6th May 2014 13:40
SD/ 24 / /2014
Secretarial Department
To,
The London Stock Exchange
Dear Sir,
We enclose the Audited financial results of the Bank for the period ended 31 March, 2014, which was approved at the Bank's Board of Directors meeting held 29.04.2014
Kindly acknowledge.
Thanking you,
The Federal Bank Ltd. Registered Office: Secretarial Department, Federal Towers, P O Box No. 103, Alum,
Kerala, India 683 101 E-mail: girishkiimar(a:federalbank.co.in\ Phone : 0484-2622645
THE FEDERAL BANK LIMITED
AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31st MARCH 2014
__,___(Rs in Lakhs)
Particulars | Quarter ended | Year ended | Consolidated figures for the year ended | |||||
31.03.2014 | 31,12.2013 | 31.03.2013 | 31.03.2014 | 31.03.2013 | 31.03.2014 | 31.03.2013 | ||
Audited (Refer note 15 below) | Unaudited | Audited | Audited | Audited | Audited | Audited | ||
Interest earned (a)+(b) + (c)+(d) | 183,871 | 173,967 | 158,346 | 694,608 | 616,757 | 700,570 | 624,632 | |
(a) Interest/discount on advances/bills | 123,794 | 126,622 | 116,842 | 501,108 | 463,566 | 507,070 | 471,442 | |
(b) Income on Investments | 48,080 | 46,120 | 39,703 | 177,683 | 146,460 | 177,683 | 146,460 | |
(c) Interest on balances with Reserve Bank of India and other inter bank funds | 1,746 | 1,054 | 1,539 | 5,236 | 5,636 | 5,236 | 5,635 | |
(d) Others | 10,251 | 171 | 262 | 10,581 | 1,095 | 10,581 | 1,095 | |
Other Income | 17,841 | 15,625 | 19,685 | 69,385 | 66,444 | 68,518 | 66,464 | |
TOTAL INCOME (1 + 2) | 201,712 | 189,592 | 178,031 | 763,993 | 683,201 | 769,088 | 691,096 | |
Interest expended | 121,363 | 119,410 | 110,370 | 471,747 | 419,291 | 472,776 | 420,894 | |
Operating Expenses (i)+(ii) | 38,345 | 37,092 | 31,214 | 144,207 | 118,454 | 149,350 | 122,859 | |
(i) Employees Cost | 20,090 | 20,170 | 15,615 | 77,154 | 63,146 | 79,543 | 65,271 | |
(ii) Other operating expenses | 18,255 | 16,922 | 15,599 | 67,053 | 55,308 | 69,807 | 57,588 | |
TOTAL EXPENDITURE (4)+(5) (excluding Provisions and Contingencies) | 159,708 | 156,502 | 141,584 | 615,954 | 537,745 | 622,126 | 543,753 | |
OPERATING PROFIT (3-6) (Profit before Provisions and Contingencies) | 42,004 | 33,090 | 36,447 | 148,039 | 145,456 | 146,962 | 147,343 | |
Provisions (other than Tax) and Contingencies | 5,503 | (1,771) | 9,318 | 26,840 | 26,080 | 24,677 | 26,042 | |
Exceptional Items | - | - | - | - | - | - | - | |
Profit from Ordinary Activities before tax (7-8-9) | 36,501 | 34,861 | 27,129 | 121,199 | 119,376 | 122,285 | 121,301 | |
Tax expense | 8,772 | 11,848 | 4,935 | 37,310 | 35,559 | 37,310 | 36,035 | |
Net Profit from Ordinary Activities after tax (10-11) | 27,729 | 23,013 | 22,194 | 83,889 | 83,817 | 84,975 | 85,266 | |
Extraordinary items (net of tax expense) | - | - | - | - | - | - | - | |
Net Profit for the period (12-13) | 27,729 | 23,013 | 22,194 | 83,889 | 83,817 | 84,975 | 85,266 | |
Paid-up Equity Share Capital (Face value 7 2/- each) (Refer Note 4 below) | 17,106 | 17,106 | 17,106 | 17,106 | 17,106 | 17,106 | 17,106 | |
Reserves excluding Revaluation Reserve | - | - | - | 677,452 | 618,839 | 668,464 | 608,765 | |
Analytical Ratios | ||||||||
(0 Percentage of shares held by Government of India | NIL | NIL | NIL | NIL | NIL | NIL | NIL | |
(ii) Capital Adequacy ratio (%) | ||||||||
(a) Under Basel II | NA | NA | 14.73 | NA | 14.73 | - | - | |
(b) Under Basel III (Refer Note 7 below) | 15.14 | 14.80 | NA | 15.14 | NA | - | - | |
(Mi) Earnings per Share (EPS) (in ?) (Refer Note 4 below) | ||||||||
(a) Basic and diluted EPS before Extra ordinary Items | 3.24* | 2.69* | 2.59* | 9.81 | 9.80 | 9.93 | 9.97 | |
(b) Basic and diluted EPS after Extra ordinary Items | 3.24* | 2.69* | 2.59* | 9.81 | 9.80 | 9.93 | 9.97 | |
(iv) NPA Ratios | ||||||||
a) Gross NPA | 108,741 | 120,089 | 155,401 | 108,741 | 155,401 | |||
b) Net NPA | 32,156 | 35,626 | 43,194 | 32,156 | 43,194 | |||
c) % of Gross NPA | 2.46 | 2.83 | 3.44 | 2.46 | 3.44 | |||
d) % of Net NPA | 0.74 | 0.86 | 0.98 | 0.74 | 0.98 | |||
(v) Return on Assets (%) | 0.38* | 0.33* | 0.33* | 1.20 | 1.35 | |||
Public Shareholding: | ||||||||
Number of Shares (in Lakhs) (Refer Note 4 below) | 8,342.86 | 8,342.86 | 8,384.40 | 8,342.86 | 8,384.40 | |||
Percentage of shareholding # | 97.54 | 97.54 | 98.03 | 97.54 | 98.03 | |||
Promoters and Promoter group share holding | ||||||||
(a) | Pledged/Encumbered | |||||||
- | Number of Shares | NIL | NIL | NIL | NIL | NIL | ||
- | Percentage of Shares (as a % of the total shareholding of promoter and promoter group) | NIL | NIL | NIL | NIL | NIL | ||
- | Percentage of Shares (as a % of the total share capital of the company) | NIL | NIL | NIL | NIL | NIL | ||
(b) | Non-encumbered | |||||||
- | Number of Shares | NIL | NIL | NIL | NIL | NIL | ||
- | Percentage of Shares (as a % of the total shareholding of promoter and promoter group) | NIL | NIL | NIL | NIL | NIL | ||
- | Percentage of Shares (as a % of the total share capital of the company) | NIL | NIL | NIL | NIL | NIL | ||
* Not annualised
# excludes shares held by custodian against which Global Depository Receipts issued.
Segment Information @ (Rs in Lakhs) | ||||||
Particulars | Quarter ended | Year ended | ||||
31.03.2014 | 31.12.2013 | 31.03.2013 | 31.03.2014 | 31.03.2013 | ||
Audited | Unaudited | Audited | Audited | Audited | ||
Segment Revenue: | ||||||
Treasury | 55,930 | 53,380 | 49,628 | 211,792 | 181,360 | |
Corporate/Wholesale Banking | 47,735 | 58,489 | 50,624 | 223,340 | 216,973 | |
Retail Banking | 86,627 | 76,751 | 76,963 | 314,658 | 280,788 | |
Other Banking operations | 11,420 | 972 | 816 | 14,203 | 4,080 | |
Unallocated | - | - | - | - | - | |
Total Revenue | 201,712 | 189,592 | 178,031 | 763,993 | 683,201 | |
Less: Inter Segment Revenue | - | - | - | - | - | |
Income from Operations | 201,712 | 189,592 | 178,031 | 763,993 | 683,201 | |
Seqment Results (net of provisions): | ||||||
Treasury | 2,003 | 537 | 7,205 | 14,990 | 29,047 | |
Corporate/Wholesale Banking | 4,087 | 17,123 | 738 | 29,162 | 26,114 | |
Retail Banking | 20,033 | 17,071 | 18,439 | 66,346 | 62,566 | |
Other Banking operations | 10,807 | 493 | 1,152 | 12,180 | 3,315 | |
Unallocated | (429) | (363) | (405) | (1,479) | (1,666) | |
Profit before tax | 36,501 | 34,861 | 27,129 | 121,199 | 119,376 | |
Capital employed: | ||||||
Treasury | 300,672 | 380,153 | 246,148 | 300,672 | 246,148 | |
Corporate/Wholesale Banking | 137,721 | 97,265 | 163,289 | 137,721 | 163,289 | |
Retail Banking | 193,869 | 123,993 | 168,548 | 193,869 | 168,548 | |
Other Banking operations | 1,539 | 1,492 | 6,928 | 1,539 | 6,928 | |
Unallocated | 61,258 | 84,339 | 51,553 | 61,258 | 51,553 | |
Total | 695,059 | 687,241 | 636,466 | 695,059 | 636,466 | |
@ 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 mainly operates in India. Notes: 1 Statement of Assets and Liabilities of the bank as on 31st March, 2014 is given below: (Rs in Lakhs) | ||||||
Particulars | As at 31.03.2014 Audited | As at 31.03.2013 Audited | ||||
CAPITAL AND LIABILITIES | ||||||
Capital | 17,106 | 17,106 | ||||
Reserves and Surplus | 677,953 | 619,360 | ||||
Deposits | 5,973,128 | 5,761,486 | ||||
Borrowinqs | 568,796 | 518,699 | ||||
Other Liabilities and Provisions | 222,432 | 186,643 | ||||
Total | 7,459,415 | 7,103,294 | ||||
ASSETS | ||||||
Cash and Balances with Reserve Bank of India | 310,429 | 274,250 | ||||
Balance with Banks and Money at Call and Short Notice | 142,509 | 97,749 | ||||
Investments | 2,411,785 | 2,115,459 | ||||
Advances | 4,343,610 | 4,409,670 | ||||
Fixed Assets | 42,496 | 39,987 | ||||
Other Assets | 208,586 | 166,179 | ||||
Total | 7,459,415 | 7,103,294 | ||||
2 The above financial results have been taken on record by the Audit Committee and approved by the Board of Directors at its meeting held on 29th April, 2014.
3 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.
4 Pursuant to the approval of the Shareholders at the 82nd Annual General Meeting held on 20th July 2013, the face value of each equity share of 7 10/- was sub-divided into 5 (Five) Equity Shares of 7 2/- each with effect from 19th October 2013. Accordingly, the number of shares and the Earnings Per Share of the previous periods have been restated to make the same comparable.
5 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, with effect from 01.04.2013, 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, is increase in the profit by 7324.26 lakhs for the quarter ended 31st March 2014 and decrease in profit by 7664.04 lakhs for the year ended 31st March, 2014. Had this policy been adopted in the previous year, the effect would have been increase in profit by 78.99 lakhs for the quarter ended 31st March 2013 and decrease in profit by 7148.68 iakhs for the year ended 31st March, 2013.
6 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 7 3368 Lakhs, being the proportionate liability in respect thereof, for the year ended 31.03.2014 (7 842 Lakhs for the quarter ended 31.03.2014) have been charged to Profit and Loss Account and the balance amount of 7 3368 lakhs 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.
7 In terms of RBI circular DBOD.No,BP.BC.88/21.06.201/2012-13 dated 28.03.2013, banks have been advised to disclose capital ratios computed under Basel III Capital Regulations from the quarter ended 30th June 2013. Accordingly, corresponding details for previous period/year are not applicable.
8 RBI circular DBOD.No.BP.BC.2/21,06.201/2013-14 dated July 01, 2013 on Basel III Capital Regulations contains guidelines on certain Pillar 3 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: httrj://www.federalbank,co,in/reaulatorv-disclosures. These disclosures have not been subjected to review by the statutory auditors of the bank.
9 In terms of RBI circular DBOD.BP.BC,No.4I/21.04.141/2013-14 dated August 23, 2013 on "Investment portfolio of banks-Classification, Valuation and Provisioning", the Bank has opted to amortise the depreciation on the Available for Sale (AFS) and Held For Trading (HFT) portfolios on each of the valuation dates in the current financial year in equal installments during the financial year 2013-14. The Bank had amortised such depreciation during the quarters ended September and December 2013. During the quarter and year ended 31st March 2014, depreciation in respect of AFS and HFT portfolio has been recognised in full.
10 The Bank had hitherto not been creating Deferred Tax Liability (DTL) on the Special Reserve created under Section 36(1) (viii) of the Income Tax Act, 1961 in accordance with the requirements of the Accounting Standard (AS) 22, Accounting for Taxes on Income. However, during the year, the Bank, pursuant to RBI's Circular No. DBOD. No.BP.BC.77/21.04.018/2013-14 dated 20th December 2013, has created DTL of Rs. 5396 Lakhs on such Special Reserve for the period upto March 31, 2013, not fully charged to the Profit and Loss account and has adjusted the same directly from the Reserves. Had this amount been charged to the Profit & Loss Account in accordance with the generally accepted accounting principles in India, the amount of Profit for the year would have been lower by such amount.
Further, as required by the aforesaid RBI Circular, the Bank has created a DTL of Rs. 1,299 Lakhs in respect of the amounts transferred to Special Reserve from the year ended March 31, 2014 and the same is charged to the Profit and Loss Account for the year.
Had the Bank continued with its policy of not creating a DTL on Special Reserve created under Section 36(1) (viii) of the Income Tax Act, 1961, the Reserves and the Profit of the Bank as at/ for the year ended 31st March, 2014 would have been higher by Rs. 5396 Lakhs and Rs.1,299 Lakhs, respectively.
11 Number of Investor complaints received and disposed off during
a)Pending at the beginning of the quarter : NIL
b)Received during the quarter : 33
c)Disposed off during the quarter : 33
d)Pending at the end of the quarter : NIL
12 The Board of Directors have recommended a dividend of 100% i.e. 7 2/- per share on face value of 7 2/- each for the year 2013-14 (previous year 90% i.e 7 1.80 per share) subject to the approval of the members in the ensuing Annual General Meeting.
13 During the year ended 31st March 2014, the Bank had allotted 16125 Shares pursuant to the exercise of stock options by certain employees.
14 Consolidated financial results include the results of the fully owned subsidiary, Fedbank Financial Services Ltd and share of associate, IDBI Federal Life Insurance Company Ltd.
15 The figures of the last quarter are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year.
16 Previous period/ year figures have been regrouped /
Reclassified where necessary to confirm to current period / year classification |
reclassified, ^.
Kochi
29th April 2014
SHYAM SRINIVASAN
MANAGING
DIRECTOR & CEO
Related Shares:
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