 1,547,220 | 1,297,066 | |||||
4. Interest expended | 222,137 | 220,564 | 195,370 | 867,831 | 731,633 | |||||
5. Operating expenses (i)+(ii) | 102,416 | 86,872 | 77,691 | 354,670 | 283,658 | |||||
(i) | Employees cost | 55,371 | 44,365 | 38,510 | 187,598 | 142,566 | ||||
(ii) | Other operating expenses | 47,045 | 42,507 | 39,181 | 167,072 | 141,092 | ||||
6. TOTAL EXPENDITURE (4+5)(excluding provisions and contingencies) | 324,553 | 307,436 | 273,061 | 1,222,501 | 1,015,291 | |||||
7. OPERATING PROFIT (3-6) (Profit before provisions and contingencies) | 97,734 | 76,035 | 77,116 | 324,719 | 281,775 | |||||
8. Provisions (other than tax) and contingencies | 57,794 | 16,254 | 18,031 | 118,722 | 85,765 | |||||
9. Exceptional items |
| - | - | - | - | - | ||||
10. Profit from Ordinary Activities before tax(7-8-9) | 39,940 | 59,781 | 59,085 | 205,997 | 196,010 | |||||
11. Tax expense |
| 9,645 | 14,609 | 19,978 | 50,720 | 67,758 | ||||
12. Net Profit from Ordinary Activities after tax (10-11) | 30,295 | 45,172 | 39,107 | 155,277 | 128,252 | |||||
13. Extraordinary items (net of tax expense) |
| - | - | - | - | - | ||||
14. Net Profit for the period (12-13) |
| 30,295 | 45,172 | 39,107 | 155,277 | 128,252 | ||||
15. Minority interest |
| 437 | 280 | 44 | 1,028 | 180 | ||||
16. Share in Profit of Associates |
| 3,046 | 270 | 3,229 | 3,771 | 3,556 | ||||
17. Consolidated Net Profit of the group(14-15+16) | 32,904 | 45,162 | 42,292 | 158,020 | 131,628 | |||||
18. Paid-up Equity Share Capital(Face value ` 2/- per Equity Share) | 39,853 | 39,846 | 39,701 | 39,853 | 39,701 | |||||
19. Reserves excluding Revaluation Reserve |
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|
| 1,441,882 | 1,309,624 | |||||
20. Analytical Ratios |
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| ||||
(i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | ||||
(ii) | Capital Adequacy ratio (%) |
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| ||||
| Under Basel III | 14.63 | 13.88 | 14.43 | 14.63 | 14.43 | ||||
(iii) | Earnings per Share (EPS) (in `) |
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| ||||
| (a) Basic EPS (before and after extra ordinary items) | 1.65* | 2.27* | 2.13* | 7.94 | 6.65 | ||||
| (b) Diluted EPS (before and after extra ordinary items) | 1.64* | 2.26* | 2.12* | 7.88 | 6.60 | ||||
(iv) | NPA Ratios |
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| ||||
| a) Gross NPA | 358,015 | 365,657 | 330,178 | 358,015 | 330,178 | ||||
| b) Net NPA | 164,953 | 197,379 | 166,218 | 164,953 | 166,218 | ||||
| c) % of Gross NPA | 2.82 | 2.97 | 2.92 | 2.82 | 2.92 | ||||
| d) % of Net NPA | 1.32 | 1.63 | 1.49 | 1.32 | 1.49 | ||||
(v) | Return on Assets (%) | 0.18* | 0.26* | 0.27* | 0.92 | 0.88 | ||||
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* Not Annualised |
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Segment Information@ |
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| |
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| (` in Lakhs) |
Particulars | Quarter ended | Year ended | ||||
31.03.2020 | 31.12.2019 | 31.03.2019 | 31.03.2020 | 31.03.2019 | ||
Audited(Refer Note 15 below) | Unaudited | Audited(Refer Note 15 below) | Audited | Audited | ||
Segment Revenue: |
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|
|
|
| |
| Treasury | 101,269 | 70,179 | 66,514 | 311,159 | 254,761 |
| Corporate/Wholesale Banking | 136,776 | 135,913 | 145,079 | 559,576 | 507,376 |
| Retail Banking | 175,663 | 169,780 | 127,626 | 647,211 | 508,403 |
| Other Banking operations | 8,579 | 7,599 | 10,958 | 29,274 | 26,526 |
| Unallocated | - | - | - | - | - |
| Total Revenue | 422,287 | 383,471 | 350,177 | 1,547,220 | 1,297,066 |
| Less: Inter Segment Revenue | - | - | - | - | - |
| Income from Operations | 422,287 | 383,471 | 350,177 | 1,547,220 | 1,297,066 |
Segment Results (net of provisions): |
|
|
|
|
| |
| Treasury | 38,066 | 15,456 | 10,951 | 79,118 | 41,469 |
| Corporate/Wholesale Banking | (34,318) | (11,339) | 14,328 | (31,517) | 25,969 |
| Retail Banking | 34,930 | 55,821 | 29,574 | 158,639 | 125,087 |
| Other Banking operations | 3,750 | 664 | 5,280 | 5,703 | 6,690 |
| Unallocated | (2,488) | (821) | (1,048) | (5,946) | (3,205) |
| Profit before tax | 39,940 | 59,781 | 59,085 | 205,997 | 196,010 |
Segment Assets |
|
|
|
|
|
|
| Treasury | 4,161,384 | 3,521,335 | 3,578,232 | 4,161,384 | 3,578,232 |
| Corporate/Wholesale Banking | 6,206,052 | 6,000,398 | 5,816,960 | 6,206,052 | 5,816,960 |
| Retail Banking | 7,021,272 | 6,743,853 | 5,786,386 | 7,021,272 | 5,786,386 |
| Other Banking operations | 911 | 1,409 | 1,138 | 911 | 1,138 |
| Unallocated | 945,714 | 1,221,607 | 872,531 | 945,714 | 872,531 |
| Total | 18,335,333 | 17,488,602 | 16,055,247 | 18,335,333 | 16,055,247 |
Segment Liabilities |
|
|
|
|
|
|
| Treasury | 4,074,266 | 3,406,295 | 3,476,144 | 4,074,266 | 3,476,144 |
| Corporate/Wholesale Banking | 6,056,704 | 5,922,863 | 5,600,730 | 6,056,704 | 5,600,730 |
| Retail Banking | 6,612,359 | 6,624,970 | 5,551,810 | 6,612,359 | 5,551,810 |
| Other Banking operations | 550 | 14 | 4 | 550 | 4 |
| Unallocated | 91,122 | 70,038 | 68,687 | 91,122 | 68,687 |
| Total | 16,835,001 | 16,024,180 | 14,697,375 | 16,835,001 | 14,697,375 |
Capital employed: |
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|
|
|
| |
(Segment Assets - Segment Liabilities) |
|
|
|
|
| |
| Treasury | 87,118 | 115,040 | 102,088 | 87,118 | 102,088 |
| Corporate/Wholesale Banking | 149,348 | 77,535 | 216,230 | 149,348 | 216,230 |
| Retail Banking | 408,913 | 118,883 | 234,576 | 408,913 | 234,576 |
| Other Banking operations | 361 | 1,395 | 1,134 | 361 | 1,134 |
| Unallocated | 854,592 | 1,151,569 | 803,844 | 854,592 | 803,844 |
| Total | 1,500,332 | 1,464,422 | 1,357,872 | 1,500,332 | 1,357,872 |
@ | 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. | |||||
| Statement of Assets and Liabilities of the Group as on March 31, 2020 is given below: |
|
| |||
|
|
|
| (` in Lakhs) |
|
|
| Particulars | As at 31.03.2020 | As at 31.03.2019 |
|
| |
| Audited | Audited |
|
| ||
| CAPITAL AND LIABILITIES |
|
|
|
| |
| Capital | 39,853 | 39,701 |
|
| |
| Reserves and Surplus | 1,442,383 | 1,310,125 |
|
| |
| Minority Interest | 18,096 | 8,046 |
|
| |
| Deposits | 15,225,191 | 13,487,893 |
|
| |
| Borrowings | 1,252,772 | 870,629 |
|
| |
| Other Liabilities and Provisions | 357,038 | 338,853 |
|
| |
| Total | 18,335,333 | 16,055,247 |
|
| |
| ASSETS |
|
|
|
| |
| Cash and Balances with Reserve Bank of India | 618,254 | 642,267 |
|
| |
| Balance with Banks and Money at Call and Short Notice | 657,477 | 363,080 |
|
| |
| Investments | 3,571,539 | 3,167,570 |
|
| |
| Advances | 12,484,950 | 11,153,592 |
|
| |
| Fixed assets | 50,481 | 47,993 |
|
| |
| Other assets | 952,632 | 680,745 |
|
| |
| Total | 18,335,333 | 16,055,247 |
|
| |
|
|
|
|
|
|
|
Notes: |
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|
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|
| |
1 | The above Consolidated Financial Results for the quarter and year ended March 31, 2020 were reviewed by the Audit Committee and subsequently taken on record and approved by the Board of Directors at its meeting held on May 28, 2020. These Results have been subjected to "Audit" by the Statutory Central Auditors of the Bank and an unqualified report has been issued. The figures for the quarter ended March 31, 2019 has been approved by the Bank's Board of Directors, but has not been subjected to audit since the requirement of submission of quarterly consolidated financial results has become mandatory only from April 01, 2019. | |||||
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2 | The Consolidated Financial Results of the Group comprise the audited financial results of The Federal Bank Limited and its subsidiaries viz. Fedbank Financial Services Limited & Federal Operations and Services Limited and its associates viz. IDBI Federal Life Insurance Company Limited & Equirus Capital Private Limited. | |||||
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3 | There has been no material change in the accounting policies adopted during the quarter and year ended March 31, 2020 as compared to those followed for the year ended March 31, 2019. | |||||
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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), depreciation on investments, income-tax and other usual and necessary provisions. | |||||
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|
|
|
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|
|
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), recoveries from advances written off etc. | |||||
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|
|
|
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|
|
6 | During the quarter ended June 30, 2018, as per RBI Circular, the Bank had exercised the option of spreading the provision for Mark to Market (MTM) losses of ` 5,893.97 Lakhs equally over 4 quarters and accordingly unamortised MTM losses of ` 4,420.48 Lakhs were deferred to be amortised in remaining quarters of FY 2019, which was fully amortised in FY 2019. | |||||
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|
7 | 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. | |||||
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8 | The Business operations of the Bank are largely concentrated in India and for the purpose of Segment reporting, the bank is considered to operate only in domestic segment, though the bank has its operations in International Finance Service Centre (IFSC) Banking Unit in Gujarat International Finance Tec-city (GIFT). The business conducted from the same is considered as a part of Indian operations. | |||||
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9 | During the quarter and year ended March 31, 2020, the Bank has allotted 386,640 and 7,612,869 equity shares of ` 2 each, pursuant to the exercise of stock options by employees. | |||||
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10 | During the quarter ended September 30, 2019, the Bank has elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Bank has recognised Provision for Income Tax for quarter and year ended March 31, 2020 and re-measured its Deferred tax liability, basis the rate prescribed in the aforesaid section and recognized the effect of change by revising the annual effective income tax rate. | |||||
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11 | 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 - 'Prudential Guidelines on Capital Adequacy and Liquidity Standards - Amendments', 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 or review by the Statutory Central Auditors of the Bank. | |||||
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12 | The SARS-CoV-2 virus responsible for COVID-19 continues to spread across the globe and India, which has contributed to a significant volatility in global and Indian Financial markets and a significant decrease in the global and local economic activities. COVID-19 outbreak was declared as a global pandemic on March 11, 2020 by World Health Organisation. The Government of India had announced a series of lock-down measures on March 24, 2020 which has been extended from time to time up to May 31, 2020. The recent directions from the Government indicates calibrated and gradual withdrawal of lockdown and partial resumption of economic activities, though major economic centres still continue to be under strict lockdown. The extent to which the COVID-19 pandemic will impact the Bank's results will depend on future developments, which are highly uncertain, including among other things, any new information concerning the severity of the COVID-19 pandemic and action to contain its spread or mitigate its impact whether government mandated or elected by the Bank. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during this period. In accordance with the 'COVID-19 Regulatory Packages' announced by the RBI on March 27, 2020 and April 17, 2020 ('the RBI guidelines'), with regard to providing relief to borrowers' on account of COVID-19 pandemic whose accounts were standard as on February 29, 2020 , the Bank, in accordance with the Board approved policy had offered moratorium on repayment of loan instalments and/or deferment of interest due between March 1, 2020 and May 31, 2020 including relaxation in certain parameters, to all eligible borrowers, without considering the same as restructuring. Further on May 22, 2020, RBI has permitted the Banks to extend such benefits to eligible borrowers for another three months, from June 1, 2020 to August 31, 2020. In accordance with the RBI guidelines, the Bank is required to make provision @ 10% of outstanding advances over two quarters beginning with quarter ending March 31, 2020 in respect of such borrowers whose accounts, though classified as standard as on March 31, 2020, would have become non-performing but for these benefits/relaxations extended as per RBI guidelines. The Bank, as a prudent measure, has made the entire 10% provision amounting to ` 3,026.60 Lakhs in the current quarter. Further, in addition to the above, as a prudent measure, the Bank has made additional provision of ` 6,303.40 Lakhs as at March 31, 2020 against the likely impact of COVID-19 pandemic in respect of exposure of the Bank to certain specified sectors based on assessment of presently available information. The entire provision of ` 9,330.00 Lakhs in respect of COVID-19 impact is grouped under Other liabilities and provisions in the Balance sheet of the Bank. | |||||
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13 | The Reserve Bank of India, vide its circular dated April 17, 2020, has decided that banks shall not make any further dividend payouts from profits pertaining to the financial year ended March 31, 2020 until further instructions, with a view that banks must conserve capital in an environment of heightened uncertainty caused by COVID-19 pandemic. Accordingly, the Board of Directors of the Bank have not recommended any dividend for the year 2019-20 (Previous Year 70% i.e ` 1.40/- per Equity Share). | |||||
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14 | During the quarter and year ended March 31, 2020, the Bank has invested ` 5,920.00 Lakhs and ` 6,420.00 Lakhs respectively in its subsidiaries (` 500.00 Lakhs in Preference shares with face value ` 10 each of Federal Operations and Services Limited & ` 5,920.00 Lakhs in equity shares with face value ` 10 each of Fedbank Financial Services Limited) and ` Nil and ` 66.61 Lakhs in Preference shares with face value ` 5 each respectively in its associate Equirus Capital Private Limited. | |||||
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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. | |||||
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16 | Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification. | |||||
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| SHYAM SRINIVASAN | |||
Kochi |
| MANAGING DIRECTOR & CEO | ||||
May 28, 2020 |
| (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, 2020 | ||
| (` in Lakhs) | |
| Year endedMarch 31, 2020 | Year endedMarch 31, 2019 |
Cash Flow from Operating Activities |
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Net Profit before taxes | 208,739 | 199,387 |
Adjustments for: |
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Depreciation on Group's Property | 12,573 | 12,226 |
Depreciation on Investments | 6,350 | 9,909 |
Amortisation of Premium on Held to Maturity Investments | 7,401 | 5,289 |
Provision for Non Performing Investments | 537 | 2,028 |
Provision / Charge for Non Performing Assets | 101,249 | 63,395 |
Provision for Standard Assets | 11,181 | 10,007 |
(Profit)/ Loss on sale of fixed assets (net) | (517) | (1,820) |
(Income) / Loss From Associate | (3,771) | (3,556) |
Provision for Restructured assets | (1,030) | - |
Provision for Other Contingencies | 435 | 426 |
| 343,147 | 297,291 |
Adjustments for working capital changes:- |
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(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] | 40,226 | 203,966 |
(Increase)/ Decrease in Advances | (1,432,606) | (1,915,898) |
(Increase)/ Decrease in Other Assets | (261,437) | (71,660) |
Increase/ (Decrease) in Deposits | 1,737,297 | 2,290,883 |
Increase/ (Decrease) in Other liabilities and provisions | 16,536 | 54,390 |
| 100,016 | 561,681 |
Direct taxes paid | (70,107) | (71,708) |
Net Cash Flow from / (Used in) Operating Activities | 373,056 | 787,264 |
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Cash Flow from Investing Activities |
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Purchase of Fixed Assets | (15,446) | (14,417) |
Proceeds from Sale of Fixed Assets | 903 | 2,153 |
Investment in Subsidiary | (6,420) | (500) |
Investment in Associate | (67) | (685) |
(Increase)/ Decrease in Held to Maturity Investments | (448,227) | (324,553) |
Net Cash generated / (Used in) Investing Activities | (469,257) | (338,002) |
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Cash Flow from Financing Activities |
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Proceeds from Issue of Share Capital | 152 | 258 |
Proceeds from Share Premium | 8,257 | 15,674 |
Increase / (Decrease) in Minority Interest | 9,137 | 6,375 |
Proceeds from Issue of Subordinate Debt | 30,000 | - |
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) | 352,143 | (362,097) |
Dividend Paid (Including Tax on Dividend) | (33,541) | (23,871) |
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Net Cash generated from financing Activities | 366,148 | (363,661) |
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Effect of exchange fluctuation on translation reserve | 437 | 225 |
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Increase/(Decrease) in Cash and Cash Equivalents | 270,384 | 85,826 |
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Cash and Cash Equivalents at the beginning of year | 1,005,347 | 919,521 |
Cash and Cash Equivalents at the end of year | 1,275,731 | 1,005,347 |
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Note: |
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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. | ||
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| SHYAM SRINIVASAN | |
Kochi | MANAGING DIRECTOR & CEO | |
May 28, 2020 | (DIN: 02274773) | |
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