1st Quarter Results

THE FEDERAL BANK LIMITED

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

UNAUDITED FINANCIAL RESULTS

FOR THE QUARTER ENDED 30th JUNE 2013

 (` in Lakhs)

Particulars

Quarter ended

Year ended

30.06.2013

31.03.2013

30.06.2012

31.03.2013

(Unaudited)

(Audited Refer note 6)

(Unaudited)

(Audited)

1

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

165326

158346

153671

616757

(a) Interest/discount on advances/bills

124206

116842

116333

463566

(b) Income on Investments

39705

39703

35516

146460

(c) Interest on balances with Reserve Bank of India and other interbank funds

1324

1539

1671

5636

(d) Others

91

262

151

1095

2

Other Income

21579

19685

12433

66444

3

TOTAL INCOME (1+2)

186905

178031

166104

683201

4

Interest expended

114365

110370

104507

419291

5

Operating Expenses (i)+(ii)

32486

30714

26946

117954

(i) Employees Cost

17351

15115

15238

62646

(ii) Other operating expenses

15135

15599

11708

55308

6

TOTAL EXPENDITURE (4)+(5)(excluding Provisions and Contingencies)

146851

141084

131453

537245

7

OPERATING PROFIT (3-6) (Profit before Provisions and Contingencies)

40054

36947

34651

145956

8

Provisions (other than Tax) and Contingencies

24510

9818

6278

26580

9

Exceptional Items 

-

-

-

-

10

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

15544

27129

28373

119376

11

Tax expense 

4978

4935

9338

35559

12

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

10566

22194

19035

83817

13

Extraordinary items (net of tax expense) 

-

-

-

-

14

Net Profit for the period (12-13) 

10566

22194

19035

83817

15

Paid-up Equity Share Capital(Face value ` 10/- each)

17106

17106

17105

17106

16

Reserves excluding Revaluation Reserve

-

-

-

618839

17

Analytical Ratios 

(i) Percentage of shares held by Government of India

NIL

NIL

NIL

NIL

(ii) Capital Adequacy ratio (%)

(a) Under Basel II

15.00

14.73

15.45

14.73

(b) Under Basel III (Refer note 7)

14.27

-

-

-

(iii) Earnings per Share (EPS) (in `)

(a) Basic and diluted EPS before

Extra ordinary Items

6.18*

12.97*

11.13*

49.00

(b) Basic and diluted EPS after

Extra ordinary items

6.18*

12.97*

11.13*

49.00

(iv) NPA Ratios

a) Gross NPA

148325

155401

140886

155401

b) Net NPA

37362

43194

23616

43194

c) % of Gross NPA

3.51

3.44

3.60

3.44

d) % of Net NPA

0.91

0.98

0.62

0.98

(v) Return on Asset (%)

 0.15*

 0.33*

 0.32*

1.35

18

Public Shareholding:

 Number of Shares (in Lakhs)

1676.78

1676.88

1669.86

1676.88

 Percentage of shareholding #

98.02

98.03

97.63

98.03

19

Promoters and Promoter group share holding 

(a) Pledged/Encumbered

- Number of Shares

NIL

NIL

NIL

NIL

- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

NIL

NIL

NIL

NIL

- Percentage of Shares (as a % of the total share capital of the company)

NIL

NIL

NIL

NIL

(b) Non-encumbered

- Number of Shares

NIL

NIL

NIL

NIL

- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

NIL

NIL

NIL

NIL

- Percentage of Shares (as a % of the total share capital of the company)

NIL

NIL

NIL

NIL

* Not annualised

# excludes shares held by custodian against which Global Depository Receipts have been issued.

* Segment Information

(` in Lakhs)

Particulars

Quarter ended

Year ended

30.06.2013

31.03.2013

30.06.2012

31.03.2013

(Unaudited)

(Audited Refer note 6)

(Unaudited)

(Audited)

Segment Revenue:

Treasury

53376

49628

42332

181360

Corporate/Wholesale Banking

57985

50624

63499

216973

Retail Banking

74580

76963

59348

280788

Other Banking operations

964

816

925

4080

Unallocated

-

-

-

-

Total Revenue

186905

178031

166104

683201

Less: Inter Segment Revenue

-

-

-

-

Income from Operations

186905

178031

166104

683201

Segment Results (net of provisions):

Treasury

10682

7130

6272

28761

Corporate/Wholesale Banking

(5051)

583

6545

25470

Retail Banking

9053

18264

14961

61830

Other Banking operations

860

1152

595

3315

Unallocated

-

-

-

-

Profit before tax

15544

27129

28373

119376

Capital employed:

Treasury

297596

246148

246989

246148

Corporate/Wholesale Banking

121384

163289

138508

163289

Retail Banking

141874

168548

129635

168548

Other Banking operations

1860

6928

6551

6928

Unallocated

84319

51553

67985

51553

Total

647033

636466

589668

636466

*

For the above segment reporting, the reportable segments are identified into Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the revised RBI guidelines. The Bank operates only in India.

Notes:

1

The above financial results, subjected to Limited Review by statutory central auditors, have been taken on record by the Audit Committee and approved at meeting of the Board of Directors held on 19th July 2013.

2

As a prudent policy, the Bank holds provisions for Non Performing Assets over and above the minimum required under the Reserve Bank of India (RBI) norms. Further, provision for restructured advances has been made as per RBI guidelines.

3

The bank has changed its policy on valuation of swap contracts against the overseas borrowings, by amortising the cost over the period of swap tenure, as against the earlier practice of writing back/writing off the mark-to-market gain or loss at the end of each reporting period. This change in policy does not have any financial impact over the full period of swap.

However, the impact of change in the policy on valuation and amortization as described above on a quarterly basis, is increase in the profit by ` 365.39 lakhs for quarter ended 30 June, 2013. Had this policy been adopted in the previous year, the effect would have been increase in profit by ` 283.85 lakhs for the quarter ended 30 June 2012 and decrease in profit by `148.68 lakhs for the quarter and year ended 31 March, 2013.

4

The Pension liability arising on exercise of second option by employees (other than separated/retired employees) is being amortized equally over a period of 5 years commencing from the year ended on 31.03.2011, and accordingly an amount of `8.42 Crore, being the proportionate liability in respect thereof, for the quarter ended 30.06.2013 have been charged to Profit and Loss Account and the balance amount of ` 58.94 Crore yet to be written off is carried forward to be amortised in future periods as permitted by the Reserve Bank of India vide letter no. DBOD.BP.BC.15896/21.04.018/ 2010-11 dated 08.04.2011.

5

Number of Investor complaints received and disposed off during the quarter ended 30th June 2013:a) Pending at the beginning of the quarter : 2b) Received during the quarter : 32c) Disposed off during the quarter : 34d) Pending at the end of the quarter : Nil

6

The figures for the quarter ended March 31, 2013 are the balancing figures between audited figures in respect of financial year 2012-13 and the published year to date figures upto December 31, 2012.

7

In accordance with the RBI guidelines, banks are required to disclose capital adequacy ratio computed under Basel III capital regulations from the quarter ended June 30, 2013. Hence disclosure has been made for the current quarter only.

8

Figures for the previous periods/year have been recast/ regrouped wherever necessary.

Kochi

 SHYAM SRINIVASAN

19th July 2013

 MANAGING DIRECTOR & CEO