Last checked at 18 Nov 2016 08:22
SDF-24/ /2016-17 18th November 2016
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Un-Audited Financial Results of the Bank for the period ended September 30, 2016 which was approved at the Bank's Board of Directors meeting held on 25th October 2016.
Kindly take the same on your record.
For The Federal Bank Limited
Girish Kumar G
COMPANY SECRETARY
BSR&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 |
Limited Review Report on Quarterly Standalone Financial Results of The Federal Bank Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
To the Board of Directors of
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results ('the Statement') of The Federal Bank Limited ('the Bank') for the quarter and half year ended 30 September 2016, attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, except for the disclosures relating to 'consolidated Pillar 3 disclosure as at 30 September 2016, 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 quarterly financial results and have not been reviewed by us.
2. This Statement is the responsibility of the Bank's management and has been approved by the Board of Directors of the Bank in their meeting held on 25 October 2016. Our responsibility is to issue a report on the Statement based on our review. The financial results for all periods prior to the quarter ended 30 September 2016, included in the statement were reviewed or audited earlier by Deloitte Haskins & Sells, Chartered Accountants, and by M P Chitale & Co., Chartered Accountants, the then joint statutory auditors of the Bank, whose reports have been furnished to the current joint auditors M.M. Nissim & Co., Chartered Accountants, and B S R & Co. LLP, and which have been relied upon for the purpose of the joint review of the Statement.
3. We conducted our review 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 Statement is free of material misstatement. A review is limited primarily to inquiries of the Bank's personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
4. The financial results incorporate the relevant returns of 120 branches and Treasury Branch reviewed by either of us and un-reviewed returns in respect of 1162 branches. These branches cover 58.95% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 61.52% of non-performing advances of the bank.
5. Without qualifying our conclusion, we draw attention to Note No. 6 regarding deferment of shortfall arising from the sale of certain non-performing assets during the year ended 31 March 2016 in terms of RBI Master Circular DBR.No.BP.BC.2/21.04.048/2015-16 - Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances, dated July 1, 2015, as amended and the unamortized balance as at 30 September 2016 of Rs 4,336.58 lakhs.
BSR&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 |
6. Based on our review conducted as mentioned in paragraphs 3and 4 above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 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.
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 |
Akeel Master | Sanjay Khemani |
Partner | Partner |
Membership No: 046768 | Membership No:044577 |
Mumbai | Mumbai |
25 October 2016 | 25 October 2016 |
THE FEDERAL BANK LIMITED | |||||||
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | |||||||
(CIN: L65191KL1931PLC000368) | |||||||
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2016 | |||||||
(` in Lakhs) | |||||||
Particulars | Quarter ended | Half year ended | Year ended 31.03.2016 | ||||
30.09.2016 | 30.06.2016 | 30.09.2015 | 30.09.2016 | 30.09.2015 | |||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
1. Interest earned (a)+(b)+(c)+(d) | 206,625 | 201,377 | 190,460 | 408,002 | 381,824 | 774,815 | |
(a) | Interest/discount on advances/bills | 156,880 | 152,422 | 140,005 | 309,302 | 281,428 | 566,931 |
(b) | Income on Investments | 43,552 | 43,084 | 42,590 | 86,636 | 85,676 | 176,309 |
(c) | Interest on balances with Reserve Bank of India and other inter bank funds | 1,585 | 1,216 | 1,905 | 2,801 | 3,214 | 5,596 |
(d) | Others | 4,608 | 4,655 | 5,960 | 9,263 | 11,506 | 25,979 |
2. Other Income | 26,154 | 23,704 | 17,993 | 49,858 | 37,338 | 78,292 | |
3. TOTAL INCOME (1+2) | 232,779 | 225,081 | 208,453 | 457,860 | 419,162 | 853,107 | |
4. Interest expended | 134,006 | 132,110 | 129,392 | 266,116 | 260,231 | 524,045 | |
5. Operating Expenses (i)+(ii) | 51,280 | 50,385 | 45,404 | 101,665 | 88,553 | 186,684 | |
(i) | Employees Cost | 29,159 | 28,941 | 24,893 | 58,100 | 50,122 | 105,285 |
(ii) | Other operating expenses | 22,121 | 21,444 | 20,511 | 43,565 | 38,431 | 81,399 |
6. TOTAL EXPENDITURE (4+5)(excluding Provisions and Contingencies) | 185,286 | 182,495 | 174,796 | 367,781 | 348,784 | 710,729 | |
7. OPERATING PROFIT (3-6) (Profit before Provisions and Contingencies) | 47,493 | 42,586 | 33,657 | 90,079 | 70,378 | 142,378 | |
8. Provisions (other than Tax) and Contingencies | 16,840 | 16,848 | 8,728 | 33,688 | 24,038 | 70,413 | |
9. Exceptional Items | - | - | - | - | - | - | |
10. Profit from Ordinary Activities before tax (7-8-9) | 30,653 | 25,738 | 24,929 | 56,391 | 46,340 | 71,965 | |
11. Tax expense | 10,529 | 9,007 | 8,801 | 19,536 | 16,073 | 24,400 | |
12. Net Profit from Ordinary Activities after tax (10-11) | 20,124 | 16,731 | 16,128 | 36,855 | 30,267 | 47,565 | |
13. Extraordinary items (net of tax expense) | - | - | - | - | - | - | |
14. Net Profit for the period (12-13) | 20,124 | 16,731 | 16,128 | 36,855 | 30,267 | 47,565 | |
15. Paid-up Equity Share Capital(Face value ` 2/- per Equity Share) | 34,410 | 34,387 | 34,349 | 34,410 | 34,349 | 34,379 | |
16. Reserves excluding Revaluation Reserve | 774,242 | ||||||
17. Analytical Ratios | |||||||
(i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | NIL |
(ii) | Capital Adequacy ratio (%) | ||||||
Under Basel III | 12.85 | 13.59 | 14.71 | 12.85 | 14.71 | 13.93 | |
(iii) | Earnings per Share (EPS) (in `) | ||||||
(a) Basic EPS (before and after Extra ordinary Items) | 1.17* | 0.97* | 0.94* | 2.14* | 1.77* | 2.77 | |
(b) Diluted EPS (before and after Extra ordinary Items) | 1.15* | 0.97* | 0.92* | 2.12* | 1.74* | 2.75 | |
(iv) | NPA Ratios | ||||||
a) Gross NPA | 181,972 | 174,731 | 149,873 | 181,972 | 149,873 | 166,777 | |
b) Net NPA | 103,974 | 99,450 | 67,484 | 103,974 | 67,484 | 95,001 | |
c) % of Gross NPA | 2.78 | 2.92 | 2.90 | 2.78 | 2.90 | 2.84 | |
d) % of Net NPA | 1.61 | 1.68 | 1.33 | 1.61 | 1.33 | 1.64 | |
(v) | Return on Assets (%) | 0.22* | 0.19* | 0.20* | 0.41* | 0.37* | 0.57 |
Segment Information@ | |||||||
(` in Lakhs) | |||||||
Particulars | Quarter ended | Half year ended | Year ended 31.03.2016 | ||||
30.09.2016 | 30.06.2016 | 30.09.2015 | 30.09.2016 | 30.09.2015 | |||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
Segment Revenue: | |||||||
Treasury | 61,233 | 59,567 | 55,951 | 120,800 | 113,680 | 228,193 | |
Corporate/Wholesale Banking | 69,657 | 71,890 | 58,469 | 141,547 | 111,531 | 236,094 | |
Retail Banking | 100,740 | 92,121 | 93,125 | 192,861 | 192,760 | 380,964 | |
Other Banking operations | 1,149 | 1,503 | 908 | 2,652 | 1,191 | 7,856 | |
Unallocated | - | - | - | - | - | - | |
Total Revenue | 232,779 | 225,081 | 208,453 | 457,860 | 419,162 | 853,107 | |
Less: Inter Segment Revenue | - | - | - | - | - | - | |
Income from Operations | 232,779 | 225,081 | 208,453 | 457,860 | 419,162 | 853,107 | |
Segment Results (net of provisions): | |||||||
Treasury | 10,954 | 12,825 | 8,159 | 23,779 | 9,958 | 15,852 | |
Corporate/Wholesale Banking | 2,012 | 3,337 | 2,763 | 5,349 | 4,202 | 1,814 | |
Retail Banking | 17,533 | 9,020 | 13,802 | 26,553 | 32,240 | 49,459 | |
Other Banking operations | 1,016 | 944 | 706 | 1,960 | 940 | 7,385 | |
Unallocated | (862) | (388) | (501) | (1,250) | (1,000) | (2,545) | |
Profit before tax | 30,653 | 25,738 | 24,929 | 56,391 | 46,340 | 71,965 | |
Capital employed: | |||||||
Treasury | 294,670 | 297,703 | 283,038 | 294,670 | 283,038 | 250,922 | |
Corporate/Wholesale Banking | 148,545 | 142,200 | 117,539 | 148,545 | 117,539 | 152,771 | |
Retail Banking | 180,008 | 194,123 | 186,828 | 180,008 | 186,828 | 201,481 | |
Other Banking operations | 539 | 1,803 | 4,701 | 539 | 4,701 | 2,656 | |
Unallocated | 222,818 | 190,186 | 213,637 | 222,818 | 213,637 | 201,292 | |
Total | 846,580 | 826,015 | 805,743 | 846,580 | 805,743 | 809,122 | |
@ | For the above segment reporting, the reportable segments are identified into Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines. | ||||||