Close
Company Search
Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Quickpicks
Add shares to your
quickpicks to
display them here!

3rd Quarter Results

6th Feb 2017 07:00

RNS Number : 0476W
Federal Bank Ltd (The)
04 February 2017
 

 

 

 

 

 

 

SDF-24/ /2016-17 04th February 2017

 

 

To,

The London Stock Exchange

 

 

 

Dear Sir,

We enclose herewith the Un-Audited Financial Results of the Bank for the period ended December 31, 2016 which was approved at the Bank's Board of Directors meeting held on 19th January 2017.

 

Kindly take the same on your record.

 

For The Federal Bank Limited

 

 

 

 

Girish Kumar G

COMPANY SECRETARY

 

 

 

 

BSR&Co. LLP

M.M. Nissim & Co.

Chartered Accountants

Chartered Accountants

5th Floor, Lodha Excelus

Barodawala Mansion, B-Wing,

Apollo Mills Compound

3rd Floor, 81,

N.M. Joshi Marg, Mahalaxmi

Dr. Annie Besant Road,

Mumbai- 400 011

Worli, Mumbai- 400 018

 

Limited Review Report on Quarterly Standalone Financial Results of The Federal Bank Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

 

To the Board of Directors of

The Federal Bank Limited

1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results ('the Statement') of The Federal Bank Limited ('the Bank') for the quarter and nine months ended 31 December 2016, attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, except for the disclosures relating to 'consolidated Pillar 3 disclosure as at 31 December 2016, including leverage ratio and liquidity coverage 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 standalone quarterly financial results and have not been reviewed by us.

2. This Statement is the responsibility of the Bank's management and has been approved by the Board of Directors of the Bank in their meeting held on 19 January 2017. Our responsibility is to issue a report on the Statement based on our review. The financial results for all periods prior to the quarter ended 30 September 2016, included in the statement were reviewed or audited earlier by Deloitte Haskins & Sells, Chartered Accountants, and by M P Chitale& Co., Chartered Accountants, the then joint statutory auditors of the Bank, whose reports have been furnished to the current joint auditors M.M. Nissim & Co., Chartered Accountants, and B S R & Co. LLP, and which have been relied upon for the purpose of the joint review of the Statement.

3. We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410,"Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of the Bank's personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

4. The Financial results incorporate the relevant returns of 100 Branches and Treasury Branch reviewed by either of us and un-reviewed returns in respect of 1177 branches. These Branches cover 57.68% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 60.68% of non-performing advances of the bank.

5. Without qualifying our conclusion, we draw attention to Note No. 6 regarding deferment of shortfall arising from the sale of certain non-performing assets during the year ended 31 March 2016 in terms of RBI Master Circular DBR.No.BP.BC.2/21.04.048/2015-16 - Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances, dated July 1, 2015, as amended and the unamortized balance as at 31 December 2016 of Rs. 2,168.29 lakhs.

6. Based on our review conducted as mentioned in paragraphs 3and 4 above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters.

 

 

 

For B S R & Co. LLP

For M.M. Nissim & Co.

Chartered Accountants

Chartered Accountants

Firm's Registration No: 101248W / W-100022

Firm's Registration No: 107122W

Akeel Master

Sanjay Khemani

Partner

Partner

Membership No: 046768

Membership No:044577

Mumbai

Mumbai

19 January 2017

19 January 2017

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, 2016

 (` in Lakhs)

Particulars

Quarter ended

Nine Months ended

Year ended 31.03.2016

31.12.2016

30.09.2016

31.12.2015

31.12.2016

31.12.2015

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

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

2,28,142

2,06,625

1,90,325

6,36,144

5,72,149

7,74,815

(a)

Interest/discount on advances/bills

1,71,622

1,56,880

1,38,554

4,80,924

4,19,982

5,66,931

(b)

Income on Investments

45,122

43,552

44,638

1,31,758

1,30,314

1,76,309

(c)

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

3,494

1,585

1,657

6,295

4,871

5,596

(d)

Others

7,904

4,608

5,476

17,167

16,982

25,979

2. Other Income

26,333

26,154

18,282

76,191

55,620

78,292

3. TOTAL INCOME (1+2)

2,54,475

2,32,779

2,08,607

7,12,335

6,27,769

8,53,107

4. Interest expended

1,49,003

1,34,006

1,29,756

4,15,119

3,89,987

5,24,045

5. Operating Expenses (i)+(ii)

57,982

51,280

46,303

1,59,647

1,34,856

1,86,684

(i)

Employees Cost

31,972

29,159

25,859

90,072

75,981

1,05,285

(ii)

Other operating expenses

26,010

22,121

20,444

69,575

58,875

81,399

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

2,06,985

1,85,286

1,76,059

5,74,766

5,24,843

7,10,729

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

47,490

47,493

32,548

1,37,569

1,02,926

1,42,378

8. Provisions (other than Tax) and Contingencies

15,882

16,840

7,511

49,570

31,549

70,413

9. Exceptional Items

-

-

-

-

-

-

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

31,608

30,653

25,037

87,999

71,377

71,965

11. Tax expense

11,043

10,529

8,765

30,579

24,838

24,400

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

20,565

20,124

16,272

57,420

46,539

47,565

13. Extraordinary items (net of tax expense)

-

-

-

-

-

-

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

20,565

20,124

16,272

57,420

46,539

47,565

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

34,443

34,410

34,367

34,443

34,367

34,379

16. Reserves excluding Revaluation Reserve

7,74,242

17. Analytical Ratios

(i)

Percentage of shares held by Government of India

NIL

NIL

NIL

NIL

NIL

NIL

(ii)

Capital Adequacy ratio (%)

Under Basel III

12.28

12.85

14.32

12.28

14.32

13.93

(iii)

Earnings per Share (EPS) (in `)

(a) Basic EPS (before and after Extra ordinary Items)

1.20*

1.17*

0.95*

3.34*

2.71*

2.77

(b) Diluted EPS (before and after Extra ordinary Items)

1.18*

1.15*

0.94*

3.29*

2.68*

2.75

(iv)

NPA Ratios

a) Gross NPA

1,95,155

1,81,972

1,68,411

1,95,155

1,68,411

1,66,777

b) Net NPA

1,10,237

1,03,974

87,610

1,10,237

87,610

95,001

c) % of Gross NPA

2.77

2.78

3.15

2.77

3.15

2.84

d) % of Net NPA

1.58

1.61

1.66

1.58

1.66

1.64

(v)

Return on Assets (%)

 0.2 *

0.22*

 0.19*

 0.6*

 0.56*

0.57

* Not Annualised

Segment Information@

 (` in Lakhs)

 

Particulars

Quarter ended

Nine Months ended

Year ended 31.03.2016

 

31.12.2016

30.09.2016

31.12.2015

31.12.2016

31.12.2015

 

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

 

Segment Revenue:

 

Treasury

65,168

61,233

55,321

1,85,968

1,69,001

2,28,193

 

Corporate/Wholesale Banking

75,059

69,657

56,861

2,16,606

1,68,392

2,36,094

 

Retail Banking

1,10,117

1,00,740

95,416

3,02,978

2,88,176

3,80,964

 

Other Banking operations

4,131

1,149

1,009

6,783

2,200

7,856

 

Unallocated

-

-

-

-

-

-

 

Total Revenue

2,54,475

2,32,779

2,08,607

7,12,335

6,27,769

8,53,107

 

Less: Inter Segment Revenue

-

-

-

-

-

-

 

Income from Operations

2,54,475

2,32,779

2,08,607

7,12,335

6,27,769

8,53,107

 

Segment Results (net of provisions):

 

Treasury

8,779

10,954

2,721

32,558

12,679

15,852

 

Corporate/Wholesale Banking

2,249

2,012

2,936

7,597

7,138

1,814

 

Retail Banking

19,035

17,533

19,280

45,588

51,521

49,459

 

Other Banking operations

2,386

1,016

914

4,347

1,854

7,385

 

Unallocated

(841)

(862)

(814)

(2,091)

(1,815)

(2,545)

 

Profit before tax

31,608

30,653

25,037

87,999

71,377

71,965

 

Segment Assets

 

Treasury

38,13,929

32,64,602

32,72,465

38,13,929

32,72,465

33,34,198

 

Corporate/Wholesale Banking

34,00,648

28,94,267

21,43,600

34,00,648

21,43,600

24,83,667

 

Retail Banking

36,45,243

36,24,006

31,84,203

36,45,243

31,84,203

33,71,086

 

Other Banking operations

4,398

539

7,070

4,398

7,070

2,656

 

Unallocated

2,85,520

2,64,176

2,67,501

2,85,520

2,67,501

2,45,196

 

Total

1,11,49,738

1,00,47,590

88,74,839

1,11,49,738

88,74,839

94,36,803

 

Segment Liabilities

 

Treasury

35,10,701

29,69,932

29,30,621

35,10,701

29,30,621

30,67,275

 

Corporate/Wholesale Banking

32,59,778

27,45,722

20,43,520

32,59,778

20,43,520

23,37,684

 

Retail Banking

35,00,018

34,43,998

30,40,948

35,00,018

30,40,948

31,78,818

 

Other Banking operations

-

-

-

-

-

-

 

Unallocated

11,396

41,358

37,383

11,396

37,383

43,904

 

Total

1,02,81,893

92,01,010

80,52,472

1,02,81,893

80,52,472

86,27,681

 

Capital employed:

 

(Segment Assets - Segment Liabilities)

 

Treasury

3,03,228

2,94,670

3,41,844

3,03,228

3,41,844

2,66,923

 

Corporate/Wholesale Banking

1,40,870

1,48,545

1,00,080

1,40,870

1,00,080

1,45,983

 

Retail Banking

1,45,225

1,80,008

1,43,255

1,45,225

1,43,255

1,92,268

 

Other Banking operations

4,398

539

7,070

4,398

7,070

2,656

 

Unallocated

2,74,124

2,22,818

2,30,118

2,74,124

2,30,118

2,01,292

 

Total

8,67,845

8,46,580

8,22,367

8,67,845

8,22,367

8,09,122

 

@

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 RBI guidelines.

 

Notes:

 

1

The above Standalone Unaudited Financial Results for the quarter ended December 31, 2016 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on January 19, 2017. These Results have been subjected to "Limited Review" by the Statutory Central Auditors of the Bank and an unmodified review report has been issued.

 

 

2

The Bank has made provision for Non Performing Assets as stipulated under Reserve Bank of India (RBI) norms. Further, provision for standard assets including requirements for exposures to entities with Unhedged Foreign Currency Exposures and provision for restructured advances have been made as per RBI guidelines.

 

3

The Bank has followed the same significant accounting policies in the preparation of the interim financial statements as those followed in the annual financial statements for the year ended March 31, 2016.

 

4

In accordance with RBI Circular DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015 and RBI Circular DBR.No.BP.BC.80/21.06.201/2014-15 dated March 31, 2015 - 'Prudential Guidelines on Capital Adequacy and Liquidity Standards - amendments', Banks are required to make Pillar 3 disclosure requirements including Leverage Ratio disclosure requirements that are to be made along with the publication of Financial Results. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: http://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to review by the Statutory Central Auditors of the Bank.

 

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), recoveries from advances written off.

 

6

During the year ended March 31,2016, the Bank had assigned certain Non performing financial assets to Asset Reconstruction Companies. In terms of RBI Master Circular DBR.No.BP.BC.2/21.04.048/2015-16 - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated July 1, 2015, as amended, the shortfall arrived at by deducting sale consideration from the net book value of the financial assets, is amortised over a period of two years. Accordingly, the bank has charged to the profit and loss account an amount of ` 2,168.29 Lakhs and ` 6,504.87 Lakhs for the Quarter and nine months ended December 31,2016 respectively and the unamortised balance carried forward as on December 31,2016 is ` 2,168.29 Lakhs, to be amortised in the next quarter.

 

7

During the quarter and nine months ended December 31,2016, the Bank allotted 16,60,996 and 31,95,761 Equity Shares respectively, pursuant to the exercise of stock options by certain employees.

 

8

Pursuant to RBI Circular FMRD.DIRD.10/14.03.002/2015-16 dated May 19, 2016, as amended, the bank has with effect from October 3, 2016 considered its repo/reverse repo transactions under Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) of RBI as Borrowings/Lendings, as the case may be. Hitherto, the repo/ reverse repo transactions were included under Investments. Figures for the previous periods have been regrouped / reclassified to conform to current period's classification. The above regrouping / reclassification has no impact on the profit of the bank for the quarter / Nine months ended December 31, 2016 or the previous periods/year.

 

9

The figures for the quarter and nine months ended December 31,2015 and year ended March 31,2016 were reviewed / audited by previous statutory auditors.

 

10

Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification.

 

 

 

 

 

 

 

 

 

 SHYAM SRINIVASAN

 

Mumbai

 MANAGING DIRECTOR & CEO

 

January 19, 2017

 (DIN: 02274773)

 

 

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
QRTEASALESKXEEF

Related Shares:

Federal Bk S
FTSE 100 Latest
Value8,364.08
Change-110.66