Last checked at 20 Oct 2014 11:48
SDF-24/ /2014-15 20th October 2014
To,
London Stock Exchange
Dear Sir,
We enclose the Limited Review Report (LRR) of the Auditors of the Bank for the quarter ended 30th September 2014, which was approved at the Bank's Board of Directors meeting, held on 16th October 2014.
Kindly take the same on your record.
Thanking you,
Yours faithfully,
COMPANY SECRETARY
Encl: as above
Deloitte Haskins& Sells | M P Chitale & Co. |
Chartered Accountants Wilmont Park Business Centre 1st Floor, Warriam Road Kochi - 682 016 INDIA | Chartered AccountantsFirst Floor, Hamam HouseAmbalal Doshi Marg, FortMumbai - 400 001INDIA |
Tel: +91 484 2353694 Fax: +91 484 2380094 | Tel: +91-22-22651186Fax:+91-22-22655334
|
INDEPENDENT AUDITORS' REVIEW REPORT
TO THE BOARD OF DIRECTORS OF
THE FEDERAL BANK LIMITED
1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of THE FEDERAL BANK LIMITED ("the Bank") for the Quarter and half year ended 30th September, 2014 ("the Statement"), being submitted by the Bank pursuant to the requirement of Clause 41 of the Listing Agreements with the Stock Exchanges, except for the disclosures referred to in paragraph 6 below. This Statement is the responsibility of the Bank's Management and has been approved by the Board of Directors. Our responsibility is to issue a report on the Statement based on our review.
2. We conducted our review of the Statement in accordance with the Standard on Review Engagements (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 Bank 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.
3. In the conduct of our review, 87branches have been reviewed by one of usand we have relied on the review reports in respect of returns including non-performing assets received from the branch auditors of 12branches, specifically appointed for this purpose by the bank. These review reports cover 55 percent of the advances portfolio of the bank. Apart from these review reports, in the conduct of our review, we have also relied upon various returns received from the branches of the bank.
4. Based on our review conducted as stated above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the Accounting Standards specified under the Companies Act, 1956 (which are deemed to be applicable as per Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 ) and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Clause 41 of the Listing Agreements with the Stock Exchanges, 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.
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Deloitte Haskins & Sells | M P Chitale & Co. |
: 2 :
5. Attention is drawn to Note No.4 of the Statement regarding proportionate charge of pension liability of the bank amounting to Rs.842 Lakhs and Rs.1684 Lakhs for the quarter and half year ended 30thSeptember, 2014 respectively and the balance unamortised liability of Rs.1684 Lakhs as at 30thSeptember, 2014, pursuant to the exemption granted by the Reserve Bank of India and made applicable to the Bank vide letter no. DBOD No.BP.BC.15896 / 21.04.018 / 2010-11 dated April 8, 2011, from the application of the provisions of the Accounting Standard (AS) 15, Employee Benefits.
Our conclusion is not qualified in respect of this matter.
6. Further, we also report that we have traced the number of shares as well as the percentage of shareholding in respect of the aggregate amount of public shareholding,and the number of shares as well as the percentage of shares pledged/encumbered and non-encumbered in respect of the aggregate amount of promoters and promoter group shareholding in terms of Clause 35 of the Listing Agreements with the Stock Exchanges and the particulars relating to investor complaints disclosed in the Statement,from the details furnished by the Registrars. The "Pillar 3 disclosures under Basel III Capital Regulations" disclosed on the Bank's website and in respect of which a link has been provided in the Statement have not been subjected to our review.
For DELOITTE HASKINS & SELLS | For M P CHITALE & CO. | |
Chartered Accountants | Chartered Accountants | |
(Firm'sRegistration No.008072S) | (Firm's Registration No. 101851W) | |
M. Ramachandran | Ashutosh Pednekar | |
Partner | Partner | |
(Membership No.16399) | (Membership No. 041037) |
MUMBAI, 16thOctober, 2014.
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 30th SEPTEMBER 2014 | |||||||
(` in Lakhs) | |||||||
Particulars | Quarter ended | Half Year ended | Year ended 31.03.2014 | ||||
30.09.2014 | 30.06.2014 | 30.09.2013 | 30.09.2014 | 30.09.2013 | |||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
1. Interest earned (a)+(b)+(c)+(d) | 186,958 | 177,150 | 171,444 | 364,108 | 336,770 | 694,608 | |
(a) | Interest/discount on advances/bills | 136,294 | 129,987 | 126,486 | 266,281 | 250,692 | 501,108 |
(b) | Income on Investments | 45,276 | 45,819 | 43,778 | 91,095 | 83,483 | 177,683 |
(c) | Interest on balances with Reserve Bank of India and other inter bank funds | 2,327 | 1,251 | 1,112 | 3,578 | 2,436 | 5,236 |
(d) | Others | 3,061 | 93 | 68 | 3,154 | 159 | 10,581 |
2. Other Income | 19,586 | 15,654 | 14,340 | 35,240 | 35,919 | 69,385 | |
3. TOTAL INCOME (1+2) | 206,544 | 192,804 | 185,784 | 399,348 | 372,689 | 763,993 | |
4. Interest expended | 126,378 | 120,728 | 116,609 | 247,106 | 230,974 | 471,747 | |
5. Operating Expenses (i)+(ii) | 39,190 | 36,923 | 35,284 | 76,113 | 68,770 | 144,207 | |
(i) | Employees Cost | 20,380 | 20,443 | 18,543 | 40,823 | 36,894 | 77,154 |
(ii) | Other operating expenses | 18,810 | 16,480 | 16,741 | 35,290 | 31,876 | 67,053 |
6. TOTAL EXPENDITURE (4)+(5)(excluding Provisions and Contingencies) | 165,568 | 157,651 | 151,893 | 323,219 | 299,744 | 615,954 | |
7. OPERATING PROFIT (3-6) (Profit before Provisions and Contingencies) | 40,976 | 35,153 | 33,891 | 76,129 | 72,945 | 148,039 | |
8. Provisions (other than Tax) and Contingencies | 4,571 | 2,208 | (402) | 6,779 | 23,108 | 26,840 | |
9. Exceptional Items | - | - | - | - | - | - | |
10. Profit from Ordinary Activities before tax(7-8-9) | 36,405 | 32,945 | 34,293 | 69,350 | 49,837 | 121,199 | |
11. Tax expense | 12,375 | 10,922 | 11,712 | 23,297 | 16,690 | 37,310 | |
12. Net Profit from Ordinary Activities after tax (10-11) | 24,030 | 22,023 | 22,581 | 46,053 | 33,147 | 83,889 | |
13. Extraordinary items (net of tax expense) | - | - | - | - | - | - | |
14. Net Profit for the period (12-13) | 24,030 | 22,023 | 22,581 | 46,053 | 33,147 | 83,889 | |
15. Paid-up Equity Share Capital(Face value ` 2/- each) | 17,111 | 17,107 | 17,106 | 17,111 | 17,106 | 17,106 | |
16. Reserves excluding Revaluation Reserve | 677,452 | ||||||
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 | 14.45 | 15.16 | 15.35 | 14.45 | 15.35 | 15.14 | |
(iii) | Earnings per Share (EPS) (in `) | ||||||
(a) Basic and diluted EPS before Extra ordinary Items | 2.81* | 2.57* | 2.64* | 5.38* | 3.88* | 9.81 | |
(b) Basic and diluted EPS after Extra ordinary Items | 2.81* | 2.57* | 2.64* | 5.38* | 3.88* | 9.81 | |
(iv) | NPA Ratios | ||||||
a) Gross NPA | 103,105 | 101,643 | 146,600 | 103,105 | 146,600 | 108,741 | |
b) Net NPA | 31,850 | 30,389 | 41,141 | 31,850 | 41,141 | 32,156 | |
c) % of Gross NPA | 2.10 | 2.22 | 3.39 | 2.10 | 3.39 | 2.46 | |
d) % of Net NPA | 0.66 | 0.68 | 0.98 | 0.66 | 0.98 | 0.74 | |
(v) | Return on Assets (%) | 0.32* | 0.30* | 0.34* | 0.62* | 0.49* | 1.20 |
18. Public Shareholding: | |||||||
Number of Shares (in Lakhs) | 8,383.51 | 8,365.62 | 8,342.35 | 8,383.51 | 8,342.35 | 8,342.86 | |
Percentage of shareholding # | 97.99 | 97.80 | 97.54 | 97.99 | 97.54 | 97.54 | |
19. Promoters and Promoter group share holding | |||||||
(a) | Pledged/Encumbered | ||||||
- | Number of Shares | NIL | NIL | NIL | NIL | NIL | NIL |
- | Percentage of Shares (as a % of the total shareholding of promoter and promoter group) | NIL | NIL | NIL | NIL | NIL | NIL |
- | Percentage of Shares (as a % of the total share capital of the company) | NIL | NIL | NIL | NIL | NIL | NIL |
(b) | Non-encumbered | ||||||
- | Number of Shares | NIL | NIL | NIL | NIL | NIL | NIL |
- | Percentage of Shares (as a % of the total shareholding of promoter and promoter group) | NIL | NIL | NIL | NIL | NIL | NIL |
- | Percentage of Shares (as a % of the total share capital of the company) | NIL | NIL | NIL | NIL | NIL | NIL |
* Not annualised | |||||||
# excludes shares held by custodian against which Global Depository Receipts issued. | |||||||