Final Results

THE FEDERAL BANK LIMITED

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

(CIN: L65191KL1931PLC000368)

AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2016

 (` in Lakhs)

Particulars

Quarter ended

Year ended

Consolidated figures for the year ended

31.03.2016

31.12.2015

31.03.2015

31.03.2016

31.03.2015

31.03.2016

31.03.2015

Audited(Refer Note 12 below)

Unaudited

Audited(Refer Note 12 below)

Audited

Audited

Audited

Audited

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

202,652

190,276

190,828

774,469

741,946

782,280

748,777

(a)

Interest/discount on advances/bills

146,949

138,554

138,506

566,931

544,683

574,818

551,011

(b)

Income on Investments

45,981

44,589

42,453

175,963

164,968

175,887

165,471

(c)

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

725

1,657

598

5,596

6,236

5,596

6,236

(d)

Others

8,997

5,476

9,271

25,979

26,059

25,979

26,059

2. Other Income

22,686

18,331

30,600

78,638

87,831

78,655

87,854

3. TOTAL INCOME (1+2)

225,338

208,607

221,428

853,107

829,777

860,935

836,631

4. Interest expended

134,058

129,756

128,505

524,045

503,905

525,935

505,633

5. Operating Expenses (i)+(ii)

51,828

46,303

46,008

186,684

163,093

190,632

167,521

(i)

Employees Cost

29,304

25,859

24,866

105,285

89,196

107,422

91,305

(ii)

Other operating expenses

22,524

20,444

21,142

81,399

73,897

83,210

76,216

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

185,886

176,059

174,513

710,729

666,998

716,567

673,154

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

39,452

32,548

46,915

142,378

162,779

144,368

163,477

8. Provisions (other than Tax) and Contingencies

38,864

7,511

3,978

70,413

10,675

70,517

10,520

9. Exceptional Items

-

-

-

-

-

-

-

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

588

25,037

42,937

71,965

152,104

73,851

152,957

11. Tax expense

(438)

8,765

14,884

24,400

51,529

25,061

51,748

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

1,026

16,272

28,053

47,565

100,575

48,790

101,209

13. Extraordinary items (net of tax expense)

-

-

-

-

-

-

-

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

1,026

16,272

28,053

47,565

100,575

48,790

101,209

15. Share in Profit/(Loss) of Associate

(148)

4,572

16. Consolidated Net Profit of the group (14+15)

48,642

105,781

17. Paid-up Equity Share Capital (Refer Note 10)(Face value ` 2/- per Equity Share)

34,379

34,367

17,133

34,379

17,133

34,379

17,133

18. Reserves excluding Revaluation Reserve

774,242

756,180

771,533

752,393

19. Analytical Ratios

(i)

Percentage of shares held by Government of India

NIL

NIL

NIL

NIL

NIL

NIL

NIL

(ii)

Capital Adequacy ratio (%)

Under Basel III

13.93

14.32

15.46

13.93

15.46

-

-

(iii)

Earnings per Share (EPS) (in `) (Refer Note 10)

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

0.06*

0.95*

1.64*

2.77

5.87

2.83

6.17

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

0.06*

0.94*

1.62*

2.75

5.82

2.82

6.12

(iv)

NPA Ratios

a) Gross NPA

166,777

168,411

105,773

166,777

105,773

b) Net NPA

95,001

87,610

37,327

95,001

37,327

c) % of Gross NPA

2.84

3.15

2.04

2.84

2.04

d) % of Net NPA

1.64

1.66

0.73

1.64

0.73

(v)

Return on Assets (%)

 0.01*

0.19*

 0.35*

0.57

1.32

Segment Information@

 (` in Lakhs)

Particulars

Quarter ended

Year ended

Consolidated figures for the year ended

31.03.2016

31.12.2015

31.03.2015

31.03.2016

31.03.2015

31.03.2016

31.03.2015

Audited(Refer Note 12 below)

Unaudited

Audited(Refer Note 12 below)

Audited

Audited

Audited

Audited

Segment Revenue:

Treasury

59,193

55,321

60,377

228,193

225,027

228,193

225,027

Corporate/Wholesale Banking

67,702

56,861

59,886

236,094

234,993

236,094

234,993

Retail Banking

92,787

95,416

96,621

380,964

357,797

388,792

364,651

Other Banking operations

5,656

1,009

4,544

7,856

11,960

7,856

11,960

Unallocated

-

-

-

-

-

-

-

Total Revenue

225,338

208,607

221,428

853,107

829,777

860,935

836,631

Less: Inter Segment Revenue

-

-

-

-

-

-

-

Income from Operations

225,338

208,607

221,428

853,107

829,777

860,935

836,631

Segment Results (net of provisions):

Treasury

3,172

2,721

9,623

15,851

34,218

15,851

34,218

Corporate/Wholesale Banking

(5,324)

2,936

3,190

1,814

33,399

1,814

33,399

Retail Banking

(2,062)

19,280

26,658

49,459

76,112

51,345

76,965

Other Banking operations

5,532

914

4,167

7,385

10,372

7,385

10,372

Unallocated

(730)

(814)

(701)

(2,545)

(1,997)

(2,545)

(1,997)

Profit before tax

588

25,037

42,937

71,964

152,104

73,850

152,957

Capital employed:

Treasury

250,922

340,276

257,003

250,922

257,003

250,922

257,003

Corporate/Wholesale Banking

152,771

100,711

133,845

152,771

133,845

152,771

133,845

Retail Banking

201,481

144,191

196,520

201,481

196,520

198,772

192,734

Other Banking operations

2,656

7,070

2,432

2,656

2,432

2,656

2,432

Unallocated

201,292

230,118

184,013

201,292

184,013

201,292

184,013

Total

809,122

822,366

773,813

809,122

773,813

806,413

770,027

@

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 March 31, 2016 is given below:

(` in Lakhs)

Standalone

Consolidated

Particulars

As at 31.03.2016 Audited

As at 31.03.2015 Audited

As at 31.03.2016 Audited

As at 31.03.2015 Audited

CAPITAL AND LIABILITIES

Capital

34,379

17,133

34379

17133

Reserves and Surplus

774,743

756,680

772033

752894

Deposits

7,917,171

7,082,499

7917090

7082269

Borrowings

217,656

230,825

229832

239298

Other Liabilities and Provisions

199,054

197,911

202105

199235

Total

9,143,003

8,285,048

9,155,439

8,290,829

ASSETS

Cash and Balances with Reserve Bank of India

377,454

337,954

377696

338198

Balance with Banks and Money at Call and Short Notice

164,527

140,045

164618

140246

Investments

2,221,749

2,056,882

2198247

2034944

Advances

5,809,014

5,128,499

5841977

5152919

Fixed Assets

51,998

46,663

52364

47268

Other Assets

518,261

575,004

520537

577254

Total

9,143,003

8,285,048

9,155,439

8,290,829

2

The above Audited Financial Results for the quarter and year ended March 31, 2016 were reviewed by the Audit Committee and recommended for approval to and approved by the Board of Directors at its meeting held on April 30, 2016. These Results have been subjected to "Audit" by the Statutory Central Auditors of the Bank and an unqualified report has been issued by them.

3

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.

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 on 'Prudential Guidelines on Capital Adequacy and Liquidity Standards ammendments' , 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 audit 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 / loss on sale of investments (net), recoveries from accounts written off.

6

Pursuant to RBI Circular DBR.BP.BC.No.31/21.04.018/2015-16 dated July 16, 2015, the Bank has, effective from September 30, 2015 included its deposits placed with NABARD, SIDBI, and NHB on account of shorfall in lending to priority sector under 'Other Assets'. Hitherto these were included under 'Investments' and Interest income thereon was included under 'Interest Earned - Income on Investments'. Arising out of regrouping in line with the above mentioned RBI guidelines, interest income on deposits placed with NABARD, SIDBI and NHB is included under 'Interest Earned - Others'. Figures for the previous periods / year have been regrouped / reclassified to conform to current period classification. The above change in classification has no impact on the profit of the Bank for the quarter and year ended March 31, 2016.

7

As per the directions given by RBI, the Bank has completed the Review of certain loan accounts and their classifications within the time frame stipulated as on 31 March, 2016.

8

The Board of Directors have recommended a dividend of 35% i.e. ` 0.70/- per Equity Share on face value of ` 2/- each for the year 2015-16 (previous year 110% i.e ` 2.20 per Equity Share) subject to the approval of the members at the ensuing Annual General Meeting.

9

During the quarter and year ended March 31, 2016, the Bank allotted 5,96,500 and 43,46,441 Equity Shares respectively, pursuant to the exercise of stock options by certain employees.

10

The shareholders of the Bank had approved the issue of Bonus Shares at the Annual General Meeting held on June 29, 2015, in the Ratio of 1:1 for Shares held as on the record date of July 9, 2015. Pursuant to which 85,79,45,206 fully paid up Equity Shares had been allotted by the bank as bonus shares and One Global Depositary share (GDS) had been issued as bonus for every GDS held to the existing holders as on the record date. Consequently, as per the extant ESOS 2010 Scheme bonus options had been provided to the existing ESOS option holders and the exercise price had been adjusted accordingly. The earnings per share have been adjusted for previous periods / year in accordance with Accounting Standard 20, Earnings per share.

11

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 on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated July 1, 2015, the shortfall arrived at by deducting sale consideration from the Net Book value of the financial assets,amounting to ` 12,214.15 Lakhs (` 7,829.27 Lakhs upto the period ended December 31, 2015) , 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 ( ` 1,291.31 Lakhs for the quarter ended December 31, 2015)for the Quarter and ` 3,541 Lakhs during the year ended March 31,2016 respectively and the balance of ` 8,673.15 Lakhs will be amortised over the next four quarters.

12

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 end of third quarter of the respective financial year.

13

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

 SHYAM SRINIVASAN

Kochi

 MANAGING DIRECTOR & CEO

April 30, 2016

 (DIN: 02274773)