Federal Bk S Regulatory News (FEDS)

SD/ 24 / /2014

Secretarial Department

To,

The London Stock Exchange

Dear Sir,

We enclose the Audited financial results of the Bank for the period ended 31 March, 2014, which was approved at the Bank's Board of Directors meeting held 29.04.2014

Kindly acknowledge.

Thanking you,

The Federal Bank Ltd. Registered Office: Secretarial Department, Federal Towers, P O Box No. 103, Alum,

Kerala, India 683 101 E-mail: girishkiimar(a:federalbank.co.in\ Phone : 0484-2622645

THE FEDERAL BANK LIMITED

AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31st MARCH 2014

__,___(Rs in Lakhs)

* Not annualised

# excludes shares held by custodian against which Global Depository Receipts issued.

2 The above financial results have been taken on record by the Audit Committee and approved by the Board of Directors at its meeting held on 29th April, 2014.

3 As a prudent policy, the Bank holds provisions for Non Performing Assets over and above the minimum required under the Reserve Bank of India (RBI) norms. Further, provision for restructured advances has been made as per RBI guidelines.

4 Pursuant to the approval of the Shareholders at the 82nd Annual General Meeting held on 20th July 2013, the face value of each equity share of 7 10/- was sub-divided into 5 (Five) Equity Shares of 7 2/- each with effect from 19th October 2013. Accordingly, the number of shares and the Earnings Per Share of the previous periods have been restated to make the same comparable.

5 The Bank has changed its policy on valuation of swap contracts against the overseas borrowings, by amortising the cost over the period of swap tenure, with effect from 01.04.2013, as against the earlier practice of writing back/writing off the mark-to-market gain or loss at the end of each reporting period. This change in policy does not have any financial impact over the full period of swap.

However, the impact of change in the policy on valuation and amortization as described above, is increase in the profit by 7324.26 lakhs for the quarter ended 31st March 2014 and decrease in profit by 7664.04 lakhs for the year ended 31st March, 2014. Had this policy been adopted in the previous year, the effect would have been increase in profit by 78.99 lakhs for the quarter ended 31st March 2013 and decrease in profit by 7148.68 iakhs for the year ended 31st March, 2013.

6 The Pension liability arising on exercise of second option by employees (other than separated/retired employees) is being amortized equally over a period of 5 years commencing from the year ended on 31.03.2011, and accordingly an amount of 7 3368 Lakhs, being the proportionate liability in respect thereof, for the year ended 31.03.2014 (7 842 Lakhs for the quarter ended 31.03.2014) have been charged to Profit and Loss Account and the balance amount of 7 3368 lakhs yet to be written off is carried forward to be amortised in future periods as permitted by the Reserve Bank of India vide letter no. DBOD.BP.BC.15896/21.04.018/2010-11 dated 08.04.2011.

7 In terms of RBI circular DBOD.No,BP.BC.88/21.06.201/2012-13 dated 28.03.2013, banks have been advised to disclose capital ratios computed under Basel III Capital Regulations from the quarter ended 30th June 2013. Accordingly, corresponding details for previous period/year are not applicable.

8 RBI circular DBOD.No.BP.BC.2/21,06.201/2013-14 dated July 01, 2013 on Basel III Capital Regulations contains guidelines on certain Pillar 3 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: httrj://www.federalbank,co,in/reaulatorv-disclosures. These disclosures have not been subjected to review by the statutory auditors of the bank.

9 In terms of RBI circular DBOD.BP.BC,No.4I/21.04.141/2013-14 dated August 23, 2013 on "Investment portfolio of banks-Classification, Valuation and Provisioning", the Bank has opted to amortise the depreciation on the Available for Sale (AFS) and Held For Trading (HFT) portfolios on each of the valuation dates in the current financial year in equal installments during the financial year 2013-14. The Bank had amortised such depreciation during the quarters ended September and December 2013. During the quarter and year ended 31st March 2014, depreciation in respect of AFS and HFT portfolio has been recognised in full.

10 The Bank had hitherto not been creating Deferred Tax Liability (DTL) on the Special Reserve created under Section 36(1) (viii) of the Income Tax Act, 1961 in accordance with the requirements of the Accounting Standard (AS) 22, Accounting for Taxes on Income. However, during the year, the Bank, pursuant to RBI's Circular No. DBOD. No.BP.BC.77/21.04.018/2013-14 dated 20th December 2013, has created DTL of Rs. 5396 Lakhs on such Special Reserve for the period upto March 31, 2013, not fully charged to the Profit and Loss account and has adjusted the same directly from the Reserves. Had this amount been charged to the Profit & Loss Account in accordance with the generally accepted accounting principles in India, the amount of Profit for the year would have been lower by such amount.

Further, as required by the aforesaid RBI Circular, the Bank has created a DTL of Rs. 1,299 Lakhs in respect of the amounts transferred to Special Reserve from the year ended March 31, 2014 and the same is charged to the Profit and Loss Account for the year.

Had the Bank continued with its policy of not creating a DTL on Special Reserve created under Section 36(1) (viii) of the Income Tax Act, 1961, the Reserves and the Profit of the Bank as at/ for the year ended 31st March, 2014 would have been higher by Rs. 5396 Lakhs and Rs.1,299 Lakhs, respectively.

11 Number of Investor complaints received and disposed off during

a)Pending at the beginning of the quarter : NIL

b)Received during the quarter : 33

c)Disposed off during the quarter : 33

d)Pending at the end of the quarter : NIL

12 The Board of Directors have recommended a dividend of 100% i.e. 7 2/- per share on face value of 7 2/- each for the year 2013-14 (previous year 90% i.e 7 1.80 per share) subject to the approval of the members in the ensuing Annual General Meeting.

13 During the year ended 31st March 2014, the Bank had allotted 16125 Shares pursuant to the exercise of stock options by certain employees.

14 Consolidated financial results include the results of the fully owned subsidiary, Fedbank Financial Services Ltd and share of associate, IDBI Federal Life Insurance Company Ltd. 

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 third quarter of the current financial year.

Kochi

29th April 2014

SHYAM SRINIVASAN

MANAGING

DIRECTOR & CEO