Last checked at 3 Nov 2021 10:34
SD/153/2021-22 November 03, 2021
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Unaudited Standalone and Consolidated Financial Results of the Bank for the quarter and half year ended September 30, 2021 along with Limited Review Report issued by the Joint Central Statutory Auditors of the Bank, which were reviewed and recommended by Audit Committee of the Board and duly approved by the Board of Directors at their respective meetings held on October 22, 2021.
Kindly take the same on your record.
For The Federal Bank Limited
Sd/-
Samir P Rajdev
Company Secretary
Varma & Varma Borkar & Muzumdar
Chartered Accountants, Chartered Accountants
No.53/2600, Kerala Varma Tower 121/168, Anand Nagar, Om Co-op
Off Kunjanbava Road, Hsg Society, Anand Nagar Lane Vytilla, Santacruz (East) Off Nehru Road,
Kochi -682019 Mumbai - 400 055
Limited Review Report on Unaudited Consolidated Financial Results of The Federal Bank Limited for the quarter/half year ended 30th September 2021, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015
The Board of Directors,
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of The Federal Bank Limited (the 'Bank') and its Subsidiaries (the Bank and its subsidiaries together referred to as 'the Group') and its share of the net profit after tax of its Associates for the quarter and half-year ended 30th September 2021 (the 'Statement'), attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations'), except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30th September 2021, 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 aforesaid Statement, which have not been reviewed by us.
2. The Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25'), prescribed under section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines'), SEBI circular CIR/CFD/FAC/62/2016 dated 5th July, 2016 (hereinafter referred to as the 'SEBI Circular'), and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, to the extent applicable.
4. Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.
5. This Statement includes the results of the following entities:
a. Fedbank Financial Services Limited (Subsidiary)
b. Federal Operations and Services Limited (Subsidiary)
c. Ageas Federal Life Insurance Company Limited (Associate)
d. Equirus Capital Private Limited (Associate)
6. Based on our review conducted and procedures performed as stated in Paragraphs 3 and 4 above and based on the consideration of the review reports of other auditors referred to in Paragraphs 9, 10 and 11 below, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards, the RBI Guidelines, the SEBI circular 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 (as amended) including the manner in which it is to be disclosed, except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30th September 2021, 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 aforesaid Statement, which have not been reviewed by us, or that it contains any material misstatement.
Emphasis of Matter
7. We draw attention to Note No.12 of the accompanying Statement of Unaudited Consolidated Financial results, regarding the impact of COVID-19 pandemic on the Bank's operations and financial position for the quarter/half year ended 30th September, 2021, which will depend on various uncertain aspects, including actions taken to mitigate the same and other regulatory measures.
Our conclusion on the Statement is not modified in respect of this matter.
8. We draw attention to Note No.14 of the Statements regarding amortisation of the additional liability by the Bank on account of revision in family pension amounting to ` 17,731.55 Lakhs. As stated therein, the Bank has charged an amount of ` 1,182.10 Lakhs to the Profit and Loss account for the quarter and half year ended September 30, 2021 and the balance unamortised expenditure amounting to ` 16,549.45 lakhs has been carried forward. Had the Bank charged the entire additional liability to the Profit and Loss Account, the profits for the quarter and half year ended September 30, 2021 would have been lower by ` 16,549.45 lakhs.
Our conclusion on the Statement is not modified in respect of this matter.
9. The statement of consolidated unaudited financial results includes the interim financial statements / financial information/ financial results of one subsidiary whose unaudited financial results reflects total assets of Rs 1,752.69 Lakhs as at 30th September 2021 and total revenues of Rs 1,086.56 Lakhs and Rs 1,917.78 Lakhs and total net profit after tax of Rs 136.36 Lakhs and Rs 192.95 Lakhs for the quarter ended 30th September 2021 and for the period from 1st April 2021 to 30th September 2021 respectively, and cash flows (net) of Rs 30.56 Lakhs for the period from 1st April 2021 to 30th September 2021. These interim financial statements/financial information/ financial results have been reviewed by one of the joint auditors, whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said subsidiary, is based solely on their reports and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
10. The statement of consolidated unaudited financial results includes the interim financial statements / financial information/ financial results of one subsidiary whose unaudited financial results reflects total assets of Rs 5,73,303 Lakhs as at 30th September 2021 and total revenues of Rs 21,784 Lakhs and Rs 41,522 Lakhs and total net profit after tax of Rs 2,634 Lakhs and Rs 4,110 Lakhs for the quarter ended 30th September 2021 and for the period from 1st April 2021 to 30th September 2021 respectively, and cash flows (net) of Rs ( 20,632 ) Lakhs for the period from 1st April 2021 to 30th September 2021. These interim financial statements/financial information/ financial results have been reviewed by other auditors, whose reports have been furnished to us by the Management.
The statement of consolidated unaudited financial results also includes the unaudited interim financial statements / financial information/ financial results of the said subsidiary for the quarter ended 30th June 2021, quarter/half year ended 30th September 2020 and audited financial results for the year ended 31st March 2021 which have been reviewed/audited by one of the joint auditors whose reports have been furnished to us by the Management. Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said subsidiary, is based solely on their reports and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
11. The statement of consolidated unaudited financial results includes the Group's share of net profit after tax of Rs 240.14 Lakhs and Rs 479.56 Lakhs for the quarter and half year ended 30th September 2021, respectively, in respect of one associate whose interim financial results have been reviewed by another auditor whose report has been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said associate, is based solely on the report of the other auditor and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
12. The statement of consolidated unaudited financial results also includes the Group's share of net profit after tax of Rs 217.87 Lakhs and Rs 482.19 Lakhs for the quarter and half year ended 30th September 2021, respectively, in respect of one associate, based on their interim financial results which have not been reviewed. According to the information and explanations given to us by the Management, these interim financial statements / financial information / financial results are not material to the Group.
Our conclusion on the Statement is not modified in respect of this matter.
For Varma & Varma For Borkar & Muzumdar
Chartered Accountants Chartered Accountants
FRN:004532S FRN:101569W
Vijay Narayan Govind Kaushal Muzumdar
Partner Partner
M. No. 203094 M. No. 100938
UDIN: 21203094AAAACW8019 UDIN: 21100938AAAACH4444
Kochi-19 Mumbai-55
22nd October 2021 22nd October 2021
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, 2021 | |||||||
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Particulars | Quarter ended | Half Year ended | Year ended | ||||
30.09.2021 | 30.06.2021 | 30.09.2020 | 30.09.2021 | 30.09.2020 | 31.03.2021 | ||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
1. Interest earned (a)+(b)+(c)+(d) | 3,37,925 | 3,35,571 | 3,48,790 | 6,73,496 | 6,93,205 | 13,75,791 | |
(a) | Interest/discount on advances/bills | 2,67,490 | 2,67,112 | 2,71,749 | 5,34,602 | 5,42,347 | 10,79,512 |
(b) | Income on investments | 58,116 | 59,059 | 59,252 | 1,17,175 | 1,19,864 | 2,34,894 |
(c) | Interest on balances with Reserve Bank of India and other inter bank funds | 6,662 | 3,662 | 11,661 | 10,324 | 18,728 | 36,817 |
(d) | Others | 5,657 | 5,738 | 6,128 | 11,395 | 12,266 | 24,568 |
2. Other income | 44,436 | 55,178 | 44,936 | 99,614 | 94,067 | 1,85,269 | |
3. TOTAL INCOME (1+2) | 3,82,361 | 3,90,749 | 3,93,726 | 7,73,110 | 7,87,272 | 15,61,060 | |
4. Interest expended | 1,89,983 | 1,93,728 | 2,10,805 | 3,83,711 | 4,25,576 | 8,22,420 | |
5. Operating expenses (i)+(ii) | 1,05,899 | 93,340 | 88,265 | 1,99,239 | 1,73,508 | 3,69,172 | |
(i) | Employees cost | 57,193 | 52,830 | 48,746 | 1,10,023 | 98,331 | 2,03,418 |
(ii) | Other operating expenses | 48,706 | 40,510 | 39,519 | 89,216 | 75,177 | 1,65,754 |
6. TOTAL EXPENDITURE (4+5)(excluding provisions and contingencies) | 2,95,882 | 2,87,068 | 2,99,070 | 5,82,950 | 5,99,084 | 11,91,592 | |
7. OPERATING PROFIT (3-6) (Profit before provisions and contingencies) | 86,479 | 1,03,681 | 94,656 | 1,90,160 | 1,88,188 | 3,69,468 | |
8. Provisions (other than tax) and contingencies | 24,533 | 54,346 | 53,209 | 78,879 | 92,965 | 1,55,741 | |
9. Exceptional items |
| - | - | - | - | - | - |
10. Profit from Ordinary Activities before tax(7-8-9) | 61,946 | 49,335 | 41,447 | 1,11,281 | 95,223 | 2,13,727 | |
11. Tax expense |
| 15,920 | 12,606 | 10,685 | 28,526 | 24,384 | 54,697 |
12. Net Profit from Ordinary Activities after tax (10-11) | 46,026 | 36,729 | 30,762 | 82,755 | 70,839 | 1,59,030 | |
13. Extraordinary items (net of tax expense) |
| - | - | - | - | - | - |
14. Net Profit for the period (12-13) |
| 46,026 | 36,729 | 30,762 | 82,755 | 70,839 | 1,59,030 |
15. Paid-up Equity Share Capital(Face value ` 2/- per Equity Share) | 42,030 | 39,926 | 39,893 | 42,030 | 39,893 | 39,923 | |
16. Reserves excluding Revaluation Reserve |
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| 15,71,937 | |
17. Analytical Ratios |
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(i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | NIL |
(ii) | Capital Adequacy ratio (%) |
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| Under Basel III | 14.97 | 14.64 | 14.64 | 14.97 | 14.64 | 14.62 |
(iii) | Earnings per Share (EPS) (in `) |
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| (a) Basic EPS (before and after extra ordinary items) | 2.22* | 1.84* | 1.54* | 4.06* | 3.55* | 7.97 |
| (b) Diluted EPS (before and after extra ordinary items) | 2.20* | 1.83* | 1.54* | 4.04* | 3.55* | 7.94 |
(iv) | NPA Ratios |
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| a) Gross NPA | 4,44,584 | 4,64,933 | 3,55,219 | 4,44,584 | 3,55,219 | 4,60,239 |
| b) Net NPA | 1,50,244 | 1,59,324 | 1,21,814 | 1,50,244 | 1,21,814 | 1,56,928 |
| c) % of Gross NPA | 3.24 | 3.50 | 2.84 | 3.24 | 2.84 | 3.41 |
| d) % of Net NPA | 1.12 | 1.23 | 0.99 | 1.12 | 0.99 | 1.19 |
(v) | Return on Assets (%) | 0.23* | 0.19* | 0.16* | 0.42* | 0.38* | 0.85 |
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* Not Annualised |
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Segment Information@ |
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Particulars | Quarter ended | Half Year ended | Year ended |
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30.09.2021 | 30.06.2021 | 30.09.2020 | 30.09.2021 | 30.09.2020 | 31.03.2021 |
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Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited |
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Segment Revenue: |
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| Treasury | 54,326 | 78,225 | 60,550 | 1,32,551 | 1,54,613 | 2,75,372 |
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| Corporate/Wholesale Banking | 1,01,231 | 1,03,955 | 1,26,747 | 2,05,186 | 2,42,715 | 4,47,616 |
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| Retail Banking | 2,26,737 | 2,08,569 | 2,06,429 | 4,35,306 | 3,89,944 | 8,37,828 |
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| Other Banking operations | - | - | - | - | - | - |
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| Unallocated | 67 | - | - | 67 | - | 244 |
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| Total Revenue | 3,82,361 | 3,90,749 | 3,93,726 | 7,73,110 | 7,87,272 | 15,61,060 |
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| Less: Inter Segment Revenue | - | - | - | - | - | - |
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| Income from Operations | 3,82,361 | 3,90,749 | 3,93,726 | 7,73,110 | 7,87,272 | 15,61,060 |
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Segment Results (net of provisions): |
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| Treasury | 9,687 | 37,914 | 4,154 | 47,601 | 46,782 | 72,223 |
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| Corporate/Wholesale Banking | 19,299 | (2,535) | 15,063 | 16,764 | 6,914 | 22,275 |
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| Retail Banking | 32,893 | 13,956 | 22,230 | 46,849 | 41,529 | 1,18,985 |
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| Other Banking operations | - | - | - | - | - | - |
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| Unallocated | 67 | - | - | 67 | (2) | 244 |
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| Profit before tax | 61,946 | 49,335 | 41,447 | 1,11,281 | 95,223 | 2,13,727 |
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Segment Assets |
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| Treasury | 46,79,820 | 46,11,516 | 43,78,891 | 46,79,820 | 43,78,891 | 45,25,111 |
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| Corporate/Wholesale Banking | 73,05,152 | 70,66,184 | 68,09,139 | 73,05,152 | 68,09,139 | 71,46,590 |
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| Retail Banking | 80,36,690 | 77,40,698 | 69,37,457 | 80,36,690 | 69,37,457 | 78,13,657 |
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| Other Banking operations | - | - | - | - | - | - |
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| Unallocated | 6,65,763 | 5,85,373 | 7,77,184 | 6,65,763 | 7,77,184 | 6,51,381 |
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| Total | 2,06,87,425 | 2,00,03,771 | 1,89,02,671 | 2,06,87,425 | 1,89,02,671 | 2,01,36,739 |
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Segment Liabilities |
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| Treasury | 11,95,828 | 10,92,816 | 13,05,303 | 11,95,828 | 13,05,303 | 14,13,771 |
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| Corporate/Wholesale Banking | 16,96,051 | 14,68,615 | 14,05,908 | 16,96,051 | 14,05,908 | 16,02,533 |
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| Retail Banking | 1,57,86,867 | 1,55,94,228 | 1,44,61,623 | 1,57,86,867 | 1,44,61,623 | 1,53,06,693 |
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| Other Banking operations | - | - | - | - | - | - |
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| Unallocated | 2,35,977 | 1,99,260 | 2,06,312 | 2,35,977 | 2,06,312 | 2,01,381 |
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| Total | 1,89,14,723 | 1,83,54,919 | 1,73,79,146 | 1,89,14,723 | 1,73,79,146 | 1,85,24,378 |
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Capital Employed: |
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(Segment Assets - Segment Liabilities) |
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| Treasury | 34,83,992 | 35,18,700 | 30,73,588 | 34,83,992 | 30,73,588 | 31,11,340 |
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| Corporate/Wholesale Banking | 56,09,101 | 55,97,569 | 54,03,231 | 56,09,101 | 54,03,231 | 55,44,057 |
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| Retail Banking | (77,50,177) | (78,53,530) | (75,24,166) | (77,50,177) | (75,24,166) | (74,93,036) |
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| Other Banking operations | - | - | - | - | - | - |
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| Unallocated | 4,29,786 | 3,86,113 | 5,70,872 | 4,29,786 | 5,70,872 | 4,50,000 |
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| Total | 17,72,702 | 16,48,852 | 15,23,525 | 17,72,702 | 15,23,525 | 16,12,361 |
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@ | 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 September 30, 2021 is given below: |
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| (Rs in Lakhs) |
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| Particulars | As at 30.09.2021 | As at 30.09.2020 | As at 31.03.2021 |
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| Unaudited | Unaudited | Audited |
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| CAPITAL AND LIABILITIES |
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| Capital | 42,030 | 39,893 | 39,923 |
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| Reserves and Surplus | 17,30,672 | 14,83,632 | 15,72,438 |
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| Deposits | 1,71,99,475 | 1,56,74,739 | 1,72,64,448 |
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| Borrowings | 10,78,405 | 11,04,314 | 9,06,850 |
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| Other Liabilities and Provisions | 6,36,843 | 6,00,093 | 3,53,080 |
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| Total | 2,06,87,425 | 1,89,02,671 | 2,01,36,739 |
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| ASSETS |
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| Cash and Balances with Reserve Bank of India | 8,48,561 | 6,11,989 | 7,64,704 |
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| Balance with Banks and Money at Call and Short Notice | 13,50,488 | 13,52,867 | 11,94,435 |
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| Investments | 36,97,673 | 36,25,263 | 37,18,621 |
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| Advances | 1,34,40,463 | 1,22,91,199 | 1,31,87,860 |
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| Fixed Assets | 54,833 | 45,717 | 49,113 |
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| Other Assets | 12,95,407 | 9,75,636 | 12,22,006 |
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| Total | 2,06,87,425 | 1,89,02,671 | 2,01,36,739 |
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Notes: |
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1 | The above Standalone Unaudited Financial Results for the quarter and half year ended September 30, 2021 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on October 22, 2021. These Results have been subjected to "Limited review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued. | |||||||
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2 | The Bank has followed the same significant accounting policies in the preparation of the quarterly financial results as those followed in the annual financial statements for the year ended March 31, 2021 except as stated in Note 13 below. | |||||||
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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), provision for non-performing 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), profit / loss on revaluation of investments, dividend received from subsidiaries / associates etc. | |||||||
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5 | Reclassification of figures for the current period pursuant to the Master Direction on Financial Statements - Presentation and disclosures issued by Reserve Bank of India on August 30, 2021, has been made with corresponding changes in the figures for the previous periods/year to make the same comparable. Had the presentation been made in accordance with the earlier RBI instructions, Other income, Total income, Operating profit and Provisions (Other than tax) and contingencies would have been as given below: |
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| (` in Lakhs) |
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| Particulars | Quarter ended | Half Year ended | Year ended |
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| 30.09.2021 | 30.06.2021 | 30.09.2020 | 30.09.2021 | 30.09.2020 | 31.03.2021 |
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| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited |
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| Other Income | 50,962 | 65,014 | 50,933 | 1,15,976 | 99,770 | 1,94,491 |
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| Total Income | 3,88,887 | 4,00,586 | 3,99,723 | 7,89,473 | 7,92,975 | 15,70,282 |
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| Operating Profit | 93,005 | 1,13,519 | 1,00,653 | 2,06,524 | 1,93,891 | 3,78,690 |
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| Provisions (other than tax) and contingencies | 31,059 | 64,183 | 59,206 | 95,242 | 98,668 | 1,64,963 |
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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 half year ended September 30, 2021, the Bank has allotted 383,346 and 514,336 equity shares of ` 2 each respectively, pursuant to the exercise of stock options by employees. | |||||||
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9 | 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: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank. | |||||||
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10 | During the quarter ended September 30, 2021 , the Bank has issued 104,846,394 equity shares of Rs 2 each for cash pursuant to a preferential allotment as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations at ` 87.39 per share aggregating to Rs 91,625.26 Lakhs (including share premium). This resulted in an increase of Rs 2,096.93 Lakhs in Share Capital and Rs 89,476.98 Lakhs (Net of share issue expenses) in Share premium account. |
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11 | On account of uncertainties prevailing due to COVID-19 pandemic across the world and in India, the extent to which the same will impact the Bank's operations and financial position in future will depend on various aspects including actions taken to mitigate its impact and other regulatory measures. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during this period. The extent to which the COVID-19 pandemic will continue to impact the Bank's results will depend on the future developments related to the situation, as well as the outcomes of the actions taken to contain the same. | |||||||
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12 | i) Details of resolution plan implemented under the Resolution Framework for COVID-19-related Stress as per RBI circular dated August 6, 2020 are given below: | |||||||
| Format - A |
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| (` in lakhs except number of accounts) |
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| ||
| Type of borrower | (A) Number of accounts where resolution plan has been implemented under this window | (B) exposure to accounts mentioned at (A) before implementation of the plan | (C) Of (B), aggregate amount of debt that was converted into other securities | (D) Additional funding sanctioned, if any, including between invocation of the plan and implementation | (E) Increase in provisions on account of the implementation of the resolution plan |
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| Personal Loans | 4,025 | 93,514.99 | - | - | 9,351.50 |
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| Corporate persons | 7 | 14,249.46 | - | 90.65 | 1,424.95 |
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| Of which, MSMEs | - | - | - | - | - |
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| Others | 92 | 4,619.94 | - | - | 461.99 |
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| Total | 4,124 | 1,12,384.39 | - | 90.65 | 11,238.44 |
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| Format - B |
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| (` in lakhs except number of accounts) |
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| Type of borrower | Exposure to accounts classified as Standard consequent to implementation of resolution plan - Position as at the end of the previous half-year ended March 31 , 2021 (A)* | Of (A), aggregate debt that slipped into NPA during the half-year | Of (A) amount written off during the half-year | Of (A) amount paid by the borrowers during the half- year | Exposure to accounts classified as Standard consequent to implementation of resolution plan - Position as at the end of this half-year ended September 30 , 2021 # |
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| Personal Loans | 95,316.43 | 1,705.30 | - | 3,619.23 | 2,05,112.29 |
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| Corporate persons | 14,249.46 | - | - | 1,019.81 | 14,137.66 |
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| Of which, MSMEs | - | - | - | - | - |
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| Others | 4,627.01 | 174.36 | - | 572.86 | 49,939.61 |
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| Total | 1,14,192.90 | 1,879.66 | - | 5,211.90 | 2,69,189.56 |
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| *includes restructuring implemented during the quarter ended June 30, 2021 under the Resolution Framework 1.0 |
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| #This also includes cases implemented as per RBI circular for i) Resolution Framework for COVID-19-related Stress dated August 6, 2020 & ii) Resolution Framework - 2.0 for Covid-19 related stress of Individuals and Small Businesses dated May 5, 2021. |
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| ii) Details of resolution plan implemented in accordance with the RBI Cir. No. DOR.STR.REC.11/21.04.048/2021-22 dated May 05, 2021 on "Resolution Framework - 2.0: Resolution of Covid - 19 related stress of Individuals and Small Business" are given below. | |||||||
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| (` in lakhs except number of accounts) |
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| Description | Individual Borrowers | Small businesses |
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| Personal Loans | Business Loans |
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| A) Number of requests received for invoking resolution process under Part A | 6,743 | 1,604 | 16,385 |
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| B) Number of accounts where resolution plan has been implemented under this window | 5,262 | 467 | 7,848 |
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| C) Exposure to accounts mentioned at (B) before implementation of the plan | 1,09,980.44 | 15,410.31 | 29,579.75 |
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| D) Of (C), aggregate amount of debt that was converted into other securities | - | - | - |
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| E) Additional funding sanctioned,if any,Including between invocation of the plan and implementation | - | - | - |
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| F) Increase in provisions on account of the implementation of the resolution plan | 13,217.78 | 1,838.21 | 3,811.65 |
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| iii) In accordance with the RBI Cir. No. DOR.STR.REC.11/21.04.048/2021-22 dated May 05, 2021 on "Resolution Framework - 2.0: Resolution of Covid - 19 related stress of Individuals and Small Business", the number of borrower accounts where modifications were sanctioned and implemented and the aggregate exposure to such borrowers are as under | |||||||
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| (` in lakhs except number of accounts) |
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| No. of Accounts | 118 |
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| Aggregate Exposure as on September 30, 2021 | 3,355.12 |
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| iv) During the quarter ended September 30, 2021, as a prudent measure, over and above the regulatory minimum provision required for restructured advances, based on the internal assessment, the Bank has created ` 12,000.00 Lakhs additional provision against the accounts restructured under the resolution frameworks. |
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13 | During the current quarter, the bank has estimated & fully recognized the additional liability on account of revision in family pension for employees covered under the 11th Bipartite Settlement and Joint Note dated November 11, 2020 amounting to ` 17,731.55 Lakhs. In accordance with the letter dated October 4, 2021 issued by RBI, permitting all member banks of Indian Banks' Association to amortise the said additional liability over a period not exceeding five years beginning with the financial year ended March 31, 2022, subject to a minimum of 1/5th of the total amount being expensed every year, the bank has opted to amortize the said liability over a period not exceeding five years beginning with the financial year ended March 31, 2022, subject to a minimum of ` 3,546.31 Lakhs being expensed every financial year. Accordingly, the Bank has charged an amount of ` 1,182.10 Lakhs to the Profit and Loss account for the quarter and half year ended September 30, 2021 and the balance unamortised expenditure amounting to Rs ` 16,549.45 Lakhs has been carried forward. Had the Bank charged the entire additional liability to the Profit and Loss Account, the profits for the quarter and half year ended September 30, 2021 would have been lower by ` 16,549.45 Lakhs. |
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14 | The Honourable Supreme Court of India , vide an interim order dated September 3, 2020, had directed that accounts which were not declared NPA till August 31 , 2020 shall not be declared as NPA till further orders, which has been complied with by the Bank. The said interim order stood vacated on March 23, 2021 and the Bank continued with the asset classification of borrower accounts as per the extant RBI instructions / IRAC norms. In view of this, the results for the half-year ended September 30 , 2021 may not be comparable with the corresponding half year ended September 30, 2020. |
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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 |
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October 22, 2021 |
| (DIN: 02274773) |
| |||||
Varma & Varma Borkar & Muzumdar
Chartered Accountants, Chartered Accountants
No.53/2600, Kerala Varma Tower 121/168, Anand Nagar, Om Co-op
Off Kunjanbava Road, Hsg Society, Anand Nagar Lane
Vytilla, Off Nehru Road, Santacruz (East)
Kochi -682019 Mumbai - 400 055
Limited Review Report on Unaudited Consolidated Financial Results of The Federal Bank Limited for the quarter/half year ended 30th September 2021, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015
The Board of Directors,
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of The Federal Bank Limited (the 'Bank') and its Subsidiaries (the Bank and its subsidiaries together referred to as 'the Group') and its share of the net profit after tax of its Associates for the quarter and half-year ended 30th September 2021 (the 'Statement'), attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations'), except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30th September 2021, 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 aforesaid Statement, which have not been reviewed by us.
2. The Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25'), prescribed under section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines'), SEBI circular CIR/CFD/FAC/62/2016 dated 5th July, 2016 (hereinafter referred to as the 'SEBI Circular'), and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, to the extent applicable.
4. Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.
5. This Statement includes the results of the following entities:
e. Fedbank Financial Services Limited (Subsidiary)
f. Federal Operations and Services Limited (Subsidiary)
g. Ageas Federal Life Insurance Company Limited (Associate)
h. Equirus Capital Private Limited (Associate)
6. Based on our review conducted and procedures performed as stated in Paragraphs 3 and 4 above and based on the consideration of the review reports of other auditors referred to in Paragraphs 9, 10 and 11 below, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards, the RBI Guidelines, the SEBI circular 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 (as amended) including the manner in which it is to be disclosed, except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30th September 2021, 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 aforesaid Statement, which have not been reviewed by us, or that it contains any material misstatement.
Emphasis of Matter
7. We draw attention to Note No.12 of the accompanying Statement of Unaudited Consolidated Financial results, regarding the impact of COVID-19 pandemic on the Bank's operations and financial position for the quarter/half year ended 30th September, 2021, which will depend on various uncertain aspects, including actions taken to mitigate the same and other regulatory measures.
Our conclusion on the Statement is not modified in respect of this matter.
8. We draw attention to Note No.14 of the Statements regarding amortisation of the additional liability by the Bank on account of revision in family pension amounting to ` 17,731.55 Lakhs. As stated therein, the Bank has charged an amount of ` 1,182.10 Lakhs to the Profit and Loss account for the quarter and half year ended September 30, 2021 and the balance unamortised expenditure amounting to ` 16,549.45 lakhs has been carried forward. Had the Bank charged the entire additional liability to the Profit and Loss Account, the profits for the quarter and half year ended September 30, 2021 would have been lower by ` 16,549.45 lakhs.
Our conclusion on the Statement is not modified in respect of this matter.
9. The statement of consolidated unaudited financial results includes the interim financial statements / financial information/ financial results of one subsidiary whose unaudited financial results reflects total assets of ` 1,752.69 Lakhs as at 30th September 2021 and total revenues of ` 1,086.56 Lakhs and ` 1,917.78 Lakhs and total net profit after tax of ` 136.36 Lakhs and ` 192.95 Lakhs for the quarter ended 30th September 2021 and for the period from 1st April 2021 to 30th September 2021 respectively, and cash flows (net) of ` 30.56 Lakhs for the period from 1st April 2021 to 30th September 2021. These interim financial statements/financial information/ financial results have been reviewed by one of the joint auditors, whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said subsidiary, is based solely on their reports and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
10. The statement of consolidated unaudited financial results includes the interim financial statements / financial information/ financial results of one subsidiary whose unaudited financial results reflects total assets of ` 5,73,303 Lakhs as at 30th September 2021 and total revenues of ` 21,784 Lakhs and ` 41,522 Lakhs and total net profit after tax of ` 2,634 Lakhs and ` 4,110 Lakhs for the quarter ended 30th September 2021 and for the period from 1st April 2021 to 30th September 2021 respectively, and cash flows (net) of ` ( 20,632 ) Lakhs for the period from 1st April 2021 to 30th September 2021. These interim financial statements/financial information/ financial results have been reviewed by other auditors, whose reports have been furnished to us by the Management.
The statement of consolidated unaudited financial results also includes the unaudited interim financial statements / financial information/ financial results of the said subsidiary for the quarter ended 30th June 2021, quarter/half year ended 30th September 2020 and audited financial results for the year ended 31st March 2021 which have been reviewed/audited by one of the joint auditors whose reports have been furnished to us by the Management. Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said subsidiary, is based solely on their reports and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
11. The statement of consolidated unaudited financial results includes the Group's share of net profit after tax of Rs 240.14 Lakhs and Rs 479.56 Lakhs for the quarter and half year ended 30th September 2021, respectively, in respect of one associate whose interim financial results have been reviewed by another auditor whose report has been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said associate, is based solely on the report of the other auditor and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
12. The statement of consolidated unaudited financial results also includes the Group's share of net profit after tax of Rs 217.87 Lakhs and Rs 482.19 Lakhs for the quarter and half year ended 30th September 2021, respectively, in respect of one associate, based on their interim financial results which have not been reviewed. According to the information and explanations given to us by the Management, these interim financial statements / financial information / financial results are not material to the Group.
Our conclusion on the Statement is not modified in respect of this matter.
For Varma & Varma For Borkar & Muzumdar
Chartered Accountants Chartered Accountants
FRN:004532S FRN:101569W
Vijay Narayan Govind Kaushal Muzumdar
Partner Partner
M. No. 203094 M. No. 100938
UDIN: 21203094AAAACW8019 UDIN: 21100938AAAACH4444
Kochi-19 Mumbai-55
22nd October 2021 22nd October 2021
THE FEDERAL BANK LIMITED | |||||||
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | |||||||
(CIN: L65191KL1931PLC000368) | |||||||
CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2021 | |||||||
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| (Rs in Lakhs) |
Particulars | Quarter ended | Half Year ended | Year ended | ||||
30.09.2021 | 30.06.2021 | 30.09.2020 | 30.09.2021 | 30.09.2020 | 31.03.2021 | ||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
1. Interest earned (a)+(b)+(c)+(d) | 3,56,627 | 3,52,498 | 3,62,188 | 7,09,125 | 7,19,399 | 14,31,408 | |
(a) | Interest/discount on advances/bills | 2,86,506 | 2,84,295 | 2,85,376 | 5,70,801 | 5,68,150 | 11,35,314 |
(b) | Income on investments | 57,532 | 58,463 | 59,284 | 1,15,995 | 1,19,938 | 2,33,829 |
(c) | Interest on balances with Reserve Bank of India and other inter bank funds | 6,662 | 3,662 | 11,661 | 10,324 | 18,728 | 36,816 |
(d) | Others | 5,927 | 6,078 | 5,867 | 12,005 | 12,583 | 25,449 |
2. Other income | 44,719 | 52,442 | 44,947 | 97,161 | 93,572 | 1,86,564 | |
3. TOTAL INCOME (1+2) | 4,01,346 | 4,04,940 | 4,07,135 | 8,06,286 | 8,12,971 | 16,17,972 | |
4. Interest expended | 1,95,947 | 2,00,016 | 2,15,941 | 3,95,963 | 4,35,596 | 8,43,496 | |
5. Operating expenses (i)+(ii) | 1,13,287 | 98,955 | 92,710 | 2,12,242 | 1,82,305 | 3,89,867 | |
(i) | Employees cost | 61,785 | 56,990 | 52,136 | 1,18,775 | 1,04,792 | 2,17,202 |
(ii) | Other operating expenses | 51,502 | 41,965 | 40,574 | 93,467 | 77,513 | 1,72,665 |
6. TOTAL EXPENDITURE (4+5)(excluding provisions and contingencies) | 3,09,234 | 2,98,971 | 3,08,651 | 6,08,205 | 6,17,901 | 12,33,363 | |
7. OPERATING PROFIT (3-6) (Profit before provisions and contingencies) | 92,112 | 1,05,969 | 98,484 | 1,98,081 | 1,95,070 | 3,84,609 | |
8. Provisions (other than tax) and contingencies | 26,453 | 57,263 | 56,546 | 83,716 | 97,775 | 1,63,753 | |
9. Exceptional items |
| - | - | - | - | - | - |
10. Profit from Ordinary Activities before tax(7-8-9) | 65,659 | 48,706 | 41,938 | 1,14,365 | 97,295 | 2,20,856 | |
11. Tax expense |
| 16,860 | 13,150 | 10,368 | 30,010 | 24,567 | 56,136 |
12. Net Profit from Ordinary Activities after tax (10-11) | 48,799 | 35,556 | 31,570 | 84,355 | 72,728 | 1,64,720 | |
13. Extraordinary items (net of tax expense) |
| - | - | - | - | - | - |
14. Net Profit for the period (12-13) |
| 48,799 | 35,556 | 31,570 | 84,355 | 72,728 | 1,64,720 |
15. Minority interest |
| 685 | 384 | 199 | 1,069 | 563 | 1,524 |
16. Share in Profit of Associates |
| 458 | 504 | 174 | 962 | 330 | 3,237 |
17. Consolidated Net Profit of the group(14-15+16) | 48,572 | 35,676 | 31,545 | 84,248 | 72,495 | 1,66,433 | |
18. Paid-up Equity Share Capital(Face value ` 2/- per Equity Share) | 42,030 | 39,926 | 39,893 | 42,030 | 39,893 | 39,923 | |
19. Reserves excluding Revaluation Reserve |
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| 16,09,799 | |
20. Analytical Ratios |
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(i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | NIL |
(ii) | Capital Adequacy ratio (%) |
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| Under Basel III | 15.63 | 15.36 | 15.19 | 15.63 | 15.19 | 15.19 |
(iii) | Earnings per Share (EPS) (in `) |
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| (a) Basic EPS (before and after extra ordinary items) | 2.34* | 1.79* | 1.58* | 4.14* | 3.64* | 8.34 |
| (b) Diluted EPS (before and after extra ordinary items) | 2.32* | 1.77* | 1.58* | 4.11* | 3.63* | 8.31 |
(iv) | NPA Ratios |
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| a) Gross NPA | 4,55,819 | 4,79,318 | 3,59,172 | 4,55,819 | 3,59,172 | 4,64,639 |
| b) Net NPA | 1,59,578 | 1,71,242 | 1,24,985 | 1,59,578 | 1,24,985 | 1,60,471 |
| c) % of Gross NPA | 3.22 | 3.51 | 2.80 | 3.22 | 2.80 | 3.35 |
| d) % of Net NPA | 1.15 | 1.28 | 0.99 | 1.15 | 0.99 | 1.18 |
(v) | Return on Assets (%) | 0.23* | 0.17* | 0.17* | 0.40* | 0.39* | 0.86 |
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* Not Annualised |
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Segment Information@ |
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| (` in Lakhs) |
Particulars | Quarter ended | Half Year ended | Year ended | ||||
30.09.2021 | 30.06.2021 | 30.09.2020 | 30.09.2021 | 30.09.2020 | 31.03.2021 | ||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
Segment Revenue: |
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| Treasury | 54,420 | 75,037 | 60,623 | 1,29,457 | 1,54,686 | 2,74,511 |
| Corporate/Wholesale Banking | 1,00,380 | 1,02,583 | 1,25,557 | 2,02,963 | 2,40,573 | 4,43,371 |
| Retail Banking | 2,45,019 | 2,27,320 | 2,20,955 | 4,72,339 | 4,17,712 | 8,99,846 |
| Other Banking operations | 1,460 | - | - | 1,460 | - | - |
| Unallocated | 67 | - | - | 67 | - | 244 |
| Total Revenue | 4,01,346 | 4,04,940 | 4,07,135 | 8,06,286 | 8,12,971 | 16,17,972 |
| Less: Inter Segment Revenue | - | - | - | - | - | - |
| Income from Operations | 4,01,346 | 4,04,940 | 4,07,135 | 8,06,286 | 8,12,971 | 16,17,972 |
Segment Results (net of provisions): |
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| Treasury | 10,388 | 35,345 | 4,234 | 45,733 | 46,509 | 72,226 |
| Corporate/Wholesale Banking | 19,084 | (2,737) | 15,493 | 16,347 | 7,455 | 21,547 |
| Retail Banking | 34,662 | 16,098 | 22,211 | 50,760 | 43,333 | 1,26,839 |
| Other Banking operations | 1,458 | - | - | 1,458 | - | - |
| Unallocated | 67 | - | - | 67 | (2) | 244 |
| Profit before tax | 65,659 | 48,706 | 41,938 | 1,14,365 | 97,295 | 2,20,856 |
Segment Assets |
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| Treasury | 46,28,017 | 45,66,638 | 43,32,971 | 46,28,017 | 43,32,971 | 44,79,657 |
| Corporate/Wholesale Banking | 72,50,870 | 70,10,074 | 67,42,587 | 72,50,870 | 67,42,587 | 70,83,959 |
| Retail Banking | 85,73,839 | 82,15,751 | 73,30,321 | 85,73,839 | 73,30,321 | 82,82,563 |
| Other Banking operations | 477 | - | - | 477 | - | - |
| Unallocated | 6,64,952 | 5,85,205 | 7,77,293 | 6,64,952 | 7,77,293 | 6,50,474 |
| Total | 2,11,18,155 | 2,03,77,668 | 1,91,83,172 | 2,11,18,155 | 1,91,83,172 | 2,04,96,653 |
Segment Liabilities |
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| Treasury | 12,06,212 | 11,11,142 | 12,98,917 | 12,06,212 | 12,98,917 | 14,03,276 |
| Corporate/Wholesale Banking | 17,07,578 | 14,80,815 | 14,17,520 | 17,07,578 | 14,17,520 | 16,09,960 |
| Retail Banking | 1,61,29,690 | 1,58,73,983 | 1,46,86,523 | 1,61,29,690 | 1,46,86,523 | 1,56,11,703 |
| Other Banking operations | 218 | - | - | 218 | - | - |
| Unallocated | 2,34,453 | 1,98,806 | 2,05,895 | 2,34,453 | 2,05,895 | 1,99,818 |
| Total | 1,92,78,151 | 1,86,64,746 | 1,76,08,855 | 1,92,78,151 | 1,76,08,855 | 1,88,24,757 |
Capital Employed: |
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(Segment Assets - Segment Liabilities) |
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| Treasury | 34,21,805 | 34,55,496 | 30,34,054 | 34,21,805 | 30,34,054 | 30,76,381 |
| Corporate/Wholesale Banking | 55,43,292 | 55,29,259 | 53,25,067 | 55,43,292 | 53,25,067 | 54,73,999 |
| Retail Banking | (75,55,851) | (76,58,232) | (73,56,202) | (75,55,851) | (73,56,202) | (73,29,140) |
| Other Banking operations | 259 | - | - | 259 | - | - |
| Unallocated | 4,30,499 | 3,86,399 | 5,71,398 | 4,30,499 | 5,71,398 | 4,50,656 |
| Total | 18,40,004 | 17,12,922 | 15,74,317 | 18,40,004 | 15,74,317 | 16,71,896 |
@ | 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 September 30, 2021 is given below: |
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| (Rs in Lakhs) |
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| Particulars | As at 30.09.2021 | As at 30.09.2020 | As at 31.03.2021 |
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| Unaudited | Unaudited | Audited |
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| CAPITAL AND LIABILITIES |
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| Capital | 42,030 | 39,893 | 39,923 |
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| Reserves and Surplus | 17,70,027 | 15,15,764 | 16,10,300 |
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| Minority Interest | 27,947 | 18,660 | 21,673 |
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| Deposits | 1,71,92,543 | 1,56,48,514 | 1,72,18,611 |
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| Borrowings | 14,24,010 | 13,47,911 | 12,27,060 |
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| Other Liabilities and Provisions | 6,61,598 | 6,12,430 | 3,79,086 |
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| Total | 2,11,18,155 | 1,91,83,172 | 2,04,96,653 |
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| ASSETS |
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| Cash and Balances with Reserve Bank of India | 8,50,556 | 6,13,172 | 7,65,451 |
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| Balance with Banks and Money at Call and Short Notice | 13,89,386 | 13,63,110 | 12,16,123 |
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| Investments | 36,45,870 | 35,79,343 | 36,73,167 |
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| Advances | 1,38,58,319 | 1,25,90,255 | 1,35,51,441 |
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| Fixed Assets | 58,312 | 48,378 | 51,749 |
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| Other Assets | 13,15,712 | 9,88,914 | 12,38,722 |
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| Total | 2,11,18,155 | 1,91,83,172 | 2,04,96,653 |
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Notes: |
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1 | The above Consolidated Unaudited Financial Results for the quarter and half year ended September 30, 2021 were reviewed by the Audit Committee and subsequently taken on record and approved by the Board of Directors at its meeting held on October 22, 2021. These Results have been subjected to "Limited review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued. | ||||||
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2 | The Consolidated Financial Results of the Group comprise the financial results of The Federal Bank Limited and its subsidiaries viz. Fedbank Financial Services Limited & Federal Operations and Services Limited and its associates viz. Ageas Federal Life Insurance Company Limited & Equirus Capital Private Limited. | ||||||
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3 | There has been no material change in the accounting policies adopted during the quarter and half year ended September 30, 2021 as compared to those followed for the year ended March 31, 2021 except as stated in Note 14 below. | ||||||
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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), provision for non-performing investments, income-tax and other usual and necessary provisions. | ||||||
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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), profit / loss on revaluation of investments, dividend received from subsidiaries / associates etc. | ||||||
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6 | Reclassification of figures for the current period pursuant to the Master Direction on Financial Statements - Presentation and disclosures issued by Reserve Bank of India on August 30, 2021, has been made with corresponding changes in the figures for the previous periods/year to make the same comparable. Had the presentation been made in accordance with the earlier RBI instructions, Other income, Total income, Operating profit and Provisions (Other than tax) and contingencies would have been as given below: | ||||||
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| (Rs. in Lakhs) | |
| Particulars | Quarter ended | Half Year ended | Year ended | |||
| 30.09.2021 | 30.06.2021 | 30.09.2020 | 30.09.2021 | 30.09.2020 | 31.03.2021 | |
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
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| Other Income | 51,244 | 62,279 | 50,944 | 1,13,523 | 99,275 | 1,95,786 |
| Total Income | 4,07,871 | 4,14,777 | 4,13,132 | 8,22,648 | 8,18,674 | 16,27,194 |
| Operating Profit | 98,637 | 1,15,806 | 1,04,481 | 2,14,443 | 2,00,773 | 3,93,831 |
| Provisions (other than tax) and contingencies | 32,978 | 67,100 | 62,543 | 1,00,078 | 1,03,478 | 1,72,975 |
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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 half year ended September 30, 2021, the Bank has allotted 383,346 and 514,336 equity shares of ` 2 each respectively, pursuant to the exercise of stock options by employees. | ||||||
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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: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank. | ||||||
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11 | During the quarter ended September 30, 2021 , the Bank has issued 104,846,394 equity shares of Rs 2 each for cash pursuant to a preferential allotment as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations at Rs 87.39 per share aggregating to Rs 91,625.26 Lakhs (including share premium). This resulted in an increase of Rs 2,096.93 Lakhs in Share Capital and ` 89,476.98 Lakhs (Net of share issue expenses) in Share premium account. | ||||||
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12 | On account of uncertainties prevailing due to COVID-19 pandemic across the world and in India, the extent to which the same will impact the Bank's operations and financial position in future will depend on various aspects including actions taken to mitigate its impact and other regulatory measures. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during this period. The extent to which the COVID-19 pandemic will continue to impact the Bank's results will depend on the future developments related to the situation, as well as the outcomes of the actions taken to contain the same. | ||||||
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13 | i) Details of resolution plan implemented under the Resolution Framework for COVID-19-related Stress as per RBI circular dated August 6, 2020 are given below. | ||||||
| Format - A |
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| (Rs in lakhs except number of accounts) |
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| Type of borrower | (A) Number of accounts where resolution plan has been implemented under this window | (B) exposure to accounts mentioned at (A) before implementation of the plan | (C) Of (B), aggregate amount of debt that was converted into other securities | (D) Additional funding sanctioned, if any, including between invocation of the plan and implementation | (E) Increase in provisions on account of the implementation of the resolution plan |
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| Personal Loans | 4,025 | 93,514.99 | - | - | 9,351.50 |
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| Corporate persons | 7 | 14,249.46 | - | 90.65 | 1,424.95 |
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| Of which, MSMEs | - | - | - | - | - |
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| Others | 92 | 4,619.94 | - | - | 461.99 |
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| Total | 4,124 | 1,12,384.39 | - | 90.65 | 11,238.44 |
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| Format - B |
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| (Rs in lakhs except number of accounts) |
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| Type of borrower | Exposure to accounts classified as Standard consequent to implementation of resolution plan - Position as at the end of the previous half-year ended March 31 , 2021 (A)* | Of (A), aggregate debt that slipped into NPA during the half-year | Of (A) amount written off during the half-year | Of (A) amount paid by the borrowers during the half- year | Exposure to accounts classified as Standard consequent to implementation of resolution plan - Position as at the end of this half-year ended September 30 , 2021 # |
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| Personal Loans | 95,316.43 | 1,705.30 | - | 3,619.23 | 2,05,112.29 |
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| Corporate persons | 14,249.46 | - | - | 1,019.81 | 14,137.66 |
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| Of which, MSMEs | - | - | - | - | - |
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| Others | 4,627.01 | 174.36 | - | 572.86 | 49,939.61 |
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| Total | 1,14,192.90 | 1,879.66 | - | 5,211.90 | 2,69,189.56 |
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| *includes restructuring implemented during the quarter ended June 30, 2021 under the Resolution Framework 1.0 |
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| #This also includes cases implemented as per RBI circular for i) Resolution Framework for COVID-19-related Stress dated August 6, 2020 & ii) Resolution Framework - 2.0 for Covid-19 related stress of Individuals and Small Businesses dated May 5, 2021. | ||||||
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| ii) Details of resolution plan implemented in accordance with the RBI Cir. No. DOR.STR.REC.11/21.04.048/2021-22 dated May 05, 2021 on "Resolution Framework - 2.0: Resolution of Covid - 19 related stress of Individuals and Small Business" are given below. | ||||||
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| (Rs in lakhs except number of accounts) | ||
| Description | Individual Borrowers | Small businesses | ||||
| Personal Loans | Business Loans | |||||
| A) Number of requests received for invoking resolution process under Part A | 6,743 | 1,604 | 16,385 | |||
| B) Number of accounts where resolution plan has been implemented under this window | 5,262 | 467 | 7,848 | |||
| C) Exposure to accounts mentioned at (B) before implementation of the plan | 1,09,980.44 | 15,410.31 | 29,579.75 | |||
| D) Of (C), aggregate amount of debt that was converted into other securities | - | - | - | |||
| E) Additional funding sanctioned,if any,Including between invocation of the plan and implementation | - | - | - | |||
| F) Increase in provisions on account of the implementation of the resolution plan | 13,217.78 | 1,838.21 | 3,811.65 | |||
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| iii) In accordance with the RBI Cir. No. DOR.STR.REC.11/21.04.048/2021-22 dated May 05, 2021 on "Resolution Framework - 2.0: Resolution of Covid - 19 related stress of Individuals and Small Business", the number of borrower accounts where modifications were sanctioned and implemented and the aggregate exposure to such borrowers are as under | ||||||
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| (Rs in lakhs except number of accounts) |
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| No. of Accounts | 118 |
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| Aggregate Exposure as on September 30, 2021 | 3,355.12 |
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| iv) During the quarter ended September 30, 2021, as a prudent measure, over and above the regulatory minimum provision required for restructured advances, based on the internal assessment, the Bank has created ` 12,000.00 Lakhs additional provision against the accounts restructured under the resolution frameworks. | ||||||
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14 | During the current quarter, the bank has estimated & fully recognized the additional liability on account of revision in family pension for employees covered under the 11th Bipartite Settlement and Joint Note dated November 11, 2020 amounting to ` 17,731.55 Lakhs. In accordance with the letter dated October 4, 2021 issued by RBI, permitting all member banks of Indian Banks' Association to amortise the said additional liability over a period not exceeding five years beginning with the financial year ended March 31, 2022, subject to a minimum of 1/5th of the total amount being expensed every year, the bank has opted to amortize the said liability over a period not exceeding five years beginning with the financial year ended March 31, 2022, subject to a minimum of ` 3,546.31 Lakhs being expensed every financial year. Accordingly, the Bank has charged an amount of ` 1,182.10 Lakhs to the Profit and Loss account for the quarter and half year ended September 30, 2021 and the balance unamortised expenditure amounting to Rs ` 16,549.45 Lakhs has been carried forward. Had the Bank charged the entire additional liability to the Profit and Loss Account, the profits for the quarter and half year ended September 30, 2021 would have been lower by ` 16,549.45 Lakhs. | ||||||
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15 | The Honourable Supreme Court of India , vide an interim order dated September 3, 2020, had directed that accounts which were not declared NPA till August 31 , 2020 shall not be declared as NPA till further orders, which has been complied with by the Bank. The said interim order stood vacated on March 23, 2021 and the Bank continued with the asset classification of borrower accounts as per the extant RBI instructions / IRAC norms. In view of this, the results for the half-year ended September 30 , 2021 may not be comparable with the corresponding half year ended September 30, 2020. | ||||||
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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 | |||||
October 22, 2021 |
| (DIN: 02274773) | |||||
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THE FEDERAL BANK LIMITED | ||
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | ||
(CIN: L65191KL1931PLC000368) | ||
CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2021 | ||
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| (Rs in Lakhs) |
| Half Year ended September 30, 2021 | Half Year ended September 30, 2020 |
Cash Flow from Operating Activities |
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Net Profit before taxes | 1,11,281 | 95,223 |
Adjustments for: |
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Depreciation on Bank's Property | 5,875 | 6,133 |
Provision / Depreciation on Investments | 3,408 | (878) |
Amortisation of Premium on Held to Maturity Investments | 8,434 | 6,761 |
Provision / Charge for Non Performing Assets | 44,108 | 42,573 |
Provision for Standard Assets and Contingencies | 47,726 | 56,973 |
(Profit)/Loss on sale of fixed assets (net) | 26 | (24) |
Dividend From Subsidiaries / Joint ventures / Associates | (2,704) | - |
| 2,18,154 | 2,06,761 |
Adjustments for working capital changes:- |
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(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] | (2,33,373) | 92,983 |
(Increase)/ Decrease in Advances | (2,96,711) | (1,06,980) |
(Increase)/ Decrease in Other Assets | (68,899) | (30,787) |
Increase/ (Decrease) in Deposits | (64,973) | 4,45,730 |
Increase/ (Decrease) in Other liabilities and provisions | 2,36,037 | 1,97,327 |
| (4,27,919) | 5,98,273 |
Direct taxes paid (net) | (33,028) | (26,945) |
Net Cash Flow from / (Used in) Operating Activities | (2,42,793) | 7,78,089 |
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Cash Flow from Investing Activities |
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Purchase of Fixed Assets | (11,698) | (3,922) |
Proceeds from Sale of Fixed Assets | 76 | 96 |
Dividend From Subsidiaries / Joint ventures / Associates | 2,704 | - |
Investment in Subsidiary | (14,799) | - |
Investment in Associate | (74) | - |
(Increase)/ Decrease in Held to Maturity Investments | 2,57,353 | (1,34,861) |
Net Cash generated / (Used in) Investing Activities | 2,33,562 | (1,38,687) |
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Cash Flow from Financing Activities |
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Proceeds from Issue of Share Capital | 2,107 | 40 |
Proceeds from Share Premium (Net of Share issue Expenses) | 89,723 | 711 |
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) | 1,71,555 | 67,071 |
Dividend Paid | (13,974) | - |
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Net Cash generated from Financing Activities | 2,49,411 | 67,822 |
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Effect of exchange fluctuation on translation reserve | (270) | 174 |
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Net Increase in Cash and Cash Equivalents | 2,39,910 | 7,07,398 |
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Cash and Cash Equivalents at the beginning of the period | 19,59,139 | 12,57,458 |
Cash and Cash Equivalents at the end of the period | 21,99,049 | 19,64,856 |
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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 | |
October 22, 2021 | (DIN: 02274773) | |
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|
THE FEDERAL BANK LIMITED | ||
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | ||
(CIN: L65191KL1931PLC000368) | ||
CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2021 | ||
| (Rs in Lakhs) | |
| Half Year ended September 30, 2021 | Half Year ended September 30, 2020 |
Cash Flow from Operating Activities |
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Net Profit before taxes | 1,14,258 | 97,062 |
Adjustments for: |
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Depreciation on Group's Property | 6,449 | 6,547 |
Provision / Depreciation on Investments | 3,408 | (525) |
Amortisation of Premium on Held to Maturity Investments | 8,434 | 6,761 |
Provision / Charge for Non Performing Assets | 46,383 | 42,653 |
Provision for Standard Assets and Contingencies | 50,288 | 61,350 |
(Profit)/ Loss on sale of fixed assets (net) | 26 | (25) |
| 2,29,246 | 2,13,823 |
Adjustments for working capital changes:- |
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(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] | (2,41,896) | 1,20,822 |
(Increase)/ Decrease in Advances | (3,53,261) | (1,47,958) |
(Increase)/ Decrease in Other Assets | (71,500) | (31,396) |
Increase/ (Decrease) in Deposits | (26,067) | 4,23,324 |
Increase/ (Decrease) in Other liabilities and provisions | 2,32,223 | 1,94,703 |
| (4,60,501) | 5,59,495 |
Direct taxes paid (net) | (35,500) | (30,115) |
Net Cash Flow from / (Used in) Operating Activities | (2,66,755) | 7,43,203 |
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Cash Flow from Investing Activities |
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Purchase of Fixed Assets | (13,117) | (4,522) |
Proceeds from Sale of Fixed Assets | 78 | 103 |
(Increase)/ Decrease in Held to Maturity Investments | 2,57,353 | (1,34,861) |
Net Cash generated / (Used in) Investing Activities | 2,44,314 | (1,39,280) |
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Cash Flow from Financing Activities |
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Proceeds from Issue of Share Capital | 2,107 | 40 |
Proceeds from Share Premium (Net of share issue Expenses) | 89,723 | 712 |
Increase / (Decrease) in Minority Interest | 6,273 | 563 |
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) | 1,96,951 | 95,139 |
Dividend Paid | (13,974) | - |
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Net Cash generated from financing Activities | 2,81,080 | 96,454 |
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Effect of exchange fluctuation on translation reserve | (270) | 174 |
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Increase/(Decrease) in Cash and Cash Equivalents | 2,58,369 | 7,00,551 |
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Cash and Cash Equivalents at the beginning of the period | 19,81,573 | 12,75,731 |
Cash and Cash Equivalents at the end of the period | 22,39,942 | 19,76,282 |
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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 | |
October 22, 2021 | (DIN: 02274773) | |