SD/ 28 /2022-23                                                                                         May 11, 2022

                                                     

To,

The London Stock Exchange

 

 

Dear Sir,

 

We enclose herewith the Audited Financial Results of the Bank for the quarter and financial year ended March 31, 2022 (both standalone and consolidated) along with Audit 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 May 06,2022.

 

 

Kindly take the same on your record.

 

For The Federal Bank Limited

 

Sd/-

Samir P Rajdev

Company Secretary

 

 

 

 

 

 

 

 

 

 

Varma & Varma Chartered Accountants, No.53/2600, Kerala Varma Tower Off Kunjanbava Road, Vytilla, Kochi -682019

Borkar & Muzumdar, Chartered Accountants, 21/168 Anand Nagar Om C.H.S, Anand Nagar Lane, Off Nehru Road, Santacruz (East) Mumbai - 400 055

 

 

Independent Auditors' report on audited standalone quarterly and year ended financial results of The Federal Bank Limited pursuant to the Regulation 33 and Regulation 52 read with 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

 

To

The Board of Directors

The Federal Bank Limited

 

Opinion

 

1.    We have audited the accompanying standalone Financial Results of The Federal Bank Limited ("the Bank") for the quarter and year ended 31^st March 2022 ('Financial Results') attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements)  Regulations,  2015,  as  amended  ("Listing  Regulations"),  except  for  the disclosures relating to Pillar 3 disclosure as at 31^st March 2022, 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 standalone Financial Results and have not been audited by us.

 

2.    In our opinion and to the best of our information and according to the explanations given to us, these standalone Financial Results:

 

i.     are   presented   in   accordance   with   the   requirements   of   Regulation   33  and Regulation 52 read with Regulation 63(2) of   the Listing Regulations  in  this  regard  except  for  the  disclosures  relating  to  Pillar 3 disclosure as at 31^st March 2022, 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 standalone Financial Results and have not been audited by us; and

 

ii.    give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards, RBI guidelines and other accounting principles generally accepted in India, of the net profit and other financial information for the quarter and year ended 31^st March 2022.

 

Basis for Opinion

 

3.    We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. ("the Act"). Our responsibilities under those Standards are further described in the Auditors' Responsibilities for the Audit of the standalone Financial Results section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone Financial Results, and we have fulfilled our  other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

 

Emphasis of Matter

 

4.    We draw attention to Note No.9 of the accompanying standalone Financial Results, regarding the impact of COVID-19 pandemic on the Bank's Financial Results for the quarter and year ended 31^st March 2022. As stated therein, in view of continuing uncertainties, the extent of impact of the pandemic on the Bank's operations and financial position would depend on several factors including actions taken to mitigate its impact and other regulatory measures.

 

Our opinion is not modified in respect of this matter.

 

Board of Directors responsibilities for the standalone financial results.

 

5.    The Bank's Board of Directors are responsible for the preparation of these standalone Financial Results that give a true and fair view of the net profit and other financial information in accordance with the recognition and measurement principles laid down in the Accounting  Standards specified under section 133 of the Act,  the  relevant  provisions  of  the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank  of  India  (RBI)  from  time  to  time  ("RBI  Guidelines")  and  other  accounting  principles generally accepted in India and in compliance with Regulation 33 and Regulation 52 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act/RBI Guidelines for safeguarding of the assets of  the  Bank  and  for  preventing  and  detecting  frauds  and  other  irregularities;  selection  and application  of  appropriate  accounting  policies;  making  judgments  and  estimates  that  are reasonable  and  prudent;  and  design,  implementation  and  maintenance  of  adequate  internal financial controls that were operating effectively for ensuring the accuracy and completeness of  the  accounting  records,  relevant  to  the  preparation  and  presentation  of  the standalone Financial Results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

 

6.    In preparing the standalone Financial Results, the Board of Directors are responsible for assessing the Bank's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

 

7.    The Board of Directors is also responsible for overseeing the Bank's financial reporting process.

 

Auditors' Responsibilities for the Audit of the standalone Financial Results

 

8.    Our objectives are to obtain reasonable assurance about whether the standalone Financial Results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance; but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone Financial Results. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 

·      Identify and assess the risks of material misstatement of the standalone Financial Results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

·      Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Bank has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls.

 

·      Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

 

·      Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the standalone Financial Results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

 

·      Evaluate the overall presentation, structure, and content of the standalone Financial Results, including the disclosures, and whether the standalone Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

 

9.    We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

10.  We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

 

Other Matters

11.  These standalone Financial Results incorporate the relevant returns of 331 branches audited by the branch auditors. The branches audited by such branch auditors cover 15.80% of advances, 26.11% of deposits and 23.33% of Non-performing assets (Net) as on 31^st March 2022 and 13.89% / 13.27% of revenue for the quarter/year ended 31^st March 2022. Our opinion on the standalone Financial Results of the Bank, in so far as it relates to the amounts and disclosures included in respect of such branches, is based solely on the reports of such branch auditors.

 

12.  The standalone Financial Results includes the results for the quarter ended 31^st March 2022, being the derived balancing figures between the standalone audited figures in respect of the full financial year ended 31^st March 2022 and the published standalone unaudited year to date figures upto the nine months ended 31^st December 2021, of the current financial year which have only been reviewed and not subjected to audit by us.

 

 

 

Our opinion on the standalone financial results is not modified in respect of above matters.

 

 

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: 22203094AIMWIG7238                                UDIN: 22100938AIMWUM1658

Kochi                                                                          Kochi

06^th May 2022                                                            06^th May 2022

 

 

 

 

 

 

 

 

 

 

 

 

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2022
						(Rs in Lakhs)
Particulars		Quarter ended			Year ended
		31.03.2022	31.12.2021	31.03.2021	31.03.2022	31.03.2021
		Audited (Refer Note 15 below)	Unaudited	Audited (Refer Note 15 below)	Audited	Audited
1. Interest earned (a)+(b)+(c)+(d)		3,48,324	3,44,256	3,36,634	13,66,076	13,75,791
(a)	Interest/discount on advances/bills	2,75,446	2,72,927	2,65,844	10,82,975	10,79,512
(b)	Income on investments	59,290	57,402	57,669	2,33,867	2,34,894
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	5,614	6,089	6,620	22,027	36,817
(d)	Others	7,974	7,838	6,501	27,207	24,568
2. Other income		46,500	48,419	47,753	2,08,909	1,95,870
3. TOTAL INCOME (1+2)		3,94,824	3,92,675	3,84,387	15,74,985	15,71,661
4. Interest expended		1,95,803	1,90,366	1,94,596	7,69,880	8,22,420
5. Operating expenses (i)+(ii)		1,19,201	1,10,880	1,00,066	4,29,320	3,69,172
(i)	Employees cost	63,725	58,307	52,523	2,32,055	2,03,418
(ii)	Other operating expenses	55,476	52,573	47,543	1,97,265	1,65,754
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies)		3,15,004	3,01,246	2,94,662	11,99,200	11,91,592
7. OPERATING PROFIT (3-6)  (Profit before provisions and contingencies)		79,820	91,429	89,725	3,75,785	3,80,069
8. Provisions (other than tax) and contingencies		7,524	21,398	25,449	1,22,177	1,66,342
9. Exceptional items		-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		72,296	70,031	64,276	2,53,608	2,13,727
11. Tax expense		18,242	17,858	16,495	64,626	54,697
12. Net Profit from Ordinary Activities after tax  (10-11)		54,054	52,173	47,781	1,88,982	1,59,030
13. Extraordinary items (net of tax expense)		-	-	-	-	-
14. Net Profit for the period (12-13)		54,054	52,173	47,781	1,88,982	1,59,030
15. Paid-up Equity Share Capital (Face value Rs. 2/- per Equity Share)		42,051	42,041	39,923	42,051	39,923
16. Reserves excluding Revaluation Reserve					18,36,832	15,72,023
17. Analytical Ratios and Other Disclosures:
(i)	Percentage of shares held by Government of India	NIL	NIL	NIL	NIL	NIL
(ii)	Capital Adequacy ratio (%)
	Under Basel III	15.77	14.37	14.62	15.77	14.62
(iii)	Earnings per Share (EPS) (in `)
	(a) Basic EPS  (before and after extraordinary items)	2.57*	2.48*	2.39*	9.13	7.97
	(b) Diluted EPS (before and after extraordinary items)	2.55*	2.46*	2.38*	9.06	7.94
(iv)	NPA Ratios
	a) Gross NPA	4,13,674	4,40,126	4,60,239	4,13,674	4,60,239
	b) Net NPA	1,39,262	1,47,118	1,56,928	1,39,262	1,56,928
	c) % of Gross NPA	2.80	3.06	3.41	2.80	3.41
	d) % of Net NPA	0.96	1.05	1.19	0.96	1.19
(v)	Return on Assets (%)	0.25*	0.26*	0.25*	0.94	0.85
(vi)	Net Worth	18,66,098	18,08,919	16,11,120	18,66,098	16,11,120
(vii)	Outstanding Redeemable Preference Shares	NIL	NIL	NIL	NIL	NIL
(viii)	Capital Redemption Reserve	NIL	NIL	NIL	NIL	NIL
(ix)	Debenture Redemption Reserve	NIL	NIL	NIL	NIL	NIL
(x)	Debt - Equity Ratio #	0.82	0.45	0.56	0.82	0.56
(xi)	Total Debts to Total Assets (%) #	6.97%	3.90%	4.50%	6.97%	4.50%
(xii)	Operating Margin (%)	20.22%	23.28%	23.34%	23.86%	24.18%
(xiii)	Net Profit Margin (%)	13.69%	13.29%	12.43%	12.00%	10.12%
* Not Annualised
# Debt and Total Debts represents Total Borrowings of the Bank

 

 

Segment Information@
						(Rs in Lakhs)
Particulars		Quarter ended			Year ended
		31.03.2022	31.12.2021	31.03.2021	31.03.2022	31.03.2021
		Audited (Refer Note 15 below)	Unaudited	Audited (Refer Note 15 below)	Audited	Audited
Segment Revenue:
	Treasury	49,475	52,104	58,808	2,35,130	2,75,375
	Corporate/Wholesale Banking	1,03,851	1,04,829	1,03,540	4,26,734	4,56,152
	Retail Banking	2,36,429	2,30,357	2,18,695	8,98,700	8,31,690
	Other Banking operations	3,400	3,500	3,100	10,800	8,200
	Unallocated	1,669	1,885	244	3,621	244
	Total Revenue	3,94,824	3,92,675	3,84,387	15,74,985	15,71,661
	Less: Inter Segment Revenue	-	-	-	-	-
	Income from Operations	3,94,824	3,92,675	3,84,387	15,74,985	15,71,661
Segment Results (net of provisions):
	Treasury	5,512	11,022	13,207	64,135	72,223
	Corporate/Wholesale Banking	17,497	21,396	17,355	55,657	22,275
	Retail Banking	38,438	32,753	30,835	1,21,015	1,12,015
	Other Banking operations	9,180	2,975	2,635	9,180	6,970
	Unallocated	1,669	1,885	244	3,621	244
	Profit before tax	72,296	70,031	64,276	2,53,608	2,13,727
Segment Assets
	Treasury	47,68,440	41,05,806	45,25,111	47,68,440	45,25,111
	Corporate/Wholesale Banking	78,58,857	77,61,124	71,46,590	78,58,857	71,46,590
	Retail Banking	87,98,646	83,65,479	78,13,657	87,98,646	78,13,657
	Other Banking operations	-	-	-	-	-
	Unallocated	6,68,688	6,55,228	6,51,381	6,68,688	6,51,381
	Total	2,20,94,631	2,08,87,637	2,01,36,739	2,20,94,631	2,01,36,739
Segment Liabilities
	Treasury	18,02,189	10,66,903	14,13,771	18,02,189	14,13,771
	Corporate/Wholesale Banking	18,67,906	16,70,529	16,02,533	18,67,906	16,02,533
	Retail Banking	1,62,98,555	1,60,75,581	1,53,06,693	1,62,98,555	1,53,06,693
	Other Banking operations	-	-	-	-	-
	Unallocated	2,46,597	2,49,306	2,01,295	2,46,597	2,01,295
	Total	2,02,15,247	1,90,62,319	1,85,24,292	2,02,15,247	1,85,24,292
Capital Employed:
(Segment Assets - Segment Liabilities)
	Treasury	29,66,251	30,38,903	31,11,340	29,66,251	31,11,340
	Corporate/Wholesale Banking	59,90,951	60,90,595	55,44,057	59,90,951	55,44,057
	Retail Banking	(74,99,909)	(77,10,102)	(74,93,036)	(74,99,909)	(74,93,036)
	Other Banking operations	-	-	-	-	-
	Unallocated	4,22,091	4,05,922	4,50,086	4,22,091	4,50,086
	Total	18,79,384	18,25,318	16,12,447	18,79,384	16,12,447
@	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. 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 on March 31, 2022 is given below:
				(Rs in Lakhs)
	Particulars		As at 31.03.2022	As at 31.03.2021
			Audited	Audited
	CAPITAL AND LIABILITIES
	Capital		42,051	39,923
	Reserves and Surplus		18,37,333	15,72,524
	Deposits		1,81,70,059	1,72,64,448
	Borrowings		15,39,311	9,06,850
	Other Liabilities and Provisions		5,05,877	3,52,994
	Total		2,20,94,631	2,01,36,739
	ASSETS
	Cash and Balances with Reserve Bank of India		9,99,927	7,64,704
	Balance with Banks and Money at Call and Short Notice		11,01,108	11,94,435
	Investments		39,17,946	37,18,621
	Advances		1,44,92,833	1,31,87,860
	Fixed Assets		63,394	49,113
	Other Assets		15,19,423	12,22,006
	Total		2,20,94,631	2,01,36,739
Notes:
1	The above Standalone Financial Results for the quarter and year ended March 31, 2022 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on May 06, 2022. These Results have been subjected to "Audit" by the Statutory Central Auditors of the Bank and an unqualified audit report has been issued.
2	The Bank has not made any changes in the significant accounting policies applied in the preparation of the quarterly financial results and its annual financial statements for the years ended March 31, 2022 and March 31, 2021 having a material impact on the results.
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 year ended March 31, 2022, the Bank has allotted 517,931 and 1,547,231 equity shares of ` 2 each respectively, pursuant to the exercise of stock options by employees. On August 30, 2021, RBI issued a clarification on Guidelines on Compensation of Whole Time Directors/Chief Executive Officers /Material Risk Takers and Control Function Staff. advising banks that the share-linked instruments are required to be fair valued on the date of grant using the Black-Scholes model. The fair value thus arrived should be recognised as an expense for all options granted after the accounting period ending March 31, 2021, over the vesting period. Accordingly, Bank has estimated the fair value of such stock-based compensations on the date of grant using Black-Scholes model (as against intrinsic value method adopted earlier) and recognised the same as an expense over the vesting period, which does not have a material impact on the results for the quarter/ year ended March 31, 2022
7	In accordance with RBI Circular  DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015, 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' and RBI Circular DBR.BP.BC.No.106/21.04.098/2017-18 dated May 17, 2018 - 'Basel III Framework on Liquidity Standards - Net Stable Funding Ratio (NSFR) - Final Guidelines', 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.
8	During the quarter ended September 30, 2021 , the Bank had issued 104,846,394 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 at ` 87.39 per share aggregating to ` 91,625.26 Lakhs (including share premium). This resulted in an increase of ` 2,096.93 Lakhs in Share Capital and   ` 89,476.54 Lakhs (Net of share issue expenses) in Share premium account.
9	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.
10	The Board of Directors have recommended a dividend of 90% i.e. ` 1.80/- per Equity Share on face value of ` 2/- each for the year 2021-22 (Previous Year ` 0.70/- per Equity Share) subject to the approval of the members at the ensuing Annual General Meeting. In terms of Accounting Standard (AS) 4 "Contingencies  and Events occurring after the Balance sheet date" the Bank has not appropriated proposed dividend aggregating to ` 37,845.79 Lakhs from the Profit and loss account for the year ended March 31, 2022. However the effect of the proposed dividend has been reckoned in determining capital funds in the computation of Capital adequacy ratio as on March 31, 2022.
11	i) Details of resolution plan implemented under the Resolution Framework for COVID-19-related Stress as per RBI circular dated August 6, 2020 (Resolution Framework 1.0) and May 05,2021 (Resolution Framework 2.0) are given below:
				(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 September 30 , 2021 (A) (1,3)	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 March 31 , 2022 (3)
	Personal Loans	2,14,698.84	4,312.20	-	1,929.05	2,09,370.59
	Corporate persons	19,841.14	-	-	11.41	19,829.73
	Of which, MSMEs	-	-	-	-	-
	Others	56,943.89	1,909.32	-	15,114.82	39,990.28
	Total	2,91,483.87	6,221.52	-	17,055.28	2,69,190.60
	1. Includes restructuring done in respect of requests received as of September 30,2021 processed subsequently
	2. Represents net movement in balance outstanding
	3. Excludes other facilities to the borrowes which have not been restructured.
	ii) 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				190
	Aggregate Exposure as on March 31, 2022				7,851.86
	iii)During the year ended March 31, 2022, based on internal assessment, the Bank has created additional provision over and above the regulatory minimum provision required for restructured advances, against the accounts restructured under the resolution frameworks. As on March 31, 2022, the bank holds ` 13,939.00 Lakhs provision against the accounts restructured under the resolution frameworks over and above the regulatory minimum provision required for restructured advances.
12	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 year ended March 31, 2022 are given below:
	i) Details of loans not in default acquired through assignment are given below:
	Aggregate amount of loans acquired (` in lakhs)				10,826.85
	Weighted average residual maturity (in years)				2.46
	Weighted average holding period by originator (in years)				1.20
	Retention of beneficial economic interest by the originator (` in lakhs)				1,202.98
	Tangible security coverage				Unsecured loans
	The loans acquired are not rated as the same are to non-corporate borrowers.
	ii) Details of non-performing assets (NPAs) (excluding prudentially written off advances) transferred are given below:
				(Rs in lakhs except number of accounts)
					To ARCs	To other Transferees
	Number of accounts				44	-
	Aggregate principal outstanding of loans transferred				27,547.06	-
	Weighted average residual tenor of the loans transferred (in years)				7.44	-
	Net book value of loans transferred (at the time of transfer)				6,995.57	-
	Aggregate consideration				15,826.48	-
	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				8,830.91	-
	iii) During the year ended March 31, 2022, the bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA).
	iv) During the year ended March 31, 2022, the bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of stressed loans transferred to ARCs.
13	As permitted vide letter dated October 4, 2021 issued by RBI, during the quarter ended September 30, 2021  the Bank had opted to amortize the liability on account of revision in family pension for employees covered under the 11th Bipartite Settlement and Joint Note dated November 11, 2020, over a period not exceeding five years beginning with the financial year ended March 31, 2022, subject to 1/5 of  the liability being expensed every financial year. Accordingly, during the nine months ended December 31, 2021, the Bank had charged  ` 2,364.21 Lakhs to the Profit and Loss account and the balance unamortised expenditure amounting to ` 15,367.34 Lakhs was carried forward. During the quarter ended March 31, 2022, the bank has opted to charge the entire balance unamortised family pension expenditure of ` 15,367.34 lakhs to the Profit and Loss Account.
14	The bank has raised ` 70,000.00 Lakhs Tier II capital on January 20, 2022, by way of issuance of unsecured Basel III compliant Tier II Bonds on private placement basis.
15	The figures of the last quarter are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the respective financial year, which was subjected to limited review.
16	Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification and also the amounts / ratios for the previous period / year have been regrouped /reclassified pursuant to the requirement of Master Direction on financial statements - Presentation and disclosure issued by Reserve Bank of India dated August 30, 2021 (updated as on November 15, 2021), as amended and wherever considered necessary.
			SHYAM SRINIVASAN
Kochi			MANAGING DIRECTOR & CEO
May 06, 2022			(DIN: 02274773)

 

 

 

 

 

 

 

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022
		(Rs. in Lakhs)
	Year ended  March 31, 2022	Year ended  March 31, 2021
Cash Flow from Operating Activities
Net Profit Before Taxes	2,53,608	2,13,727
Adjustments for:
Depreciation on Bank's Property	12,296	10,450
Provision / Depreciation on Investments	7,979	1,511
Amortisation of Premium on Held to Maturity Investments	16,923	14,219
Provision / Charge for Non Performing Advances	61,111	1,51,573
Provision for Standard Assets and Contingencies	61,222	11,879
(Profit)/Loss on Sale of Fixed Assets (net)	(531)	(178)
Dividend From Subsidiaries / Joint ventures / Associates	(2,767)	-
Employees Stock Option Expense	51	1
	4,09,892	4,03,182
Adjustments for working capital changes:-
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments]	(3,28,778)	2,33,748
(Increase)/ Decrease in Advances	(13,66,084)	(11,12,641)
(Increase)/ Decrease in Other Assets	(2,79,436)	(2,74,050)
Increase/ (Decrease) in Deposits	9,05,611	20,35,439
Increase/ (Decrease) in Other Liabilities and Provisions	93,340	(5,159)
	(9,75,347)	8,77,337
Direct taxes paid (net)	(84,286)	(59,799)
Net Cash Flow from / (Used in) Operating Activities	(6,49,741)	12,20,720
Cash Flow from Investing Activities
Purchase of Fixed Assets	(26,770)	(11,779)
Proceeds from Sale of Fixed Assets	724	392
Dividend From Subsidiaries / Joint ventures / Associates	2,767	-
Investment in Subsidiary	(14,799)	5,861
Investment in Associate	(241)	80
(Increase)/ Decrease in Held to Maturity Investments	1,19,591	(3,84,772)
Net Cash generated / (Used in) Investing Activities	81,272	(3,90,218)
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital	2,128	70
Proceeds from Share Premium (Net of Share Issue Expenses)	90,385	1,310
Proceeds from Issue of Subordinate Debt	70,000	-
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt)	5,62,461	(1,30,392)
Dividend Paid	(13,974)	-
Net Cash generated from Financing Activities	7,11,000	(1,29,012)
Effect of Exchange Fluctuation on Translation Reserve	(635)	191
Net Increase in Cash and Cash Equivalents	1,41,896	7,01,681
Cash and Cash Equivalents at the beginning of the year	19,59,139	12,57,458
Cash and Cash Equivalents at the end of the year	21,01,035	19,59,139
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
May 06, 2022	(DIN: 02274773)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Varma & Varma Chartered Accountants, No.53/2600, Kerala Varma Tower Off Kunjanbava Road, Vytilla, Kochi -682019

Borkar & Muzumdar, Chartered Accountants, 21/168 Anand Nagar Om C.H.S, Anand Nagar Lane, Off Nehru Road, Santacruz (East) Mumbai - 400 055

 

Independent Auditors' report on Audited Consolidated quarterly and year ended Financial Results of The Federal Bank Limited pursuant to the Regulation 33 and Regulation 52 read with 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

 

To

The Board of Directors

The Federal Bank Limited

 

Opinion

 

1.   We have audited the accompanying Statement of Consolidated  Financial Results of The Federal Bank Limited ("the Bank"), its subsidiaries  (the parent and its subsidiaries together referred to as 'the Group') and its associates for the quarter and year ended 31^st March 2022 ('Consolidated Financial Results'), being submitted by the Bank pursuant to the requirements of Regulation 33 and Regulation 52 read with 63(2) of the SEBI (Listing Obligations and Disclosure Requirements)  Regulations,  2015,  as  amended  ("Listing  Regulations"),  except  for  the disclosures relating to Pillar 3 disclosure as at 31^st March 2022, 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 Financial Results and have not been audited by us.

 

2.    In our opinion and to the best of our information and according to the explanations given to us, and based on consideration of reports of the  other auditors on separate audited financial statements/financial results/financial information of the subsidiaries and associates, these consolidated Financial Results:

iii.      include the annual audited financial results of the following entities;

a.   The Federal Bank Limited ( Parent)

b.   Fedbank Financial Services Limited (Subsidiary)

c.   Federal Operations and Services Limited (Subsidiary)

d.  Ageas Federal Life Insurance Company Limited (Associate)

e.   Equirus Capital Private Limited (Associate)

 

iv.     are   presented   in   accordance   with   the   requirements   of   Regulation   33  and Regulation 52 read with 63(2) of   the Listing  Regulations  in  this  regard  except  for  the  disclosures  relating  to  Pillar 3 disclosure as at 31^st March 2022, 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 consolidated Financial Results and have not been audited by us; and

 

v.      give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards, RBI guidelines and other accounting principles  generally  accepted  in  India  of  the consolidated net  profit and other financial information of the Group and its associates for the quarter and year ended 31^st March 2022.

 

Basis for Opinion

 

3.    We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. ("the Act"). Our responsibilities under those Standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Results section of our report. We are independent of the Group and its associates in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Consolidated Financial Results, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and other auditors in terms of their report referred to in "Other Matter" paragraph below, is sufficient and appropriate to provide a basis for our opinion.

 

Emphasis of Matter

 

4.    We draw attention to Note No. 9 of the accompanying Consolidated Financial Results, regarding the impact of COVID-19 pandemic in the accounts for the quarter and year ended 31st March 2022. As stated therein, in view of continuing uncertainties, the extent of impact of the pandemic on the Bank's operations and financial position would depend on various aspects including actions taken to mitigate its impact and other regulatory measures.

 

Our opinion is not modified in respect of this matter.

 

Board of Directors responsibilities for the Consolidated Financial Results

 

5.    The Bank's Board of Directors are responsible for the preparation of these Consolidated Financial Results that give a true and fair view of the consolidated net profit and other financial information of the Group including its associates in accordance with the recognition and measurement principles laid down in the Accounting  Standards specified under section 133 of the Act,  the  relevant  provisions  of  the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank  of  India  (RBI)  from  time  to  time  ("RBI  Guidelines")  and  other  accounting  principles generally accepted in India and in compliance with Regulation 33 and Regulation 52 of the Listing Regulations. The respective Board of Directors of the entities included in the Group and of its associates are responsible for the maintenance of adequate accounting records in accordance with the provisions of the Act/RBI Guidelines for safeguarding of the assets of  the  Group and its associates  and  for  preventing  and  detecting  frauds  and  other  irregularities;  selection  and application  of  appropriate  accounting  policies;  making  judgments  and  estimates  that  are reasonable  and  prudent;  and  design,  implementation  and  maintenance  of  adequate  internal financial controls that were operating effectively for ensuring the accuracy and completeness of  the  accounting  records,  relevant  to  the  preparation  and  presentation  of  the consolidated Financial Results that give a true and fair view and are free from material misstatement, whether due to fraud or error which have been used for the purpose of preparation of the Consolidated Financial Results by the Directors of the Bank, as aforesaid.

 

6.    In preparing the Consolidated Financial Results, the respective Board of Directors of the entities included in the Group and of its associates are responsible for assessing the ability of the Group and  its associates  to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group and its associates or to cease operations, or has no realistic alternative but to do so.

 

7.    The respective Board of Directors of the entities included in the Group and of its associates are responsible for overseeing the financial reporting process of the Group and of its associates.

 

Auditors' Responsibilities for the Audit of the Consolidated Financial Results

 

8.    Our objectives are to obtain reasonable assurance about whether the consolidated Financial Results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated Financial Results. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 

·        Identify and assess the risks of material misstatement of the consolidated Financial Results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

·        Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Bank has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls.

 

·        Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

 

·        Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and of its associates to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated Financial Results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group and its associates to cease to continue as a going concern.

 

·        Evaluate the overall presentation, structure, and content of the consolidated Financial Results, including the disclosures, and whether the consolidated Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

 

·        Obtain sufficient appropriate audit evidence regarding the financial results/ financial information of the entities within the Group and its associates to express an opinion on the Consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Consolidated Financial Results of which we are the independent auditors. For the other entities included in the Consolidated Financial Results, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

 

9.    We communicate with those charged with governance of the Bank and such other entities included in the consolidated results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

10.  We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

 

11.  We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.

 

Other Matters

12.  These Consolidated Financial Results incorporate the relevant returns of 331 branches of the Bank audited by the branch auditors, whose reports have been furnished to us by the management. The branches audited by such branch auditors of the Bank cover 15.80% of advances, 26.11% of deposits and 23.33% of Non-performing assets (Net) as on 31^st March 2022 and 13.89% / 13.27% of revenue for the quarter/year ended 31^st March 2022 of the Bank. Our opinion on the Consolidated Financial Results of the Bank, in so far as it relates to the amounts and disclosures included in respect of such branches, is based solely on the reports of such branch auditors.

 

13.  The Consolidated Financial Results include the audited financial results of one subsidiary, whose financial statements/financial results/financial information reflect total assets of Rs. 1,982.53 lakhs as at 31^st March 2022, total revenues of Rs. 4,409.56 lakhs and total net profit after tax of Rs. 345.50 lakhs for the year ended 31^st March 2022, and net cash inflow amounting to Rs 370.53 lakhs for the year ended on that date, as considered in the Consolidated Financial Results have been audited by one of the joint auditors of the Bank whose reports have been furnished to us by the management. The Consolidated Financial Results also include the audited financial results of one subsidiary, whose financial statements/financial results/ financial information reflect total assets of Rs 6,53,836 lakhs as at 31^st March 2022, total revenues of Rs  89,230.15 lakhs and total net profit after tax of Rs 9,978.52 lakhs for the year ended 31^st March 2022 and net cash outflow amounting to Rs  46,009 lakhs for the year ended on that date, as considered in the Consolidated Financial Results, which have been audited by another independent auditor, whose reports have been furnished to us by the management. Our opinion on the Consolidated Financial Results, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of such auditors and the procedures performed by us are as stated in section above.

 

14.  The Consolidated Financial Results also include the Group's share of net profit of Rs. 3,102.81 lakhs for the year ended 31^st March 2022, as considered in the Consolidated Financial Results, in respect of two associates, whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose report has been furnished to us by the Management and our opinion on the Consolidated Financial Results, in so far as it relates to the amounts and disclosures included in respect of these associates, is based solely on the reports of such auditors and the procedures performed by us are as stated in section above.

 

15.  The Consolidated Financial Results includes the results for the quarter ended 31^st March 2022, being the derived balancing figures between the Consolidated audited Financial Results in respect of the full financial year ended 31^st March 2022 and the published consolidated unaudited year to date figures upto the nine months ended 31^st December 2021, which have only been reviewed and not subjected to audit by us.

 

 

 

 

 

Our opinion on the consolidated financial results is not modified in respect of above matters.

 

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: 22203094AIMWYJ4289                                UDIN: 22100938AIMWZO7341

Kochi                                                                          Kochi

06^th May 2022                                                            06^th May 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2022
						(Rs. in Lakhs)
Particulars		Quarter ended			Year ended
		31.03.2022	31.12.2021	31.03.2021	31.03.2022	31.03.2021
		Audited (Refer Note 13 below)	Unaudited	Audited (Refer Note 13 below)	Audited	Audited
1. Interest earned (a)+(b)+(c)+(d)		3,68,630	3,60,398	3,51,586	14,38,153	14,31,408
(a)	Interest/discount on advances/bills	2,96,150	2,89,480	2,81,071	11,56,431	11,35,314
(b)	Income on investments	58,821	56,833	57,110	2,31,649	2,33,829
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	5,614	6,089	6,619	22,027	36,816
(d)	Others	8,045	7,996	6,786	28,046	25,449
2. Other income		48,425	52,132	49,273	2,12,094	1,97,165
3. TOTAL INCOME (1+2)		4,17,055	4,12,530	4,00,859	16,50,247	16,28,573
4. Interest expended		2,02,995	1,96,980	2,00,321	7,95,938	8,43,496
5. Operating expenses (i)+(ii)		1,27,884	1,19,089	1,06,484	4,59,215	3,89,867
(i)	Employees cost	68,954	63,437	56,200	2,51,166	2,17,202
(ii)	Other operating expenses	58,930	55,652	50,284	2,08,049	1,72,665
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies)		3,30,879	3,16,069	3,06,805	12,55,153	12,33,363
7. OPERATING PROFIT (3-6)  (Profit before provisions and contingencies)		86,176	96,461	94,054	3,95,094	3,95,210
8. Provisions (other than tax) and contingencies		8,394	23,980	26,779	1,30,466	1,74,354
9. Exceptional items		-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		77,782	72,481	67,275	2,64,628	2,20,856
11. Tax expense		19,606	18,472	17,250	68,088	56,136
12. Net Profit from Ordinary Activities after tax  (10-11)		58,176	54,009	50,025	1,96,540	1,64,720
13. Extraordinary items (net of tax expense)		-	-	-	-	-
14. Net Profit for the period (12-13)		58,176	54,009	50,025	1,96,540	1,64,720
15. Minority interest		1,137	458	567	2,664	1,524
16. Share in Profit of Associates		1,715	426	2,666	3,103	3,237
17. Consolidated Net Profit of the group (14-15+16)		58,754	53,977	52,124	1,96,979	1,66,433
18. Paid-up Equity Share Capital (Face value ` 2/- per Equity Share)		42,051	42,041	39,923	42,051	39,923
19. Reserves excluding Revaluation Reserve					18,83,000	16,09,971
20. Analytical Ratios and Other Disclosures:
(i)	Percentage of shares held by Government of India	NIL	NIL	NIL	NIL	NIL
(ii)	Capital Adequacy ratio (%)
	Under Basel III	16.33	14.97	15.19	16.33	15.19
(iii)	Earnings per Share (EPS) (in Rs)
	(a) Basic EPS  (before and after extraordinary items)	2.79*	2.57*	2.61*	9.52	8.34
	(b) Diluted EPS (before and after extraordinary items)	2.77*	2.55*	2.59*	9.44	8.31
(iv)	NPA Ratios
	a) Gross NPA	4,25,653	4,59,280	4,64,639	4,25,653	4,64,639
	b) Net NPA	1,47,977	1,61,315	1,60,471	1,47,977	1,60,471
	c) % of Gross NPA	2.78	3.10	3.35	2.78	3.35
	d) % of Net NPA	0.98	1.11	1.18	0.98	1.18
(v)	Return on Assets (%)	0.27*	0.25*	0.26*	0.91	0.86
* Not Annualised

 

 

 

 

 

 

 

 

 

 

 

Segment Information@
						(Rs. in Lakhs)
Particulars		Quarter ended			Year ended
		31.03.2022	31.12.2021	31.03.2021	31.03.2022	31.03.2021
		Audited (Refer Note 13 below)	Unaudited	Audited (Refer Note 13 below)	Audited	Audited
Segment Revenue:
	Treasury	49,102	51,768	58,330	2,31,327	2,74,514
	Corporate/Wholesale Banking	1,02,659	1,03,817	1,02,437	4,22,307	4,51,907
	Retail Banking	2,58,742	2,50,466	2,36,748	9,78,155	8,93,708
	Other Banking operations	4,883	4,594	3,100	14,837	8,200
	Unallocated	1,669	1,885	244	3,621	244
	Total Revenue	4,17,055	4,12,530	4,00,859	16,50,247	16,28,573
	Less: Inter Segment Revenue	-	-	-	-	-
	Income from Operations	4,17,055	4,12,530	4,00,859	16,50,247	16,28,573
Segment Results (net of provisions):
	Treasury	5,713	11,276	13,322	62,722	72,226
	Corporate/Wholesale Banking	16,397	21,370	16,289	54,113	21,547
	Retail Banking	44,128	35,570	34,785	1,33,433	1,19,869
	Other Banking operations	9,875	2,380	2,635	10,738	6,970
	Unallocated	1,669	1,885	244	3,621	244
	Profit before tax	77,782	72,481	67,275	2,64,628	2,20,856
Segment Assets
	Treasury	47,63,764	40,59,405	44,79,657	47,63,764	44,79,657
	Corporate/Wholesale Banking	78,08,466	77,07,515	70,83,959	78,08,466	70,83,959
	Retail Banking	93,78,255	89,37,571	82,82,563	93,78,255	82,82,563
	Other Banking operations	401	286	-	401	-
	Unallocated	6,73,219	6,54,674	6,50,474	6,73,219	6,50,474
	Total	2,26,24,105	2,13,59,451	2,04,96,653	2,26,24,105	2,04,96,653
Segment Liabilities
	Treasury	18,59,584	10,83,754	14,03,276	18,59,584	14,03,276
	Corporate/Wholesale Banking	18,77,366	16,81,586	16,09,960	18,77,366	16,09,960
	Retail Banking	1,66,84,109	1,64,51,320	1,56,11,703	1,66,84,109	1,56,11,703
	Other Banking operations	364	103	-	364	-
	Unallocated	2,46,597	2,47,747	1,99,615	2,46,597	1,99,615
	Total	2,06,68,020	1,94,64,510	1,88,24,554	2,06,68,020	1,88,24,554
Capital Employed:
(Segment Assets - Segment Liabilities)
	Treasury	29,04,180	29,75,651	30,76,381	29,04,180	30,76,381
	Corporate/Wholesale Banking	59,31,100	60,25,929	54,73,999	59,31,100	54,73,999
	Retail Banking	(73,05,854)	(75,13,749)	(73,29,140)	(73,05,854)	(73,29,140)
	Other Banking operations	37	183	-	37	-
	Unallocated	4,26,622	4,06,927	4,50,859	4,26,622	4,50,859
	Total	19,56,085	18,94,941	16,72,099	19,56,085	16,72,099
@	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.
	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.
				(Rs in Lakhs)
	Particulars		As at 31.03.2022	As at 31.03.2021
			Audited	Audited
	CAPITAL AND LIABILITIES
	Capital		42,051	39,923
	Reserves and Surplus		18,83,501	16,10,472
	Minority Interest		30,533	21,704
	Deposits		1,81,67,752	1,72,18,611
	Borrowings		19,58,739	12,27,060
	Other Liabilities and Provisions		5,41,529	3,78,883
	Total		2,26,24,105	2,04,96,653
	ASSETS
	Cash and Balances with Reserve Bank of India		10,01,611	7,65,451
	Balance with Banks and Money at Call and Short Notice		11,12,000	12,16,123
	Investments		39,06,519	36,73,167
	Advances		1,49,95,146	1,35,51,441
	Fixed Assets		67,210	51,749
	Other Assets		15,41,618	12,38,722
	Total		2,26,24,105	2,04,96,653
Notes:
1	The above Consolidated Financial Results for the quarter and year ended March 31, 2022 were reviewed by the Audit Committee and subsequently approved by the Board of Directors at its meeting held on May 06, 2022. These Results have been subjected to "Audit" by the Statutory Central Auditors of the Bank and an unqualified audit 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 year ended March 31, 2022 as compared to those followed for the year ended March 31, 2021 except.
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 of investments, dividend received from subsidiaries / associates, 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	In accordance with RBI Circular  DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015, 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' and RBI Circular DBR.BP.BC.No.106/21.04.098/2017-18 dated May 17, 2018 - 'Basel III Framework on Liquidity Standards - Net Stable Funding Ratio (NSFR) - Final Guidelines', 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.
8	During the quarter ended September 30, 2021 , the Bank had issued 104,846,394 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 at ` 87.39 per share aggregating to ` 91,625.26 Lakhs (including share premium). This resulted in an increase of ` 2,096.93 Lakhs in Share Capital and ` 89,476.54 Lakhs (Net of share issue expenses) in Share premium account.
9	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.
10	The Board of Directors have recommended a dividend of 90% i.e. ` 1.80/- per Equity Share on face value of ` 2/- each for the year 2021-22 (Previous Year ` 0.70/- per Equity Share) subject to the approval of the members at the ensuing Annual General Meeting. In terms of Accounting Standard (AS) 4 "Contingencies  and Events occurring after the Balance sheet date" the Bank has not appropriated proposed dividend aggregating to ` 37,845.79 Lakhs from the Profit and loss account for the year ended March 31, 2022. However the effect of the proposed dividend has been reckoned in determining capital funds in the computation of Capital adequacy ratio as on March 31, 2022.
11	As permitted vide letter dated October 4, 2021 issued by RBI, during the quarter ended September 30, 2021  the Bank had opted to amortize the liability on account of revision in family pension for employees covered under the 11th Bipartite Settlement and Joint Note dated November 11, 2020, over a period not exceeding five years beginning with the financial year ended March 31, 2022, subject to 1/5 of  the liability being expensed every financial year. Accordingly, during the nine months ended December 31, 2021, the Bank had charged  ` 2,364.21 Lakhs to the Profit and Loss account and the balance unamortised expenditure amounting to ` 15,367.34 Lakhs was carried forward. During the quarter ended March 31, 2022, the bank has opted to charge the entire balance unamortised family pension expenditure of ` 15,367.34 lakhs to the Profit and Loss Account.
12	The bank has raised ` 70,000.00 Lakhs Tier II capital on January 20, 2022, by way of issuance of unsecured Basel III compliant Tier II Bonds on private placement basis.
13	The figures of the last quarter are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the respective financial year, which was subjected to limited review.
14	Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification and also the amounts / ratios for the previous period / year have been regrouped /  reclassified pursuant to the requirement of Master Direction on financial statements - Presentation and disclosure issued by Reserve Bank of India dated August 30, 2021 (updated as on November 15, 2021), as amended and wherever considered necessary.
			SHYAM SRINIVASAN
Kochi			MANAGING DIRECTOR & CEO
May 06, 2022			(DIN: 02274773)

 

 

 

 

 

 

 

 

 

 

 

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022
	(Rs. in Lakhs)
	Year ended  March 31, 2022	Year ended  March 31, 2021
Cash Flow from Operating Activities
Net Profit Before Taxes	2,65,067	2,22,569
Adjustments for:
Depreciation on Group's Property	13,890	11,492
Provision / Depreciation on Investments	8,063	1,864
Amortisation of Premium on Held to Maturity Investments	16,922	14,219
Provision / Charge for Non Performing Advances	66,154	1,54,368
Provision for Standard Assets and Contingencies	64,384	16,743
(Profit)/ Loss on Sale of Fixed Assets (net)	(533)	(180)
Employees Stock Option Expense	57	34
	4,34,004	4,21,109
Adjustments for working capital changes:-
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments]	(3,77,928)	2,61,200
(Increase)/ Decrease in Advances	(15,09,859)	(12,20,859)
(Increase)/ Decrease in Other Assets	(2,81,657)	(2,80,017)
Increase/ (Decrease) in Deposits	9,49,142	19,93,420
Increase/ (Decrease) in Other Liabilities and Provisions	98,261	5,921
	(11,22,041)	7,59,665
Direct taxes paid (net)	(89,328)	(62,871)
Net Cash Flow from / (Used in) Operating Activities	(7,77,365)	11,17,903
Cash Flow from Investing Activities
Purchase of Fixed Assets	(29,552)	(12,993)
Proceeds from Sale of Fixed Assets	734	413
(Increase)/ Decrease in Held to Maturity Investments	1,19,592	(3,78,911)
Net Cash generated / (Used in) Investing Activities	90,774	(3,91,491)
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital	2,128	70
Proceeds from Share Premium (Net of Share Issue Expenses)	90,573	1,293
Increase / (Decrease) in Minority Interest	8,858	3,588
Proceeds from Issue of Subordinate Debt	70,480	-
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt)	6,61,199	(25,712)
Dividend Paid	(13,974)	-
Net Cash generated  from Financing Activities	8,19,264	(20,761)
Effect of Exchange Fluctuation on Translation Reserve	(635)	191
Increase/(Decrease) in Cash and Cash Equivalents	1,32,038	7,05,842
Cash and Cash Equivalents at the beginning of the year	19,81,573	12,75,731
Cash and Cash Equivalents at the end of the year	21,13,611	19,81,573
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
May 06, 2022	(DIN: 02274773)