________________________________________________________________________
SD/LSE/272/2022-23 20.01.2023
To
The London Stock Exchange
10 Paternoster Square
London
Dear Sir,
We enclose herewith the Un-Audited Standalone and Consolidated Financial Results of the Bank for the Quarter ended December 31, 2022 which was approved at the Bank's Board of Directors meeting held on January 16, 2023.
Kindly take the same on your record.
For The Federal Bank Limited
Sd/-
Samir P Rajdev
Company Secretary
Varma & Varma Borkar & Muzumdar
Chartered Accountants, Chartered Accountants,
No.53/2600, Kerala Varma Tower 21/168, Anand Nagar, Om Co-op
Off Kunjanbava Road, Hsg Society, Anand Nagar Lane
Vytilla, Off Nehru Road, Santacruz(East)
Kochi -682019 Mumbai - 400 055
Limited Review Report on unaudited standalone financial results of The Federal Bank Limited for the quarter and nine months ended 31st December 2022, 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)
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 and nine months ended 31st December, 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, ("Listing Regulations, 2015") except for the disclosures relating to Pillar 3 disclosure under Basel III Capital Regulations, as at 31st December 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, 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 and is in compliance with the presentation and disclosure requirements of the Listing Regulations, 2015 including relevant circulars issued by the SEBI from time to time. 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 statement is free of material misstatement. A review is limited primarily to inquiries of bank personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly we do not express an audit opinion.
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 Listing Regulations, 2015 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 31st December 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 |
| Membership No.203094 | Membership No.100938 |
| UDIN: 23203094BGXYLS8593
| UDIN: 23100938BGQQQQ4576 |
| Kochi | Kochi |
| 16th January 2023 | 16th January 2023 |
Varma & Varma Borkar & Muzumdar
Chartered Accountants, Chartered Accountants
No.53/2600, Kerala Varma Tower 121/168, Anand Nagar, Om Co-op
Off Kunjanbava Road, Hsg Society, Anand Nagar Lane
Vytilla, Off Nehru Road, Santacruz(East)
Kochi -682019 Mumbai - 400 055
Limited Review Report on Unaudited Consolidated Financial Results of The Federal Bank Limited for the quarter and nine months ended 31st December 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 and nine months ended 31st December 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 2015"), except for the disclosures relating to consolidated Pillar 3 disclosure, as at 31st December 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, 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 and is in compliance with the presentation and disclosure requirements of the Listing Regulations, 2015 including relevant circulars issued by the SEBI from time to time. 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 statement is 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 an 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 2015, to the extent applicable.
4. Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.
5. This Statement includes the results of the following entities:
a. Fedbank Financial Services Limited (Subsidiary)
b. Federal Operations and Services Limited (Subsidiary)
c. Ageas Federal Life Insurance Company Limited (Associate)
d. Equirus Capital Private Limited (Associate)
6. Based on our review conducted and procedures performed as stated in Paragraphs 3 and 4 above and based on the consideration of the review reports of other auditors referred to in Paragraphs 7 and, 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 the Listing Regulations, 2015 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 disclosures relating to consolidated Pillar 3 disclosure, as at 31st December 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 consolidated unaudited financial results includes the interim financial results of one subsidiary whose unaudited financial results reflects total revenues of ` 32,201.74 Lakhs and ` 87,508.88 Lakhs and net profit after tax of ` 4,771.42 Lakhs and ` 13,239.26 Lakhs for the quarter and nine months ended 31st December 2022 respectively. These interim financial results have been reviewed by other auditors, whose reports have been furnished to us by the Bank's management. Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said subsidiary, is based solely on 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 consolidated unaudited financial results includes the interim financial results of one subsidiary whose unaudited financial results reflects total revenues of ` 1581.52 Lakhs and ` 4257.39 Lakhs and net profit after tax of ` 93.66 Lakhs and ` 315.96 Lakhs for the quarter and nine months ended 31st December 2022 respectively. These interim financial results have been reviewed by one of the joint auditors, whose reports have been furnished to us by the Bank's management and 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 their reports and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
9. The statement of consolidated unaudited financial results also includes the Group's share of net profit after tax of ` 375.39 Lakhs and ` 1,008.14 Lakhs for the quarter and nine months ended 31st December 2022 respectively, in respect of the two associates, based on their interim financial results which have not been reviewed. These interim financial results have been furnished to us by the Bank's Management and our conclusion on the statement, in so far as it relates to the amounts and disclosures included in respect of these associates, is based solely on such interim financial results. In our opinion and
according to the information and explanations given to us by the Bank's 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 |
| Membership No. 203094 | Membership No.100938 |
| UDIN: 23203094BGXYLT5087
| UDIN: 23100938BGQQQR3798 |
| Kochi | Kochi |
| 16th January 2023 | 16th January 2023 |
| THE FEDERAL BANK LIMITED | |||||||
| REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | |||||||
| (CIN: L65191KL1931PLC000368) | |||||||
| STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2022 | |||||||
|
|
|
|
|
|
|
| (` in Lakhs) |
| Particulars | Quarter ended | Nine months ended | Year ended | ||||
| 31.12.2022 | 30.09.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.03.2022 | ||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
| 1. Interest earned (a)+(b)+(c)+(d) | 4,43,325 | 4,02,078 | 3,44,256 | 12,08,289 | 10,17,752 | 13,66,076 | |
| (a) | Interest/discount on advances/bills | 3,58,487 | 3,22,272 | 2,72,927 | 9,69,441 | 8,07,529 | 10,82,975 |
| (b) | Income on investments | 72,069 | 66,737 | 57,402 | 2,01,755 | 1,74,577 | 2,33,867 |
| (c) | Interest on balances with Reserve Bank of India and other inter bank funds | 4,977 | 6,017 | 6,089 | 15,474 | 16,413 | 22,027 |
| (d) | Others | 7,792 | 7,052 | 7,838 | 21,619 | 19,233 | 27,207 |
| 2. Other income | 53,400 | 60,952 | 48,419 | 1,59,614 | 1,62,409 | 2,08,909 | |
| 3. TOTAL INCOME (1+2) | 4,96,725 | 4,63,030 | 3,92,675 | 13,67,903 | 11,80,161 | 15,74,985 | |
| 4. Interest expended | 2,47,672 | 2,25,895 | 1,90,366 | 6,76,002 | 5,74,077 | 7,69,880 | |
| 5. Operating expenses (i)+(ii) | 1,21,632 | 1,15,911 | 1,10,880 | 3,45,919 | 3,10,119 | 4,29,320 | |
| (i) | Employees cost | 56,083 | 51,563 | 58,307 | 1,57,578 | 1,68,330 | 2,32,055 |
| (ii) | Other operating expenses | 65,549 | 64,348 | 52,573 | 1,88,341 | 1,41,789 | 1,97,265 |
| 6. TOTAL EXPENDITURE (4+5) | 3,69,304 | 3,41,806 | 3,01,246 | 10,21,921 | 8,84,196 | 11,99,200 | |
| 7. OPERATING PROFIT (3-6) | 1,27,421 | 1,21,224 | 91,429 | 3,45,982 | 2,95,965 | 3,75,785 | |
| 8. Provisions (other than tax) and contingencies | 19,869 | 26,786 | 21,398 | 63,323 | 1,14,653 | 1,22,177 | |
| 9. Exceptional items | | - | - | - | - | - | - |
| 10. Profit from Ordinary Activities before tax | 1,07,552 | 94,438 | 70,031 | 2,82,659 | 1,81,312 | 2,53,608 | |
| 11. Tax expense | | 27,191 | 24,067 | 17,858 | 71,861 | 46,384 | 64,626 |
| 12. Net Profit from Ordinary Activities after tax (10-11) | 80,361 | 70,371 | 52,173 | 2,10,798 | 1,34,928 | 1,88,982 | |
| 13. Extraordinary items (net of tax expense) | | - | - | - | - | - | - |
| 14. Net Profit for the period (12-13) |
| 80,361 | 70,371 | 52,173 | 2,10,798 | 1,34,928 | 1,88,982 |
| 15. Paid-up Equity Share Capital | 42,291 | 42,191 | 42,041 | 42,291 | 42,041 | 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 | NIL | NIL |
| (ii) | Capital Adequacy ratio (%) | | | | | | |
| | Under Basel III | 13.35 | 13.84 | 14.37 | 13.35 | 14.37 | 15.77 |
| (iii) | Earnings per Share (EPS) (in `) | | | | | | |
| | (a) Basic EPS (before and after extraordinary items) | 3.80* | 3.34* | 2.48* | 10.00* | 6.56* | 9.13 |
| | (b) Diluted EPS (before and after extraordinary items) | 3.75* | 3.31* | 2.46* | 9.91* | 6.51* | 9.06 |
| (iv) | NPA Ratios | | | | | | |
| | a) Gross NPA | 4,14,785 | 4,03,106 | 4,40,126 | 4,14,785 | 4,40,126 | 4,13,674 |
| | b) Net NPA | 1,22,859 | 1,26,235 | 1,47,118 | 1,22,859 | 1,47,118 | 1,39,262 |
| | c) % of Gross NPA | 2.43 | 2.46 | 3.06 | 2.43 | 3.06 | 2.80 |
| | d) % of Net NPA | 0.73 | 0.78 | 1.05 | 0.73 | 1.05 | 0.96 |
| (v) | Return on Assets (%) | 0.33* | 0.30* | 0.26* | 0.92* | 0.68* | 0.94 |
| (vi) | Net Worth | 20,45,675 | 19,61,782 | 18,08,919 | 20,45,675 | 18,08,919 | 18,66,098 |
| (vii) | Outstanding Redeemable Preference Shares | NIL | NIL | NIL | NIL | NIL | NIL |
| (viii) | Capital Redemption Reserve | NIL | NIL | NIL | NIL | NIL | NIL |
| (ix) | Debenture Redemption Reserve | NIL | NIL | NIL | NIL | NIL | NIL |
| (x) | Debt - Equity Ratio # | 0.96 | 1.04 | 0.45 | 0.96 | 0.45 | 0.82 |
| (xi) | Total Debts to Total Assets # | 7.86% | 8.61% | 3.90% | 7.86% | 3.90% | 6.97% |
| (xii) | Operating Margin | 25.65% | 26.18% | 23.28% | 25.29% | 25.08% | 23.86% |
| (xiii) | Net Profit Margin | 16.18% | 15.20% | 13.29% | 15.41% | 11.43% | 12.00% |
| | | | | | | | |
| * Not Annualised | | | | | | | |
| # Debt and Total Debts represents Total Borrowings of the Bank | | | | | |||
| Segment Information@ |
| | | | | | |
| | | | | | | | (` in Lakhs) |
| Particulars | Quarter ended | Nine months ended | Year ended | ||||
| 31.12.2022 | 30.09.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.03.2022 | ||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
| Segment Revenue: | | | | | | | |
| | Treasury | 60,885 | 67,069 | 52,104 | 1,82,818 | 1,85,655 | 2,35,130 |
| | Corporate/Wholesale Banking | 1,38,045 | 1,23,736 | 1,04,829 | 3,69,539 | 3,22,883 | 4,26,734 |
| | Retail Banking | 2,93,526 | 2,68,416 | 2,30,357 | 8,05,303 | 6,62,271 | 8,98,700 |
| | a) Digital Banking | 23,960 | 22,729 | 14,801 | 63,988 | 39,091 | 56,772 |
| | b) Other Retail Banking | 2,69,566 | 2,45,687 | 2,15,556 | 7,41,315 | 6,23,180 | 8,41,928 |
| | Other Banking operations | 4,153 | 3,630 | 3,500 | 9,906 | 7,400 | 10,800 |
| | Unallocated | 116 | 179 | 1,885 | 337 | 1,952 | 3,621 |
|
| Total Revenue | 4,96,725 | 4,63,030 | 3,92,675 | 13,67,903 | 11,80,161 | 15,74,985 |
| | Less: Inter Segment Revenue | - | - | - | - | - | - |
|
| Income from Operations | 4,96,725 | 4,63,030 | 3,92,675 | 13,67,903 | 11,80,161 | 15,74,985 |
| Segment Results (net of provisions): | | | | | | | |
| | Treasury | 9,576 | 18,469 | 11,022 | 40,625 | 58,623 | 64,135 |
| | Corporate/Wholesale Banking | 26,155 | 14,850 | 21,396 | 55,510 | 38,160 | 55,657 |
| | Retail Banking | 68,175 | 57,855 | 32,753 | 1,77,767 | 76,287 | 1,21,015 |
| | a) Digital Banking | 4,071 | 3,203 | (667) | 6,866 | 3,768 | 6,880 |
| | b) Other Retail Banking | 64,104 | 54,652 | 33,420 | 1,70,901 | 72,519 | 1,14,135 |
| | Other Banking operations | 3,530 | 3,085 | 2,975 | 8,420 | 6,290 | 9,180 |
| | Unallocated | 116 | 179 | 1,885 | 337 | 1,952 | 3,621 |
|
| Profit before tax | 1,07,552 | 94,438 | 70,031 | 2,82,659 | 1,81,312 | 2,53,608 |
| Segment Assets: |
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| |
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| | Treasury | 49,07,856 | 43,88,999 | 41,05,806 | 49,07,856 | 41,05,806 | 47,68,440 |
| | Corporate/Wholesale Banking | 93,75,662 | 89,70,342 | 77,61,124 | 93,75,662 | 77,61,124 | 78,58,857 |
| | Retail Banking | 99,82,259 | 95,72,293 | 83,65,479 | 99,82,259 | 83,65,479 | 87,98,646 |
| | a) Digital Banking | 3,55,734 | 2,69,151 | 1,87,578 | 3,55,734 | 1,87,578 | 2,04,346 |
| | b) Other Retail Banking | 96,26,525 | 93,03,142 | 81,77,901 | 96,26,525 | 81,77,901 | 85,94,300 |
| | Other Banking operations | - | - | - | - | - | - |
| | Unallocated | 7,81,411 | 7,79,609 | 6,55,228 | 7,81,411 | 6,55,228 | 6,68,688 |
|
| Total | 2,50,47,188 | 2,37,11,243 | 2,08,87,637 | 2,50,47,188 | 2,08,87,637 | 2,20,94,631 |
| Segment Liabilities: |
| | | | | | |
| | Treasury | 26,07,512 | 22,74,543 | 10,66,903 | 26,07,512 | 10,66,903 | 18,02,189 |
| | Corporate/Wholesale Banking | 22,45,069 | 19,85,235 | 16,70,529 | 22,45,069 | 16,70,529 | 18,67,906 |
| | Retail Banking | 1,77,97,499 | 1,71,10,829 | 1,60,75,581 | 1,77,97,499 | 1,60,75,581 | 1,62,98,555 |
| | a) Digital Banking | 10,82,117 | 8,90,517 | 5,32,804 | 10,82,117 | 5,32,804 | 6,27,564 |
| | b) Other Retail Banking | 1,67,15,382 | 1,62,20,312 | 1,55,42,777 | 1,67,15,382 | 1,55,42,777 | 1,56,70,991 |
| | Other Banking operations | - | - | - | - | - | - |
| | Unallocated | 3,38,338 | 3,65,759 | 2,49,306 | 3,38,338 | 2,49,306 | 2,46,597 |
|
| Total | 2,29,88,418 | 2,17,36,366 | 1,90,62,319 | 2,29,88,418 | 1,90,62,319 | 2,02,15,247 |
| Capital Employed: | | | | | | | |
| (Segment Assets - Segment Liabilities) | | | | | | | |
| | Treasury | 23,00,344 | 21,14,456 | 30,38,903 | 23,00,344 | 30,38,903 | 29,66,251 |
| | Corporate/Wholesale Banking | 71,30,593 | 69,85,107 | 60,90,595 | 71,30,593 | 60,90,595 | 59,90,951 |
| | Retail Banking | (78,15,240) | (75,38,536) | (77,10,102) | (78,15,240) | (77,10,102) | (74,99,909) |
| | a) Digital Banking | (7,26,383) | (6,21,366) | (3,45,226) | (7,26,383) | (3,45,226) | (4,23,218) |
| | b) Other Retail Banking | (70,88,857) | (69,17,170) | (73,64,876) | (70,88,857) | (73,64,876) | (70,76,691) |
| | Other Banking operations | - | - | - | - | - | - |
| | Unallocated | 4,43,073 | 4,13,850 | 4,05,922 | 4,43,073 | 4,05,922 | 4,22,091 |
|
| Total | 20,58,770 | 19,74,877 | 18,25,318 | 20,58,770 | 18,25,318 | 18,79,384 |
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| @ | For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines. | ||||||
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| Notes: |
| | | | | | |
| 1 | The above Standalone Unaudited Financial Results for the quarter and nine months ended December 31, 2022 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on January 16, 2023. 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 interim 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 and nine months ended December 31, 2022, the Bank has allotted 5,017,460 and 12,006,495 equity shares of ` 2 each respectively, 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 nine months ended December 31, 2022 are given below: | ||||||
| | i) Details of loans not in default acquired through assignment during the nine months ended December 31, 2022 are given below: | ||||||
| | | | | | | | |
| | Particulars | Value |
| | |||
| | Aggregate amount of loans acquired (` in lakhs) | 9,225.00 | | | |||
| | Weighted average residual maturity (in years) | 6.50 | | | |||
| | Weighted average holding period by originator (in years) | 0.50 | | | |||
| | Retention of beneficial economic interest by the originator | NIL | | | |||
| | Tangible security coverage | 93.56% | | | |||
| | Rating-wise distribution | AA- | | | |||
| | | | | | | | |
| | | ||||||
| | ii) During the nine months ended December 31, 2022, the bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA). | ||||||
| | | | | | | | |
| | iii) During the nine months ended December 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. | ||||||
| | | | | | | | |
| 9 | Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification. | ||||||
| | | | | | | | |
| | | | SHYAM SRINIVASAN | ||||
| Kochi | | MANAGING DIRECTOR & CEO | |||||
| January 16, 2023 | | (DIN: 02274773) | |||||
| THE FEDERAL BANK LIMITED | |||||||
| REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | |||||||
| (CIN: L65191KL1931PLC000368) | |||||||
| CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2022 | |||||||
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| (` in Lakhs) |
| Particulars | Quarter ended | Nine months ended | Year ended | ||||
| 31.12.2022 | 30.09.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.03.2022 | ||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
| 1. Interest earned (a)+(b)+(c)+(d) | 4,69,750 | 4,25,893 | 3,60,398 | 12,79,952 | 10,69,523 | 14,38,153 | |
| (a) | Interest/discount on advances/bills | 3,84,986 | 3,46,427 | 2,89,480 | 10,41,833 | 8,60,281 | 11,56,431 |
| (b) | Income on investments | 71,785 | 66,308 | 56,833 | 2,00,627 | 1,72,828 | 2,31,649 |
| (c) | Interest on balances with Reserve Bank of India and other inter bank funds | 4,977 | 6,017 | 6,089 | 15,474 | 16,413 | 22,027 |
| (d) | Others | 8,002 | 7,141 | 7,996 | 22,018 | 20,001 | 28,046 |
| 2. Other income | 56,508 | 62,765 | 52,132 | 1,66,781 | 1,63,669 | 2,12,094 | |
| 3. TOTAL INCOME (1+2) | 5,26,258 | 4,88,658 | 4,12,530 | 14,46,733 | 12,33,192 | 16,50,247 | |
| 4. Interest expended | 2,58,490 | 2,34,904 | 1,96,980 | 7,03,770 | 5,92,943 | 7,95,938 | |
| 5. Operating expenses (i)+(ii) | 1,32,986 | 1,25,639 | 1,19,089 | 3,76,205 | 3,31,331 | 4,59,215 | |
| (i) | Employees cost | 62,915 | 58,047 | 63,437 | 1,76,799 | 1,82,212 | 2,51,166 |
| (ii) | Other operating expenses | 70,071 | 67,592 | 55,652 | 1,99,406 | 1,49,119 | 2,08,049 |
| 6. TOTAL EXPENDITURE (4+5) | 3,91,476 | 3,60,543 | 3,16,069 | 10,79,975 | 9,24,274 | 12,55,153 | |
| 7. OPERATING PROFIT (3-6) | 1,34,782 | 1,28,115 | 96,461 | 3,66,758 | 3,08,918 | 3,95,094 | |
| 8. Provisions (other than tax) and contingencies | 21,364 | 28,452 | 23,980 | 67,337 | 1,22,072 | 1,30,466 | |
| 9. Exceptional items | | - | - | - | - | - | - |
| 10. Profit from Ordinary Activities before tax | 1,13,418 | 99,663 | 72,481 | 2,99,421 | 1,86,846 | 2,64,628 | |
| 11. Tax expense | | 28,190 | 25,572 | 18,472 | 75,802 | 48,482 | 68,088 |
| 12. Net Profit from Ordinary Activities after tax (10-11) | 85,228 | 74,091 | 54,009 | 2,23,619 | 1,38,364 | 1,96,540 | |
| 13. Extraordinary items (net of tax expense) | | - | - | - | - | - | - |
| 14. Net Profit for the period (12-13) |
| 85,228 | 74,091 | 54,009 | 2,23,619 | 1,38,364 | 1,96,540 |
| 15. Minority interest | | 1,278 | 1,164 | 458 | 3,546 | 1,527 | 2,664 |
| 16. Share in Profit of Associates | | 375 | 407 | 426 | 1,008 | 1,388 | 3,103 |
| 17. Consolidated Net Profit of the group | 84,325 | 73,334 | 53,977 | 2,21,081 | 1,38,225 | 1,96,979 | |
| 18. Paid-up Equity Share Capital | 42,291 | 42,191 | 42,041 | 42,291 | 42,041 | 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 | NIL | NIL |
| (ii) | Capital Adequacy ratio (%) | | | | | | |
| | Under Basel III | 13.81 | 14.30 | 14.97 | 13.81 | 14.97 | 16.33 |
| (iii) | Earnings per Share (EPS) (in `) | | | | | | |
| | (a) Basic EPS (before and after extraordinary items) | 3.99* | 3.48* | 2.57* | 10.49* | 6.72* | 9.52 |
| | (b) Diluted EPS (before and after extraordinary items) | 3.94* | 3.45* | 2.55* | 10.39* | 6.67* | 9.44 |
| (iv) | NPA Ratios | | | | | | |
| | a) Gross NPA | 4,30,899 | 4,17,310 | 4,59,280 | 4,30,899 | 4,59,280 | 4,25,653 |
| | b) Net NPA | 1,34,855 | 1,36,396 | 1,61,315 | 1,34,855 | 1,61,315 | 1,47,977 |
| | c) % of Gross NPA | 2.42 | 2.45 | 3.10 | 2.42 | 3.10 | 2.78 |
| | d) % of Net NPA | 0.77 | 0.82 | 1.11 | 0.77 | 1.11 | 0.98 |
| (v) | Return on Assets (%) | 0.34* | 0.31* | 0.25* | 0.91* | 0.66* | 0.91 |
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| * Not Annualised | | | | | | | |
| Segment Information@ |
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| (` in Lakhs) |
| Particulars | Quarter ended | Nine months ended | Year ended | ||||
| 31.12.2022 | 30.09.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.03.2022 | ||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
| Segment Revenue: | | | | | | | |
| | Treasury | 61,099 | 66,222 | 51,768 | 1,82,026 | 1,82,225 | 2,31,327 |
| | Corporate/Wholesale Banking | 1,37,246 | 1,22,907 | 1,03,817 | 3,66,937 | 3,19,648 | 4,22,307 |
| | Retail Banking | 3,21,779 | 2,94,019 | 2,50,466 | 8,82,403 | 7,19,413 | 9,78,155 |
| | a) Digital Banking | 23,960 | 22,729 | 14,801 | 63,988 | 39,091 | 56,772 |
| | b) Other Retail Banking | 2,97,819 | 2,71,290 | 2,35,665 | 8,18,415 | 6,80,322 | 9,21,383 |
| | Other Banking operations | 5,920 | 5,331 | 4,594 | 14,932 | 9,954 | 14,837 |
| | Unallocated | 214 | 179 | 1,885 | 435 | 1,952 | 3,621 |
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| Total Revenue | 5,26,258 | 4,88,658 | 4,12,530 | 14,46,733 | 12,33,192 | 16,50,247 |
| | Less: Inter Segment Revenue | - | - | - | - | - | - |
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| Income from Operations | 5,26,258 | 4,88,658 | 4,12,530 | 14,46,733 | 12,33,192 | 16,50,247 |
| Segment Results (net of provisions): | | | | | | | |
| | Treasury | 10,385 | 18,243 | 11,276 | 41,628 | 57,009 | 62,722 |
| | Corporate/Wholesale Banking | 25,960 | 14,371 | 21,370 | 54,693 | 37,717 | 54,114 |
| | Retail Banking | 72,405 | 62,871 | 35,570 | 1,91,520 | 83,015 | 1,33,433 |
| | a) Digital Banking | 4,071 | 3,203 | (667) | 6,866 | 3,768 | 6,880 |
| | b) Other Retail Banking | 68,334 | 59,668 | 36,237 | 1,84,654 | 79,247 | 1,26,553 |
| | Other Banking operations | 4,455 | 3,999 | 2,380 | 11,146 | 7,153 | 10,738 |
| | Unallocated | 213 | 179 | 1,885 | 434 | 1,952 | 3,621 |
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| Profit before tax | 1,13,418 | 99,663 | 72,481 | 2,99,421 | 1,86,846 | 2,64,628 |
| Segment Assets: |
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| | Treasury | 48,96,686 | 43,66,944 | 40,59,405 | 48,96,686 | 40,59,405 | 47,63,764 |
| | Corporate/Wholesale Banking | 93,42,502 | 89,31,093 | 77,07,515 | 93,42,502 | 77,07,515 | 78,08,465 |
| | Retail Banking | 1,07,75,908 | 1,02,55,021 | 89,37,571 | 1,07,75,908 | 89,37,571 | 93,78,255 |
| | a) Digital Banking | 3,55,734 | 2,69,151 | 1,87,578 | 3,55,734 | 1,87,578 | 2,04,346 |
| | b) Other Retail Banking | 1,04,20,174 | 99,85,870 | 87,49,993 | 1,04,20,174 | 87,49,993 | 91,73,909 |
| | Other Banking operations | 798 | 851 | 286 | 798 | 286 | 401 |
| | Unallocated | 7,81,411 | 7,79,609 | 6,54,674 | 7,81,411 | 6,54,674 | 6,73,219 |
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| Total | 2,57,97,305 | 2,43,33,518 | 2,13,59,451 | 2,57,97,305 | 2,13,59,451 | 2,26,24,104 |
| Segment Liabilities: |
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| | Treasury | 26,58,030 | 23,14,458 | 10,83,754 | 26,58,030 | 10,83,754 | 18,59,584 |
| | Corporate/Wholesale Banking | 22,49,040 | 19,88,499 | 16,81,586 | 22,49,040 | 16,81,586 | 18,77,366 |
| | Retail Banking | 1,84,02,087 | 1,76,03,969 | 1,64,51,320 | 1,84,02,087 | 1,64,51,320 | 1,66,84,108 |
| | a) Digital Banking | 10,82,117 | 8,90,517 | 5,32,804 | 10,82,117 | 5,32,804 | 6,27,564 |
| | b) Other Retail Banking | 1,73,19,970 | 1,67,13,452 | 1,59,18,516 | 1,73,19,970 | 1,59,18,516 | 1,60,56,544 |
| | Other Banking operations | 314 | 483 | 103 | 314 | 103 | 364 |
| | Unallocated | 3,38,338 | 3,65,759 | 2,47,486 | 3,38,338 | 2,47,486 | 2,46,597 |
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| Total | 2,36,47,809 | 2,22,73,168 | 1,94,64,249 | 2,36,47,809 | 1,94,64,249 | 2,06,68,019 |
| Capital Employed: | | | | | | | |
| (Segment Assets - Segment Liabilities) | | | | | | | |
| | Treasury | 22,38,656 | 20,52,486 | 29,75,651 | 22,38,656 | 29,75,651 | 29,04,180 |
| | Corporate/Wholesale Banking | 70,93,462 | 69,42,594 | 60,25,929 | 70,93,462 | 60,25,929 | 59,31,099 |
| | Retail Banking | (76,26,179) | (73,48,948) | (75,13,749) | (76,26,179) | (75,13,749) | (73,05,853) |
| | a) Digital Banking | (7,26,383) | (6,21,366) | (3,45,226) | (7,26,383) | (3,45,226) | (4,23,218) |
| | b) Other Retail Banking | (68,99,796) | (67,27,582) | (71,68,523) | (68,99,796) | (71,68,523) | (68,82,635) |
| | Other Banking operations | 484 | 368 | 183 | 484 | 183 | 37 |
| | Unallocated | 4,43,073 | 4,13,850 | 4,07,188 | 4,43,073 | 4,07,188 | 4,26,622 |
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| Total | 21,49,496 | 20,60,350 | 18,95,202 | 21,49,496 | 18,95,202 | 19,56,085 |
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| @ | For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines. | ||||||
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| Notes: |
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| 1 | The above Consolidated Unaudited Financial Results for the quarter and nine months ended December 31, 2022 were reviewed by the Audit Committee and subsequently approved by the Board of Directors at its meeting held on January 16, 2023. These Results have been subjected to limited review by the Statutory Central Auditors of the Bank and an unqualified review report has been issued. | ||||||
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| 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. | ||||||
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| 3 | There has been no material change in the accounting policies adopted in the preparation of the interim financial results as compared to those followed in the consolidated annual financial statements for the year ended March 31, 2022. | ||||||
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| 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. | ||||||
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| 5 | Other income includes fees earned from providing services to customers, commission from non-fund-based banking activities, earnings from foreign exchange and derivative transactions, selling of third-party products, profit on sale of investments (net), profit / loss on revaluation of investments, recoveries from advances written off etc. | ||||||
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| 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. | ||||||
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| 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. | ||||||
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| 8 | Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification. | ||||||
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| | | | SHYAM SRINIVASAN | ||||
| Kochi | | MANAGING DIRECTOR & CEO | |||||
| January 16, 2023 | | (DIN: 02274773) | |||||
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