Interim / Quarterly Report • Jan 19, 2015
Interim / Quarterly Report
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RNS Number : 5243C
Federal Bank Ltd (The)
19 January 2015
Secretarial Department
London Stock Exchange
Dear Sir,
We enclose the Limited Review Report (LRR) of the Auditors of the Bank for the quarter ended 31st December 2014, which was approved at the Bank's Board of Directors meeting, held on 15th January 2015
.
Kindly take the same on your record.
Thanking you,
Yours faithfully,
COMPANY SECRETARY
Encl: as above
THE FEDERAL BANK LIMITED REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 (CIN: L65191KL1931PLC000368) STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31st DECEMBER 2014
( Rs in Lakhs)
| Particulars | Quarter ended | Nine months ended | Year ended 31.03.2014 |
|||
| 31.12.2014 | 30.09.2014 | 31.12.2013 | 31.12.2014 | 31.12.2013 | ||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
| 1. Interest earned (a)+(b)+(c)+(d) | 187,010 | 186,958 | 173,967 | 551,118 | 510,737 | 694,608 |
| (a) Interest/discount on advances/bills | 139,896 | 136,294 | 126,622 | 406,177 | 377,314 | 501,108 |
| (b) Income on Investments | 44,908 | 45,276 | 46,120 | 136,003 | 129,603 | 177,683 |
| (c) Interest on balances with Reserve Bank of India and other inter bank funds | 2,060 | 2,327 | 1,054 | 5,638 | 3,490 | 5,236 |
| (d) Others | 146 | 3,061 | 171 | 3,300 | 330 | 10,581 |
| 2. Other Income | 21,991 | 19,586 | 15,625 | 57,231 | 51,544 | 69,385 |
| 3. TOTAL INCOME (1+2) | 209,001 | 206,544 | 189,592 | 608,349 | 562,281 | 763,993 |
| 4. Interest expended | 128,294 | 126,378 | 119,410 | 375,400 | 350,384 | 471,747 |
| 5. Operating Expenses | 40,972 | 39,190 | 37,092 | 117,085 | 105,862 | 144,207 |
| (i) Employees Cost | 23,507 | 20,380 | 20,170 | 64,330 | 57,064 | 77,154 |
| (ii) Other operating expenses | 17,465 | 18,810 | 16,922 | 52,755 | 48,798 | 67,053 |
| 6. TOTAL EXPENDITURE (4)+(5) (excluding Provisions and Contingencies) |
169,266 | 165,568 | 156,502 | 492,485 | 456,246 | 615,954 |
| 7. OPERATING PROFIT (3-6) (Profit before Provisions and Contingencies) |
39,735 | 40,976 | 33,090 | 115,864 | 106,035 | 148,039 |
| 8. Provisions (other than Tax) and Contingencies | (82) | 4,571 | (1,771) | 6,697 | 21,337 | 26,840 |
| 9. Exceptional Items | - | - | - | - | - | |
| 10. Profit from Ordinary Activities before tax (7-8-9) | 39,817 | 36,405 | 34,861 | 109,167 | 84,698 | 121,199 |
| 11. Tax expense | 13,348 | 12,375 | 11,848 | 36,645 | 28,538 | 37,310 |
| 12. Net Profit from Ordinary Activities after tax (10-11) |
26,469 | 24,030 | 23,013 | 72,522 | 56,160 | 83,889 |
| 13. Extraordinary items (net of tax expense) | - | - | - | - | - | - |
| 14. Net Profit for the period (12-13) | 26,469 | 24,030 | 23,013 | 72,522 | 56,160 | 83,889 |
| 15. Paid-up Equity Share Capital (Face value Rs 2/- each) | 17,122 | 17,111 | 17,106 | 17,122 | 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 | 14.51 | 14.45 | 14.80 | 14.51 | 14.80 | 15.14 |
| (iii) Earnings per Share (EPS) (in Rs) | ||||||
| (a) Basic and diluted EPS before Extra ordinary Items | 3.09* | 2.81* | 2.69* | 8.47* | 6.57* | 9.81 |
| (b) Basic and diluted EPS after Extra ordinary Items | 3.09* | 2.81* | 2.69* | 8.47* | 6.57* | 9.81 |
| (iv) NPA Ratios | ||||||
| a) Gross NPA | 106,663 | 103,105 | 120,089 | 106,663 | 120,089 | 108,741 |
| b) Net NPA | 33,294 | 31,850 | 35,626 | 33,294 | 35,626 | 32,156 |
| c) % of Gross NPA | 2.19 | 2.10 | 2.83 | 2.19 | 2.83 | 2.46 |
| d) % of Net NPA | 0.69 | 0.66 | 0.86 | 0.69 | 0.86 | 0.74 |
| (v) Return on Assets (%) | 0.35* | 0.32* | 0.33* | 0.97* | 0.81* | 1.20 |
| 18. Public Shareholding: | ||||||
| Number of Shares (in Lakhs) | 8,390.08 | 8,383.51 | 8,342.86 | 8,390.08 | 8,342.86 | 8,342.86 |
| Percentage of shareholding # | 98.00 | 97.99 | 97.54 | 98.00 | 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
| Segment Information@ (Rs in lakhs) |
||||||
| Particulars | Quarter ended | Nine months ended | Year ended | |||
| 31.12.2014 | 30.09.2014 | 31.12.2013 | 31.12.2014 | 31.12.2013 | 31.03.2014 | |
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
| Segment Revenue: | ||||||
| Treasury | 56,502 | 54,718 | 53,380 | 164,650 | 155,862 | 211,792 |
| Corporate/Wholesale Bankinq | 59,071 | 60,409 | 58,489 | 175,106 | 175,606 | 223,340 |
| Retail Banking | 91,890 | 86,356 | 76,751 | 261,177 | 228,030 | 314,658 |
| Other Bankinq operations | 1,538 | 5,061 | 972 | 7,416 | 2,783 | 14,203 |
| Unallocated | - | - | - | - | - | |
| Total Revenue | 209,001 | 206,544 | 189,592 | 608,349 | 562,281 | 763,993 |
| Less: Inter Segment Revenue | - | - | - | - | - | - |
| Income from Operations | 209,001 | 206,544 | 189,592 | 608,349 | 562,281 | 763,993 |
| Segment Results (net of provisions): | ||||||
| Treasury | 12,119 | 4,595 | 537 | 24,595 | 12,987 | 14,990 |
| Corporate/Wholesale Banking | 4,943 | 12,763 | 17,123 | 30,209 | 25,075 | 29,162 |
| Retail Banking | 22,218 | 14,791 | 17,071 | 49,454 | 46,312 | 66,346 |
| Other Banking operations | 1,040 | 4,749 | 493 | 6,205 | 1,373 | 12,180 |
| Unallocated | (503) | (493) | (363) | (1,296) | (1,049) | (1,479) |
| Profit before tax | 39,817 | 36,405 | 34,861 | 109,167 | 84,698 | 121,199 |
| Capital employed: | ||||||
| Treasury | 325,530 | 278,726 | 352,441 | 325,530 | 352,441 | 262,520 |
| Corporate/Wholesale Banking | 104,472 | 118,900 | 76,015 | 104,472 | 76,015 | 108,720 |
| Retail Banking | 158,487 | 157,774 | 96,167 | 158,487 | 96,167 | 152,266 |
| Other Banking operations | 1,344 | 1,037 | 1,492 | 1,344 | 1,492 | 1,539 |
| Unallocated | 178,157 | 184,614 | 161,127 | 178,157 | 161,127 | 170,014 |
| Total | 767,990 | 741,051 | 687,242 | 767,990 | 687,242 | 695,059 |
@ 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 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 their meeting on 15th January, 2015.
2 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 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.
3 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 Rs 2526 Lakhs, being the proportionate liability in respect thereof, for the nine months ended 31.12.2014 (Rs 842 Lakhs for the quarter ended 31.12.2014) have been charged to Profit and Loss Account and the balance amount of Rs 842 lakhs is carried forward to be amortised during the ensuing quarter of the year as permitted by the Reserve Bank of India vide letter No. DBOD.BP.BC.15896/21.04.018/2010-11 dated
08th April,2011.
4 a) The bank has adopted the revised useful life of assets as per Schedule II of the Companies Act, 2013. As a result, there is a charge of
Rs. 232 Lakhs (net of deferred tax impact) to the opening balance of retained earnings in respect of assets whose useful life has expired as on 1st April, 2014.
b) The bank has changed the method of providing depreciation from written down value method to Straight line method for certain assets from 1st April, 2014 . This change in method has resulted in excess depreciation charge in earlier years amounting to Rs 2437 Lakhs which has been reversed to Profit and Loss Account for the quarter and nine months ended 31st December, 2014
Had the bank followed the earlier method of providing depreciation, the charge for the quarter and nine months ended 31st December, 2014 would have been higher by Rs 138 lakhs and Rs 216 lakhs respectively.
5 RBI circular DBOD.No.BP.BC.6/21.06.201/2014-15 dated July 01, 2014 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: http://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to review by the statutory central auditors of the bank.
6. Number of Investor complaints received and disposed off during the quarter ended 31 st December 2014:
a) Pending at the beginning of the quarter : NIL
b) Received during the quarter : 16
c) Disposed off during the quarter : 14
d) Pending at the end of the quarter : 2
7 During the nine months ended 31st December 2014, the Bank had allotted 7,84,269 Shares (5,24,899 shares during the quarter ended 31.12.2014) pursuant to the exercise of stock options by certain employees.
8 Previous period / year figures have been regrouped / reclassified, where necessary to conform to current period classification.
KOCHI SHYAM SRINIVASAN
MANAGING DIRECTOR & CEO
(DIN: 02274773)
15th JANUARY 2015
| 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 Nine Months ended 31st December, 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, 85branches 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 18 branches, specifically appointed for this purpose by the bank. These review reports cover 54percent 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.
5. Attention is drawn to Note No. 3of the Statement regarding proportionate charge of pension liability of the bank amounting to Rs.842 Lakhs and Rs.2526Lakhs for the Quarter and Nine Months ended 31st December, 2014 respectively and the balance unamortised liability of Rs.842 Lakhs as at 31st December, 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's Registration No.008072S) | (Firm's Registration No. 101851W) | |
| M. Ramachandran | Ashutosh Pednekar | |
| Partner | Partner | |
| (Membership No.16399) | (Membership No. 041037) |
KOCHI, January, 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
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