________________________________________________________________________
SD/LSE/87/2024-25 22.05.2024
To
The London Stock Exchange
10 Paternoster Square
London
Dear Sir,
We enclose herewith the Audited Standalone and Consolidated Financial Results of the Bank for the Quarter and Year ended March 31, 2024 which was approved at the Bank's Board of Directors meeting held on May 02, 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 Report on the Standalone Financial Results for the year ended March 31, 2024 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) 2015, as amended.
TO THE BOARD OF DIRECTORS OF
THE FEDERAL BANK LIMITED
Report on the Audit of the Standalone Financial Results
Opinion
We have audited the accompanying Standalone Financial Results of The Federal Bank Limited (hereinafter referred to as the "the Bank") for the year ended March 31, 2024 ("the Statement"), 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 Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations") except for the disclosure relating to Pillar 3 as at March 31, 2024, 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 Note 10 to the Statement and have not been audited by us.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Statement:
i. is presented in accordance with the requirements of the Listing Regulations in this regards except for the disclosures relating to Pillar 3 as at March 31, 2024, 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 Note 10 to the Statement and have not been audited by us; and
ii. gives a true and fair view, in conformity with the recognition and measurement principle laid down in the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with Companies (Accounting Standards) Rules, 2021, as amended to the extent applicable, 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 of the net profit and other financial information for the year ended March 31, 2024.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing ("SAs") specified under section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India ("the ICAI"). Our responsibilities under those SAs are further described in the Auditors' Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the ICAI together with the ethical requirements that are relevant to our audit of the Statement, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Management and Board of Directors' Responsibility for the Standalone Financial Results
The Statement which is the responsibility of the Bank's Management and approved by the Board of Directors, has been compiled from the Standalone Audited Financial Statements. The Bank's Board of Directors are responsible for the preparation of the Statement that gives a true and fair view of the net profit and other financial information of the Bank in accordance with the Accounting Standards specified under section 133 of the Act read with Companies (Accounting Standards) Rules, 2021, as amended to the extent applicable, the relevant provisions of the Banking Regulation Act, 1949, the RBI Guidelines and other accounting principles generally accepted in India and in compliance with the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act, Banking Regulation Act, 1949 and the RBI Guidelines for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Statement, the Board of Directors are responsible for assessing the Bank's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Bank's financial reporting process.
Auditors' Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Bank has internal financial controls with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.
· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
· Conclude on the appropriateness of the Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Bank to cease to continue as a going concern.
· Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Other Matters
1. The Statement includes the Standalone Financial Results of the Bank for the corresponding quarter and year ended March 31, 2023, which were audited by another auditors whose report dated ------May 05, 2023, expressed an unmodified opinion on those results.
2. The Statement includes the results for the quarter ended March 31, 2024, being the balancing figure between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year prepared in accordance with the Accounting Standard 25 "Interim Financial Reporting" which were subject to limited review by us.
Our opinion on the statement is not modified in respect of the above matters.
| 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: 24117812BKFIEL3626 | UDIN: 24219922BKCLRB4003 |
|
Mumbai |
Kochi |
| May 02, 2024 | May 02, 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 Report on the Consolidated Financial Results for the year ended March 31, 2024 of The Federal Bank Limited pursuant to the Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) 2015, as amended
TO THE BOARD OF DIRECTORS OF
THE FEDERAL BANK LIMITED
Report on the Audit of the Consolidated Financial Results
Opinion
We have audited the accompanying Consolidated Financial Results of The Federal Bank Limited (hereinafter referred to as the "the Bank") and its subsidiaries (the Bank and its subsidiaries together referred to as "the Group") and its associates, for the year ended March 31, 2024 ("the Statement"), being submitted by the Bank pursuant to the requirements of Regulation 33 and of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations") except, for the disclosures relating to consolidated Pillar 3 as at March 31, 2024, 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 Note 8 to the Statement and have not been audited by us.
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate audited financial statements of the two subsidiaries and one associate and financial information of one associate as certified by the Management of the associate, the aforesaid Statement:
a. includes the annual financial results of the Bank and the following entities:
| Sr. No | Name of the Entities | 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 |
b. is presented in accordance with the requirements of the Listing Regulations in this regards except for the disclosures relating to consolidated Pillar 3 as at March 31, 2024, 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 Note 8 to the Statement and have not been audited by us; and
c. gives a true and fair view, in conformity with applicable accounting standards prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with Companies (Accounting Standards) Rules, 2021 to the extent applicable, 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 of the consolidated net profit and other financial information of the Group and its associates for the year ended March 31, 2024.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing ("SAs") specified under section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India ("the ICAI"). Our responsibilities under those SAs are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Results section of our report. We are independent of the Group and it's associates in accordance with the Code of Ethics issued by the ICAI together with the ethical requirements that are relevant to our audit of the Statement, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.
We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in "Other Matters" paragraph below, is sufficient and appropriate to provide a basis for our opinion.
Management and Board of Directors' Responsibility for the Consolidated Financial Results
The Statement which is the responsibility of the Bank's Management and approved by the Board of Directors, has been compiled from the Consolidated Audited Financial statements. The Bank's Board of Directors are responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other financial information of the Group including its associates in accordance with the Accounting Standard specified under section 133 of the Act read with Companies (Accounting Standards) Rules, 2021 to the extent applicable, the relevant provisions of the Banking Regulation Act, 1949, RBI Guidelines and other accounting principles generally accepted in India and in compliance with the Listing Regulations. The respective Board of Directors of the entities included in the Group and of its associates are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act, Banking Regulation Act, 1949 and the RBI Guidelines for safeguarding of the assets of the Group and of its associates and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error which have been used for the purpose of preparation of the Statement by the Board of Directors of the Bank, as aforesaid.
In preparing the Statement, the respective Board of Directors of the entities included in the Group and of its associates are responsible for assessing the ability of the Group and of its associates to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group and its associates or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the entities included in the Group and of its associates are responsible for overseeing the financial reporting process of the Group and of its associates.
Auditors' Responsibilities for the Audit of the Consolidated Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Bank has internal financial controls with reference to Consolidated Financial Statements in place and the operating effectiveness of such controls.
· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
· Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and of its associates to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group and of its associates to cease to continue as a going concern.
· Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represent the underlying transactions and events in a manner that achieves fair presentation.
· Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group and of its associates to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Statement of which we are the independent auditors. For the other entities included in the Statement, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Bank and such other entities included in the Statement of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
We also performed procedures in accordance with the circular issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.
Other Matters
a. The Statement includes the audited financial statements of two subsidiaries, whose Financial Statements reflect Group's share of total assets of Rs. 11,04,959 lakhs as at March 31, 2024, Group's share of total revenue of Rs. 1,72,504 lakhs and Group's share of total net profit after tax of Rs. 22,360 lakhs for the year ended March 31, 2024, respectively and Group's net cash flow of Rs. (26,640) lakhs for the year ended as on date, as considered in the Statement, which have been audited by their respective independent auditors. The independent auditors' reports on Financial statements of these entities have been furnished to us and our opinion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these entities, is based solely on the report of such auditors.
b. The Statement includes the audited financial statements of one associate, whose Financial statements reflect Group's share of net profit after tax of Rs. 2,781 lakhs, for the year ended March 31, 2024, as considered in the Statement. The independent auditors' reports on Financial statements of this entity has been furnished to us and our opinion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these entities, is based solely on the report of such auditors.
Our opinion is not modified in respect of the above matter with respect to our reliance on the work done and the report of other auditor.
c. The Statement includes the unaudited financial information of one associate, whose Financial information reflect Group's share of net profit after tax of Rs. 869 lakhs, for the year ended March 31, 2024, as considered in the Statement. This unaudited financial information has been furnished to us by the Management and our opinion on the Statement, in so far as it relates to the amounts and disclosures included in respect of this associate is based solely on such Management prepared unaudited Financial information. In our opinion and according to the information and explanations given to us by the Management, this Financial information are not material to the Group.
Our opinion on the Statement is not modified with respect to the Financial information certified by the Management.
d. The Statement includes the Consolidated Financial Results of the Bank for the corresponding quarter and year ended March 31, 2023, which were audited by another auditors whose report dated May 05, 2023, expressed an unmodified opinion on those results.
e. The Statement includes the results for the quarter ended March 31, 2024, being the balancing figure between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year prepared in accordance with the Accounting Standard 25 "Interim Financial Reporting" which were subject to limited review by us.
Our opinion on the statement is not modified in respect of the above matters.
| For M S K A & Associates | For Suri & Co |
| Chartered Accountants | Chartered Accountants |
| ICAI Firm Registration Number: 105047W | ICAI Firm Registration Number: 004283S |
| | |
| | |
| | |
| Swapnil Kale | G. Rengarajan |
| Partner | Partner |
| Membership Number: 117812 | Membership Number: 219922 |
| UDIN: 24117812BKFIEM1709 | UDIN: 24219922BKCLRA3009 |
|
Mumbai |
Kochi |
| May 02, 2024 | May 02, 2024 |
| | | | | |
| | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| THE FEDERAL BANK LIMITED | |||||||
| REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | |||||||
| (CIN: L65191KL1931PLC000368) | |||||||
| STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2024 | |||||||
|
|
|
|
|
|
| (₹ in Lakhs) | |
| Particulars | Quarter ended | Year ended | |||||
| 31.03.2024 | 31.12.2023 | 31.03.2023 | 31.03.2024 | 31.03.2023 | |||
| Audited | Unaudited | Audited | Audited | Audited | |||
| 1. Interest earned (a)+(b)+(c)+(d) | 5,97,835 | 5,73,010 | 4,72,074 | 22,18,826 | 16,80,363 | ||
| (a) | Interest/discount on advances/bills | 4,74,189 | 4,59,757 | 3,79,743 | 17,73,452 | 13,49,184 | |
| (b) | Income on investments | 1,03,255 | 95,024 | 77,802 | 3,69,162 | 2,79,557 | |
| (c) | Interest on balances with Reserve Bank of India and other inter bank funds | 9,837 | 7,929 | 5,151 | 33,887 | 20,625 | |
| (d) | Others | 10,554 | 10,300 | 9,378 | 42,325 | 30,997 | |
| 2. Other income (Refer note 5) | 75,388 | 86,256 | 73,386 | 3,07,927 | 2,33,000 | ||
| 3. TOTAL INCOME (1+2) | 6,73,223 | 6,59,266 | 5,45,460 | 25,26,753 | 19,13,363 | ||
| 4. Interest expended | 3,78,324 | 3,60,674 | 2,81,145 | 13,89,478 | 9,57,147 | ||
| 5. Operating expenses (i)+(ii) | 1,83,864 | 1,54,859 | 1,30,858 | 6,19,827 | 4,76,777 | ||
| (i) | Employees cost | 88,689 | 69,315 | 59,722 | 2,82,309 | 2,17,300 | |
| (ii) | Other operating expenses | 95,175 | 85,544 | 71,136 | 3,37,518 | 2,59,477 | |
| 6. TOTAL EXPENDITURE (4+5) | 5,62,188 | 5,15,533 | 4,12,003 | 20,09,305 | 14,33,924 | ||
| 7. OPERATING PROFIT (3-6) | 1,11,035 | 1,43,733 | 1,33,457 | 5,17,448 | 4,79,439 | ||
| 8. Provisions (other than tax) and contingencies | (9,460) | 9,122 | 11,666 | 19,610 | 74,989 | ||
| 9. Exceptional items | | - | - | - | - | - | |
| 10. Profit from Ordinary Activities before tax | 1,20,495 | 1,34,611 | 1,21,791 | 4,97,838 | 4,04,450 | ||
| 11. Tax expense | | 29,865 | 33,937 | 31,530 | 1,25,778 | 1,03,391 | |
| 12. Net Profit from Ordinary Activities after tax (10-11) | 90,630 | 1,00,674 | 90,261 | 3,72,060 | 3,01,059 | ||
| 13. Extraordinary items (net of tax expense) | | - | - | - | - | - | |
| 14. Net Profit for the period (12-13) |
| 90,630 | 1,00,674 | 90,261 | 3,72,060 | 3,01,059 | |
| 15. Paid-up Equity Share Capital | 48,707 | 48,668 | 42,324 | 48,707 | 42,324 | ||
| 16. Reserves excluding Revaluation Reserve | | | | 28,60,234 | 21,07,799 | ||
| 17. Analytical Ratios and Other Disclosures: | | | | | | | |
| (i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | |
| (ii) | Capital Adequacy ratio (%) (Refer note 6) | | | | | | |
| | Under Basel III | 16.13 | 15.02 | 14.81 | 16.13 | 14.81 | |
| (iii) | Earnings per Share (EPS) (in ₹) | | | | | | |
| | (a) Basic EPS (before and after extraordinary items) | 3.72* | 4.16* | 4.27* | 16.07 | 14.27 | |
| | (b) Diluted EPS (before and after extraordinary items) | 3.68* | 4.11* | 4.21* | 15.87 | 14.13 | |
| (iv) | NPA Ratios | | | | | | |
| | a) Gross NPA | 4,52,887 | 4,62,879 | 4,18,377 | 4,52,887 | 4,18,377 | |
| | b) Net NPA | 1,25,533 | 1,28,437 | 1,20,501 | 1,25,533 | 1,20,501 | |
| | c) % of Gross NPA | 2.13 | 2.29 | 2.36 | 2.13 | 2.36 | |
| | d) % of Net NPA | 0.60 | 0.64 | 0.69 | 0.60 | 0.69 | |
| (v) | Return on Assets (%) | 0.30* | 0.35* | 0.36* | 1.32 | 1.28 | |
| (vi) | Net Worth | 29,08,941 | 28,08,472 | 21,41,949 | 29,08,941 | 21,41,949 | |
| (vii) | Outstanding Redeemable Preference Shares | NIL | NIL | NIL | NIL | NIL | |
| (viii) | Capital Redemption Reserve | NIL | NIL | NIL | NIL | NIL | |
| (ix) | Debenture Redemption Reserve | NIL | NIL | NIL | NIL | NIL | |
| (x) | Debt - Equity Ratio # | 0.62 | 0.61 | 0.90 | 0.62 | 0.90 | |
| (xi) | Total Debts to Total Assets # | 5.85% | 5.85% | 7.42% | 5.85% | 7.42% | |
| (xii) | Operating Margin | 16.49% | 21.80% | 24.47% | 20.48% | 25.06% | |
| (xiii) | Net Profit Margin | 13.46% | 15.27% | 16.55% | 14.72% | 15.73% | |
| | | | | | | | |
| * Not Annualised | | | | | | ||
| # Debt and Total Debts represents Total Borrowings of the Bank | | | | ||||
| Segment Information@ |
| | | | | |
| | | | | | | (₹ in Lakhs) |
| Particulars | Quarter ended | Year ended | ||||
| 31.03.2024 | 31.12.2023 | 31.03.2023 | 31.03.2024 | 31.03.2023 | ||
| Audited | Unaudited | Audited | Audited | Audited | ||
| Segment Revenue: | | | | | | |
| | Treasury | 90,473 | 96,796 | 71,178 | 3,53,336 | 2,53,996 |
| | Corporate/Wholesale Banking | 1,95,562 | 1,80,205 | 1,54,509 | 7,21,536 | 5,24,048 |
| | Retail Banking | 3,81,224 | 3,75,990 | 3,15,179 | 14,31,246 | 11,20,482 |
| | a) Digital Banking | 44,452 | 38,689 | 26,366 | 1,50,103 | 90,354 |
| | b) Other Retail Banking | 3,36,772 | 3,37,301 | 2,88,813 | 12,81,143 | 10,30,128 |
| | Other Banking operations | 5,799 | 6,119 | 4,444 | 20,071 | 14,350 |
| | Unallocated | 165 | 156 | 150 | 564 | 487 |
|
| Total Revenue | 6,73,223 | 6,59,266 | 5,45,460 | 25,26,753 | 19,13,363 |
| | Less: Inter Segment Revenue | - | - | - | - | - |
|
| Income from Operations | 6,73,223 | 6,59,266 | 5,45,460 | 25,26,753 | 19,13,363 |
| Segment Results (net of provisions): | - |
| | | | |
| | Treasury | 6,814 | 21,713 | 9,952 | 56,572 | 50,577 |
| | Corporate/Wholesale Banking | 42,671 | 34,950 | 39,889 | 1,62,157 | 95,399 |
| | Retail Banking | 65,916 | 72,591 | 68,022 | 2,61,486 | 2,45,789 |
| | a) Digital Banking | 7,546 | 6,813 | 4,493 | 22,559 | 11,359 |
| | b) Other Retail Banking | 58,370 | 65,778 | 63,529 | 2,38,927 | 2,34,430 |
| | Other Banking operations | 4,929 | 5,201 | 3,778 | 17,060 | 12,198 |
| | Unallocated | 165 | 156 | 150 | 563 | 487 |
|
| Profit before tax | 1,20,495 | 1,34,611 | 1,21,791 | 4,97,838 | 4,04,450 |
| Segment Assets: |
|
|
|
|
|
|
| | Treasury | 63,09,635 | 60,86,667 | 52,30,629 | 63,09,635 | 52,30,629 |
| | Corporate/Wholesale Banking | 1,11,57,372 | 1,10,41,676 | 96,99,651 | 1,11,57,372 | 96,99,651 |
| | Retail Banking | 1,25,55,959 | 1,17,91,138 | 1,04,41,427 | 1,25,55,959 | 1,04,41,427 |
| | a) Digital Banking | 6,81,296 | 6,30,958 | 4,16,592 | 6,81,296 | 4,16,592 |
| | b) Other Retail Banking | 1,18,74,663 | 1,11,60,180 | 1,00,24,835 | 1,18,74,663 | 1,00,24,835 |
| | Other Banking operations | - | - | - | - | - |
| | Unallocated | 8,08,214 | 7,01,768 | 6,62,476 | 8,08,214 | 6,62,476 |
|
| Total | 3,08,31,180 | 2,96,21,249 | 2,60,34,183 | 3,08,31,180 | 2,60,34,183 |
| Segment Liabilities: |
| | | | | |
| | Treasury | 28,80,492 | 27,41,387 | 29,13,818 | 28,80,492 | 29,13,818 |
| | Corporate/Wholesale Banking | 32,02,646 | 31,94,204 | 24,24,409 | 32,02,646 | 24,24,409 |
| | Retail Banking | 2,13,10,663 | 2,04,96,375 | 1,82,77,723 | 2,13,10,663 | 1,82,77,723 |
| | a) Digital Banking | 16,26,328 | 14,54,321 | 12,03,720 | 16,26,328 | 12,03,720 |
| | b) Other Retail Banking | 1,96,84,335 | 1,90,42,054 | 1,70,74,003 | 1,96,84,335 | 1,70,74,003 |
| | Other Banking operations | - | - | - | - | - |
| | Unallocated | 5,27,937 | 3,72,135 | 2,67,609 | 5,27,937 | 2,67,609 |
|
| Total | 2,79,21,738 | 2,68,04,101 | 2,38,83,559 | 2,79,21,738 | 2,38,83,559 |
| Capital Employed: | | | | | | |
| (Segment Assets - Segment Liabilities) | | | | | | |
| | Treasury | 34,29,143 | 33,45,280 | 23,16,811 | 34,29,143 | 23,16,811 |
| | Corporate/Wholesale Banking | 79,54,726 | 78,47,472 | 72,75,242 | 79,54,726 | 72,75,242 |
| | Retail Banking | (87,54,704) | (87,05,237) | (78,36,296) | (87,54,704) | (78,36,296) |
| | a) Digital Banking | (9,45,032) | (8,23,363) | (7,87,128) | (9,45,032) | (7,87,128) |
| | b) Other Retail Banking | (78,09,672) | (78,81,874) | (70,49,168) | (78,09,672) | (70,49,168) |
| | Other Banking operations | - | - | - | - | - |
| | Unallocated | 2,80,277 | 3,29,633 | 3,94,867 | 2,80,277 | 3,94,867 |
|
| Total | 29,09,442 | 28,17,148 | 21,50,624 | 29,09,442 | 21,50,624 |
|
|
| | | | | |
| @ |
| |||||
| | Notes: |
| | | | |
| | | | | | | |
| 1 | Statement of Assets and Liabilities of the Bank as at March 31, 2024 is given below: | | | | ||
| | | | | (₹ in Lakhs) |
| |
| | Particulars | As at 31.03.2024 | As at 31.03.2023 |
| | |
| | Audited | Audited |
| | ||
| | CAPITAL AND LIABILITIES | | | | | |
| | Capital | 48,707 | 42,324 | | | |
| | Reserves and Surplus | 28,60,735 | 21,08,300 | | | |
| | Deposits | 2,52,53,402 | 2,13,38,604 | | | |
| | Borrowings | 18,02,641 | 19,31,928 | | | |
| | Other Liabilities and Provisions | 8,65,695 | 6,13,027 | | | |
| | Total | 3,08,31,180 | 2,60,34,183 |
| | |
| | ASSETS | | | | | |
| | Cash and Balances with Reserve Bank of India | 11,49,357 | 12,59,085 | | | |
| | Balance with Banks and Money at Call and Short Notice | 7,46,935 | 5,09,783 | | | |
| | Investments | 60,85,953 | 48,98,335 | | | |
| | Advances | 2,09,40,333 | 1,74,44,688 | | | |
| | Fixed Assets | 1,02,006 | 93,397 | | | |
| | Other Assets | 18,06,596 | 18,28,895 | | | |
| | Total | 3,08,31,180 | 2,60,34,183 |
| | |
| | | | | | | |
| 2 | The above Standalone Audited Financial Results for the quarter and year ended March 31, 2024 were approved by the Board of Directors at its meeting held on May 02, 2024. These financial results have been subjected to Audit by the Joint Statutory Auditors of the Bank and an unmodified audit opinion has been issued. | |||||
| | | | | | | |
| 3 | The above financial results of the Bank have been prepared in accordance with the provisions of the Banking Regulation Act, 1949, Generally Accepted Accounting Principles in India, including Accounting Standards as specified under Section 133 of the Companies Act, 2013, Regulation 33 and Regulation 52 read with Regulation 63(2) of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, as amended, in so far as they apply to banks, and the guidelines issued by the RBI. | |||||
| | | | | | | |
| 4 | The Bank has applied significant accounting policies in the preparation of these financial results consistent with those followed in the annual financial statements for the year ended March 31, 2023. Any circular / direction issued by RBI is implemented prospectively when it becomes applicable, unless specifically required as per that circular / direction. | |||||
| | | | | | | |
| 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 | During the quarter and year ended March 31, 2024, the Bank has allotted 1,967,559 and 15,991,113 equity shares of ₹2 each respectively, pursuant to the exercise of stock options by employees. | |||||
| | | | | | | |
| 8 | During the quarter and half year ended 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. | |||||
| | | | | | | |
| 9 | During the quarter and nine months ended December 31, 2023, the Bank had 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. | |||||
| | | | | | | |
| 10 | 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. | |||||
| | | | | | | |
| 11 | Details of resolution plan implemented under the Resolution Framework for COVID-19-related Stress as per RBI circular dated August 06, 2020 (Resolution Framework 1.0) and May 05, 2021 (Resolution Framework 2.0) are given below: | |||||
| | | | | (` in Lakhs) | ||
| | Type of borrower |
| Of (A), aggregate debt that slipped into NPA during the | Of (A) amount | Of (A) amount paid by the borrowers | Exposure to accounts |
| | Personal Loans | 1,46,913.60 | 6,533.10 | 24.61 | 13,177.94 | 1,29,244.68 |
| | Corporate persons | 13,902.19 | 460.09 | - | 548.15 | 12,893.95 |
| | Of which, MSMEs | - | - | - | - | - |
| | Others | 22,325.98 | 430.37 | - | 4,882.84 | 17,084.36 |
| | Total | 1,83,141.77 | 7,423.56 | 24.61 | 18,608.93 | 1,59,222.99 |
|
| | | | | | |
| | 1. Excludes other facilities to the borrowers which have not been restructured. | |||||
| | 2. Represents net movement in balance outstanding. | |||||
| | 3. Includes accounts which were classified as NPA earlier and subsequently upgraded to standard during the half year ended March 31, 2024. | |||||
| | | | | | | |
| 12 | Disclosures as per 'Master Direction - Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021' dated September 24, 2021 for the loans transferred / acquired during the year ended March 31, 2024 are given below: | |||||
| | i) Details of loans not in default acquired through assignment during the year ended March 31, 2024 are given below: | |||||
| | | | | | | |
| | Particulars | Value | | | ||
| | Aggregate amount of loans acquired (₹ in lakhs) | 1,95,606.76 | | | ||
| | Weighted average residual maturity (in years) | 7.23 | | | ||
| | Weighted average holding period by originator (in years) | 1.17 | | | ||
| | Retention of beneficial economic interest by the originator (₹ in lakhs) | 21,734.07 | | | ||
| | Tangible security coverage | 151.03% | | | ||
| | The loans acquired are not rated as the same are to non-corporate borrowers. | | | |||
| | | |||||
| | ii) Details of non-performing assets (NPAs) (excluding prudentially written off advances) transferred are given below: | |||||
| | | | | (₹ in lakhs except number of accounts) | ||
| | Particulars | To ARCs | To Permitted Transferees | To other Transferees | ||
| | Number of accounts | 61 | - | - | ||
| | Aggregate principal outstanding of loans transferred | 10,181.50 | - | - | ||
| | Weighted average residual tenor of the loans transferred (in years) | 0.31 | - | - | ||
| | Net book value of loans transferred (at the time of transfer) | 385.96 | - | - | ||
| | Aggregate consideration | 3,670.00 | - | - | ||
| | 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 | 2,744.10 | - | - | ||
| | | | | | | |
| | iii) During the year ended March 31, 2024, the Bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA). | |||||
| | | | | | | |
| | iv) During the year ended March 31, 2024, 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. Details of the recovery ratings assigned to Security Receipts outstanding as on March 31, 2024 are given below: | |||||
| | | | | | | |
| | | | | | (` in Lakhs) | |
| | Rating | Recovery Rating | Gross Book Value | Provision Held | Net Book Value | |
| | RR5 | 0%-25% | 3,278.79 | 3,278.79 | - | |
| | RR4 | 25%- 50% | 7,935.79 | 7,935.79 | - | |
| | RR1 | 100%-150% | 442.71 | 442.71 | - | |
| | Unrated | - | 28,565.78 | 28,565.78 | - | |
| | Total |
| 40,223.07 | 40,223.07 | - | |
| | | | | | | |
| | | | | | | |
| 13 | The Board of Directors have recommended a dividend of 60% i.e. ₹1.20/- per equity share on face value of ₹2.00/- each for the year 2023-24 (Previous Year ₹1.00/- per equity share) subject to the approval of the members at the ensuing Annual General Meeting. In terms of Accounting Standard (AS) 4 "Contingencies and Events Occurring after the Balance Sheet Date", the Bank has not appropriated proposed dividend aggregating to ₹ 29,224.22 Lakhs from the profit and loss account for the year ended March 31, 2024. However the effect of the proposed dividend has been reckoned in determining capital funds in the computation of Capital Adequacy Ratio as on March 31, 2024. | |||||
| | | | | | | |
| 14 | The 12th Bipartite Settlement for wage revision between staff unions and Banks represented by Indian Bank's Association (IBA) was due from November 01, 2022. The negotiation was concluded on March 08, 2024, and the joint note for wage revision detailing the salary components and other terms were signed between staff unions and IBA. The bank has created an incremental provision of ₹ 16,220.55 lakhs during the quarter ended March 31, 2024, towards the final increase on payslip components agreed as per the joint note. | |||||
| | | | | | | |
| 15 | The figures of the last quarter of the respective financial years are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the respective financial year, which were subjected to limited review. | |||||
| | | | | | | |
| 16 | The figures for the quarter and year ended March 31, 2023 were audited by previous Joint Statutory Auditors. | |||||
| | | | | | | |
| 17 | Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification. | |||||
| | | | | Sd/- | | |
| | | | SHYAM SRINIVASAN | | ||
| Kochi | | MANAGING DIRECTOR & CEO | | |||
| May 02, 2024 | | (DIN: 02274773) | | |||
| THE FEDERAL BANK LIMITED | ||
| REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | ||
| (CIN: L65191KL1931PLC000368) | ||
| STANDALONE AUDITED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2024 | ||
| | | (₹ in Lakhs) |
| Particulars | Year ended | Year ended |
| Cash Flow from Operating Activities | | |
| Net Profit Before Taxes | 4,97,838 | 4,04,450 |
| Adjustments for: | | |
| Depreciation on Bank's Property | 21,515 | 16,461 |
| Provision / Depreciation on Investments | (2,772) | 4,113 |
| Amortisation of Premium on Held to Maturity Investments | 17,318 | 17,446 |
| Provision / Charge for Non Performing Advances | 40,114 | 59,134 |
| Provision for Standard Assets and Contingencies | (20,630) | 16,523 |
| Profit on Sale of Fixed Assets (net) | (843) | (82) |
| Profit on Sale of Investment in Subsidiary | (9,911) | - |
| Dividend From Subsidiaries / Associates | (1,658) | (837) |
| Employees Stock Option Expense | 158 | 111 |
|
| 5,41,129 | 5,17,319 |
| Adjustments for working capital changes:- | | |
| Increase in Investments [excluding Held to Maturity Investments] | (3,34,689) | (65,669) |
| Increase in Advances | (35,35,760) | (30,10,990) |
| (Increase)/ Decrease in Other Assets | 23,447 | (2,97,492) |
| Increase in Deposits | 39,14,798 | 31,68,545 |
| Increase in Other Liabilities and Provisions | 2,70,528 | 90,627 |
| | 3,38,324 | (1,14,979) |
| Direct taxes paid (net) | (1,24,156) | (1,15,370) |
| Net Cash Flow from Operating Activities | 7,55,297 | 2,86,970 |
| | | |
| Cash Flow from Investing Activities | | |
| Purchase of Fixed Assets | (30,367) | (46,683) |
| Proceeds from Sale of Fixed Assets | 1,087 | 302 |
| Dividend From Subsidiaries / Associates | 1,658 | 837 |
| Proceeds from sale of investment in Subsidiary | 11,500 | - |
| Purchase of Held to Maturity Investments (net) | (8,69,064) | (9,36,280) |
| Net Cash Used in Investing Activities | (8,85,186) | (9,81,824) |
| | | |
| Cash Flow from Financing Activities | | |
| Proceeds from Issue of Share Capital | 6,383 | 273 |
| Proceeds from Share Premium (Net of Share Issue Expenses) | 4,04,087 | 9,249 |
| Proceeds from Issue of Subordinate Debt | - | 99,500 |
| Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) | (1,29,287) | 2,93,117 |
| Dividend Paid | (23,491) | (37,866) |
| | | |
| Net Cash flow from Financing Activities | 2,57,692 | 3,64,273 |
|
|
|
|
| Effect of Exchange Fluctuation on Translation Reserve | (379) | (1,586) |
| | | |
| Net Increase / (Decrease) in Cash and Cash Equivalents | 1,27,424 | (3,32,167) |
| | | |
| Cash and Cash Equivalents at the beginning of the year | 17,68,868 | 21,01,035 |
| Cash and Cash Equivalents at the end of the year | 18,96,292 | 17,68,868 |
| | | |
| Note: |
| |
| Cash and Cash Equivalents comprise of Cash in hand (including foreign currency notes), Balances with Reserve Bank of India, Balances with banks and money at call and short notice. | ||
| | | |
| | | |
| | SHYAM SRINIVASAN | |
| Kochi | MANAGING DIRECTOR & CEO | |
| May 02, 2024 | (DIN: 02274773) | |
| | | |
| | | | |
| | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| THE FEDERAL BANK LIMITED | |||||||
| REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 | |||||||
| (CIN: L65191KL1931PLC000368) | |||||||
| CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2024 | |||||||
|
|
|
|
|
|
| (₹ in Lakhs) | |
| Particulars | Quarter ended | Year ended | |||||
| 31.03.2024 | 31.12.2023 | 31.03.2023 | 31.03.2024 | 31.03.2023 | |||
| Audited | Unaudited | Audited | Audited | Audited | |||
| 1. Interest earned (a)+(b)+(c)+(d) | 6,33,922 | 6,08,520 | 5,01,226 | 23,56,547 | 17,81,178 | ||
| (a) | Interest/discount on advances/bills | 5,09,954 | 4,94,736 | 4,08,955 | 19,10,130 | 14,50,788 | |
| (b) | Income on investments | 1,03,082 | 94,776 | 77,561 | 3,68,570 | 2,78,188 | |
| (c) | Interest on balances with Reserve Bank of India and other inter bank funds | 9,837 | 7,929 | 5,151 | 33,887 | 20,625 | |
| (d) | Others | 11,049 | 11,079 | 9,559 | 43,960 | 31,577 | |
| 2. Other income (Refer note 6) | 80,990 | 90,835 | 76,842 | 3,21,648 | 2,43,623 | ||
| 3. TOTAL INCOME (1+2) | 7,14,912 | 6,99,355 | 5,78,068 | 26,78,195 | 20,24,801 | ||
| 4. Interest expended | 3,93,634 | 3,75,968 | 2,93,754 | 14,49,467 | 9,97,524 | ||
| 5. Operating expenses (i)+(ii) | 1,99,327 | 1,70,021 | 1,44,915 | 6,76,670 | 5,21,120 | ||
| (i) | Employees cost | 98,533 | 78,762 | 67,225 | 3,17,970 | 2,44,024 | |
| (ii) | Other operating expenses | 1,00,794 | 91,259 | 77,690 | 3,58,700 | 2,77,096 | |
| 6. TOTAL EXPENDITURE (4+5) | 5,92,961 | 5,45,989 | 4,38,669 | 21,26,137 | 15,18,644 | ||
| 7. OPERATING PROFIT (3-6) | 1,21,951 | 1,53,366 | 1,39,399 | 5,52,058 | 5,06,157 | ||
| 8. Provisions (other than tax) and contingencies | (7,653) | 11,385 | 12,526 | 25,958 | 79,863 | ||
| 9. Exceptional items | | - | - | - | - | - | |
| 10. Profit from Ordinary Activities before tax | 1,29,604 | 1,41,981 | 1,26,873 | 5,26,100 | 4,26,294 | ||
| 11. Tax expense | | 32,365 | 35,657 | 32,916 | 1,33,347 | 1,08,718 | |
| 12. Net Profit from Ordinary Activities after tax (10-11) | 97,239 | 1,06,324 | 93,957 | 3,92,753 | 3,17,576 | ||
| 13. Extraordinary items (net of tax expense) | | - | - | - | - | - | |
| 14. Net Profit for the period (12-13) |
| 97,239 | 1,06,324 | 93,957 | 3,92,753 | 3,17,576 | |
| 15. Minority interest | | 2,538 | 3,185 | 964 | 8,361 | 4,510 | |
| 16. Share in Profit of Associates | | 2,378 | 403 | 2,398 | 3,651 | 3,406 | |
| 17. Consolidated Net Profit of the group | 97,079 | 1,03,542 | 95,391 | 3,88,043 | 3,16,472 | ||
| 18. Paid-up Equity Share Capital | 48,707 | 48,668 | 42,324 | 48,707 | 42,324 | ||
| 19. Reserves excluding Revaluation Reserve | | | | 29,61,328 | 21,69,416 | ||
| 20. Analytical Ratios and Other Disclosures: | | | | | | | |
| (i) | Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | |
| (ii) | Capital Adequacy ratio (%) (Refer note 7) | | | | | | |
| | Under Basel III | 16.45 | 15.40 | 15.24 | 16.45 | 15.24 | |
| (iii) | Earnings per Share (EPS) (in `) | | | | | | |
| | (a) Basic EPS (before and after extraordinary items) | 3.99* | 4.28* | 4.51* | 16.76 | 15.01 | |
| | (b) Diluted EPS (before and after extraordinary items) | 3.94* | 4.22* | 4.45* | 16.55 | 14.85 | |
| (iv) | NPA Ratios | | | | | | |
| | a) Gross NPA | 4,67,729 | 4,79,664 | 4,34,352 | 4,67,729 | 4,34,352 | |
| | b) Net NPA | 1,36,555 | 1,40,180 | 1,32,344 | 1,36,555 | 1,32,344 | |
| | c) % of Gross NPA | 2.11 | 2.28 | 2.35 | 2.11 | 2.35 | |
| | d) % of Net NPA | 0.63 | 0.68 | 0.73 | 0.63 | 0.73 | |
| (v) | Return on Assets (%) | 0.31* | 0.34* | 0.36* | 1.32 | 1.28 | |
| * Not Annualised | | | | | | ||
| Segment Information@ |
| | | | | ||||
| | | | | |
| (₹ in Lakhs) | |||
| Particulars | Quarter ended | Year ended | |||||||
| 31.03.2024 | 31.12.2023 | 31.03.2023 | 31.03.2024 | 31.03.2023 | |||||
| Audited | Unaudited | Audited | Audited | Audited | |||||
| Segment Revenue: | | | | | | ||||
| | Treasury | 91,225 | 97,756 | 71,529 | 3,54,655 | 2,53,555 | |||
| | Corporate/Wholesale Banking | 1,94,207 | 1,78,730 | 1,53,767 | 7,16,785 | 5,20,704 | |||
| | Retail Banking | 4,20,444 | 4,14,109 | 3,46,307 | 15,77,884 | 12,28,710 | |||
| | a) Digital Banking | 44,452 | 38,689 | 26,366 | 1,50,103 | 90,354 | |||
| | b) Other Retail Banking | 3,75,992 | 3,75,420 | 3,19,941 | 14,27,781 | 11,38,356 | |||
| | Other Banking operations | 8,871 | 8,604 | 6,293 | 28,307 | 21,225 | |||
| | Unallocated | 165 | 156 | 172 | 564 | 607 | |||
|
| Total Revenue | 7,14,912 | 6,99,355 | 5,78,068 | 26,78,195 | 20,24,801 | |||
| | Less: Inter Segment Revenue | - | - | - | - | - | |||
|
| Income from Operations | 7,14,912 | 6,99,355 | 5,78,068 | 26,78,195 | 20,24,801 | |||
| Segment Results (net of provisions): | | | | | | ||||
| | Treasury | 8,144 | 23,257 | 10,832 | 60,218 | 52,460 | |||
| | Corporate/Wholesale Banking | 42,631 | 34,789 | 39,642 | 1,61,741 | 94,335 | |||
| | Retail Banking | 71,655 | 77,680 | 70,018 | 2,81,773 | 2,61,538 | |||
| | a) Digital Banking | 7,546 | 6,813 | 4,493 | 22,559 | 11,359 | |||
| | b) Other Retail Banking | 64,109 | 70,867 | 65,525 | 2,59,214 | 2,50,179 | |||
| | Other Banking operations | 7,009 | 6,099 | 4,671 | 21,805 | 15,817 | |||
| | Unallocated | 165 | 156 | 1,710 | 563 | 2,144 | |||
|
| Profit before tax | 1,29,604 | 1,41,981 | 1,26,873 | 5,26,100 | 4,26,294 | |||
| Segment Assets: |
|
|
|
|
|
| |||
| | Treasury | 63,38,835 | 60,80,735 | 52,06,924 | 63,38,835 | 52,06,924 | |||
| | Corporate/Wholesale Banking | 1,10,79,450 | 1,09,76,368 | 96,72,729 | 1,10,79,450 | 96,72,729 | |||
| | Retail Banking | 1,35,59,659 | 1,27,82,695 | 1,12,56,964 | 1,35,59,659 | 1,12,56,964 | |||
| | a) Digital Banking | 6,81,296 | 6,30,958 | 4,16,592 | 6,81,296 | 4,16,592 | |||
| | b) Other Retail Banking | 1,28,78,363 | 1,21,51,737 | 1,08,40,372 | 1,28,78,363 | 1,08,40,372 | |||
| | Other Banking operations | 508 | 1,014 | 1,313 | 508 | 1,313 | |||
| | Unallocated | 8,05,443 | 7,01,768 | 6,62,476 | 8,05,443 | 6,62,476 | |||
|
| Total | 3,17,83,895 | 3,05,42,580 | 2,68,00,406 | 3,17,83,895 | 2,68,00,406 | |||
| Segment Liabilities: |
| | | | | | |||
| | Treasury | 29,64,257 | 27,92,960 | 29,42,093 | 29,64,257 | 29,42,093 | |||
| | Corporate/Wholesale Banking | 32,00,510 | 31,96,082 | 24,14,080 | 32,00,510 | 24,14,080 | |||
| | Retail Banking | 2,20,01,023 | 2,11,90,006 | 1,89,28,892 | 2,20,01,023 | 1,89,28,892 | |||
| | a) Digital Banking | 16,26,328 | 14,54,321 | 12,03,720 | 16,26,328 | 12,03,720 | |||
| | b) Other Retail Banking | 2,03,74,695 | 1,97,35,685 | 1,77,25,172 | 2,03,74,695 | 1,77,25,172 | |||
| | Other Banking operations | 356 | 356 | 294 | 356 | 294 | |||
| | Unallocated | 5,25,166 | 3,72,135 | 2,67,609 | 5,25,166 | 2,67,609 | |||
|
| Total | 2,86,91,312 | 2,75,51,539 | 2,45,52,968 | 2,86,91,312 | 2,45,52,968 | |||
| Capital Employed: | | | | | | ||||
| (Segment Assets - Segment Liabilities) | | | | | | ||||
| | Treasury | 33,74,578 | 32,87,775 | 22,64,831 | 33,74,578 | 22,64,831 | |||
| | Corporate/Wholesale Banking | 78,78,940 | 77,80,286 | 72,58,649 | 78,78,940 | 72,58,649 | |||
| | Retail Banking | (84,41,364) | (84,07,311) | (76,71,928) | (84,41,364) | (76,71,928) | |||
| | a) Digital Banking | (9,45,032) | (8,23,363) | (7,87,128) | (9,45,032) | (7,87,128) | |||
| | b) Other Retail Banking | (74,96,332) | (75,83,948) | (68,84,800) | (74,96,332) | (68,84,800) | |||
| | Other Banking operations | 152 | 658 | 1,019 | 152 | 1,019 | |||
| | Unallocated | 2,80,277 | 3,29,633 | 3,94,867 | 2,80,277 | 3,94,867 | |||
|
| Total | 30,92,583 | 29,91,041 | 22,47,438 | 30,92,583 | 22,47,438 | |||
|
|
| | | | | | |||
| @ | 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. | ||||||||
| | Notes: |
| | | | | |||
| 1 | Statement of Assets and Liabilities of the group as at March 31, 2024 is given below: | ||||||||
| | | | | (₹ in Lakhs) |
| | |||
| | Particulars | As at 31.03.2024 | As at 31.03.2023 |
| | ||||
| | Audited | Audited |
| | |||||
| | CAPITAL AND LIABILITIES | | | | | ||||
| | Capital | 48,707 | 42,324 | | | ||||
| | Reserves and Surplus | 29,61,828 | 21,69,917 | | | ||||
| | Minority Interest | 82,048 | 35,197 | | | ||||
| | Deposits | 2,52,45,502 | 2,12,98,850 | | | ||||
| | Borrowings | 25,15,962 | 25,86,198 | | | ||||
| | Other Liabilities and Provisions | 9,29,848 | 6,67,920 | | | ||||
| | Total | 3,17,83,895 | 2,68,00,406 |
| | ||||
| | ASSETS | | | | | ||||
| | Cash and Balances with Reserve Bank of India | 11,50,911 | 12,60,424 | | | ||||
| | Balance with Banks and Money at Call and Short Notice | 7,68,471 | 5,19,969 | | | ||||
| | Investments | 61,04,312 | 48,70,224 | | | ||||
| | Advances | 2,18,11,028 | 1,81,95,675 | | | ||||
| | Fixed Assets | 1,06,304 | 97,171 | | | ||||
| | Other Assets | 18,42,869 | 18,56,943 | | | ||||
| | Total | 3,17,83,895 | 2,68,00,406 |
| | ||||
| | | | | | | | |||
| 2 | The above Consolidated Audited Financial Results for the quarter and year ended March 31, 2024 were approved by the Board of Directors at its meeting held on May 02, 2024. These financial results have been subjected to audit by the Joint Statutory Auditors of the Bank and an unmodified audit opinion has been issued. | ||||||||
| | | | | | | | |||
| 3 | The above financial results of the group have been prepared in accordance with the provisions of the Banking Regulation Act, 1949, Generally Accepted Accounting Principles in India, including Accounting Standards as specified under Section 133 of the Companies Act, 2013, Regulation 33 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, as amended and the guidelines issued by the RBI. | ||||||||
| | | | | | | | |||
| 4 | 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. | ||||||||
| | | | | | | | |||
| 5 | There has been no material change in the accounting policies applied in the preparation of these financial results with those followed in the annual financial statements for the year ended March 31, 2023. | ||||||||
| | | | | | | | |||
| 6 | 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. | ||||||||
| | | | | | | | |||
| 7 | 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. | ||||||||
| | | | | | | | |||
| 8 | 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. | ||||||||
| | | | | | | | |||
| 9 | During the quarter and half year ended 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. | ||||||||
| | | | | | | | |||
| 10 | During the quarter and nine months ended December 31, 2023, the Bank had 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. | ||||||||
| | | | | | | | |||
| 11 | The Board of Directors have recommended a dividend of 60% i.e. ₹1.20/- per equity share on face value of ₹2.00/- each for the year 2023-24 (Previous Year ₹1.00/- per equity share) subject to the approval of the members at the ensuing Annual General Meeting. In terms of Accounting Standard (AS) 4 "Contingencies and Events Occurring after the Balance Sheet Date" the Bank has not appropriated proposed dividend aggregating to ₹ 29,224.22 Lakhs from the profit and loss account for the year ended March 31, 2024. However the effect of the proposed dividend has been reckoned in determining capital funds in the computation of Capital Adequacy Ratio as on March 31, 2024. | ||||||||
| | | | | | | | |||
| 12 | The 12th Bipartite Settlement for wage revision between staff unions and Banks represented by Indian Bank's Association (IBA) was due from November 01, 2022. The negotiation was concluded on March 08, 2024, and the joint note for wage revision detailing the salary components and other terms were signed between staff unions and IBA. The bank has created an incremental provision of ₹ 16,220.55 lakhs during the quarter ended March 31, 2024, towards the final increase on payslip components agreed as per the joint note. | ||||||||
| | | | | | | | |||
| 13 | The figures of the last quarter of the respective financial years are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the respective financial year, which were subjected to limited review. | ||||||||
| | | | | | | | |||
| 14 | The figures for the quarter and year ended March 31, 2023 were audited by previous Joint Statutory Auditors.
| ||||||||
| | | | | | | | |||
| 15 | Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification. | ||||||||
| | | | | | | | |||
| | | | | | | | |||
| | | | | | | | |||
| | | | | | | | |||
| | | | SHYAM SRINIVASAN | ||||||
| Kochi | | MANAGING DIRECTOR & CEO | |||||||
| May 02, 2024 | | (DIN: 02274773)
| |||||||
| | | | |
| |
| |||
| THE FEDERAL BANK LIMITED |
| ||||||||
| REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 |
| ||||||||
| (CIN: L65191KL1931PLC000368) |
| ||||||||
| CONSOLIDATED AUDITED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2024 |
| ||||||||
|
| (₹ in Lakhs) |
| |||||||
| Particulars | Year ended | Year ended |
| ||||||
| Cash Flow from Operating Activities | | |
| ||||||
| Net Profit Before Taxes | 5,21,390 | 4,25,190 |
| ||||||
| Adjustments for: | | |
| ||||||
| Depreciation on Group's Property | 23,395 | 18,218 |
| ||||||
| Provision / Depreciation on Investments | (2,763) | 4,075 |
| ||||||
| Amortisation of Premium on Held to Maturity Investments | 17,318 | 17,446 |
| ||||||
| Provision / Charge for Non Performing Advances | 46,327 | 65,528 |
| ||||||
| Provision for Standard Assets and Contingencies | (20,495) | 15,003 |
| ||||||
| Profit on Sale of Fixed Assets (net) | (843) | (83) |
| ||||||
| Profit on Sale of Investment in Subsidiary | (9,911) | - |
| ||||||
| Employees Stock Option Expense | 158 | 113 |
| ||||||
|
| 5,74,576 | 5,45,490 |
| ||||||
| Adjustments for working capital changes:- | | |
| ||||||
| Increase in Investments [excluding Held to Maturity Investments] | (3,79,579) | (48,947) |
| ||||||
| Increase in Advances | (36,61,681) | (32,66,057) |
| ||||||
| (Increase)/ Decrease in Other Assets | 13,032 | (3,02,838) |
| ||||||
| Increase in Deposits | 39,46,651 | 31,31,098 |
| ||||||
| Increase in Other Liabilities and Provisions | 2,82,423 | 1,11,388 |
| ||||||
| | 2,00,846 | (3,75,356) |
| ||||||
| Direct taxes paid (net) | (1,32,305) | (1,21,204) |
| ||||||
| Net Cash Flow from Operating Activities | 6,43,117 | 48,930 |
| ||||||
| | | |
| ||||||
| Cash Flow from Investing Activities | | |
| ||||||
| Purchase of Fixed Assets | (32,792) | (48,402) |
| ||||||
| Proceeds from Sale of Fixed Assets | 1,108 | 307 |
| ||||||
| Profit on Sale of Investment in Subsidiary | 9,911 | - |
| ||||||
| Purchase of Held to Maturity Investments (net) | (8,69,063) | (9,36,279) |
| ||||||
| Net Cash Used in Investing Activities | (8,90,836) | (9,84,374) |
| ||||||
|
|
|
|
| ||||||
| Cash Flow from Financing Activities | | |
| ||||||
| Proceeds from Issue of Share Capital | 6,383 | 273 |
| ||||||
| Proceeds from Share Premium (Net of Share Issue Expenses) | 4,33,005 | 9,309 |
| ||||||
| Increase in Minority Interest | 41,427 | 4,637 |
| ||||||
| Proceeds from Issue of Subordinate Debt | 20,000 | 99,500 |
| ||||||
| Increase / (Decrease) in Borrowings (Excluding Subordinate Debt) | (90,236) | 5,27,959 |
| ||||||
| Dividend Paid | (23,491) | (37,866) |
| ||||||
| | | |
| ||||||
| Net Cash flow from Financing Activities | 3,87,088 | 6,03,812 |
| ||||||
|
|
|
|
| ||||||
| Effect of Exchange Fluctuation on Translation Reserve | (380) | (1,586) |
| ||||||
| | | |
| ||||||
| Increase/(Decrease) in Cash and Cash Equivalents | 1,38,989 | (3,33,218) |
| ||||||
| | | |
| ||||||
| Cash and Cash Equivalents at the beginning of the year | 17,80,393 | 21,13,611 |
| ||||||
| Cash and Cash Equivalents at the end of the year | 19,19,382 | 17,80,393 |
| ||||||
| | | |
| ||||||
| Note: |
| |
| ||||||
| Cash and Cash Equivalents comprise of Cash in hand (including foreign currency notes), Balances with Reserve Bank of India, Balances with banks and money at call and short notice. |
| ||||||||
| | Sd/- | |
| ||||||
| | | |
| ||||||
| | SHYAM SRINIVASAN |
| |||||||
| Kochi | MANAGING DIRECTOR & CEO |
| |||||||
| May 02, 2024 | (DIN: 02274773) |
| |||||||
| |
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