The Federal Bank Ltd.

Earnings Release • Jan 18, 2016

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RNS Number : 1041M

Federal Bank Ltd (The)

16 January 2016

SDF-24/         /2015-16                                                                    16th January 2016

To,

The London Stock Exchange

Dear Sir,

We enclose herewith the UnAudited Financial Results of the Bank alongwith Limited Review Report for the period ended December 31, 2015 which was approved at the Bank's Board of Directors meeting held on 12th January 2016.

Kindly take the same on your record.

For The Federal Bank Limited

Girish Kumar G

COMPANY SECRETARY

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: +91-22-22651186 Fax:+91-22-22655334

INDEPENDENT AUDITORS' REVIEW REPORT ON

REVIEW OF INTERIM FINANCIAL RESULTS

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, 2015 ("the Statement"), excluding  the "Pillar 3 disclosures and  leverage ratio under Basel III Capital Regulations" disclosed on the Bank's website and in respect of which a link has been provided in the Statement, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This Statement which is the responsibility of the Bank's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard for Interim Financial Reporting (AS 25), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder, guidelines issued by Reserve Bank of India and other accounting principles generally accepted in India. 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, 111 branches have been reviewed by either of us which covers 56 percent of the advances portfolio of the bank as at 31st December, 2015. 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 aforesaid Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, 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 relevant prudential norms prescribed 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. 10 of the Statement regarding deferment of shortfall of Rs.7,829.27 Lakhs arising from the sale of certain non-performing assets during the quarter and nine months ended 31st December, 2015 in terms of RBI Master Circular DBR.No.BP.BC.2/21.04.048/2015-16 on Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to advances, dated July 1, 2015, and the unamortised balance as at 31st December, 2015 of Rs.6,456.56 Lakhs.

Our conclusion is not modified in respect of this matter.

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, 2016.

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 DECEMBER 31, 2015
(` in Lakhs)
Particulars		Quarter ended			Nine Months ended		Year ended 31.03.2015
31.12.2015	30.09.2015	31.12.2014	31.12.2015	31.12.2014
Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Interest earned (a)+(b)+(c)+(d)		190,276	190,226	187,010	571,817	551,118	741,946
(a)	Interest/discount on advances/bills	138,554	140,005	139,896	419,982	406,177	544,683
(b)	Income on Investments	44,589	42,356	40,168	129,982	122,514	164,968
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	1,657	1,905	2,060	4,871	5,638	6,236
(d)	Others	5,476	5,960	4,886	16,982	16,789	26,059
2. Other Income		18,331	18,227	21,991	55,952	57,231	87,831
3. TOTAL INCOME (1+2)		208,607	208,453	209,001	627,769	608,349	829,777
4. Interest expended		129,756	129,392	128,294	389,987	375,400	503,905
5. Operating Expenses (i)+(ii)		46,303	45,404	40,972	134,856	117,085	163,093
(i)	Employees Cost	25,859	24,893	23,507	75,981	64,330	89,196
(ii)	Other operating expenses	20,444	20,511	17,465	58,875	52,755	73,897
6. TOTAL EXPENDITURE (4+5) (excluding Provisions and Contingencies)		176,059	174,796	169,266	524,843	492,485	666,998
7. OPERATING PROFIT (3-6)  (Profit before Provisions and Contingencies)		32,548	33,657	39,735	102,926	115,864	162,779
8. Provisions (other than Tax) and Contingencies		7,511	8,728	(82)	31,549	6,697	10,675
9. Exceptional Items		-	-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		25,037	24,929	39,817	71,377	109,167	152,104
11. Tax expense		8,765	8,801	13,348	24,838	36,645	51,529
12. Net Profit from Ordinary Activities after tax (10-11)		16,272	16,128	26,469	46,539	72,522	100,575
13. Extraordinary items (net of tax expense)		-	-	-	-	-	-
14. Net Profit for the period (12-13)		16,272	16,128	26,469	46,539	72,522	100,575
15. Paid-up Equity Share Capital (Refer Note 9) (Face value ` 2/- per Equity Share)		34,367	34,349	17,122	34,367	17,122	17,133
16. Reserves excluding Revaluation Reserve							756,180
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	14.32	14.71	14.51	14.32	14.51	15.46
(iii)	Earnings per Share (EPS) (in `) (Refer Note 9)
	(a) Basic EPS  (before and after Extra ordinary Items)	0.95*	0.94*	1.54*	2.71*	4.23*	5.87
	(b) Diluted EPS (before and after Extra ordinary Items)	0.94*	0.92*	1.52*	2.68*	4.15*	5.82
(iv)	NPA Ratios
	a) Gross NPA	168,411	149,873	106,663	168,411	106,663	105,773
	b) Net NPA	87,610	67,484	33,294	87,610	33,294	37,327
	c) % of Gross NPA	3.15	2.90	2.19	3.15	2.19	2.04
	d) % of Net NPA	1.66	1.33	0.69	1.66	0.69	0.73
(v)	Return on Assets (%)	0.19*	0.20*	0.35*	0.56*	0.97*	1.32

*Not Annualised

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