The Federal Bank Ltd.

Interim / Quarterly Report • May 17, 2016

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RNS Number : 5004Y

Federal Bank Ltd (The)

17 May 2016

SDF-24/         /2016-17                                                                    17th May 2016

To,

The London Stock Exchange

Dear Sir,

We enclose herewith the Audited Financial Results of the Bank for the period ended March 31, 2016 which was approved at the Bank's Board of Directors meeting held on 30th April 2016.

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 MARCH 31, 2016
(` in Lakhs)
Particulars		Quarter ended			Year ended		Consolidated figures for the year ended
31.03.2016	31.12.2015	31.03.2015	31.03.2016	31.03.2015	31.03.2016	31.03.2015
Audited (Refer Note 12 below)	Unaudited	Audited (Refer Note 12 below)	Audited	Audited	Audited	Audited
1. Interest earned (a)+(b)+(c)+(d)		202,652	190,276	190,828	774,469	741,946	782,280	748,777
(a)	Interest/discount on advances/bills	146,949	138,554	138,506	566,931	544,683	574,818	551,011
(b)	Income on Investments	45,981	44,589	42,453	175,963	164,968	175,887	165,471
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	725	1,657	598	5,596	6,236	5,596	6,236
(d)	Others	8,997	5,476	9,271	25,979	26,059	25,979	26,059
2. Other Income		22,686	18,331	30,600	78,638	87,831	78,655	87,854
3. TOTAL INCOME (1+2)		225,338	208,607	221,428	853,107	829,777	860,935	836,631
4. Interest expended		134,058	129,756	128,505	524,045	503,905	525,935	505,633
5. Operating Expenses (i)+(ii)		51,828	46,303	46,008	186,684	163,093	190,632	167,521
(i)	Employees Cost	29,304	25,859	24,866	105,285	89,196	107,422	91,305
(ii)	Other operating expenses	22,524	20,444	21,142	81,399	73,897	83,210	76,216
6. TOTAL EXPENDITURE (4+5) (excluding Provisions and Contingencies)		185,886	176,059	174,513	710,729	666,998	716,567	673,154
7. OPERATING PROFIT (3-6)  (Profit before Provisions and Contingencies)		39,452	32,548	46,915	142,378	162,779	144,368	163,477
8. Provisions (other than Tax) and Contingencies		38,864	7,511	3,978	70,413	10,675	70,517	10,520
9. Exceptional Items		-	-	-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		588	25,037	42,937	71,965	152,104	73,851	152,957
11. Tax expense		(438)	8,765	14,884	24,400	51,529	25,061	51,748
12. Net Profit from Ordinary Activities after tax (10-11)		1,026	16,272	28,053	47,565	100,575	48,790	101,209
13. Extraordinary items (net of tax expense)		-	-	-	-	-	-	-
14. Net Profit for the period (12-13)		1,026	16,272	28,053	47,565	100,575	48,790	101,209
15. Share in Profit/(Loss) of Associate							(148)	4,572
16. Consolidated Net Profit of the group (14+15)							48,642	105,781
17. Paid-up Equity Share Capital (Refer Note 10) (Face value ` 2/- per Equity Share)		34,379	34,367	17,133	34,379	17,133	34,379	17,133
18. Reserves excluding Revaluation Reserve					774,242	756,180	771,533	752,393
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	13.93	14.32	15.46	13.93	15.46	-	-
(iii)	Earnings per Share (EPS) (in `) (Refer Note 10)
	(a) Basic EPS  (before and after Extra ordinary Items)	0.06*	0.95*	1.64*	2.77	5.87	2.83	6.17
	(b) Diluted EPS (before and after Extra ordinary Items)	0.06*	0.94*	1.62*	2.75	5.82	2.82	6.12
(iv)	NPA Ratios
	a) Gross NPA	166,777	168,411	105,773	166,777	105,773
	b) Net NPA	95,001	87,610	37,327	95,001	37,327
	c) % of Gross NPA	2.84	3.15	2.04	2.84	2.04
	d) % of Net NPA	1.64	1.66	0.73	1.64	0.73
(v)	Return on Assets (%)	0.01*	0.19*	0.35*	0.57	1.32

	Segment Information@
									(` in Lakhs)
	Particulars		Quarter ended			Year ended		Consolidated figures for the year ended
	31.03.2016	31.12.2015	31.03.2015	31.03.2016	31.03.2015	31.03.2016	31.03.2015
			Audited (Refer Note 12 below)	Unaudited	Audited (Refer Note 12 below)	Audited	Audited	Audited	Audited
	Segment Revenue:
		Treasury	59,193	55,321	60,377	228,193	225,027	228,193	225,027
		Corporate/Wholesale Banking	67,702	56,861	59,886	236,094	234,993	236,094	234,993
		Retail Banking	92,787	95,416	96,621	380,964	357,797	388,792	364,651
		Other Banking operations	5,656	1,009	4,544	7,856	11,960	7,856	11,960
		Unallocated	-	-	-	-	-	-	-
		Total Revenue	225,338	208,607	221,428	853,107	829,777	860,935	836,631
		Less: Inter Segment Revenue	-	-	-	-	-	-	-
	Income from Operations		225,338	208,607	221,428	853,107	829,777	860,935	836,631
	Segment Results (net of provisions):
		Treasury	3,172	2,721	9,623	15,851	34,218	15,851	34,218
		Corporate/Wholesale Banking	(5,324)	2,936	3,190	1,814	33,399	1,814	33,399
		Retail Banking	(2,062)	19,280	26,658	49,459	76,112	51,345	76,965
		Other Banking operations	5,532	914	4,167	7,385	10,372	7,385	10,372
		Unallocated	(730)	(814)	(701)	(2,545)	(1,997)	(2,545)	(1,997)
		Profit before tax	588	25,037	42,937	71,964	152,104	73,850	152,957
	Capital employed:
		Treasury	250,922	340,276	257,003	250,922	257,003	250,922	257,003
		Corporate/Wholesale Banking	152,771	100,711	133,845	152,771	133,845	152,771	133,845
		Retail Banking	201,481	144,191	196,520	201,481	196,520	198,772	192,734
		Other Banking operations	2,656	7,070	2,432	2,656	2,432	2,656	2,432
		Unallocated	201,292	230,118	184,013	201,292	184,013	201,292	184,013
		Total	809,122	822,366	773,813	809,122	773,813	806,413	770,027
	@	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 Liabilities of the bank as on March 31, 2016 is given below:
							(` in Lakhs)
				Standalone		Consolidated
		Particulars		As at 31.03.2016   Audited	As at 31.03.2015   Audited	As at 31.03.2016   Audited	As at 31.03.2015   Audited
		CAPITAL AND LIABILITIES
		Capital		34,379	17,133	34379	17133
		Reserves and Surplus		774,743	756,680	772033	752894
		Deposits		7,917,171	7,082,499	7917090	7082269
		Borrowings		217,656	230,825	229832	239298
		Other Liabilities and Provisions		199,054	197,911	202105	199235
		Total		9,143,003	8,285,048	9,155,439	8,290,829
		ASSETS
		Cash and Balances with Reserve Bank of India		377,454	337,954	377696	338198
		Balance with Banks and Money at Call and Short Notice		164,527	140,045	164618	140246
		Investments		2,221,749	2,056,882	2198247	2034944
		Advances		5,809,014	5,128,499	5841977	5152919
		Fixed Assets		51,998	46,663	52364	47268
		Other Assets		518,261	575,004	520537	577254
		Total		9,143,003	8,285,048	9,155,439	8,290,829
	2	The above Audited Financial Results for the quarter and year ended March 31, 2016 were reviewed by the Audit Committee and recommended for approval  to and approved by the Board of Directors at its meeting held on April 30, 2016. These Results have been subjected to "Audit" by the Statutory Central Auditors of the Bank and an unqualified report has been issued by them.
	3	The Bank has made provision for Non Performing Assets as stipulated under 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	In accordance with RBI Circular  DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015  and RBI Circular DBR.No.BP.BC.80/21.06.201/2014-15 dated March 31, 2015 on 'Prudential Guidelines on Capital Adequacy and Liquidity Standards ammendments' , Banks are required to make Pillar 3 disclosure requirements including Leverage Ratio 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 audit by the Statutory Central Auditors of the Bank.
	5	Other income includes fees earned from providing services to customers, commission from non-fund based banking activities, earnings from foreign exchange and derivative transactions, selling of Third party products, profit / loss on sale of investments (net), recoveries from accounts written off.
	6	Pursuant to RBI Circular DBR.BP.BC.No.31/21.04.018/2015-16 dated July 16, 2015, the Bank has, effective from September 30, 2015 included its deposits placed with NABARD, SIDBI, and NHB on account of shorfall in lending to priority sector under 'Other Assets'. Hitherto these were included under 'Investments' and Interest income thereon was included under 'Interest Earned - Income on Investments'. Arising out of regrouping in line with the above mentioned RBI guidelines, interest income on deposits placed with NABARD, SIDBI and NHB is included under 'Interest Earned - Others'. Figures for the previous periods / year have been regrouped / reclassified to conform to current period classification. The above change in classification has no impact on the profit of the Bank for the quarter and year ended March 31, 2016.
	7	As per the directions given by RBI, the Bank has completed the Review of certain loan accounts and their classifications within the time frame stipulated as on 31 March, 2016.
	8	The Board of Directors have recommended a dividend of 35% i.e. ` 0.70/- per Equity Share on face value of ` 2/- each for the year 2015-16 (previous year 110% i.e ` 2.20 per Equity Share) subject to the approval of the members at the ensuing Annual General Meeting.
	9	During the quarter and year ended March 31, 2016, the Bank allotted 5,96,500 and 43,46,441 Equity Shares respectively, pursuant to the exercise of stock options by certain employees.
	10	The shareholders of the Bank had approved the issue of Bonus Shares at the Annual General Meeting held on June 29, 2015, in the Ratio of 1:1 for Shares held as on the record date of July 9, 2015. Pursuant to which 85,79,45,206 fully paid up Equity Shares had been allotted by the bank as bonus shares and One Global Depositary share (GDS) had been issued as bonus for every GDS held to the existing holders as on the record date. Consequently, as per the extant ESOS 2010 Scheme bonus options had been provided to the existing ESOS option holders and the exercise price had been adjusted accordingly. The earnings per share have been adjusted for previous periods / year in accordance with Accounting Standard 20, Earnings per share.
	11	During the year ended March 31,2016, the Bank had assigned certain Non performing financial assets to Asset Reconstruction Companies. 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, the shortfall arrived at by deducting sale consideration from the Net Book value of the financial assets,amounting to ` 12,214.15 Lakhs (` 7,829.27 Lakhs upto the period ended December 31, 2015) , is amortised over a period of two years. Accordingly, the bank has charged to the profit and loss account an amount of ` 2,168.29 Lakhs ( ` 1,291.31 Lakhs for the quarter ended December 31, 2015)for the Quarter  and ` 3,541 Lakhs during the  year ended March 31,2016 respectively and the balance of ` 8,673.15 Lakhs will be amortised over the next four quarters.
	12	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.
	13	Previous period / year figures have been regrouped / reclassified, where necessary to conform to current period classification.
				SHYAM SRINIVASAN
	Kochi			MANAGING DIRECTOR & CEO
	April 30, 2016			(DIN: 02274773)

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