Half Yearly Report

THE FEDERAL BANK LIMITED

REGD.OFFICE: ALUVA

UNAUDITED FINANCIAL RESULTS

FOR THE QUARTER ENDED 30 SEPTEMBER 2010

 (` in Crore)

Quarter ended 30 September

Half Year ended 30 September

Year ended 31 March

2010

2009

2010

2009

2010

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

1

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

978.34

901.07

1,930.13

1,775.45

3,673.23

(a) Interest/discount on advances/bills

772.23

707.99

1,516.92

1,364.14

2,849.73

(b) Income on Investments

203.80

185.53

407.87

390.35

783.41

(c) Interest on balances with RBI and other interbank funds

1.46

7.08

3.57

20.19

29.85

(d) Others

 0.85

 0.47

 1.77

 0.77

10.24

2

Other Income

 144.04

136.43

253.93

 283.84

530.91

3

TOTAL INCOME (1+2)

1,122.38

1,037.50

2,184.06

2,059.29

4,204.14

4

Interest Expended

539.97

 571.12

1,078.44

1,155.42

 2,262.40

5

Operating Expenses (i)+(ii)

197.43

163.14

385.30

 322.35

 676.89

(i) Employee Costs

 120.79

 89.75

 225.54

182.16

 366.05

(ii) Other operating expenses

 76.64

73.39

159.76

140.19

310.84

6

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

737.40

734.26

1,463.74

1,477.77

2,939.29

7

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

Contingencies)

384.98

303.24

720.32

581.52

1,264.85

8

Provisions (other than Tax) and Contingencies

170.26

150.14

303.64

202.09

405.30

9

Exceptional Items

-

-

-

-

-

10

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

214.72

153.10

416.68

379.43

859.55

11

Tax expense 

74.32

52.03

144.42

141.98

395.00

12

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

140.40

101.07

272.26

237.45

464.55

13

Extraordinary items (net of tax expense) 

-

-

-

-

-

14

Net Profit (+)/Loss(-) for the period (12-13)

140.40

101.07

272.26

237.45

464.55

15

Paid-up equity share capital(Face value Rs.10/-)

171.03

171.03

171.03

171.03

171.03

16

Reserves excluding revaluation reserve

-

-

-

-

4,513.55

17

Analytical Ratios

(i) Percentage of shares held by

Government of India

Nil

Nil

Nil

Nil

Nil

(ii) Capital Adequacy Ratio (%)

(a) Under Basel I

16.77

17.91

16.77

17.91

17.27

(b) Under Basel II

17.23

18.47

17.23

18.47

18.36

(iii) Earnings per share (EPS)

(a) Basic and diluted EPS before

Extraordinary items

8.21*

5.91*

15.92*

13.88*

27.16

(b) Basic and diluted EPS after

Extraordinary items

8.21*

5.91*

15.92*

13.88*

27.16

(iv) NPA Ratios

a) Gross NPA

1094.51

789.18

1094.51

789.18

820.97

b) Net NPA

186.29

137.93

186.29

137.93

128.79

c) % of Gross NPA

3.84

2.99

3.84

2.99

2.97

d) % of Net NPA

0.68

0.54

0.68

0.54

0.48

(v) Return on Assets (%)

 0.34*

0.26*

 0.65*

0.62*

1.15

18

Public Shareholding:

Number of Shares

1672.50 Lakh

1658.76 Lakh

1672.50 Lakh

1658.76 Lakh

1672.11 Lakh

Percentage of shareholding

97.84

97.04

97.84

97.04

97.82

19

Promoters and Promoter group shareholding

 Nil

 Nil

 Nil

 Nil

 Nil

* Not annualised

Statement of assets and Liabilities

 (` in Crore)

Particulars

 As at 30.09.2010 (Unaudited)

 As at 30.09.2009 (Unaudited)

CAPITAL AND LIABILITIES

Capital

171.03

171.03

Reserves & Surplus

4,791.68

4,392.30

Deposits

36,115.96

33,439.21

Borrowings

1,462.23

941.46

Other Liabilities and Provisions

1,579.46

1,611.41

Total

44,120.36

40,555.41

ASSETS

Cash and balance with Reserve Bank of India

2,558.33

1,955.07

Balance with Banks and Money at Call and Short Notice

356.63

197.10

Investments

12,506.65

11,744.13

Advances

27,635.64

25,779.02

Fixed Assets

283.32

277.34

Other Assets

779.79

602.75

Total

44,120.36

40,555.41

Segment Information @

 (` in Crore)

 Quarter ended

 Half Year ended

 Year ended

30-Sep-10(Unaudited)

30-Sep-09(Unaudited)

30-Sep-10(Unaudited)

30-Sep-09(Unaudited)

31-Mar-10(Audited)

Segment Revenue:

Treasury Operations

222.04

222.22

444.42

491.06

908.70

Corporate/Wholesale Banking

357.65

263.76

679.69

562.88

1,285.02

Retail Banking

537.47

546.71

1,051.08

990.33

1,975.06

Other Banking Operations

5.22

4.81

8.87

15.02

35.35

Total Revenue

1,122.38

1,037.50

2,184.06

2,059.29

4,204.13

Segment Results (net of provisions):

Treasury Operations

13.40

21.94

36.74

123.39

151.47

Corporate/Wholesale Banking

58.43

24.82

100.52

77.77

229.86

Retail Banking

138.96

102.37

273.13

165.89

449.91

Other Banking Operations

3.93

3.97

6.29

12.38

28.29

Total Profit before tax

214.72

153.10

416.68

379.43

859.53

Capital employed:

Treasury operations

1513.75

1,417.90

1,513.75

1,417.90

1,503.85

Corporate/Wholesale Banking

1523.62

1,371.85

1,523.62

1,371.85

1,381.06

Retail Banking

1923.66

1,771.34

1,923.66

1,771.34

1,802.44

Other Banking Operations

1.68

2.24

1.68

2.24

3.09

Total

4,962.71

4,563.33

4,962.71

4,563.33

4,690.44

@

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 has only the Domestic geographic segment.

Notes

1

As a prudent policy, the Bank holds provisions for NPAs and standard assets over and above the minimum required under the RBI norms. Further, provision for restructured advances has been made as per RBI guidelines.

2

Provisions for gratuity, pension, leave encashment, bonus, income tax including deferred tax and other usual and necessary items have been made on estimated basis.

3

Number of Investor complaints/correspondence received and disposed off during the quarter ended 30 September 2010:a) Pending at the beginning of the quarter: NILb) Received during the quarter : 14c) Disposed off during the quarter : 14d) Pending at the end of the quarter : NIL

4

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

5

The above financial results, subjected to limited review by statutory central auditors, have been taken on record by the Audit Committee and approved by the Board of Directors at its meeting held on 29.10.2010.

Kochi

 SHYAM SRINIVASAN

29 October 2010

 MANAGING DIRECTOR & CEO