Federal Bk S Regulatory News (FEDS)

21 May 2007 07:00

Federal Bank Ltd (The)19 May 2007 THE FEDERAL BANK LTDREG. OFFICE :ALUVAPB NO 103. KERALA , INDIAPIN 683 101 PHONE DIRECT +91 484 2622263, FAX 2622672,2622283 ---------------------------------------------------------------------------------------------------------------- SD/F24/ /2007 SECRETARIAL DEPARTMENT 18 May 2007 The London Stock Exchange,10 Paternoster Square, London, EC4M 7LS. Dear Sir, As required under the Listing Agreement entered into by us with your StockExchange, we enclose the audited financial results of the Bank for the periodended 31 March 2007, which was taken on record at the Bank's Board of DirectorsMeeting held today. Kindly acknowledge Thanking you, Yours faithfully, COMPANY SECRETARY THE FEDERAL BANK LTD. Regd Office: Aluva, Kerala AUDITED FINANCIAL RESULTS For the Quarter and Year ended 31 March 2007 (Rs crore) Quarter ended Year ended Consolidated figures 31 March 31 March for the year ended 31 March 2007 2006 2007 2006 2007 20061. Interest earned (a)+(b)+(c)+(d) 531.27 390.31 1817.35 1436.53 1817.35 1436.53 (a) Interest/discount on 381.82 261.63 1281.45 916.00 1281.45 916.00advances/bills (b) Income on Investments 129.04 120.69 482.49 458.17 482.49 458.17 (c) Interest on balances with RBI 13.43 4.24 43.81 35.94 43.81 35.94and other inter bank funds (d) Others 6.98 3.75 9.60 26.42 9.60 26.422. Other Income 105.36 69.73 286.69 216.95 286.69 216.95A. TOTAL INCOME (1+2) 636.63 460.04 2104.04 1653.48 2104.04 1653.483. Interest expended 303.31 218.09 1084.96 836.73 1084.89 836.674. Operating Expenses (a)+(b) 108.60 99.24 406.10 364.57 406.14 364.65 (a) Payments to and provisions 69.74 60.78 260.45 228.36 260.48 228.43for employees (b) Other operating expenses 38.86 38.46 145.65 136.21 145.66 136.22B. TOTAL EXPENDITURE (3)+(4) 411.91 317.33 1491.06 1201.30 1491.03 1201.32(excluding Provisions andContingencies)C. OPERATING PROFIT (A-B) 224.72 142.71 612.98 452.18 613.01 .52.16(Profit before Provisions andContingencies)D. Other Provisions and 86.65 81.27 214.75 171.41 214.75 171.41Contingencies (of which provision for NPAs) (7.45) (37.58) (89.29) (95.58) (95.58) (97.58)E. Provision for Taxes 38.82 10.71 105.50 55.56 105.51 55.56F. NET PROFIT (C-D-E) 99.25 50.73 292.73 225.21 292.75 225.195. Paid-up equity share capital 85.60 85.60 85.60 85.60 85.60 85.606. Reserves excluding revaluationreserve (as per Balance Sheet ofthe previous accounting year) 1409.97 1157.30 1410.98 1158.297. Analytical Ratios (i) Percentage of shares held by NIL NIL NIL NIL NIL NIL Government of India (ii) Capital Adequacy ratio (%) 13.43 13.75 13.43 13.75 13.44 13.76 (iii) Earnings per Share-Basic (Rs.) 11.59* 7.37* 34.20 32.71 34.20 32.70 (iv) (a) Amount of Gross Non-performing Assets 450.80 563.05 450.80 563.05 450.80 563.05 (b) Amount of Net Non-performing Assets 65.05 111.60 65.05 111.60 65.05 111.60 (c) % of Gross NPAs 2.95 4.62 2.95 4.62 2.95 4.62 (d) % of Net NPAs 0.44 0.95 0.44 0.95 0.44 0.958. Aggregate of Non-PromoterShareholding: - Number of Shares 856.03 lakh 856.03 lakh 856.03 lakh 856.03 lakh 856.03 lakh 856.03 lakh- Percentage of shareholding 100 100 100 100 100 100 * Not annualised. Notes 1. As a prudent policy, the Bank holds provisions for NPAs and standardassets over and above the minimum required under the RBI norms. The saidprovisions have not been utilised for provision required for the above period. 2. Provisions for gratuity, pension, bonus, income-tax including deferredtax, fringe benefit tax and other usual and necessary items have also beenmade. 3. 'Payments to and Provisions for employees' include a sum of Rs.28.43crore being the provision made under revised Accounting Standard 15 (AS-15) on 'Employee Benefits' issued by the Institute of Chartered Accountants of India.The said sum has been debited to the Profit & Loss Account in the quarter endedSeptember 2006 instead of adjusting against the opening balance of RevenueReserves & Surplus as per the said standard. 4. Bank has introduced a Voluntary Separation Scheme for its employeesduring the year. An amount of Rs.14.32 crore paid as compensation has beendebited to 'Payments and Provisions for employees'. 5. As per the Scheme of amalgamation notified by the Central Governmentand communicated by RBI, The Ganesh Bank of Kurundwad Ltd has been amalgamatedwith the Bank with effect from 2 September 2006. The excess of liabilities overassets as on 2 September 2006 amounting to Rs.23.28 crore has been fullyprovided for in the Profit & Loss Account for the current year. The aboveresults include the operations of the merged entity with effect from 2 September2006. 6. As a prudent policy Bank has decided to make appropriation of 5% ofits net profit every year towards the marked to market losses in the investmentsheld in the HTM category. After appropriating Rs.14.64 crore during the yearBank holds Rs.171.31 crore under its Investment Fluctuation Reserve. 7. The Bank has been following the policy of charging software expensesto Profit & Loss Account fully. However, during the current year, in respect ofthe expenses on CBS implementation, the Bank has changed the policy to amortisethe same in three years on straight line basis. Accordingly, the amount ofRs.4.94 crore spent during the year on CBS has been capitalised and an amount ofRs.41 lakh being pro-rata amortisation charged to P&L Account. 8. On 31st March 2007 after the trading hours Reserve Bank of India madecertain announcements which affected the prices of Government Securities/bondson the next trading day. Hence as a prudent measure the bank has made aprovision of Rs.19.32 crore over and above the minimum requirement based on theprices on 3rd April 2007, being the next trading day, as against the practice ofvaluing the securities based on the market value as on 31 March. As a result ofthe above change the profit for the year is lower and the provision fordepreciation on investment is higher by Rs.19.32 crore with consequential impacton Reserves and Surplus and Investments. 9. Reconciliation/adjustment of outstanding entries in Inter branch/Office transactions is in progress. In the opinion of the Bank, consequentialeffect of the same on the revenue/assets/liabilities is not likely to bematerial. 10. The Bank had no investor complaints pending as on 31 December 2006.All the 49 complaints received during the quarter were disposed of and there areno pending complaints as on 31 March 2007. 11. Details of Customer complaints are given below. a. No. of complaints pending at the beginning of the year 11b. No. of complaints received during the year 199c. No. of complaints redressed during the year 200d. No. of complaints pending at the end of the year 10 12. Details of awards passed by the Banking Ombudsman are given below. a. No. of unimplemented Awards at the beginning of the year Nilb. No. of Awards passed during the year 4c. No. of Awards implemented during the year 3d. No. of unimplemented Awards at the end of the year 1 (under appeal) 13. Figures of previous period/year have been regrouped and recast wherevernecessary. 14. The above financial results have been taken on record by the Board ofDirectors at its meeting held on 18 May 2007. 15. The Board of Directors have recommended a dividend of 40% on equityshares. 16. Consolidated financial statements include that of the fully ownedsubsidiary viz. Fedbank Financial Services Ltd. Segment Information The Bank's operations are classified into two business segments, viz, TreasuryOperations (investment and trading in securities, shares, debentures etc) andOther Banking Operations (other than Treasury), and the information on them isas under. (Rs. crore) Quarter ended Year ended 31-Mar-07 31-Mar-06 31-Mar-07 31-Mar-06Segment Revenue: Treasury operations 128.51 119.54 523.98 483.50 Banking operations (other than 508.12 340.50 1580.06 1169.98Treasury) Total Revenue 636.63 460.04 2104.04 1653.48Segment Results (net of provisions): Treasury operations -52.32 6.01 -0.97 37.06 Banking operations (other than 190.39 55.43 399.20 243.71Treasury) Total Profit before Tax 138.07 61.44 398.23 280.77Capital employed: Treasury operations 158.71 139.96 158.71 139.96 Banking operations (other than 1343.50 1110.04 1343.50 1110.04Treasury) Total 1502.21 1250.00 1502.21 1250.00 The Bank has only the domestic geographic segment. Under business segments,residual operations, being of insignificant volume, have not been considered asa separate reportable segment, and have been included in Other Bankingoperations. Kochi M. VENUGOPALAN18 May 2007 CHAIRMAN This information is provided by RNS The company news service from the London Stock Exchange