The Federal Bank Ltd.

Earnings Release • Nov 18, 2016

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RNS Number : 5590P

Federal Bank Ltd (The)

18 November 2016

SDF-24/         /2016-17                                                                    18th November 2016

To,

The London Stock Exchange

Dear Sir,

We enclose herewith the Un-Audited Financial Results of the Bank for the period ended September 30, 2016 which was approved at the Bank's Board of Directors meeting held on 25th October 2016.

Kindly take the same on your record.

For The Federal Bank Limited

Girish Kumar G

COMPANY SECRETARY

BSR&Co. LLP	M.M. Nissim & Co.
Chartered Accountants	Chartered Accountants
5th Floor Lodha Excelus	Barodawala Mansion, B-Wing,
Apollo Mills Compound	3rd Floor, 81,
N.M. Joshi Marg, Mahalaxmi	Dr. Annie Besant Road,
Mumbai - 400 011	Worli, Mumbai- 400 018

Limited Review Report on Quarterly Standalone Financial Results of The Federal Bank Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To the Board of Directors of

The Federal Bank Limited

1.   We have reviewed the accompanying Statement of Unaudited Standalone Financial Results ('the Statement') of The Federal Bank Limited ('the Bank') for the quarter and half year ended 30 September 2016, attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, except for the disclosures relating to 'consolidated Pillar 3 disclosure as at 30 September 2016, including leverage ratio and liquidity coverage ratio under Basel III Capital Regulations' as have been disclosed on the Bank's website and in respect of which a link has been provided in the standalone quarterly financial results and have not been reviewed by us.

2.   This Statement is the responsibility of the Bank's management and has been approved by the Board of Directors of the Bank in their meeting held on 25 October 2016. Our responsibility is to issue a report on the Statement based on our review. The financial results for all periods prior to the quarter ended 30 September 2016, included in the statement were reviewed or audited earlier by Deloitte Haskins & Sells, Chartered Accountants, and by M P Chitale & Co., Chartered Accountants, the then joint statutory auditors of the Bank, whose reports have been furnished to the current joint auditors M.M. Nissim & Co., Chartered Accountants, and B S R & Co. LLP, and which have been relied upon for the purpose of the joint review of the Statement. 

3.   We conducted our review in accordance with the Standard on Review Engagement (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 the Bank's 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.

4.   The financial results incorporate the relevant returns of 120 branches and Treasury Branch reviewed by either of us and un-reviewed returns in respect of 1162 branches. These branches cover 58.95% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 61.52% of non-performing advances of the bank.

5.   Without qualifying our conclusion, we draw attention to Note No. 6 regarding deferment of shortfall arising from the sale of certain non-performing assets during the year ended 31 March 2016 in terms of RBI Master Circular DBR.No.BP.BC.2/21.04.048/2015-16 - Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances, dated July 1, 2015, as amended and the unamortized balance as at 30 September 2016 of Rs 4,336.58 lakhs.

BSR&Co. LLP	M.M. Nissim & Co.
Chartered Accountants	Chartered Accountants
5th Floor Lodha Excelus	Barodawala Mansion, B-Wing,
Apollo Mills Compound	3rd Floor, 81,
N.M. Joshi Marg, Mahalaxmi	Dr. Annie Besant Road,
Mumbai - 400 011	Worli, Mumbai- 400 018

6.   Based on our review conducted as mentioned in paragraphs 3and 4 above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and other recognized accounting practices and policies 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 the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters.

For B S R & Co. LLP	For M.M. Nissim & Co.
Chartered Accountants	Chartered Accountants
Firm's Registration No: 101248W / W-100022	Firm's Registration No: 107122W
Akeel Master	Sanjay Khemani
Partner	Partner
Membership No: 046768	Membership No:044577
Mumbai	Mumbai
25 October 2016	25 October 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 HALF YEAR ENDED SEPTEMBER 30, 2016
							(` in Lakhs)
Particulars		Quarter ended			Half year ended		Year ended 31.03.2016
30.09.2016	30.06.2016	30.09.2015	30.09.2016	30.09.2015
Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Interest earned (a)+(b)+(c)+(d)		206,625	201,377	190,460	408,002	381,824	774,815
(a)	Interest/discount on advances/bills	156,880	152,422	140,005	309,302	281,428	566,931
(b)	Income on Investments	43,552	43,084	42,590	86,636	85,676	176,309
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	1,585	1,216	1,905	2,801	3,214	5,596
(d)	Others	4,608	4,655	5,960	9,263	11,506	25,979
2. Other Income		26,154	23,704	17,993	49,858	37,338	78,292
3. TOTAL INCOME (1+2)		232,779	225,081	208,453	457,860	419,162	853,107
4. Interest expended		134,006	132,110	129,392	266,116	260,231	524,045
5. Operating Expenses (i)+(ii)		51,280	50,385	45,404	101,665	88,553	186,684
(i)	Employees Cost	29,159	28,941	24,893	58,100	50,122	105,285
(ii)	Other operating expenses	22,121	21,444	20,511	43,565	38,431	81,399
6. TOTAL EXPENDITURE (4+5) (excluding Provisions and Contingencies)		185,286	182,495	174,796	367,781	348,784	710,729
7. OPERATING PROFIT (3-6)  (Profit before Provisions and Contingencies)		47,493	42,586	33,657	90,079	70,378	142,378
8. Provisions (other than Tax) and Contingencies		16,840	16,848	8,728	33,688	24,038	70,413
9. Exceptional Items		-	-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		30,653	25,738	24,929	56,391	46,340	71,965
11. Tax expense		10,529	9,007	8,801	19,536	16,073	24,400
12. Net Profit from Ordinary Activities after tax  (10-11)		20,124	16,731	16,128	36,855	30,267	47,565
13. Extraordinary items (net of tax expense)		-	-	-	-	-	-
14. Net Profit for the period (12-13)		20,124	16,731	16,128	36,855	30,267	47,565
15. Paid-up Equity Share Capital (Face value ` 2/- per Equity Share)		34,410	34,387	34,349	34,410	34,349	34,379
16. Reserves excluding Revaluation Reserve							774,242
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	12.85	13.59	14.71	12.85	14.71	13.93
(iii)	Earnings per Share (EPS) (in `)
	(a) Basic EPS  (before and after Extra ordinary Items)	1.17*	0.97*	0.94*	2.14*	1.77*	2.77
	(b) Diluted EPS (before and after Extra ordinary Items)	1.15*	0.97*	0.92*	2.12*	1.74*	2.75
(iv)	NPA Ratios
	a) Gross NPA	181,972	174,731	149,873	181,972	149,873	166,777
	b) Net NPA	103,974	99,450	67,484	103,974	67,484	95,001
	c) % of Gross NPA	2.78	2.92	2.90	2.78	2.90	2.84
	d) % of Net NPA	1.61	1.68	1.33	1.61	1.33	1.64
(v)	Return on Assets (%)	0.22*	0.19*	0.20*	0.41*	0.37*	0.57

Segment Information@
							(` in Lakhs)
Particulars		Quarter ended			Half year ended		Year ended 31.03.2016
30.09.2016	30.06.2016	30.09.2015	30.09.2016	30.09.2015
Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Segment Revenue:
	Treasury	61,233	59,567	55,951	120,800	113,680	228,193
	Corporate/Wholesale Banking	69,657	71,890	58,469	141,547	111,531	236,094
	Retail Banking	100,740	92,121	93,125	192,861	192,760	380,964
	Other Banking operations	1,149	1,503	908	2,652	1,191	7,856
	Unallocated	-	-	-	-	-	-
	Total Revenue	232,779	225,081	208,453	457,860	419,162	853,107
	Less: Inter Segment Revenue	-	-	-	-	-	-
Income from Operations		232,779	225,081	208,453	457,860	419,162	853,107
Segment Results (net of provisions):
	Treasury	10,954	12,825	8,159	23,779	9,958	15,852
	Corporate/Wholesale Banking	2,012	3,337	2,763	5,349	4,202	1,814
	Retail Banking	17,533	9,020	13,802	26,553	32,240	49,459
	Other Banking operations	1,016	944	706	1,960	940	7,385
	Unallocated	(862)	(388)	(501)	(1,250)	(1,000)	(2,545)
	Profit before tax	30,653	25,738	24,929	56,391	46,340	71,965
Capital employed:
	Treasury	294,670	297,703	283,038	294,670	283,038	250,922
	Corporate/Wholesale Banking	148,545	142,200	117,539	148,545	117,539	152,771
	Retail Banking	180,008	194,123	186,828	180,008	186,828	201,481
	Other Banking operations	539	1,803	4,701	539	4,701	2,656
	Unallocated	222,818	190,186	213,637	222,818	213,637	201,292
	Total	846,580	826,015	805,743	846,580	805,743	809,122
@	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  RBI guidelines.

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