RNS Number : 4464W
Federal Bank Ltd (The)
18 August 2022
 

 

 

 

 

SD/ 119 /2022-23                                                                                         August 18, 2022

                                                     

To,

The London Stock Exchange

 

 

Dear Sir,

 

We enclose herewith the Un-Audited Financial Results of the Bank for the quarter ended on June 30, 2022 (both standalone and consolidated) 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 July 15,2022.

 

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

 

 

                                                                       

Limited Review Report on Unaudited Standalone Financial Results of The Federal Bank Limited for the quarter ended 30th June 2022, pursuant to the requirements of Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (as amended)

 

 

The Board of Directors,

The Federal Bank Limited

 

1.  We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of The Federal Bank Limited ('the Bank') for the quarter ended 30th June, 2022 ('the Statement') attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (as amended), except for the disclosures relating to Pillar 3 disclosure under Basel III Capital Regulations as at 30th June, 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 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 read with relevant rules issued thereunder, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines') and other accounting principles generally accepted in India. Our responsibility is to issue a report 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. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the statements are free of material misstatement. 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.

 

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.  Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of Unaudited Standalone Financial Results prepared in accordance with applicable accounting standards, the RBI Guidelines and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) including the manner in which it is to be disclosed, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters, except for the aforesaid Pillar 3 disclosures as at 30th June 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 aforesaid Statement, which have not been reviewed by us.

 

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: 22203094AMWYTY3663                                          UDIN: 22100938AMWYSW3493

 

Kochi-19                                                                               Mumbai-55

15th July 2022                                                                       15th July 2022

 

 

 


 

THE FEDERAL BANK LIMITED

REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101

(CIN: L65191KL1931PLC000368)

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022

                                                                                                                                              (Rs. in Lakhs)

Particulars

Quarter ended

Year ended

30.06.2022

31.03.2022

30.06.2021

31.03.2022

Unaudited

Audited
(Refer Note 10 below)

Unaudited

Audited

1. Interest earned (a)+(b)+(c)+(d)

          3,62,886

          3,48,324

          3,35,571

        13,66,076

(a)

Interest/discount on advances/bills

          2,88,682

          2,75,446

          2,67,112

        10,82,975

(b)

Income on investments

             62,949

             59,290

             59,059

          2,33,867

(c)

Interest on balances with Reserve Bank of India and other inter bank funds

               4,480

               5,614

               3,662

             22,027

(d)

Others

               6,775

               7,974

               5,738

             27,207

2. Other income

             45,262

             46,500

             64,826

          2,08,909

3. TOTAL INCOME (1+2)

        4,08,148

        3,94,824

        4,00,397

      15,74,985

4. Interest expended

          2,02,435

          1,95,803

          1,93,728

          7,69,880

5. Operating expenses (i)+(ii)

          1,08,376

          1,19,201

             93,340

          4,29,320

(i)

Employees cost

             49,932

             63,725

             52,830

          2,32,055

(ii)

Other operating expenses

             58,444

             55,476

             40,510

          1,97,265

6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)

        3,10,811

        3,15,004

        2,87,068

      11,99,200

7. OPERATING PROFIT (3-6)
 (Profit before provisions and contingencies)

           97,337

           79,820

        1,13,329

        3,75,785

8. Provisions (other than tax) and contingencies

             16,668

               7,524

             63,994

          1,22,177

9. Exceptional items


                     -  

                     -  

                     -  

                     -  

10. Profit from Ordinary Activities before tax
(7-8-9)

           80,669

           72,296

           49,335

        2,53,608

11. Tax expense


             20,603

             18,242

             12,606

             64,626

12. Net Profit from Ordinary Activities after tax (10-11)

           60,066

           54,054

           36,729

        1,88,982

13. Extraordinary items (net of tax expense)


                     -  

                     -  

                     -  

                     -  

14. Net Profit for the period (12-13)


           60,066

           54,054

           36,729

        1,88,982

15. Paid-up Equity Share Capital
(Face value Rs.2/- per Equity Share)

             42,070

             42,051

             39,926

             42,051

16. Reserves excluding Revaluation Reserve




        18,36,832

17. Analytical Ratios and Other Disclosures:






(i)

Percentage of shares held by Government of India

NIL

NIL

NIL

NIL

(ii)

Capital Adequacy ratio (%)






Under Basel III

               14.57

               15.77

               14.64

               15.77

(iii)

Earnings per Share (EPS) (in Rs)






(a) Basic EPS  (before and after extraordinary items)

 2.86*

2.57*

1.84*

                 9.13


(b) Diluted EPS (before and after extraordinary items)

 2.83*

2.55*

1.83*

                 9.06

(iv)

NPA Ratios






a) Gross NPA

          4,15,533

          4,13,674

          4,64,933

          4,13,674


b) Net NPA

          1,42,025

          1,39,262

          1,59,324

          1,39,262


c) % of Gross NPA

                 2.69

                 2.80

                 3.50

                 2.80


d) % of Net NPA

                 0.94

                 0.96

                 1.23

                 0.96

(v)

Return on Assets (%)

 0.27*

0.25*

 0.19*

 0.94

(vi)

Net Worth

        19,26,696

        18,66,098

        16,47,906

18,66,098

(vii)

Outstanding Redeemable Preference Shares

 NIL

 NIL

 NIL

 NIL

(viii)

Capital Redemption Reserve

 NIL

 NIL

 NIL

 NIL

(ix)

Debenture Redemption Reserve

 NIL

 NIL

 NIL

 NIL

(x)

Debt - Equity Ratio #

0.82

0.82

                 0.57

0.82

(xi)

Total Debts to Total Assets #

7.03%

6.97%

4.67%

6.97%

(xii)

Operating Margin

23.85%

20.22%

28.30%

23.86%

(xiii)

Net Profit Margin

14.72%

13.69%

9.17%

12.00%







* Not Annualised





# Debt and Total Debts represents Total Borrowings of the Bank



 

 

Segment Information@

 

 

 

 

 

 

 

 

 

 (Rs.in Lakhs)

Particulars

Quarter ended

Year ended

30.06.2022

31.03.2022

30.06.2021

31.03.2022

Unaudited

Audited
(Refer Note 10 below)

Unaudited

Audited

Segment Revenue:

 

 

 

 


Treasury

               54,864

               49,475

               79,596

            2,35,130


Corporate/Wholesale Banking

            1,07,758

            1,03,851

            1,12,056

            4,26,734


Retail Banking

            2,43,361

            2,36,429

            2,07,527

            8,98,700


Other Banking operations

                 2,123

                 3,400

                 1,218

               10,800


Unallocated

                      42

                 1,669

                       -  

                 3,621


Total Revenue

4,08,148

3,94,824

4,00,397

15,74,985


Less: Inter Segment Revenue

                       -  

                       -  

                       -  

                       -  


Income from Operations

4,08,148

3,94,824

4,00,397

15,74,985

Segment Results (net of provisions):






Treasury

               12,580

                 5,512

               37,914

               64,135


Corporate/Wholesale Banking

               14,505

               17,497

                (2,535)

               55,657


Retail Banking

               51,737

               44,728

               12,921

            1,21,015


Other Banking operations

                 1,805

                 2,890

                 1,035

                 9,180


Unallocated

                      42

                 1,669

                       -  

                 3,621


Profit before tax

80,669

72,296

49,335

2,53,608

Segment Assets







Treasury

          43,74,168

          47,68,440

          46,11,516

          47,68,440


Corporate/Wholesale Banking

          82,51,948

          78,58,857

          70,66,184

          78,58,857


Retail Banking

          91,77,241

          87,98,646

          77,40,698

          87,98,646


Other Banking operations

                       -  

                       -  

                       -  

                       -  


Unallocated

            7,31,922

            6,68,688

            5,85,373

            6,68,688


Total

2,25,35,279

2,20,94,631

2,00,03,771

2,20,94,631

Segment Liabilities







Treasury

          18,08,289

          18,02,189

          10,92,816

          18,02,189


Corporate/Wholesale Banking

          18,10,653

          18,67,906

          14,68,615

          18,67,906


Retail Banking

       1,66,17,656

       1,62,98,555

       1,55,94,228

       1,62,98,555


Other Banking operations

                       -  

                       -  

                       -  

                       -  


Unallocated

            3,59,430

            2,46,597

            1,99,174

            2,46,597


Total

2,05,96,028

2,02,15,247

1,83,54,833

2,02,15,247

Capital Employed:





(Segment Assets - Segment Liabilities)






Treasury

          25,65,879

          29,66,251

          35,18,700

          29,66,251


Corporate/Wholesale Banking

          64,41,295

          59,90,951

          55,97,569

          59,90,951


Retail Banking

         (74,40,415)

         (74,99,909)

         (78,53,530)

         (74,99,909)


Other Banking operations

                       -  

                       -  

                       -  

                       -  


Unallocated

            3,72,492

            4,22,091

            3,86,199

            4,22,091


Total

19,39,251

18,79,384

16,48,938

        18,79,384

@

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. (Also Refer Note 11)

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.







Notes:





1

The above Standalone Financial Results for the quarter ended June 30, 2022 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on July 15, 2022. 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, in all material aspects, 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, 2022.

 







 

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 ended June 30, 2022, the Bank has allotted 945,492 equity shares of Rs. 2 each, pursuant to the exercise of stock options by employees.

 







 

7

As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank.

 







 

8

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 quarter ended June 30, 2022 are given below:

 







 


i) During the quarter ended June 30, 2022, the bank has not acquired any  "loans not in default"  through assignment of loans.

 



 


ii) During the quarter ended June 30, 2022, the bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA).

 







 


iii) During the quarter ended June 30, 2022, the bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of stressed loans transferred to ARCs.

 







 

9

As permitted vide letter dated October 04, 2021 issued by RBI, during the quarter ended September 30, 2021  the Bank had opted to amortise 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 Rs. 2,364.21 Lakhs to the Profit and Loss account and the balance unamortised expenditure amounting to Rs. 15,367.34 Lakhs was carried forward. During the quarter ended March 31, 2022, the bank had charged the entire balance unamortised family pension expenditure of Rs.15,367.34 lakhs to the Profit and Loss Account.

 







 

10

The figures for the quarter ended March 31, 2022 are the balancing figures between audited figures in respect of the financial year 2021-22 and the published year to date figures up to December 31, 2021, which were subjected to limited review.

 







 

11

As per RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022, for the purpose of disclosure under Accounting Standard 17, Segment reporting, 'Digital Banking' has been identified as a sub-segment under Retail Banking by Reserve Bank of India (RBI). However, as the proposed Digital Banking Unit (DBU) of the Bank has not yet commenced operations and having regard to the discussions of the DBU Working Group formed by Indian Banks' Association (IBA) (which included representatives of banks and RBI), held on July 14, 2022, reporting of the Digital Banking as a separate sub-segment in the Segment reporting will be done from the quarter ending September 30, 2022.

 







 

12

Previous period's figures have been regrouped / reclassified, where necessary to conform to current period's classification and also the amounts / ratios for the previous period have been regrouped / reclassified pursuant to the requirements of Master Direction on financial statements - Presentation and disclosures issued by Reserve Bank of India dated August 30, 2021, as amended and wherever considered necessary.

 







 




SHYAM SRINIVASAN

Kochi


MANAGING DIRECTOR & CEO

July 15, 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

 

 

Limited Review Report on Unaudited Consolidated Financial Results of The Federal Bank Limited for the quarter ended 30th June 2022, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (as amended)

 

 

 

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 ended 30th June 2022 (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 June 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 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 read with relevant rules issued thereunder, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines') and other 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. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the statements are free of material misstatement. 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 auditor referred to in Paragraph 8 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 and other accounting principles generally accepted in India, 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, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters, except for the aforesaid consolidated Pillar 3 disclosures as at 30th June 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 aforesaid Statement, which have not been reviewed by us.

 

7.      The Statement of unaudited consolidated financial results includes the interim financial results of one subsidiary which have not been reviewed/ audited by their auditors, whose interim financial results reflects total revenues of ` 26,264.11 Lakhs and net profit after tax of ` 4,133.90 Lakhs for the quarter ended 30th June 2022, as considered in the unaudited consolidated financial results. According to the information and explanations given to us by the Management, these interim financial results are not material to the Group.

 

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 the above reports furnished to us by the Management 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.

 

8.      The Statement of unaudited consolidated financial results includes the interim financial results of one subsidiary which have been reviewed by one of the Joint Auditors of the Bank, whose interim financial results reflects total revenues of ` 1,404.09 Lakhs and net profit after tax of ` 99.58 Lakhs for the quarter ended 30th June 2022, as considered in the unaudited consolidated financial results.

 

Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of this subsidiary, is based solely on the reports of the aforesaid Joint Auditor as made available by the Management 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.

 

 

 

9.      The Statement also includes the Group's share of net profit after tax of ` 850.86 Lakhs for the quarter ended 30th June 2022 in respect of two associates, based on their interim financial results which have not been reviewed/ audited. According to the information and explanations given to us by the Management, these interim 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:  22203094AMWYYB6862                                           UDIN: 22100938AMWYZY2142

 

Kochi-19                                                                                  Mumbai-55

15th July 2022                                                                         15th July 2022

 

 


 

THE FEDERAL BANK LIMITED

Particulars

Quarter ended

Year ended

30.06.2022

31.03.2022

30.06.2021

31.03.2022

 Unaudited

Audited
(Refer Note 9 below)

 Unaudited

Audited

1. Interest earned (a)+(b)+(c)+(d)

          3,84,309

          3,68,630

          3,52,498

        14,38,153

(a)

Interest/discount on advances/bills

          3,10,420

          2,96,150

          2,84,295

        11,56,431

(b)

Income on investments

             62,534

             58,821

             58,463

          2,31,649

(c)

Interest on balances with Reserve Bank of India and other inter bank funds

               4,480

               5,614

               3,662

             22,027

(d)

Others

               6,875

               8,045

               6,078

             28,046

2. Other income

             47,508

             48,425

             62,090

          2,12,094

3. TOTAL INCOME (1+2)

        4,31,817

        4,17,055

        4,14,588

      16,50,247

4. Interest expended

          2,10,376

          2,02,995

          2,00,016

          7,95,938

5. Operating expenses (i)+(ii)

          1,17,580

          1,27,884

             98,955

          4,59,215

(i)

Employees cost

             55,837

             68,954

             56,990

          2,51,166

(ii)

Other operating expenses

             61,743

             58,930

             41,965

          2,08,049

6. TOTAL EXPENDITURE (4+5)
 (excluding provisions and contingencies)

        3,27,956

        3,30,879

        2,98,971

      12,55,153

7. OPERATING PROFIT (3-6)
  (Profit before provisions and contingencies)

        1,03,861

           86,176

        1,15,617

        3,95,094

8. Provisions (other than tax) and contingencies

             17,521

               8,394

             66,911

          1,30,466

9. Exceptional items


                     -  

                     -  

                     -  

                     -  

10. Profit from Ordinary Activities before tax
(7-8-9)

           86,340

           77,782

           48,706

        2,64,628

11. Tax expense


             22,040

             19,606

             13,150

             68,088

12. Net Profit from Ordinary Activities after tax  (10-11)

           64,300

           58,176

           35,556

        1,96,540

13. Extraordinary items (net of tax expense)


                     -  

                     -  

                     -  

                     -  

14. Net Profit for the period (12-13)

 

           64,300

           58,176

           35,556

        1,96,540

15. Minority interest


               1,104

               1,137

                  384

               2,664

16. Share in Profit of Associates


                  226

               1,715

                  504

               3,103

17. Consolidated Net Profit of the group
(14-15+16)

           63,422

           58,754

           35,676

        1,96,979

18. Paid-up Equity Share Capital
(Face value Rs. 2/- per Equity Share)

             42,070

             42,051

             39,926

             42,051

19. Reserves excluding Revaluation Reserve




        18,83,000

20. Analytical Ratios and Other Disclosures:






(i)

Percentage of shares held by Government of India

NIL

NIL

NIL

NIL

(ii)

Capital Adequacy ratio (%)






Under Basel III

               15.12

               16.33

               15.36

               16.33

(iii)

Earnings per Share (EPS) (in Rs)






(a) Basic EPS  (before and after extraordinary items)

 3.02*

 2.79*

1.79*

                 9.52


(b) Diluted EPS (before and after extraordinary items)

 2.99*

 2.77*

1.77*

                 9.44

(iv)

NPA Ratios






a) Gross NPA

          4,27,304

          4,25,653

          4,79,318

          4,25,653


b) Net NPA

          1,50,582

          1,47,977

          1,71,242

          1,47,977


c) % of Gross NPA

                 2.67

                 2.78

                 3.51

                 2.78


d) % of Net NPA

                 0.96

                 0.98

                 1.28

                 0.98

(v)

Return on Assets (%)

0.28*

0.27*

 0.17*

                 0.91







* Not Annualised





 

 


 

Segment Information@

 









 (Rs. in Lakhs)

Particulars

Quarter ended

 

30.06.2022

31.03.2022

30.06.2021

31.03.2022

Unaudited

Audited
(Refer Note 9 below)

Unaudited

Audited

Segment Revenue:






Treasury

               54,705

               49,102

               76,408

            2,31,327


Corporate/Wholesale Banking

            1,06,784

            1,02,659

            1,10,684

            4,22,307


Retail Banking

            2,66,605

            2,58,742

            2,26,278

            9,78,155


Other Banking operations

                 3,681

                 4,883

                 1,218

               14,837


Unallocated

                      42

                 1,669

                         -

                 3,621

 

Total Revenue

          4,31,817

          4,17,055

          4,14,588

        16,50,247


Less: Inter Segment Revenue

                         -

                         -

                         -

                         -

 

Income from Operations

          4,31,817

          4,17,055

          4,14,588

        16,50,247

Segment Results (net of provisions):






Treasury

               13,000

                 5,713

               35,345

               62,722


Corporate/Wholesale Banking

               14,362

               16,397

                (2,737)

               54,114


Retail Banking

               56,244

               50,418

               15,063

            1,33,433


Other Banking operations

                 2,692

                 3,585

                 1,035

               10,738


Unallocated

                      42

                 1,669

                         -

                 3,621

 

Profit before tax

              86,340

              77,782

              48,706

          2,64,628

Segment Assets

 

 

 

 

 


Treasury

          43,61,104

          47,63,764

          45,66,638

          47,63,764


Corporate/Wholesale Banking

          82,04,925

          78,08,465

          70,10,074

          78,08,465


Retail Banking

          98,12,368

          93,78,255

          82,15,751

          93,78,255


Other Banking operations

                    620

                    401

                         -

                    401


Unallocated

            7,31,922

            6,73,219

            5,85,205

            6,73,219

 

Total

     2,31,10,939

     2,26,24,104

     2,03,77,668

     2,26,24,104

Segment Liabilities

 






Treasury

          18,56,739

          18,59,584

          11,11,142

          18,59,584


Corporate/Wholesale Banking

          18,13,320

          18,77,366

          14,80,815

          18,77,366


Retail Banking

       1,70,60,564

       1,66,84,108

       1,58,73,983

       1,66,84,108


Other Banking operations

                    460

                    364

                         -

                    364


Unallocated

            3,59,430

            2,46,597

            1,98,594

            2,46,597

 

Total

     2,10,90,513

     2,06,68,019

     1,86,64,534

     2,06,68,019

Capital Employed:





(Segment Assets - Segment Liabilities)






Treasury

          25,04,365

          29,04,180

          34,55,496

          29,04,180


Corporate/Wholesale Banking

          63,91,605

          59,31,099

          55,29,259

          59,31,099


Retail Banking

         (72,48,196)

         (73,05,853)

         (76,58,232)

         (73,05,853)


Other Banking operations

                    160

                      37

                         -

                      37


Unallocated

            3,72,492

            4,26,622

            3,86,611

            4,26,622

 

Total

        20,20,426

        19,56,085

        17,13,134

        19,56,085

@

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. (Also Refer Note 10)


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.







Notes:

 




1

The above Consolidated Financial Results for the quarter ended June 30, 2022 were reviewed by the Audit Committee and subsequently approved by the Board of Directors at its meeting held on July 15, 2022. 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 ended June 30, 2022 as compared to those followed for the year ended March 31, 2022.



4

The financial results have been arrived at after considering provision for standard assets (including requirements for exposures to entities with unhedged foreign currency exposures), provision for non-performing assets (NPAs), provision for non-performing investments, provision for income-tax and other usual and necessary provisions.







5

Other income includes fees earned from providing services to customers, commission from non-fund-based banking activities, earnings from foreign exchange and derivative transactions, selling of third-party products, profit on sale of investments (net), profit / loss on revaluation of investments, 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

As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank.







8

As permitted vide letter dated October 04, 2021 issued by RBI, during the quarter ended September 30, 2021  the Bank had opted to amortise 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 Rs. 2,364.21 Lakhs to the Profit and Loss account and the balance unamortised expenditure amounting to Rs.15,367.34 Lakhs was carried forward. During the quarter ended March 31, 2022, the bank had charged the entire balance unamortised family pension expenditure of Rs. 15,367.34 lakhs to the Profit and Loss Account.



9

The figures for the quarter ended March 31, 2022 are the balancing figures between audited figures in respect of the financial year 2021-22 and the published year to date figures upto December 31, 2021, which were subjected to limited review.







10

As per RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022, for the purpose of disclosure under Accounting Standard 17, Segment reporting, 'Digital Banking' has been identified as a sub-segment under Retail Banking by Reserve Bank of India (RBI). However, as the proposed Digital Banking Unit (DBU) of the Bank has not yet commenced operations and having regard to the discussions of the DBU Working Group formed by Indian Banks' Association (IBA) (which included representatives of banks and RBI), held on July 14, 2022, reporting of the Digital Banking as a separate sub-segment in the Segment reporting will be done from the quarter ending September 30, 2022.







11

Previous period's figures have been regrouped / reclassified, where necessary to conform to current period's classification and also the amounts / ratios for the previous period have been regrouped /  reclassified pursuant to the requirements of Master Direction on financial statements - Presentation and disclosures issued by Reserve Bank of India dated August 30, 2021, as amended and wherever considered necessary.




























 SHYAM SRINIVASAN

Kochi


 MANAGING DIRECTOR & CEO

July 15, 2022


 (DIN: 02274773)







 

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