The Federal Bank Ltd.

Interim / Quarterly Report • May 5, 2015

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RNS Number : 1965M

Federal Bank Ltd (The)

05 May 2015

SDF-24/            /2015-16                                                                                    5th May 2015

To,

The London Stock Exchange

Dear Sir,

We enclose herewith the Audited Financial Results of the Bank for the period ended March 31, 2015 which was approved at the Bank's Board of Directors meeting held on 29.04.2015.

Kindly take the same on your record.

For The Federal Bank Limited

Girish Kumar G

COMPANY SECRETARY

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 31st MARCH 2015 (` in Lakhs)
Particulars	Quarter ended			Year ended		Consolidated figures for the year ended
31.03.2015	31.12.2014	31.03.2014	31.03.2015	31.03.2014	31.03.2015	31.03.2014
Audited (Refer Note 10 below)	Unaudited	Audited (Refer Note 10 below)	Audited	Audited	Audited	Audited
1. Interest earned (a)+(b)+(c)+(d)	1,90,828	1,87,010	1,83,871	7,41,946	6,94,608	7,48,777	7,00,570
(a)  Interest/discount on advances/bills	1,38,506	1,39,896	1,23,794	5,44,683	5,01,108	5,51,011	5,07,070
(b)  Income on Investments	47,589	44,908	48,080	1,83,592	1,77,683	1,84,095	1,77,683
(c)  Interest on balances with Reserve Bank of India and other inter bank funds	598	2,060	1,746	6,236	5,236	6,236	5,236
(d)  Others	4,135	146	10,251	7,435	10,581	7,435	10,581
2. Other Income	30,600	21,991	17,841	87,831	69,385	87,854	68,518
3. TOTAL INCOME (1+2)	2,21,428	2,09,001	2,01,712	8,29,777	7,63,993	8,36,631	7,69,088
4. Interest expended	1,28,505	1,28,294	1,21,363	5,03,905	4,71,747	5,05,633	4,72,776
5. Operating Expenses (i)+(ii)	46,008	40,972	38,345	1,63,093	1,44,207	1,67,521	1,49,350
(i)   Employees Cost	24,866	23,507	20,090	89,196	77,154	91,305	79,543
(ii)  Other operating expenses	21,142	17,465	18,255	73,897	67,053	76,216	69,807
6. TOTAL EXPENDITURE (4+5) (excluding Provisions and Contingencies)	1,74,513	1,69,266	1,59,708	6,66,998	6,15,954	6,73,154	6,22,126
7. OPERATING PROFIT (3-6) (Profit before Provisions and Contingencies)	46,915	39,735	42,004	1,62,779	1,48,039	1,63,477	1,46,962
8. Provisions (other than Tax) and Contingencies	3,978	(82)	5,503	10,675	26,840	10,520	26,760
9. Exceptional Items	-	-	-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)	42,937	39,817	36,501	1,52,104	1,21,199	1,52,957	1,20,202
11. Tax expense	14,884	13,348	8,772	51,529	37,310	51,748	37,310
12. Net Profit from Ordinary Activities after tax (10- 11)	28,053	26,469	27,729	1,00,575	83,889	1,01,209	82,892
13. Extraordinary items (net of tax expense)	-	-	-	-	-	-	-
14. Net Profit for the period (12-13)	28,053	26,469	27,729	1,00,575	83,889	1,01,209	82,892
15. Share in Profit of Associate						4,572	2,083
16. Consolidated Net Profit of the group (14+15)						1,05,781	84,975
17. Paid-up Equity Share Capital (Face value ` 2/- per Equity Share)	17,133	17,122	17,106	17,133	17,106	17,133	17,106
18. Reserves excluding Revaluation Reserve				7,56,180	6,77,452	7,52,393	6,68,464
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	15.46	14.51	15.14	15.46	15.14	-	-
(iii) Earnings per Share (EPS) (in `)
(a) Basic and diluted EPS before Extra ordinary Items	3.27*	3.09*	3.24*	11.75	9.81	12.35	9.93
(b) Basic and diluted EPS after Extra ordinary Items	3.27*	3.09*	3.24*	11.75	9.81	12.35	9.93
(iv) NPA Ratios
a) Gross NPA	1,05,773	1,06,663	1,08,741	1,05,773	1,08,741
b) Net NPA	37,327	33,294	32,156	37,327	32,156
c) % of Gross NPA	2.04	2.19	2.46	2.04	2.46
d) % of Net NPA	0.73	0.69	0.74	0.73	0.74
(v)  Return on Assets (%)	0.35*	0.35*	0.38*	1.32	1.20
20. Public Shareholding:
Number of Shares (in Lakhs)	8,399.88	8,390.08	8,342.86	8,399.88	8,342.86
Percentage of shareholding #	98.05	98.00	97.54	98.05	97.54
21. Promoters and Promoter group share holding
(a) Pledged/Encumbered
- Number of Shares	NIL	NIL	NIL	NIL	NIL
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	NIL	NIL	NIL	NIL	NIL
- Percentage of Shares (as a % of the total share capital of the company)	NIL	NIL	NIL	NIL	NIL
(b) Non-encumbered
- Number of Shares	NIL	NIL	NIL	NIL	NIL
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	NIL	NIL	NIL	NIL	NIL
- Percentage of Shares (as a % of the total share capital of the company)	NIL	NIL	NIL	NIL	NIL

* Not annualised

excludes shares held by custodian against which Global Depository Receipts issued.

Segment Information@ (` in Lakhs)
Particulars	Quarter ended			Year  ended		Consolidated  figures for the year ended
31.03.2015	31.12.2014	31.03.2014	31.03.2015	31.03.2014	31.03.2015	31.03.2014
	Audited (Refer Note 10 below)	Unaudited	Audited (Refer Note 10 below)	Audited	Audited	Audited	Audited
Segment Revenue:
Treasury	60,377	56,502	55,930	2,25,027	2,11,792	2,25,027	2,11,792
Corporate/Wholesale Banking	59,886	59,071	47,735	2,34,993	2,23,340	2,34,993	2,23,340
Retail Banking	96,621	91,890	86,627	3,57,797	3,14,658	3,64,651	3,19,753
Other Banking operations	4,544	1,538	11,420	11,960	14,203	11,960	14,203
Unallocated	-	-	-		-	-	-
Total Revenue	2,21,428	2,09,001	2,01,712	8,29,777	7,63,993	8,36,631	7,69,088
Less: Inter Segment Revenue	-	-	-	-	-	-	-
Income from Operations	2,21,428	2,09,001	2,01,712	8,29,777	7,63,993	8,36,631	7,69,088
Segment Results (net of provisions):
Treasury	9,623	12,119	2,004	34,218	14,990	34,218	14,990
Corporate/Wholesale Banking	3,190	4,943	4,087	33,399	29,162	33,399	29,162
Retail Banking	26,658	22,218	20,033	76,112	66,346	76,112	65,322
Other Banking operations	4,167	1,040	10,806	10,372	12,179	11,225	12,180
Unallocated	(701)	(503)	(429)	(1,997)	(1,478)	(1,997)	(1,452)
Profit before tax	42,937	39,817	36,501	1,52,104	1,21,199	1,52,957	1,20,202
Capital employed:
Treasury	2,57,003	3,25,530	2,62,520	2,57,003	2,62,520	2,57,003	2,62,520
Corporate/Wholesale Banking	1,33,845	1,04,472	1,08,720	1,33,845	1,08,720	1,33,845	1,08,720
Retail Banking	1,96,520	1,58,487	1,52,266	1,96,520	1,52,266	1,92,734	1,43,278
Other Banking operations	2,432	1,344	1,539	2,432	1,539	2,432	1,539
Unallocated	1,84,013	1,78,157	1,70,014	1,84,013	1,70,014	1,84,013	1,70,014
Total	7,73,813	7,67,990	6,95,059	7,73,813	6,95,059	7,70,027	6,86,071

@       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 Liabilitiesof the bank as on 31st March, 2015 is given below:

(` in Lakhs)

Particulars	As at 31.03.2015 Audited	As at 31.03.2014 Audited
CAPITAL AND LIABILITIES
Capital	17,133	17,106
Reserves and Surplus	7,56,680	6,77,953
Deposits	70,82,499	59,73,128
Borrowings	2,30,825	5,68,796
Other Liabilities and Provisions	1,97,911	2,22,432
Total	82,85,048	74,59,415
ASSETS
Cash and Balances with Reserve Bank of India	3,37,954	3,10,429
Balance with Banks and Money at Call and Short Notice	1,40,045	1,42,509
Investments	24,40,920	24,11,785
Advances	51,28,499	43,43,610
Fixed Assets	46,663	42,496
Other Assets	1,90,967	2,08,586
Total	82,85,048	74,59,415

2         The above financial results have been taken on record by the Audit Committee and approved by the Board of Directors at its meeting held on 29th April, 2015.

3      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.

4      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    ` 3368 Lakhs, being the proportionate  liability in respect thereof, for the year ended 31.03.2015  (` 842 Lakhs for the quarter ended 31.03.2015)  have been charged  to  Profit  and  Loss  Account  and  the  amortization  is complete  as  permitted  by  the  Reserve  Bank  of  India  vide  letter  No. DBOD.BP.BC.15896/21.04.018/2010-11 dated 08th April,2011.

5   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) to the opening balance of retained earnings in respect of assets whose useful life has expired as on 1stApril, 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  ` 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 year ended 31st March, 2015 would have been higher by ` 252 lakhs and ` 469 lakhs respectively.

6      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.

7        Number of Investor complaints received and disposed off during the quarter ended 31st March 2015:

a) Pending at the beginning of the quarter b) Received during the quarter

c) Disposed off during the quarter

d) Pending at the end of the quarter

:    2

:  12

:  14

:  NIL

8      The Board of Directors have recommended a dividend of 110% i.e. ` 2.20 per Equity Share on face value of ` 2/- each for the year 2014-15 (previous year 100% i.e ` 2 per Equity Share) subject to the approval of the members in the ensuing Annual General Meeting.

9      During the year ended 31st  March 2015, the Bank had allotted  13,40,412  Equity Shares  (5,56,143  Equity Shares during the quarter ended 31.03.2015) pursuant to the exercise of stock options by certain employees.

10      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.

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

Kochi

29th April, 2015

SHYAM SRINIVASAN MANAGING DIRECTOR & CEO

(DIN: 02274773)

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