________________________________________________________________________
SD/LSE/402/2023-24 05.02.2024
To
The London Stock Exchange
10 Paternoster Square
London
Dear Sir,
We enclose herewith the Un-Audited Standalone and Consolidated Financial Results of the Bank for the Quarter and Nine months ended December 31, 2023 which was approved at the Bank's Board of Directors meeting held on January 16, 2024.
Kindly take the same on your record.
For The Federal Bank Limited
Sd/-
Samir P Rajdev
Company Secretary
| M S K A & Associates | Suri & Co |
| 602, Floor 6, Raheja Titanium | Guna Complex, No.443 & 445, |
| Western Express Highway, Geetanjali, | 4th Floor Main Building, |
| Railway Colony, Ram Nagar, Goregaon (E), | Anna Salai, Teynampet, |
| Mumbai 400 063. | Chennai 600 018. |
Independent Auditor's Review Report on standalone unaudited financial results for the quarter and nine months ended December 31, 2023 of The Federal Bank Limited pursuant to the Regulation 33 and Regulation 52 read with Regulation 63(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
The Board of Directors of
The Federal Bank Limited
1. We have reviewed the accompanying statement of standalone unaudited financial results of The Federal Bank Limited ('the Bank') for the quarter and nine months ended December 31, 2023 ('the Statement') attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 as amended ('the Regulations') except, for the disclosures relating to Pillar 3 as at December 31, 2023, including leverage ratio, liquidity coverage ratio and net stable funding ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the Note 9 to the Statement and have not been reviewed by us.
2. This Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard 25 'Interim Financial Reporting' ('AS 25') prescribed under section 133 of the Companies Act, 2013 ('the Act') read with relevant rules issued thereunder, in so far as they apply to the Banks, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India ('the RBI') from time to time ('the RBI Guidelines'), other recognised accounting principles generally accepted in India and is in compliance with the Regulations. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing under section 143(10) of the Act and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
4. Based on our review, conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with the recognition and measurement principles laid down in AS 25, prescribed under Section 133 of the Act read with relevant rules issued thereunder, the RBI Guidelines and other recognised accounting principles generally accepted in India has not disclosed the information required to be disclosed in terms of the Regulations, including the manner in which it is to be disclosed or that it contains material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the RBI in respect of income recognition, asset classification, provisioning and other related matters, except for the disclosures relating to Pillar 3 disclosures as at December 31, 2023, including leverage ratio, liquidity coverage ratio and net stable funding ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the Note 9 to the Statement and have not been reviewed by us.
5. The Statement includes standalone financial results of the Bank for the corresponding quarter and nine months ended December 31, 2022, which were reviewed by another auditor whose report dated -January 16, 2023 expressed an unmodified opinion on those results. The Statement also includes the standalone financial statements of the Bank for the year ended March 31, 2023 which were audited by another auditors whose report dated May 05, 2023 expressed an unmodified opinion on the standalone financial statements.
Our conclusion is not modified in respect of this matter.
| For M S K A & Associates | For Suri & Co |
| Chartered Accountants | Chartered Accountants |
| ICAI Firm Registration Number: 105047W | ICAI Firm Registration Number: 004283S |
| | |
| | |
| | |
|
Sd/- | Sd/- |
| Swapnil Kale | G. Rengarajan |
| Partner | Partner |
| Membership Number: 117812 | Membership Number: 219922 |
| UDIN: 24117812BKFIDB1933 | UDIN: 24219922BKCLPC8636 |
|
Mumbai |
Kochi |
| January 16, 2024 | January 16, 2024 |
| M S K A & Associates | Suri & Co |
| 602, Floor 6, Raheja Titanium | Guna Complex, No.443 & 445, |
| Western Express Highway, Geetanjali, | 4th Floor Main Building, |
| Railway Colony, Ram Nagar, Goregaon (E), | Anna Salai, Teynampet, |
| Mumbai 400 063. | Chennai 600 018. |
Independent Auditor's Review Report on consolidated unaudited financial results for the quarter and nine months ended December 31, 2023 of The Federal Bank Limited pursuant to the Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
The Board of Directors
The Federal Bank Limited
1. We have reviewed the accompanying statement of consolidated unaudited financial results of The Federal Bank Limited ('the Bank') and its subsidiaries (the Bank and its subsidiaries together referred to as 'the Group'), its share of the net profit after tax of its associates for the quarter and nine months ended December 31, 2023 ('the Statement'), being submitted by the Bank pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('the Regulations') except, for the disclosures relating to consolidated Pillar 3 as at December 31, 2023, including leverage ratio, liquidity coverage ratio and net stable funding ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the Note 7 to the Statement and have not been reviewed by us.
2. This Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard 25 "Interim Financial Reporting' ('AS 25'), prescribed under Section 133 of the Companies Act, 2013 ('the Act'), read with relevant rules issued thereunder, in so far as they apply to the Banks, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (' the RBI') from time to time ('the RBI Guidelines') and other recognised accounting principles generally accepted in India and is in compliance with the Regulations. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Act, 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 Securities and Exchange Board of India under Regulation 33 (8) of the Regulations, to the extent applicable.
4. The Statement includes the results/financial information of the Bank and the following entities:
| Sr. No | Name of the Entity | Relationship with the Bank |
| a. | Fedbank Financial Services Limited | Subsidiary |
| b. | Federal Operations and Services Limited | Subsidiary |
| c. | Ageas Federal Life Insurance Company Limited | Associate |
| d. | Equirus Capital Private Limited | Associate |
5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review report of the other auditor referred to in paragraph 6 below and based on the financial information certified by the Management for the subsidiary and the associates as stated in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in AS 25 prescribed under Section 133 of the Act, read with relevant rules issued thereunder, RBI Guidelines and other recognised accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Regulations, including the manner in which it is to be disclosed or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the RBI in respect of income recognition, asset classification, provisioning and other related matters except, for the disclosures relating to consolidated Pillar 3 disclosure as at December 31, 2023, including leverage ratio ,liquidity coverage ratio and net stable funding ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the Note 7 to the Statement and have not been reviewed by us.
6. We did not review the interim financial information of one subsidiary included in the Statement, whose interim financial information reflect total revenues of Rs. 1,999 lakhs and Rs. 5,692 lakhs and total net profit after tax of Rs. 149 lakhs and Rs. 429 lakhs for the quarter and nine months ended December 31, 2023, respectively, as considered in the Statement. These interim financial results have been reviewed by other auditors whose reports have been furnished to us by the Management of the Bank and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiary, is based solely on the reports of the other auditors.
Our conclusion is not modified in respect of the above matter.
7. The Statement includes the interim financial information of one subsidiary which have not been reviewed by their auditor, whose interim financial information reflect total revenues of Rs. 43,014 lakhs and Rs. 1,19,735 lakhs and total net profit after tax of Rs. 5,501 lakhs and Rs. 15,184 lakhs for the quarter and nine months ended December 31, 2023, respectively, as considered in the Statement. The Statement also includes the Group's share of net profit after tax of Rs. 403 lakhs and Rs.1,273 lakhs for the quarter and nine months ended December 31, 2023, respectively, as considered in the Statement, in respect of two associates, based on their interim financial information which have not been reviewed by their auditors. These interim financial information have been furnished to us by the Management and our conclusion on the Statement in so far as it relates to the amounts and disclosures included in respect of these associates is based solely on such management prepared unaudited interim financial information. According to the information and explanations given to us by the Management, these interim financial information are not material to the Group.
Our conclusion is not modified in respect of the above matter.
8. The Statement includes the consolidated financial results of the Bank for the quarter and nine months ended December 31, 2022, which were reviewed by another auditors whose report dated January 16, 2023, expressed an unmodified conclusion on those consolidated financial results. The Statement also includes the consolidated financial statements of the Bank for the year ended March 31, 2023 which were audited by another auditors whose report dated May 05, 2023 expressed an unmodified opinion on the consolidated financial statements.
Our conclusion is not modified in respect of the above matter.
| For M S K A & Associates | For Suri & Co | | |
| Chartered Accountants | Chartered Accountants |
| |
| ICAI Firm Registration Number: 105047W | ICAI Firm Registration Number: 004283S |
| |
| | |
| |
| Sd/- | Sd/- |
| |
| Swapnil Kale | G. Rengarajan |
| |
| Partner | Partner |
| |
| Membership Number: 117812 | Membership Number: 219922 |
| |
| UDIN: 24117812BKFIDC9350 | UDIN: 24219922BKCLPB2699 |
| |
|
Mumbai |
Kochi |
| |
| January 16, 2024 | January 16, 2024 |
| |
| | | | | |
| | | |
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| | | | | | | | | |
| 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, 2023 | ||||||||
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| (? in Lakhs) | |
| Particulars | Quarter ended | Nine months ended | Year ended | |||||
| 31.12.2023 | 30.09.2023 | 31.12.2022 | 31.12.2023 | 31.12.2022 | 31.03.2023 | |||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |||
| 1. Interest earned (a)+(b)+(c)+(d) | 5,73,010 | 5,45,528 | 4,43,325 | 16,20,991 | 12,08,289 | 16,80,363 | ||
| (a) | Interest/discount on advances/bills | 4,59,757 | 4,35,548 | 3,58,487 | 12,99,263 | 9,69,441 | 13,49,184 | |
| (b) | Income on investments | 95,024 | 89,397 | 72,069 | 2,65,907 | 2,01,755 | 2,79,557 | |
| (c) | Interest on balances with Reserve Bank of India and other inter bank funds | 7,929 | 9,028 | 4,977 | 24,050 | 15,474 | 20,625 | |
| (d) | Others | 10,300 | 11,555 | 7,792 | 31,771 | 21,619 | 30,997 | |
| 2. Other income | 86,256 | 73,042 | 53,400 | 2,32,539 | 1,59,614 | 2,33,000 | ||
| 3. TOTAL INCOME (1+2) | 6,59,266 | 6,18,570 | 4,96,725 | 18,53,530 | 13,67,903 | 19,13,363 | ||
| 4. Interest expended | 3,60,674 | 3,39,886 | 2,47,672 | 10,11,154 | 6,76,002 | 9,57,147 | ||
| 5. Operating expenses (i)+(ii) | 1,54,859 | 1,46,239 | 1,21,632 | 4,35,963 | 3,45,919 | 4,76,777 | ||
| (i) | Employees cost | 69,315 | 62,631 | 56,083 | 1,93,620 | 1,57,578 | 2,17,300 | |
| (ii) | Other operating expenses | 85,544 | 83,608 | 65,549 | 2,42,343 | 1,88,341 | 2,59,477 | |
| 6. TOTAL EXPENDITURE (4+5) | 5,15,533 | 4,86,125 | 3,69,304 | 14,47,117 | 10,21,921 | 14,33,924 | ||
| 7. OPERATING PROFIT (3-6) | 1,43,733 | 1,32,445 | 1,27,421 | 4,06,413 | 3,45,982 | 4,79,439 | ||
| 8. Provisions (other than tax) and contingencies | 9,122 | 4,390 | 19,869 | 29,070 | 63,323 | 74,989 | ||
| 9. Exceptional items | | - | - | - | - | - | - | |
| 10. Profit from Ordinary Activities before tax | 1,34,611 | 1,28,055 | 1,07,552 | 3,77,343 | 2,82,659 | 4,04,450 | ||
| 11. Tax expense | | 33,937 | 32,673 | 27,191 | 95,913 | 71,861 | 1,03,391 | |
| 12. Net Profit from Ordinary Activities after tax (10-11) | 1,00,674 | 95,382 | 80,361 | 2,81,430 | 2,10,798 | 3,01,059 | ||
| 13. Extraordinary items (net of tax expense) | | - | - | - | - | - | - | |
| 14. Net Profit for the period (12-13) |
| 1,00,674 | 95,382 | 80,361 | 2,81,430 | 2,10,798 | 3,01,059 | |
| 15. Paid-up Equity Share Capital | 48,668 | 47,032 | 42,291 | 48,668 | 42,291 | 42,324 | ||
| 16. Reserves excluding Revaluation Reserve | | | | | | 21,07,799 | ||
| 17. Analytical Ratios and Other Disclosures: | | | | | | | | |
| (i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | NIL | |
| (ii) | Capital Adequacy ratio (%) | | | | | | | |
| | Under Basel III | 15.02 | 15.50 | 13.35 | 15.02 | 13.35 | 14.81 | |
| (iii) | Earnings per Share (EPS) (in ?) | | | | | | | |
| | (a) Basic EPS (before and after extraordinary items) | 4.16* | 4.17* | 3.80* | 12.36* | 10.00* | 14.27 | |
| | (b) Diluted EPS (before and after extraordinary items) | 4.11* | 4.12* | 3.75* | 12.21* | 9.91* | 14.13 | |
| (iv) | NPA Ratios | | | | | | | |
| | a) Gross NPA | 4,62,879 | 4,43,605 | 4,14,785 | 4,62,879 | 4,14,785 | 4,18,377 | |
| | b) Net NPA | 1,28,437 | 1,22,981 | 1,22,859 | 1,28,437 | 1,22,859 | 1,20,501 | |
| | c) % of Gross NPA | 2.29 | 2.26 | 2.43 | 2.29 | 2.43 | 2.36 | |
| | d) % of Net NPA | 0.64 | 0.64 | 0.73 | 0.64 | 0.73 | 0.69 | |
| (v) | Return on Assets (%) | 0.35* | 0.34* | 0.33* | 1.02* | 0.92* | 1.28 | |
| (vi) | Net Worth | 28,08,472 | 26,03,207 | 20,45,675 | 28,08,472 | 20,45,675 | 21,41,949 | |
| (vii) | Outstanding Redeemable Preference Shares | NIL | NIL | NIL | NIL | NIL | NIL | |
| (viii) | Capital Redemption Reserve | NIL | NIL | NIL | NIL | NIL | NIL | |
| (ix) | Debenture Redemption Reserve | NIL | NIL | NIL | NIL | NIL | NIL | |
| (x) | Debt - Equity Ratio # | 0.61 | 0.74 | 0.96 | 0.61 | 0.96 | 0.90 | |
| (xi) | Total Debts to Total Assets # | 5.85% | 6.67% | 7.86% | 5.85% | 7.86% | 7.42% | |
| (xii) | Operating Margin | 21.80% | 21.41% | 25.65% | 21.93% | 25.29% | 25.06% | |
| (xiii) | Net Profit Margin | 15.27% | 15.42% | 16.18% | 15.18% | 15.41% | 15.73% | |
| | | | | | | | | |
| * Not Annualised | | | | | | | ||
| # Debt and Total Debts represents Total Borrowings of the Bank | | | | | ||||
| Segment Information@ |
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| | | | | | | | (? in Lakhs) |
| Particulars | Quarter ended | Nine months ended | Year ended | ||||
| 31.12.2023 | 30.09.2023 | 31.12.2022 | 31.12.2023 | 31.12.2022 | 31.03.2023 | ||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
| Segment Revenue: | | | | | | | |
| | Treasury | 96,796 | 88,824 | 60,885 | 2,62,863 | 1,82,818 | 2,53,996 |
| | Corporate/Wholesale Banking | 1,80,205 | 1,81,524 | 1,38,045 | 5,25,974 | 3,69,539 | 5,24,048 |
| | Retail Banking | 3,75,990 | 3,42,915 | 2,93,526 | 10,50,022 | 8,05,303 | 11,20,482 |
| | a) Digital Banking | 38,689 | 36,622 | 23,960 | 1,05,651 | 63,988 | 90,354 |
| | b) Other Retail Banking | 3,37,301 | 3,06,293 | 2,69,566 | 9,44,371 | 7,41,315 | 10,30,128 |
| | Other Banking operations | 6,119 | 5,204 | 4,153 | 14,272 | 9,906 | 14,350 |
| | Unallocated | 156 | 103 | 116 | 399 | 337 | 487 |
|
| Total Revenue | 6,59,266 | 6,18,570 | 4,96,725 | 18,53,530 | 13,67,903 | 19,13,363 |
| | Less: Inter Segment Revenue | - | - | - | - | - | - |
|
| Income from Operations | 6,59,266 | 6,18,570 | 4,96,725 | 18,53,530 | 13,67,903 | 19,13,363 |
| Segment Results (net of provisions): | |
| | | | | |
| | Treasury | 21,713 | 16,790 | 9,576 | 49,758 | 40,625 | 50,577 |
| | Corporate/Wholesale Banking | 34,950 | 44,512 | 26,155 | 1,19,486 | 55,510 | 95,399 |
| | Retail Banking | 72,591 | 62,228 | 68,175 | 1,95,570 | 1,77,767 | 2,45,789 |
| | a) Digital Banking | 6,813 | 4,680 | 4,071 | 15,013 | 6,866 | 11,359 |
| | b) Other Retail Banking | 65,778 | 57,548 | 64,104 | 1,80,557 | 1,70,901 | 2,34,430 |
| | Other Banking operations | 5,201 | 4,423 | 3,530 | 12,131 | 8,420 | 12,198 |
| | Unallocated | 156 | 102 | 116 | 398 | 337 | 487 |
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| Profit before tax | 1,34,611 | 1,28,055 | 1,07,552 | 3,77,343 | 2,82,659 | 4,04,450 |
| Segment Assets: |
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| | Treasury | 60,86,667 | 57,46,602 | 49,07,856 | 60,86,667 | 49,07,856 | 52,30,629 |
| | Corporate/Wholesale Banking | 1,10,41,676 | 1,05,93,983 | 93,75,662 | 1,10,41,676 | 93,75,662 | 96,99,651 |
| | Retail Banking | 1,17,91,138 | 1,16,79,738 | 99,82,259 | 1,17,91,138 | 99,82,259 | 1,04,41,427 |
| | a) Digital Banking | 6,30,958 | 5,54,182 | 3,55,734 | 6,30,958 | 3,55,734 | 4,16,592 |
| | b) Other Retail Banking | 1,11,60,180 | 1,11,25,556 | 96,26,525 | 1,11,60,180 | 96,26,525 | 1,00,24,835 |
| | Other Banking operations | - | - | - | - | - | - |
| | Unallocated | 7,01,768 | 7,22,279 | 7,81,411 | 7,01,768 | 7,81,411 | 6,62,476 |
|
| Total | 2,96,21,249 | 2,87,42,602 | 2,50,47,188 | 2,96,21,249 | 2,50,47,188 | 2,60,34,183 |
| Segment Liabilities: |
| | | | | | |
| | Treasury | 27,41,387 | 29,66,715 | 26,07,512 | 27,41,387 | 26,07,512 | 29,13,818 |
| | Corporate/Wholesale Banking | 31,94,204 | 29,69,197 | 22,45,069 | 31,94,204 | 22,45,069 | 24,24,409 |
| | Retail Banking | 2,04,96,375 | 1,98,83,203 | 1,77,97,499 | 2,04,96,375 | 1,77,97,499 | 1,82,77,723 |
| | a) Digital Banking | 14,54,321 | 13,71,578 | 10,82,117 | 14,54,321 | 10,82,117 | 12,03,720 |
| | b) Other Retail Banking | 1,90,42,054 | 1,85,11,625 | 1,67,15,382 | 1,90,42,054 | 1,67,15,382 | 1,70,74,003 |
| | Other Banking operations | - | - | - | - | - | - |
| | Unallocated | 3,72,135 | 3,11,604 | 3,38,338 | 3,72,135 | 3,38,338 | 2,67,609 |
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| Total | 2,68,04,101 | 2,61,30,719 | 2,29,88,418 | 2,68,04,101 | 2,29,88,418 | 2,38,83,559 |
| Capital Employed: | | | | | | | |
| (Segment Assets - Segment Liabilities) | | | | | | | |
| | Treasury | 33,45,280 | 27,79,887 | 23,00,344 | 33,45,280 | 23,00,344 | 23,16,811 |
| | Corporate/Wholesale Banking | 78,47,472 | 76,24,786 | 71,30,593 | 78,47,472 | 71,30,593 | 72,75,242 |
| | Retail Banking | (87,05,237) | (82,03,465) | (78,15,240) | (87,05,237) | (78,15,240) | (78,36,296) |
| | a) Digital Banking | (8,23,363) | (8,17,396) | (7,26,383) | (8,23,363) | (7,26,383) | (7,87,128) |
| | b) Other Retail Banking | (78,81,874) | (73,86,069) | (70,88,857) | (78,81,874) | (70,88,857) | (70,49,168) |
| | Other Banking operations | - | - | - | - | - | - |
| | Unallocated | 3,29,633 | 4,10,675 | 4,43,073 | 3,29,633 | 4,43,073 | 3,94,867 |
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| Total | 28,17,148 | 26,11,883 | 20,58,770 | 28,17,148 | 20,58,770 | 21,50,624 |
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| Notes: |
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| 1 | The above Standalone Unaudited Financial Results for the quarter and nine months ended December 31, 2023 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on January 16, 2024. These results have been subjected to limited review by the Joint Statutory Auditors of the Bank and an unqualified review report has been issued. | ||||||
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| 2 | The Bank has consistently applied its significant accounting policies in the preparation of the interim financial results as those followed in the annual financial statements for the year ended March 31, 2023. | ||||||
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| 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 Reserve Bank of India (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, 2023, the Bank has allotted 9,109,679 and 14,023,554 equity shares of ` 2 each respectively, pursuant to the exercise of stock options by employees. | ||||||
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| 7 | During the quarter and half year September 30, 2023, the Bank had issued 230,477,634 equity shares of ` 2 each for cash pursuant to a Qualified Institution Placement (QIP) as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at ` 131.90 per share aggregating to ` 304,000.00 Lakhs (including share premium). This resulted in an increase of ` 4,609.55 Lakhs in Share Capital and ` 295,416.80 Lakhs (net of issue expenses) in Share premium account. | ||||||
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| 8 | During the quarter and nine months ended December 31, 2023, the Bank has issued 72,682,048 equity shares of ` 2 each for cash pursuant to a Preferential Allotment as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at `131.91 per share aggregating to ` 95,874.89 Lakhs (including share premium). This resulted in an increase of ` 1,453.64 Lakhs in Share Capital and ` 94,361.59 Lakhs (net of issue expenses) in Share premium account. | ||||||
| | | | | | | | |
| 9 | As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Joint Statutory Auditors of the Bank. | ||||||
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| 10 | Disclosures as per 'Master Direction - Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021' dated September 24, 2021 for the loans transferred / acquired during the nine months ended December 31, 2023 are given below: | ||||||
| | i) Details of loans not in default acquired through assignment during the nine months ended December 31, 2023 are given below: | ||||||
| | | | | | | | |
| | Particulars | Value | | | | ||
| | Aggregate amount of loans acquired (` in lakhs) | 1,38,359.74 | | | | ||
| | Weighted average residual maturity (in years) | 8.43 | | | | ||
| | Weighted average holding period by originator (in years) | 1.25 | | | | ||
| | Retention of beneficial economic interest by the originator (` in lakhs) | 15,373.30 | | | | ||
| | Tangible security coverage | 157.10% | | | | ||
| | The loans acquired are not rated as the same are to non-corporate borrowers. | | | | |||
| | | ||||||
| | ii) Details of non-performing assets (NPAs) transferred are given below: | ||||||
| | | | | | (` in lakhs except number of accounts) | ||
| | Particulars | To ARCs | To Permitted Transferees | To other Transferees | |||
| | Number of accounts | 6 | - | - | |||
| | Aggregate principal outstanding of loans transferred | 1,824.09 | - | - | |||
| | Weighted average residual tenor of the loans transferred (in years) | 1.83 | - | - | |||
| | Net book value of loans transferred (at the time of transfer) | 167.77 | - | - | |||
| | Aggregate consideration | 1,200.00 | - | - | |||
| | Additional consideration realized in respect of accounts transferred in earlier years | - | - | - | |||
| | Provisions reversed to the profit and loss account on account of sale of stressed loans | 492.29 | - | - | |||
| | | | | | | | |
| | iii) During the nine months ended December 31, 2023, the Bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA). | ||||||
| | | | | | | | |
| | iv) During the nine months ended December 31, 2023, the Bank has invested `510.00 lakhs in Security Receipts (SR) issued by an Asset Reconstruction Company (ARC) pursuant to transfer of Non-Performing asset to ARC, which is unrated. | ||||||
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| 11 | The figures for the quarter and nine months ended December 31, 2022 and year ended March 31, 2023 were reviewed / audited by previous Joint Statutory Auditors. | ||||||
| | | | | | | | |
| 12 | Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification. | ||||||
| | | | | |
Sd/-
| | |
| | | | SHYAM SRINIVASAN | ||||
| Kochi | | MANAGING DIRECTOR & CEO | |||||
| January 16, 2024 | | (DIN: 02274773)
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| 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, 2023 | ||||||||
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| (? in Lakhs) | |
| Particulars | Quarter ended | Nine months ended | Year ended | |||||
| 31.12.2023 | 30.09.2023 | 31.12.2022 | 31.12.2023 | 31.12.2022 | 31.03.2023 | |||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |||
| 1. Interest earned (a)+(b)+(c)+(d) | 6,08,520 | 5,79,128 | 4,69,750 | 17,22,625 | 12,79,952 | 17,81,178 | ||
| (a) | Interest/discount on advances/bills | 4,94,736 | 4,69,147 | 3,84,986 | 14,00,176 | 10,41,833 | 14,50,788 | |
| (b) | Income on investments | 94,776 | 89,237 | 71,785 | 2,65,488 | 2,00,627 | 2,78,188 | |
| (c) | Interest on balances with Reserve Bank of India and other inter bank funds | 7,929 | 9,028 | 4,977 | 24,050 | 15,474 | 20,625 | |
| (d) | Others | 11,079 | 11,716 | 8,002 | 32,911 | 22,018 | 31,577 | |
| 2. Other income | 90,835 | 75,692 | 56,508 | 2,40,658 | 1,66,781 | 2,43,623 | ||
| 3. TOTAL INCOME (1+2) | 6,99,355 | 6,54,820 | 5,26,258 | 19,63,283 | 14,46,733 | 20,24,801 | ||
| 4. Interest expended | 3,75,968 | 3,54,414 | 2,58,490 | 10,55,833 | 7,03,770 | 9,97,524 | ||
| 5. Operating expenses (i)+(ii) | 1,70,021 | 1,60,378 | 1,32,986 | 4,77,343 | 3,76,205 | 5,21,120 | ||
| (i) | Employees cost | 78,762 | 71,349 | 62,915 | 2,19,437 | 1,76,799 | 2,44,024 | |
| (ii) | Other operating expenses | 91,259 | 89,029 | 70,071 | 2,57,906 | 1,99,406 | 2,77,096 | |
| 6. TOTAL EXPENDITURE (4+5) | 5,45,989 | 5,14,792 | 3,91,476 | 15,33,176 | 10,79,975 | 15,18,644 | ||
| 7. OPERATING PROFIT (3-6) | 1,53,366 | 1,40,028 | 1,34,782 | 4,30,107 | 3,66,758 | 5,06,157 | ||
| 8. Provisions (other than tax) and contingencies | 11,385 | 5,757 | 21,364 | 33,611 | 67,337 | 79,863 | ||
| 9. Exceptional items | | - | - | - | - | - | - | |
| 10. Profit from Ordinary Activities before tax | 1,41,981 | 1,34,271 | 1,13,418 | 3,96,496 | 2,99,421 | 4,26,294 | ||
| 11. Tax expense | | 35,657 | 34,255 | 28,190 | 1,00,982 | 75,802 | 1,08,718 | |
| 12. Net Profit from Ordinary Activities after tax (10-11) | 1,06,324 | 1,00,016 | 85,228 | 2,95,514 | 2,23,619 | 3,17,576 | ||
| 13. Extraordinary items (net of tax expense) | | - | - | - | - | - | - | |
| 14. Net Profit for the period (12-13) |
| 1,06,324 | 1,00,016 | 85,228 | 2,95,514 | 2,23,619 | 3,17,576 | |
| 15. Minority interest | | 3,185 | 1,260 | 1,278 | 5,823 | 3,546 | 4,510 | |
| 16. Share in Profit of Associates | | 403 | 654 | 375 | 1,273 | 1,008 | 3,406 | |
| 17. Consolidated Net Profit of the group | 1,03,542 | 99,410 | 84,325 | 2,90,964 | 2,21,081 | 3,16,472 | ||
| 18. Paid-up Equity Share Capital | 48,668 | 47,032 | 42,291 | 48,668 | 42,291 | 42,324 | ||
| 19. Reserves excluding Revaluation Reserve | | | | | | 21,69,416 | ||
| 20. Analytical Ratios and Other Disclosures: | | | | | | | | |
| (i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | NIL | |
| (ii) | Capital Adequacy ratio (%) | | | | | | | |
| | Under Basel III | 15.40 | 15.92 | 13.81 | 15.40 | 13.81 | 15.24 | |
| (iii) | Earnings per Share (EPS) (in `) | | | | | | | |
| | (a) Basic EPS (before and after extraordinary items) | 4.28* | 4.35* | 3.99* | 12.78* | 10.49* | 15.01 | |
| | (b) Diluted EPS (before and after extraordinary items) | 4.22* | 4.29* | 3.94* | 12.62* | 10.39* | 14.85 | |
| (iv) | NPA Ratios | | | | | | | |
| | a) Gross NPA | 4,79,664 | 4,61,712 | 4,30,899 | 4,79,664 | 4,30,899 | 4,34,352 | |
| | b) Net NPA | 1,40,180 | 1,36,278 | 1,34,855 | 1,40,180 | 1,34,855 | 1,32,344 | |
| | c) % of Gross NPA | 2.28 | 2.27 | 2.42 | 2.28 | 2.42 | 2.35 | |
| | d) % of Net NPA | 0.68 | 0.68 | 0.77 | 0.68 | 0.77 | 0.73 | |
| (v) | Return on Assets (%) | 0.34* | 0.34* | 0.34* | 1.01* | 0.91* | 1.28 | |
| * Not Annualised | | | | | | | ||
| Segment Information@ |
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| (? in Lakhs) |
| Particulars | Quarter ended | Nine months ended | Year ended | ||||
| 31.12.2023 | 30.09.2023 | 31.12.2022 | 31.12.2023 | 31.12.2022 | 31.03.2023 | ||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
| Segment Revenue: | | | | | | | |
| | Treasury | 97,756 | 89,241 | 61,099 | 2,63,430 | 1,82,026 | 2,53,555 |
| | Corporate/Wholesale Banking | 1,78,730 | 1,80,218 | 1,37,246 | 5,22,578 | 3,66,937 | 5,20,704 |
| | Retail Banking | 4,14,109 | 3,78,773 | 3,21,779 | 11,57,440 | 8,82,403 | 12,28,710 |
| | a) Digital Banking | 38,689 | 36,622 | 23,960 | 1,05,651 | 63,988 | 90,354 |
| | b) Other Retail Banking | 3,75,420 | 3,42,151 | 2,97,819 | 10,51,789 | 8,18,415 | 11,38,356 |
| | Other Banking operations | 8,604 | 6,485 | 5,920 | 19,436 | 14,932 | 21,225 |
| | Unallocated | 156 | 103 | 214 | 399 | 435 | 607 |
|
| Total Revenue | 6,99,355 | 6,54,820 | 5,26,258 | 19,63,283 | 14,46,733 | 20,24,801 |
| | Less: Inter Segment Revenue | - | - | - | - | - | - |
|
| Income from Operations | 6,99,355 | 6,54,820 | 5,26,258 | 19,63,283 | 14,46,733 | 20,24,801 |
| Segment Results (net of provisions): | | | | | | | |
| | Treasury | 23,257 | 17,793 | 10,385 | 52,074 | 41,628 | 52,460 |
| | Corporate/Wholesale Banking | 34,789 | 44,463 | 25,960 | 1,19,110 | 54,693 | 94,335 |
| | Retail Banking | 77,680 | 66,419 | 72,405 | 2,10,118 | 1,91,520 | 2,61,538 |
| | a) Digital Banking | 6,813 | 4,680 | 4,071 | 15,013 | 6,866 | 11,359 |
| | b) Other Retail Banking | 70,867 | 61,739 | 68,334 | 1,95,105 | 1,84,654 | 2,50,179 |
| | Other Banking operations | 6,099 | 5,494 | 4,455 | 14,796 | 11,146 | 15,817 |
| | Unallocated | 156 | 102 | 213 | 398 | 434 | 2,144 |
|
| Profit before tax | 1,41,981 | 1,34,271 | 1,13,418 | 3,96,496 | 2,99,421 | 4,26,294 |
| Segment Assets: |
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| | Treasury | 60,80,735 | 57,25,569 | 48,96,686 | 60,80,735 | 48,96,686 | 52,06,924 |
| | Corporate/Wholesale Banking | 1,09,76,368 | 1,05,29,830 | 93,42,502 | 1,09,76,368 | 93,42,502 | 96,72,729 |
| | Retail Banking | 1,27,82,695 | 1,26,26,779 | 1,07,75,908 | 1,27,82,695 | 1,07,75,908 | 1,12,56,964 |
| | a) Digital Banking | 6,30,958 | 5,54,182 | 3,55,734 | 6,30,958 | 3,55,734 | 4,16,592 |
| | b) Other Retail Banking | 1,21,51,737 | 1,20,72,597 | 1,04,20,174 | 1,21,51,737 | 1,04,20,174 | 1,08,40,372 |
| | Other Banking operations | 1,014 | 351 | 798 | 1,014 | 798 | 1,313 |
| | Unallocated | 7,01,768 | 7,22,279 | 7,81,411 | 7,01,768 | 7,81,411 | 6,62,476 |
|
| Total | 3,05,42,580 | 2,96,04,808 | 2,57,97,305 | 3,05,42,580 | 2,57,97,305 | 2,68,00,406 |
| Segment Liabilities: |
| | | | | | |
| | Treasury | 27,92,960 | 30,05,480 | 26,58,030 | 27,92,960 | 26,58,030 | 29,42,093 |
| | Corporate/Wholesale Banking | 31,96,082 | 29,71,838 | 22,49,040 | 31,96,082 | 22,49,040 | 24,14,080 |
| | Retail Banking | 2,11,90,006 | 2,05,96,656 | 1,84,02,087 | 2,11,90,006 | 1,84,02,087 | 1,89,28,892 |
| | a) Digital Banking | 14,54,321 | 13,71,578 | 10,82,117 | 14,54,321 | 10,82,117 | 12,03,720 |
| | b) Other Retail Banking | 1,97,35,685 | 1,92,25,078 | 1,73,19,970 | 1,97,35,685 | 1,73,19,970 | 1,77,25,172 |
| | Other Banking operations | 356 | 356 | 314 | 356 | 314 | 294 |
| | Unallocated | 3,72,135 | 3,11,604 | 3,38,338 | 3,72,135 | 3,38,338 | 2,67,609 |
|
| Total | 2,75,51,539 | 2,68,85,934 | 2,36,47,809 | 2,75,51,539 | 2,36,47,809 | 2,45,52,968 |
| Capital Employed: | | | | | | | |
| (Segment Assets - Segment Liabilities) | | | | | | | |
| | Treasury | 32,87,775 | 27,20,089 | 22,38,656 | 32,87,775 | 22,38,656 | 22,64,831 |
| | Corporate/Wholesale Banking | 77,80,286 | 75,57,992 | 70,93,462 | 77,80,286 | 70,93,462 | 72,58,649 |
| | Retail Banking | (84,07,311) | (79,69,877) | (76,26,179) | (84,07,311) | (76,26,179) | (76,71,928) |
| | a) Digital Banking | (8,23,363) | (8,17,396) | (7,26,383) | (8,23,363) | (7,26,383) | (7,87,128) |
| | b) Other Retail Banking | (75,83,948) | (71,52,481) | (68,99,796) | (75,83,948) | (68,99,796) | (68,84,800) |
| | Other Banking operations | 658 | (5) | 484 | 658 | 484 | 1,019 |
| | Unallocated | 3,29,633 | 4,10,675 | 4,43,073 | 3,29,633 | 4,43,073 | 3,94,867 |
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| Total | 29,91,041 | 27,18,874 | 21,49,496 | 29,91,041 | 21,49,496 | 22,47,438 |
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| @ | For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking (with Digital Banking and Other Retail Banking as sub-segments) 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, 2023 were reviewed by the Audit Committee and subsequently approved by the Board of Directors at its meeting held on January 16, 2024. These results have been subjected to limited review by the Joint Statutory 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 for the year ended March 31, 2023. | ||||||
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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 Reserve Bank of India (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 Joint Statutory Auditors of the Bank. | ||||||
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| 8 | During the quarter and half year September 30, 2023 , the Bank has issued 230,477,634 equity shares of ` 2 each for cash pursuant to a Qualified Institution Placement (QIP) as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at ` 131.90 per share aggregating to ` 304,000.00 Lakhs (including share premium). This resulted in an increase of ` 4,609.55 Lakhs in Share Capital and ` 295,416.80 Lakhs (net of issue expenses) in Share premium account. | ||||||
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| 9 |
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| 10 | The figures for the quarter and nine months ended December 31, 2022 and year ended March 31, 2023 were reviewed / audited by previous Joint Statutory Auditors. | ||||||
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| 11 | Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification. | ||||||
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| | | | | | Sd/- | | |
| | | | SHYAM SRINIVASAN | ||||
| Kochi | | MANAGING DIRECTOR & CEO | |||||
| January 16, 2024 | | (DIN: 02274773) | |||||
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