Half Yearly Report

THE FEDERAL BANK LIMITED

REGD.OFFICE: ALUVA

UNAUDITED FINANCIAL RESULTS

FOR THE QUARTER ENDED 30 SEPTEMBER 2011

(` in Crores)

Quarter ended 30 September

Half Year ended 30 September

Year ended 31 March

2011

2010

2011

2010

2011

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

1

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

1,367.83

978.34

2,612.54

1,930.13

4,052.03

(a) Interest/discount on advances/bills

1,050.05

772.23

2,027.07

1,516.92

3,168.80

(b) Income on Investments

310.24

203.80

570.03

407.87

868.03

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

5.69

1.46

11.86

3.57

10.60

(d) Others

1.85

0.85

3.58

1.77

4.60

2

Other Income

116.96

144.04

233.86

253.93

516.81

3

TOTAL INCOME (1+2)

1,484.79

1,122.38

2,846.40

2,184.06

4,568.84

4

Interest expended

893.42

539.97

1,678.38

1,078.44

2,305.45

5

Operating Expenses (i)+(ii)

230.10

197.43

452.70

385.30

836.14

(i) Employee Cost

128.25

120.79

259.20

225.54

480.41

(ii) Other operating expenses

101.85

76.64

193.50

159.76

355.73

6

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

1,123.52

737.40

2,131.08

1,463.74

3,141.59

7

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

361.27

384.98

715.32

720.32

1,427.25

8

Provisions (other than Tax) and Contingencies

72.19

170.26

206.21

303.64

525.44

9

Exceptional Items 

-

-

-

-

-

10

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

289.08

214.72

509.11

416.68

901.81

11

Tax expense 

97.92

74.32

171.79

144.42

314.73

12

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

191.16

140.40

337.32

272.26

587.08

13

Extraordinary items (net of tax expense) 

-

-

-

-

-

14

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

191.16

140.40

337.32

272.26

587.08

15

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

171.05

171.03

171.05

171.03

171.05

16

Reserves excluding revaluation reserve

-

-

-

-

4,931.98

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

13.48

16.77

13.48

16.77

15.39

(b) Under Basel II

15.05

17.23

15.05

17.23

16.79

(iii) Earnings per Share (EPS)

(a) Basic and diluted EPS

before Extra ordinary Items

 11.18*

 8.21*

 19.72*

 15.92*

34.32

(b) Basic and diluted EPS

after Extra ordinary items

 11.18*

 8.21*

 19.72*

 15.92*

34.32

(iv) NPA Ratios

 a) Gross NPA

1,250.26

1,094.51

1,250.26

1,094.51

1,148.33

b) Net NPA

195.72

186.29

195.72

186.29

190.69

c) % of Gross NPA

3.61

3.84

3.61

3.84

3.49

 d) % of Net NPA

0.58

0.68

0.58

0.68

0.60

(v) Return on Asset (%)

 0.36*

 0.34*

 0.65*

 0.65*

1.34

18

Public Shareholding:

Number of Shares

1677.58Lakhs

1672.50Lakhs

1677.58Lakhs

1672.50Lakhs

1676.75Lakhs

Percentage of shareholding

98.08

97.84

98.08

97.84

98.08

19

Promoters and Promoter group share holding 

 NIL

 NIL

 NIL

 NIL

 NIL

* Not annualized

Particulars

 As at 30.09.2011 (Unaudited)

 As at 30.09.2010 (Unaudited)

CAPITAL AND LIABILITIES

Capital

171.05

171.03

Reserve & Surplus

5,274.93

4,791.68

Deposits

47,263.46

36,115.96

Borrowings

2,926.15

1,462.23

Other Liabilities and Provisions

2,067.95

1,579.46

Total

57,703.54

44,120.36

ASSETS

Cash and balance with Reserve Bank of India

3,378.33

2,558.33

Balance with Banks and Money at Call and Short Notice

295.91

356.63

Investments

18,798.11

12,506.65

Advances

33,606.69

27,635.64

Fixed Assets

289.23

283.32

Other Assets

1,335.27

779.79

Total

57,703.54

44,120.36

Segment Information @

 (` in Crores)

 Quarter ended

 Half Year ended

 Year ended

30-Sep-11

30-Sep-10

30-Sep-11

30-Sep-10

31-Mar-11

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Segment Revenue:

Treasury operations

353.53

222.04

651.15

444.42

932.00

Corporate/Wholesale

Banking

478.84

357.65

954.04

679.69

1,461.07

Retail Banking

645.00

537.47

1,226.93

1,051.08

2,157.73

Other Banking operations

7.42

5.22

14.28

8.87

18.04

Unallocated

-

-

-

-

-

Total Revenue

1,484.79

1,122.38

2,846.40

2,184.06

4,568.84

Segment Results

(net of provisions):

Treasury operations

-1.38

13.40

-5.25

36.74

83.86

Corporate/Wholesale

Banking

48.37

58.43

100.97

100.52

222.82

Retail Banking

236.94

138.96

403.41

273.13

585.51

Other Banking operations

5.15

3.93

9.98

6.29

9.62

Unallocated

-

-

-

-

-

Total Profit before tax

289.08

214.72

509.11

416.68

901.81

Capital employed:

Treasury operations

2,581.73

1513.75

2,581.73

1,513.75

1,887.85

Corporate/Wholesale

Banking

1,114.58

1523.62

1,114.58

1,523.62

1,277.83

Retail Banking

1,083.20

1923.66

1,083.20

1,923.66

1,247.22

Other Banking operations

58.76

1.68

58.76

1.68

447.91

Unallocated

607.71

-

607.71

-

247.85

Total

5,445.98

4,962.71

5,445.98

4,962.71

5,108.66

@

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 (other than second option for pension by employees), leave encashment, bonus, income tax including deferred tax and other usual and necessary items have also been made. In accordance with the RBI letter no. DBOD.BP.BC.15896/21.01.018/2010-11 dated 08.04.2011, the net 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 Rs.16.85 crores, being the proportionate liability in respect thereof, for the half year ended 30.09.2011 (Rs.8.42 crores for the quarter ended 30.06.2011) have been charged to Profit and Loss Account and the balance amount of Rs.117.87 Crores yet to be written off is carried forward to be amortised in future periods as permitted by the said approval of RBI.

3

Number of Investor complaints/correspondence received and disposed off during the quarter ended 30 September 2011:a) Pending at the beginning of the quarter: NILb) Received during the quarter : 45c) Disposed off during the quarter : 45d) 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 21.10.2011.

Kochi

 SHYAM SRINIVASAN

21 October 2011

 MANAGING DIRECTOR & CEO