The Federal Bank Ltd.

Earnings Release • Oct 20, 2014

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RNS Number : 7542U

Federal Bank Ltd (The)

20 October 2014

SDF-24/                 /2014-15                                                                                  20th October 2014

To,

London Stock Exchange

Dear Sir,

We enclose the Limited Review Report (LRR) of the Auditors of the Bank for the quarter ended 30th September 2014, which was approved at the Bank's Board of Directors meeting, held on 16th October 2014.

Kindly take the same on your record.

Thanking you,

Yours faithfully,

COMPANY SECRETARY

Encl: as above

Deloitte Haskins& Sells	M P Chitale & Co.
Chartered Accountants Wilmont Park Business Centre 1st Floor, Warriam Road Kochi - 682 016 INDIA	Chartered Accountants First Floor, Hamam House Ambalal Doshi Marg, Fort Mumbai - 400 001 INDIA
Tel:  +91 484 2353694 Fax: +91 484 2380094	Tel: +91-22-22651186 Fax:+91-22-22655334

INDEPENDENT AUDITORS' REVIEW REPORT                                                     

TO THE BOARD OF DIRECTORS OF

THE FEDERAL BANK LIMITED

1.      We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of THE FEDERAL BANK LIMITED ("the Bank") for the Quarter and half year ended 30th September, 2014 ("the Statement"), being submitted by the Bank pursuant to the requirement of Clause 41 of the Listing Agreements with the Stock Exchanges, except for the disclosures referred to in paragraph 6 below. This Statement is the responsibility of the Bank's Management and has been approved by the Board of Directors. Our responsibility is to issue a report on the Statement based on our review.

2.      We conducted our review of the Statement in accordance with the Standard on Review Engagements (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 Bank 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.

3.      In the conduct of our review, 87branches have been reviewed by one of usand we have relied on the review reports in respect of returns including non-performing assets received from the branch auditors of 12branches, specifically appointed for this purpose by the bank. These review reports cover 55 percent of the advances portfolio of the bank. Apart from these review reports, in the conduct of our review, we have also relied upon various returns received from the branches of the bank.

4.      Based on our review conducted as stated above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the Accounting Standards  specified under the Companies Act, 1956 (which are deemed to be applicable  as per Section 133 of the Companies Act, 2013,  read with  Rule 7 of the Companies (Accounts) Rules, 2014 ) and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Clause 41 of the Listing Agreements with the Stock Exchanges, 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.

….2

Deloitte Haskins & Sells	M P Chitale & Co.

: 2 :

5.      Attention is drawn to Note No.4 of the Statement regarding proportionate charge of pension liability of the bank amounting to Rs.842 Lakhs and Rs.1684 Lakhs for the quarter and half year ended 30thSeptember, 2014 respectively and the balance unamortised liability of Rs.1684 Lakhs as at 30thSeptember, 2014, pursuant to the exemption granted by the Reserve Bank of India and made applicable to the Bank vide letter no. DBOD No.BP.BC.15896 / 21.04.018 / 2010-11 dated April 8, 2011, from the application of the provisions of the Accounting Standard (AS) 15, Employee Benefits.

Our conclusion is not qualified in respect of this matter.

6.      Further, we also report that we have traced the number of shares as well as the percentage of shareholding in respect of the aggregate amount of public shareholding,and the number of shares as well as the percentage of shares pledged/encumbered and non-encumbered in respect of the aggregate amount of promoters and promoter group shareholding in terms of Clause 35 of the Listing Agreements with the Stock Exchanges and the particulars relating to investor complaints disclosed in the Statement,from the details furnished by the Registrars. The "Pillar 3 disclosures under Basel III Capital Regulations" disclosed on the Bank's website and in respect of which a link has been provided in the Statement have not been subjected to our review.

For DELOITTE HASKINS & SELLS	For M P CHITALE & CO.
Chartered Accountants	Chartered Accountants
(Firm'sRegistration No.008072S)	(Firm's Registration No. 101851W)
M. Ramachandran	Ashutosh Pednekar
Partner	Partner
(Membership No.16399)	(Membership No. 041037)

MUMBAI, 16thOctober, 2014.

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER AND HALF YEAR ENDED 30th SEPTEMBER 2014
(` in Lakhs)
Particulars		Quarter ended			Half Year ended		Year ended 31.03.2014
30.09.2014	30.06.2014	30.09.2013	30.09.2014	30.09.2013
Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Interest earned (a)+(b)+(c)+(d)		186,958	177,150	171,444	364,108	336,770	694,608
(a)	Interest/discount on advances/bills	136,294	129,987	126,486	266,281	250,692	501,108
(b)	Income on Investments	45,276	45,819	43,778	91,095	83,483	177,683
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	2,327	1,251	1,112	3,578	2,436	5,236
(d)	Others	3,061	93	68	3,154	159	10,581
2. Other Income		19,586	15,654	14,340	35,240	35,919	69,385
3. TOTAL INCOME (1+2)		206,544	192,804	185,784	399,348	372,689	763,993
4. Interest expended		126,378	120,728	116,609	247,106	230,974	471,747
5. Operating Expenses (i)+(ii)		39,190	36,923	35,284	76,113	68,770	144,207
(i)	Employees Cost	20,380	20,443	18,543	40,823	36,894	77,154
(ii)	Other operating expenses	18,810	16,480	16,741	35,290	31,876	67,053
6. TOTAL EXPENDITURE (4)+(5) (excluding Provisions and Contingencies)		165,568	157,651	151,893	323,219	299,744	615,954
7. OPERATING PROFIT (3-6)  (Profit before Provisions and Contingencies)		40,976	35,153	33,891	76,129	72,945	148,039
8. Provisions (other than Tax) and Contingencies		4,571	2,208	(402)	6,779	23,108	26,840
9. Exceptional Items		-	-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		36,405	32,945	34,293	69,350	49,837	121,199
11. Tax expense		12,375	10,922	11,712	23,297	16,690	37,310
12. Net Profit from Ordinary Activities after tax (10-11)		24,030	22,023	22,581	46,053	33,147	83,889
13. Extraordinary items (net of tax expense)		-	-	-	-	-	-
14. Net Profit for the period (12-13)		24,030	22,023	22,581	46,053	33,147	83,889
15. Paid-up Equity Share Capital (Face value ` 2/- each)		17,111	17,107	17,106	17,111	17,106	17,106
16. Reserves excluding Revaluation Reserve							677,452
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	14.45	15.16	15.35	14.45	15.35	15.14
(iii)	Earnings per Share (EPS) (in `)
	(a) Basic and diluted EPS before Extra ordinary Items	2.81*	2.57*	2.64*	5.38*	3.88*	9.81
	(b) Basic and diluted EPS after Extra ordinary Items	2.81*	2.57*	2.64*	5.38*	3.88*	9.81
(iv)	NPA Ratios
	a) Gross NPA	103,105	101,643	146,600	103,105	146,600	108,741
	b) Net NPA	31,850	30,389	41,141	31,850	41,141	32,156
	c) % of Gross NPA	2.10	2.22	3.39	2.10	3.39	2.46
	d) % of Net NPA	0.66	0.68	0.98	0.66	0.98	0.74
(v)	Return on Assets (%)	0.32*	0.30*	0.34*	0.62*	0.49*	1.20
18. Public Shareholding:
	Number of Shares (in Lakhs)	8,383.51	8,365.62	8,342.35	8,383.51	8,342.35	8,342.86
	Percentage of shareholding #	97.99	97.80	97.54	97.99	97.54	97.54
19. Promoters and Promoter group share holding
(a)	Pledged/Encumbered
-	Number of Shares	NIL	NIL	NIL	NIL	NIL	NIL
-	Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	NIL	NIL	NIL	NIL	NIL	NIL
-	Percentage of Shares (as a % of the total share capital of the company)	NIL	NIL	NIL	NIL	NIL	NIL
(b)	Non-encumbered
-	Number of Shares	NIL	NIL	NIL	NIL	NIL	NIL
-	Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	NIL	NIL	NIL	NIL	NIL	NIL
-	Percentage of Shares (as a % of the total share capital of the company)	NIL	NIL	NIL	NIL	NIL	NIL
* Not annualised
# excludes shares held by custodian against which Global Depository Receipts issued.

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