Last checked at 31 Oct 2023 07:00
________________________________________________________________________
SD/LSE/286/2023-24 31.10.2023
To
The London Stock Exchange
10 Paternoster Square
London
Dear Sir,
We enclose herewith the Un-Audited Standalone and Consolidated Financial Results of the Bank for the Quarter and Half year ended September 30, 2023 which was approved at the Bank's Board of Directors meeting held on October 16, 2023.
Kindly take the same on your record.
For The Federal Bank Limited
Sd/-
Samir P Rajdev
Company Secretary
M S K A & Associates | Suri & Co |
602, Floor 6, Raheja Titanium | Guna Complex, No.443 & 445, |
Western Express Highway, Geetanjali, | 4th Floor Main Building, |
Railway Colony, Ram Nagar, Goregaon (E), | Anna Salai, Teynampet, |
Mumbai 400 063. | Chennai 600 018. |
Independent Auditor's Review Report on standalone unaudited financial results for the quarter and half year ended September 30, 2023 of The Federal Bank Limited pursuant to the Regulation 33 and Regulation 52 read with Regulation 63(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
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 September 30, 2023 (the 'Statement') attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 as amended ('the Regulations') except, for the disclosures relating to Pillar 3 as at September 30, 2023, including leverage ratio, liquidity coverage ratio and net stable funding 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 Note 8 to the Statement and have not been reviewed by us.
2. This 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 read with relevant rules issued thereunder, in so far as they apply to the Banks, 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 ('RBI Guidelines'), other recognised accounting principles generally accepted in India and is in compliance with the Regulations. 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 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. 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 under section 143(10) of the Companies Act 2013 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.
4. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with the recognition and measurement principles laid down in AS 25, prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder, the RBI Guidelines and other recognised accounting principles generally accepted in India has not disclosed the information required to be disclosed in terms of the Regulations, including the manner in which it is to be disclosed or that it contains material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the RBI in respect of income recognition, asset classification, provisioning and other related matters, except for the disclosures relating to Pillar 3 disclosures as at September 30, 2023, including leverage ratio, liquidity coverage ratio and net stable funding 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 Note 8 to the Statement and have not been reviewed by us.
5. The Statement includes the standalone financial results of the Bank for the quarter ended June 30, 2023 and corresponding quarter and half year ended September 30, 2022, which were reviewed by another auditors whose report dated July 13, 2023 and October 14, 2022 respectively, expressed an unmodified conclusion on those standalone financial results. The Statement also includes the standalone financial statements of the Bank for the year ended March 31, 2023 which were audited by another auditors whose report dated May 05, 2023 expressed an unmodified opinion on the standalone financial statements.
Our conclusion is not modified in respect of this matter.
For M S K A & Associates | For Suri & Co | |
Chartered Accountants | Chartered Accountants | |
ICAI Firm Registration Number: 105047W | ICAI Firm Registration Number: 004283S | |
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Swapnil Kale | G. Rengarajan | |
Partner | Partner | |
Membership Number: 117812 | Membership Number: 219922 | |
UDIN: 23117812BGXRCG7931 | UDIN: 23219922BGWKLY5781 | |
Kochi |
Kochi | |
October 16, 2023 | October 16, 2023 |
M S K A & Associates | Suri & Co |
602, Floor 6, Raheja Titanium | Guna Complex, No.443 & 445, |
Western Express Highway, Geetanjali, | 4th Floor Main Building, |
Railway Colony, Ram Nagar, Goregaon (E), | Anna Salai, Teynampet, |
Mumbai 400 063. | Chennai 600 018. |
Independent Auditor's Review Report on consolidated unaudited financial results for the quarter and half year ended September 30, 2023 of The Federal Bank Limited pursuant to the Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
The Board of Directors of
The Federal Bank Limited
1. We have reviewed the accompanying statement of consolidated unaudited 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 September 30, 2023 ('the Statement'), being submitted by the Bank pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('the Regulations') except, for the disclosures relating to consolidated Pillar 3 as at September 30, 2023, including leverage ratio, liquidity coverage ratio and net stable funding 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 Note 7 to the Statement and have not been reviewed by us.
2. This 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, read with relevant rules issued thereunder, in so far as they apply to the Banks, 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') and other recognised accounting principles generally accepted in India and is in compliance with the Regulations. 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 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. 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 specified under section 143(10) of the Companies Act, 2013 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 Regulations, to the extent applicable.
4. The Statement includes the financial results / financial information of the Bank and the following entities:
Sr. No | Name of the Entity | Relationship with the Bank |
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 |
5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review report of the other auditor referred to in paragraph 6 below and based on the financial information certified by the Management for the subsidiary and the associates as stated in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in AS 25 prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder, RBI Guidelines and other recognised accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Regulation, 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 RBI in respect of income recognition, asset classification, provisioning and other related matters except, for the disclosures relating to consolidated Pillar 3 disclosure as at September 30, 2023, including leverage ratio, liquidity coverage ratio and net stable funding 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 Note 7 to the Consolidated Statement and have not been reviewed by us.
6. We did not review the interim financial results of one subsidiary included in the Statement, whose interim financial results reflect total assets of Rs. 2,940.31 lakhs as at September 30, 2023 and total revenues of Rs. 1,906.56 lakhs and Rs. 3,692.30 lakhs and total net profit after tax of Rs. 142.58 lakhs and Rs. 279.58 lakhs for the quarter and half year ended September 30, 2023, respectively, and net cash flows of Rs. (505.62) lakhs for the half year ended September 30, 2023, as considered in the Statement. These interim financial results have been reviewed by other auditors whose reports have been furnished to us by the Management of the Bank and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors.
Our conclusion is not modified in respect of the above matter.
7. The Statement includes the interim financial information of one subsidiary which have not been reviewed by their auditor, whose interim financial information reflect total assets of Rs. 10,01,246 lakhs as at September 30, 2023 and total revenues of Rs. 39,415 lakhs and Rs. 76,721 lakhs and total net profit after tax of Rs. 4,540 lakhs and Rs. 9,683 lakhs for the quarter and half year ended September 30, 2023, respectively, and net cash flows of Rs. 46,042 lakhs for the half year ended September 30, 2023, as considered in the Statement. The Statement also includes the Group's share of net profit after tax of Rs. 654.63 lakhs and Rs. 870.57 lakhs for the quarter and half year ended September 30, 2023 respectively, as considered in the Statement, in respect of two associates, based on their interim financial information which have not been reviewed by their auditors. These interim financial information 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 these associates is based solely on such management prepared unaudited interim financial information. According to the information and explanations given to us by the Management, these interim financial information are not material to the Group.
Our conclusion is not modified in respect of the above matter.
8. The Statement includes the consolidated financial results of the Bank for the quarter ended June 30, 2023 and corresponding quarter and half year ended September 30, 2022, which were reviewed by another auditors whose report dated July 13, 2023 and October 14, 2022 respectively, expressed an unmodified conclusion on those consolidated financial results. The Statement also includes the consolidated financial statements of the Bank for the year ended March 31, 2023 which were audited by another auditors whose report dated May 05, 2023 expressed an unmodified opinion on the consolidated financial statements.
Our conclusion is not modified in respect of the above matter.
For M S K A & Associates | For Suri & Co |
| ||
Chartered Accountants | Chartered Accountants | |||
ICAI Firm Registration Number: 105047W | ICAI Firm Registration Number: 004283S | |||
Swapnil Kale | G. Rengarajan | |||
Partner | Partner | |||
Membership Number: 117812 | Membership Number: 219922 | |||
UDIN: 23117812BGXRCF4558 | UDIN: 23219922BGWKLZ3968 | |||
Kochi |
Kochi | |||
October 16, 2023 | October 16, 2023 | |||
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, 2023 | ||||||||
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| (? in Lakhs) | |
Particulars | Quarter ended | Half Year ended | Year ended | |||||
30.09.2023 | 30.06.2023 | 30.09.2022 | 30.09.2023 | 30.09.2022 | 31.03.2023 | |||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |||
1. Interest earned (a)+(b)+(c)+(d) | 5,45,528 | 5,02,453 | 4,02,078 | 10,47,981 | 7,64,964 | 16,80,363 | ||
(a) | Interest/discount on advances/bills | 4,35,548 | 4,03,958 | 3,22,272 | 8,39,506 | 6,10,954 | 13,49,184 | |
(b) | Income on investments | 89,397 | 81,486 | 66,737 | 1,70,883 | 1,29,686 | 2,79,557 | |
(c) | Interest on balances with Reserve Bank of India and other inter bank funds | 9,028 | 7,093 | 6,017 | 16,121 | 10,497 | 20,625 | |
(d) | Others | 11,555 | 9,916 | 7,052 | 21,471 | 13,827 | 30,997 | |
2. Other income | 73,042 | 73,241 | 60,952 | 1,46,283 | 1,06,214 | 2,33,000 | ||
3. TOTAL INCOME (1+2) | 6,18,570 | 5,75,694 | 4,63,030 | 11,94,264 | 8,71,178 | 19,13,363 | ||
4. Interest expended | 3,39,886 | 3,10,594 | 2,25,895 | 6,50,480 | 4,28,330 | 9,57,147 | ||
5. Operating expenses (i)+(ii) | 1,46,239 | 1,34,865 | 1,15,911 | 2,81,104 | 2,24,287 | 4,76,777 | ||
(i) | Employees cost | 62,631 | 61,674 | 51,563 | 1,24,305 | 1,01,495 | 2,17,300 | |
(ii) | Other operating expenses | 83,608 | 73,191 | 64,348 | 1,56,799 | 1,22,792 | 2,59,477 | |
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies) | 4,86,125 | 4,45,459 | 3,41,806 | 9,31,584 | 6,52,617 | 14,33,924 | ||
7. OPERATING PROFIT (3-6) (Profit before provisions and contingencies) | 1,32,445 | 1,30,235 | 1,21,224 | 2,62,680 | 2,18,561 | 4,79,439 | ||
8. Provisions (other than tax) and contingencies | 4,390 | 15,558 | 26,786 | 19,948 | 43,454 | 74,989 | ||
9. Exceptional items | - | - | - | - | - | - | ||
10. Profit from Ordinary Activities before tax(7-8-9) | 1,28,055 | 1,14,677 | 94,438 | 2,42,732 | 1,75,107 | 4,04,450 | ||
11. Tax expense | 32,673 | 29,303 | 24,067 | 61,976 | 44,670 | 1,03,391 | ||
12. Net Profit from Ordinary Activities after tax (10-11) | 95,382 | 85,374 | 70,371 | 1,80,756 | 1,30,437 | 3,01,059 | ||
13. Extraordinary items (net of tax expense) | - | - | - | - | - | - | ||
14. Net Profit for the period (12-13) |
| 95,382 | 85,374 | 70,371 | 1,80,756 | 1,30,437 | 3,01,059 | |
15. Paid-up Equity Share Capital(Face value ? 2/- per Equity Share) | 47,032 | 42,360 | 42,191 | 47,032 | 42,191 | 42,324 | ||
16. Reserves excluding Revaluation Reserve | 21,07,799 | |||||||
17. Analytical Ratios and Other Disclosures: | ||||||||
(i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | NIL | |
(ii) | Capital Adequacy ratio (%) | |||||||
Under Basel III | 15.50 | 14.28 | 13.84 | 15.50 | 13.84 | 14.81 | ||
(iii) | Earnings per Share (EPS) (in ?) | |||||||
(a) Basic EPS (before and after extraordinary items) | 4.17* | 4.03* | 3.34* | 8.20* | 6.20* | 14.27 | ||
(b) Diluted EPS (before and after extraordinary items) | 4.12* | 3.98* | 3.31* | 8.10* | 6.14* | 14.13 | ||
(iv) | NPA Ratios | |||||||
a) Gross NPA | 4,43,605 | 4,43,477 | 4,03,106 | 4,43,605 | 4,03,106 | 4,18,377 | ||
b) Net NPA | 1,22,981 | 1,27,459 | 1,26,235 | 1,22,981 | 1,26,235 | 1,20,501 | ||
c) % of Gross NPA | 2.26 | 2.38 | 2.46 | 2.26 | 2.46 | 2.36 | ||
d) % of Net NPA | 0.64 | 0.69 | 0.78 | 0.64 | 0.78 | 0.69 | ||
(v) | Return on Assets (%) | 0.34* | 0.32* | 0.30* | 0.66* | 0.58* | 1.28 | |
(vi) | Net Worth | 26,03,207 | 22,24,775 | 19,61,782 | 26,03,207 | 19,61,782 | 21,41,949 | |
(vii) | Outstanding Redeemable Preference Shares | NIL | NIL | NIL | NIL | NIL | NIL | |
(viii) | Capital Redemption Reserve | NIL | NIL | NIL | NIL | NIL | NIL | |
(ix) | Debenture Redemption Reserve | NIL | NIL | NIL | NIL | NIL | NIL | |
(x) | Debt - Equity Ratio # | 0.74 | 0.95 | 1.04 | 0.74 | 1.04 | 0.90 | |
(xi) | Total Debts to Total Assets # | 6.67% | 7.72% | 8.61% | 6.67% | 8.61% | 7.42% | |
(xii) | Operating Margin | 21.41% | 22.62% | 26.18% | 22.00% | 25.09% | 25.06% | |
(xiii) | Net Profit Margin | 15.42% | 14.83% | 15.20% | 15.14% | 14.97% | 15.73% | |
* Not Annualised | ||||||||
# Debt and Total Debts represents Total Borrowings of the Bank | ||||||||
Segment Information@ |
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(? in Lakhs) | |||||||
Particulars | Quarter ended | Half Year ended | Year ended | ||||
30.09.2023 | 30.06.2023 | 30.09.2022 | 30.09.2023 | 30.09.2022 | 31.03.2023 | ||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
Segment Revenue: | |||||||
Treasury | 88,824 | 77,243 | 67,069 | 1,66,067 | 1,21,933 | 2,53,996 | |
Corporate/Wholesale Banking | 1,81,524 | 1,64,245 | 1,23,736 | 3,45,769 | 2,31,494 | 5,24,048 | |
Retail Banking | 3,42,915 | 3,31,117 | 2,68,416 | 6,74,032 | 5,11,777 | 11,20,482 | |
a) Digital Banking | 36,622 | 30,340 | 22,729 | 66,962 | 40,028 | 90,354 | |
b) Other Retail Banking | 3,06,293 | 3,00,777 | 2,45,687 | 6,07,070 | 4,71,749 | 10,30,128 | |
Other Banking operations | 5,204 | 2,949 | 3,630 | 8,153 | 5,753 | 14,350 | |
Unallocated | 103 | 140 | 179 | 243 | 221 | 487 | |
| Total Revenue | 6,18,570 | 5,75,694 | 4,63,030 | 11,94,264 | 8,71,178 | 19,13,363 |
Less: Inter Segment Revenue | - | - | - | - | - | - | |
| Income from Operations | 6,18,570 | 5,75,694 | 4,63,030 | 11,94,264 | 8,71,178 | 19,13,363 |
Segment Results (net of provisions): | |||||||
Treasury | 16,790 | 11,255 | 18,469 | 28,045 | 31,049 | 50,577 | |
Corporate/Wholesale Banking | 44,512 | 40,024 | 14,850 | 84,536 | 29,355 | 95,399 | |
Retail Banking | 62,228 | 60,751 | 57,855 | 1,22,979 | 1,09,592 | 2,45,789 | |
a) Digital Banking | 4,680 | 3,520 | 3,203 | 8,200 | 2,795 | 11,359 | |
b) Other Retail Banking | 57,548 | 57,231 | 54,652 | 1,14,779 | 1,06,797 | 2,34,430 | |
Other Banking operations | 4,423 | 2,507 | 3,085 | 6,930 | 4,890 | 12,198 | |
Unallocated | 102 | 140 | 179 | 242 | 221 | 487 | |
| Profit before tax | 1,28,055 | 1,14,677 | 94,438 | 2,42,732 | 1,75,107 | 4,04,450 |
Segment Assets: |
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Treasury | 57,46,602 | 55,44,511 | 43,88,999 | 57,46,602 | 43,88,999 | 52,30,629 | |
Corporate/Wholesale Banking | 1,05,93,983 | 98,95,207 | 89,70,342 | 1,05,93,983 | 89,70,342 | 96,99,651 | |
Retail Banking | 1,16,79,738 | 1,12,69,975 | 95,72,293 | 1,16,79,738 | 95,72,293 | 1,04,41,427 | |
a) Digital Banking | 5,54,182 | 4,82,219 | 2,69,151 | 5,54,182 | 2,69,151 | 4,16,592 | |
b) Other Retail Banking | 1,11,25,556 | 1,07,87,756 | 93,03,142 | 1,11,25,556 | 93,03,142 | 1,00,24,835 | |
Other Banking operations | - | - | - | - | - | - | |
Unallocated | 7,22,279 | 7,09,865 | 7,79,609 | 7,22,279 | 7,79,609 | 6,62,476 | |
| Total | 2,87,42,602 | 2,74,19,558 | 2,37,11,243 | 2,87,42,602 | 2,37,11,243 | 2,60,34,183 |
Segment Liabilities: |
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Treasury | 29,66,715 | 30,91,221 | 22,74,543 | 29,66,715 | 22,74,543 | 29,13,818 | |
Corporate/Wholesale Banking | 29,69,197 | 26,25,089 | 19,85,235 | 29,69,197 | 19,85,235 | 24,24,409 | |
Retail Banking | 1,98,83,203 | 1,91,51,679 | 1,71,10,829 | 1,98,83,203 | 1,71,10,829 | 1,82,77,723 | |
a) Digital Banking | 13,71,578 | 12,74,681 | 8,90,517 | 13,71,578 | 8,90,517 | 12,03,720 | |
b) Other Retail Banking | 1,85,11,625 | 1,78,76,998 | 1,62,20,312 | 1,85,11,625 | 1,62,20,312 | 1,70,74,003 | |
Other Banking operations | - | - | - | - | - | - | |
Unallocated | 3,11,604 | 3,14,055 | 3,65,759 | 3,11,604 | 3,65,759 | 2,67,609 | |
| Total | 2,61,30,719 | 2,51,82,044 | 2,17,36,366 | 2,61,30,719 | 2,17,36,366 | 2,38,83,559 |
Capital Employed: | |||||||
(Segment Assets - Segment Liabilities) | |||||||
Treasury | 27,79,887 | 24,53,290 | 21,14,456 | 27,79,887 | 21,14,456 | 23,16,811 | |
Corporate/Wholesale Banking | 76,24,786 | 72,70,118 | 69,85,107 | 76,24,786 | 69,85,107 | 72,75,242 | |
Retail Banking | (82,03,465) | (78,81,704) | (75,38,536) | (82,03,465) | (75,38,536) | (78,36,296) | |
a) Digital Banking | (8,17,396) | (7,92,462) | (6,21,366) | (8,17,396) | (6,21,366) | (7,87,128) | |
b) Other Retail Banking | (73,86,069) | (70,89,242) | (69,17,170) | (73,86,069) | (69,17,170) | (70,49,168) | |
Other Banking operations | - | - | - | - | - | - | |
Unallocated | 4,10,675 | 3,95,810 | 4,13,850 | 4,10,675 | 4,13,850 | 3,94,867 | |
| Total | 26,11,883 | 22,37,514 | 19,74,877 | 26,11,883 | 19,74,877 | 21,50,624 |
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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.As per the RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022 on establishment of Digital Banking Unit (DBU), for the purpose of disclosure under 'Accounting Standard 17 - Segment Reporting', 'Digital Banking' has been identified as a sub-segment of the existing 'Retail Banking' segment by Reserve Bank of India (RBI). Accordingly the bank has disclosed the business involving digital banking products acquired by DBU, together with existing digital banking products, under the Digital Banking segment.The business operations of the Bank are substantially concentrated in India and for the purpose of Segment Reporting as per Accounting Standard-17, the bank is considered to operate only in domestic segment. | ||||||
Statement of Assets and Liabilities of the Bank as at September 30, 2023 is given below: | |||||||
(? in Lakhs) |
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Particulars | As at 30.09.2023 | As at 30.09.2022 | As at 31.03.2023 |
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Unaudited | Unaudited | Audited |
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CAPITAL AND LIABILITIES | |||||||
Capital | 47,032 | 42,191 | 42,324 | ||||
Reserves and Surplus | 25,64,851 | 19,32,686 | 21,08,300 | ||||
Deposits | 2,32,86,843 | 1,89,14,571 | 2,13,38,604 | ||||
Borrowings | 19,18,084 | 20,41,318 | 19,31,928 | ||||
Other Liabilities and Provisions | 9,25,792 | 7,80,477 | 6,13,027 | ||||
Total | 2,87,42,602 | 2,37,11,243 | 2,60,34,183 |
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ASSETS | |||||||
Cash and Balances with Reserve Bank of India | 15,00,131 | 12,65,431 | 12,59,085 | ||||
Balance with Banks and Money at Call and Short Notice | 4,98,462 | 2,33,946 | 5,09,783 | ||||
Investments | 55,16,914 | 43,57,131 | 48,98,335 | ||||
Advances | 1,92,81,669 | 1,61,24,032 | 1,74,44,688 | ||||
Fixed Assets | 93,754 | 71,693 | 93,397 | ||||
Other Assets | 18,51,672 | 16,59,010 | 18,28,895 | ||||
Total | 2,87,42,602 | 2,37,11,243 | 2,60,34,183 |
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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, 2023 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on October 16, 2023. These results have been subjected to limited review by the Joint Statutory Auditors of the Bank and an unqualified review report has been issued. | ||||||
2 | The Bank has consistently applied its significant accounting policies in the preparation of the interim financial results as those followed in the annual financial statements for the year ended March 31, 2023. | ||||||
3 | The financial results have been arrived at after considering provision for standard assets (including requirements for exposures to entities with unhedged foreign currency exposures), provision for Non-Performing Assets (NPAs), provision for non-performing investments, provision for income-tax and other usual and necessary provisions. | ||||||
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, recoveries from advances written off, etc. | ||||||
5 | 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. | ||||||
6 | During the quarter and half year ended September 30, 2023, the Bank has allotted 3,098,755 and 4,913,875 equity shares of ` 2 each respectively, pursuant to the exercise of stock options by employees. | ||||||
7 | During the quarter and half year September 30, 2023, the Bank has issued 230,477,634 equity shares of ` 2 each for cash pursuant to a Qualified Institution Placement (QIP) as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at ` 131.90 per share aggregating to ` 304,000.00 Lakhs (including share premium). This resulted in an increase of ` 4,609.55 Lakhs in Share Capital and ` 295,416.80 Lakhs (net of issue expenses) in Share premium account. | ||||||
8 | As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. 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 Joint Statutory Auditors of the Bank. | ||||||
9 | Details of resolution plan implemented under the Resolution Framework for COVID-19-related Stress as per RBI circular dated August 06, 2020 (Resolution Framework 1.0) and May 05, 2021 (Resolution Framework 2.0) are given below: | ||||||
(` in Lakhs) | |||||||
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 , 2023 (A) (1) | 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(2) | Exposure to accounts classified as Standard consequent to implementation of resolution plan - Position as at the end of this half-year ended September 30 , 2023 (1),(3) | ||
Personal Loans | 1,71,125.31 | 10,550.34 | - | 14,932.29 | 1,46,913.60 | ||
Corporate persons | 18,780.68 | 170.67 | - | 4,836.81 | 13,902.19 | ||
Of which, MSMEs | - | - | - | - | - | ||
Others | 26,890.61 | 1,145.23 | - | 3,771.09 | 22,325.98 | ||
Total | 2,16,796.60 | 11,866.24 | - | 23,540.19 | 1,83,141.77 | ||
| |||||||
1. Excludes other facilities to the borrowers which have not been restructured. | |||||||
2. Represents net movement in balance outstanding. | |||||||
3. Includes accounts which were classified as NPA earlier and subsequently upgraded to standard during the half year ended September 30, 2023. | |||||||
10 | Disclosures as per 'Master Direction - Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021' dated September 24, 2021 for the loans transferred / acquired during the half year ended September 30, 2023 are given below: | ||||||
i) Details of loans not in default acquired through assignment during the half year ended September 30, 2023 are given below: | |||||||
Particulars | Value | ||||||
Aggregate amount of loans acquired (` in lakhs) | 91,253.22 | ||||||
Weighted average residual maturity (in years) | 9.15 | ||||||
Weighted average holding period by originator (in years) | 1.35 | ||||||
Retention of beneficial economic interest by the originator (` in lakhs) | 10,139.25 | ||||||
Tangible security coverage | 172.30% | ||||||
The loans acquired are not rated as the same are to non-corporate borrowers. | |||||||
ii) Details of non-performing assets (NPAs) transferred are given below: | |||||||
(` in lakhs except number of accounts) | |||||||
Particulars | To ARCs | To Permitted Transferees | To other Transferees | ||||
Number of accounts | 6 | - | - | ||||
Aggregate principal outstanding of loans transferred | 1,824.09 | - | - | ||||
Weighted average residual tenor of the loans transferred (in years) | 1.83 | - | - | ||||
Net book value of loans transferred (at the time of transfer) | 167.77 | - | - | ||||
Aggregate consideration | 1,200.00 | - | - | ||||
Additional consideration realized in respect of accounts transferred in earlier years | - | - | - | ||||
Provisions reversed to the profit and loss account on account of sale of stressed loans | 492.29 | - | - | ||||
iii) During the half year ended September 30, 2023, the Bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA). | |||||||
iv) During the half year ended September 30, 2023, the Bank has invested `510.00 lakhs in Security Receipts (SR) issued by an Asset Reconstruction Company (ARC) pursuant to transfer of Non-Performing asset to ARC, which is unrated. | |||||||
11 | On October 11, 2023, the Bank has issued 72,682,048 equity shares of ` 2 each for cash pursuant to a Preferential Allotment as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at `131.91 per share aggregating to ` 95,874.89 Lakhs (including share premium). | ||||||
12 | The figures for the quarter ended June 30, 2023, quarter and half year ended September 30, 2022 and year ended March 31, 2023 were reviewed / audited by previous Joint Statutory Auditors. | ||||||
13 | Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification. | ||||||
SHYAM SRINIVASAN | |||||||
Kochi | MANAGING DIRECTOR & CEO | ||||||
October 16, 2023 | (DIN: 02274773) | ||||||
THE FEDERAL BANK LIMITED | ||
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | ||
(CIN: L65191KL1931PLC000368) | ||
STANDALONE UNAUDITED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2023 | ||
(? in Lakhs) | ||
Particulars | Half Year ended September 30, 2023 | Half Year ended September 30, 2022 |
Cash Flow from Operating Activities | ||
Net Profit Before Taxes | 2,42,732 | 1,75,107 |
Adjustments for: | ||
Depreciation on Bank's Property | 10,366 | 7,423 |
Provision / Depreciation on Investments | (1,958) | 1,537 |
Amortisation of Premium on Held to Maturity Investments | 8,645 | 8,687 |
Provision / Charge for Non Performing Advances | 24,250 | 35,500 |
Provision for Standard Assets and Contingencies | (3,900) | 8,104 |
(Profit)/Loss on Sale of Fixed Assets (net) | (156) | (5) |
Dividend From Subsidiaries / Associates | (1,525) | (771) |
Employees Stock Option Expense | 74 | 50 |
| 2,78,528 | 2,35,632 |
Adjustments for working capital changes:- | ||
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] | (2,36,878) | 50,081 |
(Increase)/ Decrease in Advances | (18,61,231) | (16,66,700) |
(Increase)/ Decrease in Other Assets | (19,714) | (1,40,188) |
Increase/ (Decrease) in Deposits | 19,48,239 | 7,44,512 |
Increase/ (Decrease) in Other Liabilities and Provisions | 3,16,666 | 2,66,496 |
1,47,082 | (7,45,799) | |
Direct taxes paid (net) | (65,039) | (44,069) |
Net Cash Flow from / (Used in) Operating Activities | 3,60,571 | (5,54,236) |
Cash Flow from Investing Activities | ||
Purchase of Fixed Assets | (10,795) | (15,820) |
Proceeds from Sale of Fixed Assets | 227 | 103 |
Dividend From Subsidiaries / Associates | 1,525 | 771 |
(Increase)/ Decrease in Held to Maturity Investments | (3,88,388) | (4,99,489) |
Net Cash generated / (Used in) Investing Activities | (3,97,431) | (5,14,435) |
Cash Flow from Financing Activities | ||
Proceeds from Issue of Share Capital | 4,708 | 140 |
Proceeds from Share Premium (Net of Share Issue Expenses) | 2,99,486 | 4,011 |
Proceeds from Issue of Subordinate Debt | - | - |
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) | (13,845) | 5,02,006 |
Dividend Paid | (23,491) | (37,866) |
Net Cash generated from Financing Activities | 2,66,858 | 4,68,291 |
|
|
|
Effect of Exchange Fluctuation on Translation Reserve | (273) | (1,278) |
Net Increase / (Decrease) in Cash and Cash Equivalents | 2,29,725 | (6,01,658) |
Cash and Cash Equivalents at the beginning of the period | 17,68,868 | 21,01,035 |
Cash and Cash Equivalents at the end of the period | 19,98,593 | 14,99,377 |
Note: |
| |
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. | ||
SHYAM SRINIVASAN | ||
Kochi | MANAGING DIRECTOR & CEO | |
October 16, 2023 | (DIN: 02274773) | |
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, 2023 | ||||||||
|
|
|
|
|
|
| (? in Lakhs) | |
Particulars | Quarter ended | Half Year ended | Year ended | |||||
30.09.2023 | 30.06.2023 | 30.09.2022 | 30.09.2023 | 30.09.2022 | 31.03.2023 | |||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |||
1. Interest earned (a)+(b)+(c)+(d) | 5,79,128 | 5,34,977 | 4,25,893 | 11,14,105 | 8,10,202 | 17,81,178 | ||
(a) | Interest/discount on advances/bills | 4,69,147 | 4,36,293 | 3,46,427 | 9,05,440 | 6,56,847 | 14,50,788 | |
(b) | Income on investments | 89,237 | 81,475 | 66,308 | 1,70,712 | 1,28,842 | 2,78,188 | |
(c) | Interest on balances with Reserve Bank of India and other inter bank funds | 9,028 | 7,093 | 6,017 | 16,121 | 10,497 | 20,625 | |
(d) | Others | 11,716 | 10,116 | 7,141 | 21,832 | 14,016 | 31,577 | |
2. Other income | 75,692 | 74,131 | 62,765 | 1,49,823 | 1,10,273 | 2,43,623 | ||
3. TOTAL INCOME (1+2) | 6,54,820 | 6,09,108 | 4,88,658 | 12,63,928 | 9,20,475 | 20,24,801 | ||
4. Interest expended | 3,54,414 | 3,25,451 | 2,34,904 | 6,79,865 | 4,45,280 | 9,97,524 | ||
5. Operating expenses (i)+(ii) | 1,60,378 | 1,46,944 | 1,25,639 | 3,07,322 | 2,43,219 | 5,21,120 | ||
(i) | Employees cost | 71,349 | 69,326 | 58,047 | 1,40,675 | 1,13,884 | 2,44,024 | |
(ii) | Other operating expenses | 89,029 | 77,618 | 67,592 | 1,66,647 | 1,29,335 | 2,77,096 | |
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies) | 5,14,792 | 4,72,395 | 3,60,543 | 9,87,187 | 6,88,499 | 15,18,644 | ||
7. OPERATING PROFIT (3-6) (Profit before provisions and contingencies) | 1,40,028 | 1,36,713 | 1,28,115 | 2,76,741 | 2,31,976 | 5,06,157 | ||
8. Provisions (other than tax) and contingencies | 5,757 | 16,469 | 28,452 | 22,226 | 45,973 | 79,863 | ||
9. Exceptional items | - | - | - | - | - | - | ||
10. Profit from Ordinary Activities before tax(7-8-9) | 1,34,271 | 1,20,244 | 99,663 | 2,54,515 | 1,86,003 | 4,26,294 | ||
11. Tax expense | 34,255 | 31,070 | 25,572 | 65,325 | 47,612 | 1,08,718 | ||
12. Net Profit from Ordinary Activities after tax (10-11) | 1,00,016 | 89,174 | 74,091 | 1,89,190 | 1,38,391 | 3,17,576 | ||
13. Extraordinary items (net of tax expense) | - | - | - | - | - | - | ||
14. Net Profit for the period (12-13) |
| 1,00,016 | 89,174 | 74,091 | 1,89,190 | 1,38,391 | 3,17,576 | |
15. Minority interest | 1,260 | 1,378 | 1,164 | 2,638 | 2,268 | 4,510 | ||
16. Share in Profit of Associates | 654 | 216 | 407 | 870 | 633 | 3,406 | ||
17. Consolidated Net Profit of the group(14-15+16) | 99,410 | 88,012 | 73,334 | 1,87,422 | 1,36,756 | 3,16,472 | ||
18. Paid-up Equity Share Capital(Face value ? 2/- per Equity Share) | 47,032 | 42,360 | 42,191 | 47,032 | 42,191 | 42,324 | ||
19. Reserves excluding Revaluation Reserve | 21,69,416 | |||||||
20. Analytical Ratios and Other Disclosures: | ||||||||
(i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | NIL | |
(ii) | Capital Adequacy ratio (%) | |||||||
Under Basel III | 15.92 | 14.72 | 14.30 | 15.92 | 14.30 | 15.24 | ||
(iii) | Earnings per Share (EPS) (in `) | |||||||
(a) Basic EPS (before and after extraordinary items) | 4.35* | 4.16* | 3.48* | 8.51* | 6.50* | 15.01 | ||
(b) Diluted EPS (before and after extraordinary items) | 4.29* | 4.11* | 3.45* | 8.40* | 6.44* | 14.85 | ||
(iv) | NPA Ratios | |||||||
a) Gross NPA | 4,61,712 | 4,61,079 | 4,17,310 | 4,61,712 | 4,17,310 | 4,34,352 | ||
b) Net NPA | 1,36,278 | 1,40,434 | 1,36,396 | 1,36,278 | 1,36,396 | 1,32,344 | ||
c) % of Gross NPA | 2.27 | 2.37 | 2.45 | 2.27 | 2.45 | 2.35 | ||
d) % of Net NPA | 0.68 | 0.74 | 0.82 | 0.68 | 0.82 | 0.73 | ||
(v) | Return on Assets (%) | 0.34* | 0.32* | 0.31* | 0.66* | 0.58* | 1.28 | |
* Not Annualised | ||||||||
Segment Information@ |
| ||||||
|
| (? in Lakhs) | |||||
Particulars | Quarter ended | Half Year ended | Year ended | ||||
30.09.2023 | 30.06.2023 | 30.09.2022 | 30.09.2023 | 30.09.2022 | 31.03.2023 | ||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
Segment Revenue: | |||||||
Treasury | 89,241 | 76,433 | 66,222 | 1,65,674 | 1,20,927 | 2,53,555 | |
Corporate/Wholesale Banking | 1,80,218 | 1,63,630 | 1,22,907 | 3,43,848 | 2,29,691 | 5,20,704 | |
Retail Banking | 3,78,773 | 3,64,558 | 2,94,019 | 7,43,331 | 5,60,624 | 12,28,710 | |
a) Digital Banking | 36,622 | 30,340 | 22,729 | 66,962 | 40,028 | 90,354 | |
b) Other Retail Banking | 3,42,151 | 3,34,218 | 2,71,290 | 6,76,369 | 5,20,596 | 11,38,356 | |
Other Banking operations | 6,485 | 4,347 | 5,331 | 10,832 | 9,012 | 21,225 | |
Unallocated | 103 | 140 | 179 | 243 | 221 | 607 | |
| Total Revenue | 6,54,820 | 6,09,108 | 4,88,658 | 12,63,928 | 9,20,475 | 20,24,801 |
Less: Inter Segment Revenue | - | - | - | - | - | - | |
| Income from Operations | 6,54,820 | 6,09,108 | 4,88,658 | 12,63,928 | 9,20,475 | 20,24,801 |
Segment Results (net of provisions): | |||||||
Treasury | 17,793 | 11,024 | 18,243 | 28,817 | 31,243 | 52,460 | |
Corporate/Wholesale Banking | 44,463 | 39,858 | 14,371 | 84,321 | 28,733 | 94,335 | |
Retail Banking | 66,419 | 66,019 | 62,871 | 1,32,438 | 1,19,115 | 2,61,538 | |
a) Digital Banking | 4,680 | 3,520 | 3,203 | 8,200 | 2,795 | 11,359 | |
b) Other Retail Banking | 61,739 | 62,499 | 59,668 | 1,24,238 | 1,16,320 | 2,50,179 | |
Other Banking operations | 5,494 | 3,203 | 3,999 | 8,697 | 6,691 | 15,817 | |
Unallocated | 102 | 140 | 179 | 242 | 221 | 2,144 | |
| Profit before tax | 1,34,271 | 1,20,244 | 99,663 | 2,54,515 | 1,86,003 | 4,26,294 |
Segment Assets: |
|
|
|
|
|
|
|
Treasury | 57,25,569 | 55,42,708 | 43,66,944 | 57,25,569 | 43,66,944 | 52,06,924 | |
Corporate/Wholesale Banking | 1,05,29,830 | 98,40,909 | 89,31,093 | 1,05,29,830 | 89,31,093 | 96,72,729 | |
Retail Banking | 1,26,26,779 | 1,21,32,226 | 1,02,55,021 | 1,26,26,779 | 1,02,55,021 | 1,12,56,964 | |
a) Digital Banking | 5,54,182 | 4,82,219 | 2,69,151 | 5,54,182 | 2,69,151 | 4,16,592 | |
b) Other Retail Banking | 1,20,72,597 | 1,16,50,007 | 99,85,870 | 1,20,72,597 | 99,85,870 | 1,08,40,372 | |
Other Banking operations | 351 | 1,413 | 851 | 351 | 851 | 1,313 | |
Unallocated | 7,22,279 | 7,09,865 | 7,79,609 | 7,22,279 | 7,79,609 | 6,62,476 | |
| Total | 2,96,04,808 | 2,82,27,121 | 2,43,33,518 | 2,96,04,808 | 2,43,33,518 | 2,68,00,406 |
Segment Liabilities: |
| ||||||
Treasury | 30,05,480 | 31,49,951 | 23,14,458 | 30,05,480 | 23,14,458 | 29,42,093 | |
Corporate/Wholesale Banking | 29,71,838 | 26,28,875 | 19,88,499 | 29,71,838 | 19,88,499 | 24,14,080 | |
Retail Banking | 2,05,96,656 | 1,97,95,561 | 1,76,03,969 | 2,05,96,656 | 1,76,03,969 | 1,89,28,892 | |
a) Digital Banking | 13,71,578 | 12,74,681 | 8,90,517 | 13,71,578 | 8,90,517 | 12,03,720 | |
b) Other Retail Banking | 1,92,25,078 | 1,85,20,880 | 1,67,13,452 | 1,92,25,078 | 1,67,13,452 | 1,77,25,172 | |
Other Banking operations | 356 | 330 | 483 | 356 | 483 | 294 | |
Unallocated | 3,11,604 | 3,14,055 | 3,65,759 | 3,11,604 | 3,65,759 | 2,67,609 | |
| Total | 2,68,85,934 | 2,58,88,772 | 2,22,73,168 | 2,68,85,934 | 2,22,73,168 | 2,45,52,968 |
Capital Employed: | |||||||
(Segment Assets - Segment Liabilities) | |||||||
Treasury | 27,20,089 | 23,92,757 | 20,52,486 | 27,20,089 | 20,52,486 | 22,64,831 | |
Corporate/Wholesale Banking | 75,57,992 | 72,12,034 | 69,42,594 | 75,57,992 | 69,42,594 | 72,58,649 | |
Retail Banking | (79,69,877) | (76,63,335) | (73,48,948) | (79,69,877) | (73,48,948) | (76,71,928) | |
a) Digital Banking | (8,17,396) | (7,92,462) | (6,21,366) | (8,17,396) | (6,21,366) | (7,87,128) | |
b) Other Retail Banking | (71,52,481) | (68,70,873) | (67,27,582) | (71,52,481) | (67,27,582) | (68,84,800) | |
Other Banking operations | (5) | 1,083 | 368 | (5) | 368 | 1,019 | |
Unallocated | 4,10,675 | 3,95,810 | 4,13,850 | 4,10,675 | 4,13,850 | 3,94,867 | |
| Total | 27,18,874 | 23,38,349 | 20,60,350 | 27,18,874 | 20,60,350 | 22,47,438 |
|
| ||||||
@ | 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.As per the RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022 on establishment of Digital Banking Unit (DBU), for the purpose of disclosure under 'Accounting Standard 17 - Segment Reporting', 'Digital Banking' has been identified as a sub-segment of the existing 'Retail Banking' segment by Reserve Bank of India (RBI). Accordingly the bank has disclosed the business involving digital banking products acquired by DBU, together with existing digital banking products, under the Digital Banking segment.The business operations of the Bank are substantially concentrated in India and for the purpose of Segment Reporting as per Accounting Standard-17, the bank is considered to operate only in domestic segment. | ||||||
Statement of Assets and Liabilities of the group as at September 30, 2023 is given below: | |||||||
(` in Lakhs) |
| ||||||
Particulars | As at 30.09.2023 | As at 30.09.2022 | As at 31.03.2023 |
| |||
Unaudited | Unaudited | Audited |
| ||||
CAPITAL AND LIABILITIES | |||||||
Capital | 47,032 | 42,191 | 42,324 | ||||
Reserves and Surplus | 26,33,166 | 19,85,210 | 21,69,917 | ||||
Minority Interest | 38,676 | 32,949 | 35,197 | ||||
Deposits | 2,32,83,278 | 1,89,11,141 | 2,12,98,850 | ||||
Borrowings | 26,35,991 | 25,49,788 | 25,86,198 | ||||
Other Liabilities and Provisions | 9,66,665 | 8,12,239 | 6,67,920 | ||||
Total | 2,96,04,808 | 2,43,33,518 | 2,68,00,406 |
| |||
ASSETS | |||||||
Cash and Balances with Reserve Bank of India | 15,01,697 | 12,67,727 | 12,60,424 | ||||
Balance with Banks and Money at Call and Short Notice | 5,90,148 | 2,43,013 | 5,19,969 | ||||
Investments | 54,91,392 | 43,30,736 | 48,70,224 | ||||
Advances | 2,00,38,969 | 1,67,29,924 | 1,81,95,675 | ||||
Fixed Assets | 98,326 | 75,546 | 97,171 | ||||
Other Assets | 18,84,276 | 16,86,572 | 18,56,943 | ||||
Total | 2,96,04,808 | 2,43,33,518 | 2,68,00,406 |
| |||
Notes: |
| ||||||
1 | The above Consolidated Unaudited Financial Results for the quarter and half year ended September 30, 2023 were reviewed by the Audit Committee and subsequently approved by the Board of Directors at its meeting held on October 16, 2023. These results have been subjected to limited review by the Joint Statutory Auditors of the Bank and an unqualified review report has been issued. | ||||||
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. | ||||||
3 | There has been no material change in the accounting policies adopted in the preparation of the interim financial results as compared to those followed for the year ended March 31, 2023. | ||||||
4 | The financial results have been arrived at after considering provision for standard assets (including requirements for exposures to entities with unhedged foreign currency exposures), provision for Non-Performing Assets (NPAs), provision for non-performing investments, provision for income-tax and other usual and necessary provisions. | ||||||
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, recoveries from advances written off etc. | ||||||
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. | ||||||
7 | As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. 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 Joint Statutory Auditors of the Bank. | ||||||
8 | During the quarter and half year September 30, 2023 , the Bank has issued 230,477,634 equity shares of ` 2 each for cash pursuant to a Qualified Institution Placement (QIP) as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at ` 131.90 per share aggregating to ` 304,000.00 Lakhs (including share premium). This resulted in an increase of ` 4,609.55 Lakhs in Share Capital and ` 295,416.80 Lakhs (net of issue expenses) in Share premium account. | ||||||
9 | The figures for the quarter ended June 30, 2023, quarter and half year ended September 30, 2022 and year ended March 31, 2023 were reviewed / audited by previous Joint Statutory Auditors. | ||||||
10 | Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification. | ||||||
SHYAM SRINIVASAN | |||||||
Kochi | MANAGING DIRECTOR & CEO | ||||||
October 16, 2023 | (DIN: 02274773) | ||||||
THE FEDERAL BANK LIMITED | ||
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | ||
(CIN: L65191KL1931PLC000368) | ||
CONSOLIDATED UNAUDITED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2023 | ||
| (? in Lakhs) | |
Particulars | Half Year ended September 30, 2023 | Half Year ended September 30, 2022 |
Cash Flow from Operating Activities | ||
Net Profit Before Taxes | 2,52,747 | 1,84,368 |
Adjustments for: | ||
Depreciation on Group's Property | 11,195 | 8,215 |
Provision / Depreciation on Investments | (1,954) | 1,502 |
Amortisation of Premium on Held to Maturity Investments | 8,645 | 8,686 |
Provision / Charge for Non Performing Advances | 27,307 | 39,576 |
Provision for Standard Assets and Contingencies | (4,679) | 6,582 |
(Profit)/ Loss on Sale of Fixed Assets (net) | (156) | (5) |
Employees Stock Option Expense | 38 | 49 |
| 2,93,143 | 2,48,973 |
Adjustments for working capital changes:- | ||
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] | (2,39,471) | 65,083 |
(Increase)/ Decrease in Advances | (18,70,601) | (17,74,354) |
(Increase)/ Decrease in Other Assets | (23,776) | (1,44,610) |
Increase/ (Decrease) in Deposits | 19,84,428 | 7,43,389 |
Increase/ (Decrease) in Other Liabilities and Provisions | 3,03,425 | 2,64,128 |
1,54,005 | (8,46,364) | |
Direct taxes paid (net) | (68,882) | (47,956) |
Net Cash Flow from / (Used in) Operating Activities | 3,78,266 | (6,45,347) |
Cash Flow from Investing Activities | ||
Purchase of Fixed Assets | (12,421) | (16,650) |
Proceeds from Sale of Fixed Assets | 228 | 105 |
(Increase)/ Decrease in Held to Maturity Investments | (3,88,388) | (4,99,489) |
Net Cash generated / (Used in) Investing Activities | (4,00,581) | (5,16,034) |
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Cash Flow from Financing Activities | ||
Proceeds from Issue of Share Capital | 4,708 | 140 |
Proceeds from Share Premium (Net of Share Issue Expenses) | 2,99,767 | 4,074 |
Increase / (Decrease) in Minority Interest | 3,264 | 2,390 |
Proceeds from Issue of Subordinate Debt | 20,000 | - |
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) | 29,793 | 5,91,049 |
Dividend Paid | (23,491) | (37,866) |
Net Cash generated from Financing Activities | 3,34,041 | 5,59,787 |
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Effect of Exchange Fluctuation on Translation Reserve | (274) | (1,277) |
Increase/(Decrease) in Cash and Cash Equivalents | 3,11,452 | (6,02,871) |
Cash and Cash Equivalents at the beginning of the period | 17,80,393 | 21,13,611 |
Cash and Cash Equivalents at the end of the period | 20,91,845 | 15,10,740 |
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 16, 2023 | (DIN: 02274773) | |