RNS Number : 2172R
Federal Bank Ltd (The)
03 November 2021
 

 

 

 

 

 

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

 

 

 

 

 

 

 

 (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)

      3,37,925

      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

 

 

 

 

 

    15,71,937

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

           14.97

           14.64

           14.64

               14.97

           14.64

           14.62

(iii)

Earnings per Share (EPS) (in `)

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

* Not Annualised

 

 

 

 

 

 

 

 

Segment Information@

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (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

 

Segment Revenue:

 

 

 

 

 

 

 

 

Treasury

            54,326

            78,225

            60,550

         1,32,551

         1,54,613

               2,75,372

 

 

Corporate/Wholesale Banking

         1,01,231

         1,03,955

         1,26,747

         2,05,186

         2,42,715

               4,47,616

 

 

Retail Banking

         2,26,737

         2,08,569

         2,06,429

         4,35,306

         3,89,944

               8,37,828

 

 

Other Banking operations

                    -  

                    -  

                    -  

                    -  

                    -  

                          -  

 

 

Unallocated

                   67

                    -  

                    -  

                   67

                    -  

                       244

 

 

Total Revenue

       3,82,361

       3,90,749

       3,93,726

       7,73,110

       7,87,272

           15,61,060

 

 

Less: Inter Segment Revenue

                    -  

                    -  

                    -  

                    -  

                    -  

                          -  

 

 

Income from Operations

       3,82,361

       3,90,749

       3,93,726

       7,73,110

       7,87,272

           15,61,060

 

Segment Results (net of provisions):

 

 

 

 

 

 

 

 

Treasury

              9,687

            37,914

              4,154

            47,601

            46,782

                  72,223

 

 

Corporate/Wholesale Banking

            19,299

             (2,535)

            15,063

            16,764

              6,914

                  22,275

 

 

Retail Banking

            32,893

            13,956

            22,230

            46,849

            41,529

               1,18,985

 

 

Other Banking operations

                    -  

                    -  

                    -  

                    -  

                    -  

                          -  

 

 

Unallocated

                   67

                    -  

                    -  

                   67

                    (2)

                       244

 

 

Profit before tax

          61,946

          49,335

          41,447

       1,11,281

          95,223

             2,13,727

 

Segment Assets

 

 

 

 

 

 

 

 

 

Treasury

       46,79,820

       46,11,516

       43,78,891

       46,79,820

       43,78,891

             45,25,111

 

 

Corporate/Wholesale Banking

       73,05,152

       70,66,184

       68,09,139

       73,05,152

       68,09,139

             71,46,590

 

 

Retail Banking

       80,36,690

       77,40,698

       69,37,457

       80,36,690

       69,37,457

             78,13,657

 

 

Other Banking operations

                    -  

                    -  

                    -  

                    -  

                    -  

                          -  

 

 

Unallocated

         6,65,763

         5,85,373

         7,77,184

         6,65,763

         7,77,184

               6,51,381

 

 

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

 

Segment Liabilities

 

 

 

 

 

 

 

 

 

Treasury

       11,95,828

       10,92,816

       13,05,303

       11,95,828

       13,05,303

             14,13,771

 

 

Corporate/Wholesale Banking

       16,96,051

       14,68,615

       14,05,908

       16,96,051

       14,05,908

             16,02,533

 

 

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

 

 

Other Banking operations

                    -  

                    -  

                    -  

                    -  

                    -  

                          -  

 

 

Unallocated

         2,35,977

         1,99,260

         2,06,312

         2,35,977

         2,06,312

               2,01,381

 

 

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

 

Capital Employed:

 

 

 

 

 

 

 

(Segment Assets - Segment Liabilities)

 

 

 

 

 

 

 

 

Treasury

       34,83,992

       35,18,700

       30,73,588

       34,83,992

       30,73,588

             31,11,340

 

 

Corporate/Wholesale Banking

       56,09,101

       55,97,569

       54,03,231

       56,09,101

       54,03,231

             55,44,057

 

 

Retail Banking

      (77,50,177)

      (78,53,530)

      (75,24,166)

      (77,50,177)

      (75,24,166)

            (74,93,036)

 

 

Other Banking operations

                    -  

                    -  

                    -  

                    -  

                    -  

                          -  

 

 

Unallocated

         4,29,786

         3,86,113

         5,70,872

         4,29,786

         5,70,872

               4,50,000

 

 

Total

     17,72,702

     16,48,852

     15,23,525

     17,72,702

     15,23,525

           16,12,361

 

@

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:

 

 

 

 

 

 

 

 

 

(Rs in Lakhs)

 

 

 

 

Particulars

As at 30.09.2021

As at 30.09.2020

As at 31.03.2021

 

 

 

 

Unaudited

Unaudited

Audited

 

 

 

 

CAPITAL AND LIABILITIES

 

 

 

 

 

 

 

Capital

42,030

39,893

39,923

 

 

 

 

Reserves and Surplus

17,30,672

14,83,632

15,72,438

 

 

 

 

Deposits

1,71,99,475

1,56,74,739

1,72,64,448

 

 

 

 

Borrowings

10,78,405

11,04,314

9,06,850

 

 

 

 

Other Liabilities and Provisions

6,36,843

6,00,093

3,53,080

 

 

 

 

Total

2,06,87,425

1,89,02,671

2,01,36,739

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash and Balances with Reserve Bank of India

8,48,561

6,11,989

7,64,704

 

 

 

 

Balance with Banks and Money at Call and Short Notice

13,50,488

13,52,867

11,94,435

 

 

 

 

Investments

36,97,673

36,25,263

37,18,621

 

 

 

 

Advances

1,34,40,463

1,22,91,199

1,31,87,860

 

 

 

 

Fixed Assets

54,833

45,717

49,113

 

 

 

 

Other Assets

12,95,407

9,75,636

12,22,006

 

 

 

 

Total

2,06,87,425

1,89,02,671

2,01,36,739

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

(` 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

 

 

 

 

 

 

 

 

 

 

 

Other Income

50,962

65,014

50,933

1,15,976

99,770

1,94,491

 

 

Total Income

3,88,887

4,00,586

3,99,723

7,89,473

7,92,975

15,70,282

 

 

Operating Profit

93,005

1,13,519

1,00,653

2,06,524

1,93,891

3,78,690

 

 

Provisions (other than tax) and contingencies

31,059

64,183

59,206

95,242

98,668

1,64,963

 

 

 

 

 

 

 

 

 

 

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

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.

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

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.

 

 

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

 

 

(` in lakhs except number of accounts)

 

 

 

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

 

 

 

Personal Loans

              4,025

       93,514.99

                    -  

                    -  

         9,351.50

 

 

 

Corporate persons

                     7

       14,249.46

                    -  

              90.65

         1,424.95

 

 

 

Of which, MSMEs

                    -  

                    -  

                    -  

                    -  

                    -  

 

 

 

Others

                   92

         4,619.94

                    -  

                    -  

            461.99

 

 

 

Total

              4,124

    1,12,384.39

                    -  

              90.65

       11,238.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Format - B

 

 

(` in lakhs except number of accounts)

 

 

 

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 #

 

 

 

Personal Loans

       95,316.43

         1,705.30

                    -  

         3,619.23

    2,05,112.29

 

 

 

Corporate persons

       14,249.46

                    -  

                    -  

         1,019.81

       14,137.66

 

 

 

Of which, MSMEs

                    -  

                    -  

                    -  

                    -  

                    -  

 

 

 

Others

         4,627.01

            174.36

                    -  

            572.86

       49,939.61

 

 

 

Total

    1,14,192.90

         1,879.66

                    -  

         5,211.90

    2,69,189.56

 

 

 

*includes restructuring implemented during the quarter ended June 30, 2021 under the Resolution Framework 1.0

 

 

#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.

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(` 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

(` in lakhs except number of accounts)

 

 

 

 

No. of Accounts

                 118

 

 

 

 

Aggregate Exposure as on September 30, 2021

         3,355.12

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

15

Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 SHYAM SRINIVASAN

 

Kochi

 

 MANAGING DIRECTOR & CEO

 

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

 

 

 

 

 

 

 

 (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

 

 

 

 

 

        16,09,799

20. Analytical Ratios

 

 

 

 

 

 

 

(i)

Percentage of shares held by Government of India

NIL

NIL

NIL

 NIL

 NIL

NIL

(ii)

Capital Adequacy ratio (%)

 

 

 

 

 

 

 

Under Basel III

           15.63

           15.36

           15.19

              15.63

              15.19

               15.19

(iii)

Earnings per Share (EPS) (in `)

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

* Not Annualised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Information@

 

 

 

 

 

 

 

 

 

 

 

 

 

 (` 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:

 

 

 

 

 

 

 

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):

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

(Segment Assets - Segment Liabilities)

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

(Rs in Lakhs)

 

 

 

Particulars

As at 30.09.2021

As at 30.09.2020

As at 31.03.2021

 

 

 

Unaudited

Unaudited

Audited

 

 

 

CAPITAL AND LIABILITIES

 

 

 

 

 

 

Capital

42,030

39,893

39,923

 

 

 

Reserves and Surplus

17,70,027

15,15,764

16,10,300

 

 

 

Minority Interest

27,947

18,660

21,673

 

 

 

Deposits

1,71,92,543

1,56,48,514

1,72,18,611

 

 

 

Borrowings

14,24,010

13,47,911

12,27,060

 

 

 

Other Liabilities and Provisions

6,61,598

6,12,430

3,79,086

 

 

 

Total

2,11,18,155

1,91,83,172

2,04,96,653

 

 

 

ASSETS

 

 

 

 

 

 

Cash and Balances with Reserve Bank of India

8,50,556

6,13,172

7,65,451

 

 

 

Balance with Banks and Money at Call and Short Notice

13,89,386

13,63,110

12,16,123

 

 

 

Investments

36,45,870

35,79,343

36,73,167

 

 

 

Advances

1,38,58,319

1,25,90,255

1,35,51,441

 

 

 

Fixed Assets

58,312

48,378

51,749

 

 

 

Other Assets

13,15,712

9,88,914

12,38,722

 

 

 

Total

2,11,18,155

1,91,83,172

2,04,96,653

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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 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.

 

 

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.

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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

 

 

(Rs in lakhs except number of accounts)

 

 

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

 

 

Personal Loans

               4,025

        93,514.99

                    -  

                    -  

          9,351.50

 

 

Corporate persons

                      7

        14,249.46

                    -  

               90.65

          1,424.95

 

 

Of which, MSMEs

                    -  

                    -  

                    -  

                    -  

                    -  

 

 

Others

                    92

          4,619.94

                    -  

                    -  

             461.99

 

 

Total

               4,124

     1,12,384.39

                    -  

               90.65

        11,238.44

 

 

 

 

 

 

 

 

 

 

Format - B

 

 

(Rs in lakhs except number of accounts)

 

 

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 #

 

 

Personal Loans

        95,316.43

          1,705.30

                    -  

          3,619.23

     2,05,112.29

 

 

Corporate persons

        14,249.46

                    -  

                    -  

          1,019.81

        14,137.66

 

 

Of which, MSMEs

                    -  

                    -  

                    -  

                    -  

                    -  

 

 

Others

          4,627.01

             174.36

                    -  

             572.86

        49,939.61

 

 

Total

     1,14,192.90

          1,879.66

                    -  

          5,211.90

     2,69,189.56

 

 

*includes restructuring implemented during the quarter ended June 30, 2021 under the Resolution Framework 1.0

 

 

#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.

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

(Rs in lakhs except number of accounts)

 

 

 

No. of Accounts

                  118

 

 

 

Aggregate Exposure as on September 30, 2021

          3,355.12

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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.

 

 

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.

 

 

 

 

 

 

 

 

16

Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 SHYAM SRINIVASAN

Kochi

 

 MANAGING DIRECTOR & CEO

October 22, 2021

 

 (DIN: 02274773)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(Rs in Lakhs)

 

Half Year ended
 September 30, 2021

Half Year ended
 September 30, 2020

Cash Flow from Operating Activities

 

 

Net Profit before taxes

                     1,11,281

                        95,223

Adjustments for:

 

 

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:-

 

 

(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

 

 

 

Cash Flow from Investing Activities

 

 

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)

 

 

 

Cash Flow from Financing Activities

 

 

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)

                             -  

 

 

 

Net Cash generated from Financing Activities

                         2,49,411

                            67,822

 

 

 

Effect of exchange fluctuation on translation reserve

                           (270)

                            174

 

 

 

Net Increase in Cash and Cash Equivalents

                         2,39,910

                         7,07,398

 

 

 

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

 

 

 

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 22, 2021

 (DIN: 02274773)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Net Profit before taxes

                    1,14,258

                       97,062

Adjustments for:

 

 

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:-

 

 

(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

 

 

 

Cash Flow from Investing Activities

 

 

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)

 

 

 

Cash Flow from Financing Activities

 

 

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)

                             -  

 

 

 

Net Cash generated  from financing Activities

                        2,81,080

                            96,454

 

 

 

Effect of exchange fluctuation on translation reserve

                          (270)

                           174

 

 

 

Increase/(Decrease) in Cash and Cash Equivalents

                        2,58,369

                        7,00,551

 

 

 

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

 

 

 

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 22, 2021

 (DIN: 02274773)

 

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