The Federal Bank Ltd.

Interim / Quarterly Report • Jan 20, 2023

National Storage Mechanism | Additional information

RNS Number : 4162N

Federal Bank Ltd (The)

20 January 2023

________________________________________________________________________           

SD/LSE/272/2022-23                                                                                                          20.01.2023

To

The London Stock Exchange

10 Paternoster Square

London

Dear Sir,

We enclose herewith the Un-Audited Standalone and Consolidated Financial Results of the Bank for the Quarter ended December 31, 2022 which was approved at the Bank's Board of Directors meeting held on January 16, 2023.

Kindly take the same on your record.

For The Federal Bank Limited

Sd/-

Samir P Rajdev

Company Secretary

Varma & Varma                                                                     Borkar & Muzumdar

Chartered Accountants,                                                          Chartered Accountants,

No.53/2600, Kerala Varma Tower                                         21/168, Anand Nagar, Om Co-op

Off Kunjanbava Road,                                                             Hsg Society, Anand Nagar Lane

Vytilla,                                                                                                 Off Nehru Road, Santacruz(East)

Kochi -682019                                                                        Mumbai - 400 055

Limited Review Report on unaudited standalone financial results of The Federal Bank Limited for the quarter and nine months ended 31st December 2022, pursuant to the requirements of Regulation 33 and Regulation 52 read with regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (as amended)

The Board of Directors,

The Federal Bank Limited

1.       We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of The Federal Bank Limited ('the Bank') for the quarter and nine months ended 31st December, 2022 ('the Statement') attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 as amended, ("Listing Regulations, 2015")  except for the disclosures relating to Pillar 3 disclosure under Basel III Capital Regulations, as at 31st December 2022, including Leverage Ratio, Liquidity Coverage Ratio and  Net Stable Funding 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 aforesaid Statement, which have not been reviewed by us.

2.       The Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard - 25 'Interim Financial Reporting' ('AS-25'), prescribed under section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines') and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of the Listing Regulations, 2015 including relevant circulars issued by the SEBI from time to time. Our responsibility is to issue a report on the Statement based on our review.

3.       We conducted our review of the Statement 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 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.

4.       Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.

5.       Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of Unaudited Standalone Financial Results prepared in accordance with applicable accounting standards, the RBI Guidelines and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Listing 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, except for the aforesaid Pillar 3 disclosures as at 31st December 2022, including Leverage Ratio, Liquidity Coverage Ratio and Net Stable Funding 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 aforesaid Statement, which have not been reviewed by us.

For Varma & Varma	For Borkar & Muzumdar
Chartered Accountants	Chartered Accountants
FRN: 004532S	FRN: 101569W
Vijay Narayan Govind	Kaushal Muzumdar
Partner	Partner
Membership No.203094	Membership No.100938
UDIN: 23203094BGXYLS8593	UDIN: 23100938BGQQQQ4576
Kochi	Kochi
16th January 2023	16th January 2023

Varma & Varma                                                                               Borkar & Muzumdar

Chartered Accountants,                                                                   Chartered Accountants

No.53/2600, Kerala Varma Tower                                         121/168, Anand Nagar, Om Co-op

Off Kunjanbava Road,                                                                     Hsg Society, Anand Nagar Lane

Vytilla,                                                                                             Off Nehru Road, Santacruz(East)

Kochi -682019                                                                    Mumbai - 400 055

Limited Review Report on Unaudited Consolidated Financial Results of The Federal Bank Limited for the quarter and nine months ended 31st December 2022, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (as amended)

The Board of Directors,

The Federal Bank Limited

1.       We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of The Federal Bank Limited (the 'Bank') and its Subsidiaries (the Bank and its subsidiaries together referred to as 'the Group') and its share of the net profit after tax of its Associates for the quarter and nine months ended 31st December 2022 (the 'Statement'), attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations 2015"), except for the disclosures relating to consolidated Pillar 3 disclosure, as at 31st December 2022, including Leverage Ratio, Liquidity Coverage Ratio and Net Stable Funding 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 aforesaid Statement, which have not been reviewed by us.

2.       The Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25'), prescribed under section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines') and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of the Listing Regulations, 2015 including relevant circulars issued by the SEBI from time to time. Our responsibility is to express a conclusion on the Statement based on our review.

3.       We conducted our review of the Statement 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 of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain an assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations 2015, to the extent applicable.

4.       Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.

5.       This Statement includes the results of the following entities:

a.    Fedbank Financial Services Limited (Subsidiary)

b.    Federal Operations and Services Limited (Subsidiary)

c.    Ageas Federal Life Insurance Company Limited (Associate)

d.    Equirus Capital Private Limited (Associate)

6.       Based on our review conducted and procedures performed as stated in Paragraphs 3 and 4 above and based on the consideration of the review reports of other auditors referred to in Paragraphs 7 and, 8 below, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable Accounting Standards, the RBI Guidelines and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing 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, except for the disclosures relating to consolidated Pillar 3 disclosure, as at 31st December 2022, including Leverage Ratio, Liquidity Coverage Ratio and Net Stable Funding 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 aforesaid Statement, which have not been reviewed by us.

7.       The statement of consolidated unaudited financial results includes the interim financial results of one subsidiary whose unaudited financial results reflects total revenues of ` 32,201.74 Lakhs and ` 87,508.88 Lakhs and net profit after tax of ` 4,771.42 Lakhs and ` 13,239.26 Lakhs for the quarter and nine months ended 31st December 2022 respectively. These interim financial results have been reviewed by other auditors, whose reports have been furnished to us by the Bank's management. Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said subsidiary, is based solely on the above reports furnished to us by the Management and the procedures performed by us as stated in Paragraphs 3 and 4 above.

Our conclusion on the Statement is not modified in respect of this matter.

8.       The statement of consolidated unaudited financial results includes the interim financial results of one subsidiary whose unaudited financial results reflects total revenues of ` 1581.52 Lakhs and ` 4257.39 Lakhs and net profit after tax of ` 93.66 Lakhs and ` 315.96 Lakhs for the quarter and nine months ended 31st December 2022 respectively. These interim financial results have been reviewed by one of the joint auditors, whose reports have been furnished to us by the Bank's management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of this subsidiary, is based solely on their reports and the procedures performed by us as stated in Paragraphs 3 and 4 above.

Our conclusion on the Statement is not modified in respect of this matter.

9.       The statement of consolidated unaudited financial results also includes the Group's share of net profit after tax of ` 375.39 Lakhs and ` 1,008.14 Lakhs for the quarter and nine months ended 31st December 2022 respectively, in respect of the two associates, based on their interim financial results which have not been reviewed. These interim financial results have been furnished to us by the Bank's Management and our conclusion on the statement, in so far as it relates to the amounts and disclosures included in respect of these associates, is based solely on such interim financial results. In our opinion and

according to the information and explanations given to us by the Bank's management, these interim financial results are not material to the Group.

Our conclusion on the Statement is not modified in respect of this matter.

For Varma & Varma	For Borkar & Muzumdar
Chartered Accountants	Chartered Accountants
FRN: 004532S	FRN: 101569W
Vijay Narayan Govind	Kaushal Muzumdar
Partner	Partner
Membership No. 203094	Membership No.100938
UDIN: 23203094BGXYLT5087	UDIN: 23100938BGQQQR3798
Kochi	Kochi
16th January 2023	16th January 2023

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, 2022
							(` in Lakhs)
Particulars		Quarter ended			Nine months ended		Year ended
31.12.2022	30.09.2022	31.12.2021	31.12.2022	31.12.2021	31.03.2022
Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Interest earned (a)+(b)+(c)+(d)		4,43,325	4,02,078	3,44,256	12,08,289	10,17,752	13,66,076
(a)	Interest/discount on advances/bills	3,58,487	3,22,272	2,72,927	9,69,441	8,07,529	10,82,975
(b)	Income on investments	72,069	66,737	57,402	2,01,755	1,74,577	2,33,867
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	4,977	6,017	6,089	15,474	16,413	22,027
(d)	Others	7,792	7,052	7,838	21,619	19,233	27,207
2. Other income		53,400	60,952	48,419	1,59,614	1,62,409	2,08,909
3. TOTAL INCOME (1+2)		4,96,725	4,63,030	3,92,675	13,67,903	11,80,161	15,74,985
4. Interest expended		2,47,672	2,25,895	1,90,366	6,76,002	5,74,077	7,69,880
5. Operating expenses (i)+(ii)		1,21,632	1,15,911	1,10,880	3,45,919	3,10,119	4,29,320
(i)	Employees cost	56,083	51,563	58,307	1,57,578	1,68,330	2,32,055
(ii)	Other operating expenses	65,549	64,348	52,573	1,88,341	1,41,789	1,97,265
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies)		3,69,304	3,41,806	3,01,246	10,21,921	8,84,196	11,99,200
7. OPERATING PROFIT (3-6)  (Profit before provisions and contingencies)		1,27,421	1,21,224	91,429	3,45,982	2,95,965	3,75,785
8. Provisions (other than tax) and contingencies		19,869	26,786	21,398	63,323	1,14,653	1,22,177
9. Exceptional items		-	-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		1,07,552	94,438	70,031	2,82,659	1,81,312	2,53,608
11. Tax expense		27,191	24,067	17,858	71,861	46,384	64,626
12. Net Profit from Ordinary Activities after tax  (10-11)		80,361	70,371	52,173	2,10,798	1,34,928	1,88,982
13. Extraordinary items (net of tax expense)		-	-	-	-	-	-
14. Net Profit for the period (12-13)		80,361	70,371	52,173	2,10,798	1,34,928	1,88,982
15. Paid-up Equity Share Capital (Face value ` 2/- per Equity Share)		42,291	42,191	42,041	42,291	42,041	42,051
16. Reserves excluding Revaluation Reserve							18,36,832
17. Analytical Ratios and Other Disclosures:
(i)	Percentage of shares held by Government of India	NIL	NIL	NIL	NIL	NIL	NIL
(ii)	Capital Adequacy ratio (%)
	Under Basel III	13.35	13.84	14.37	13.35	14.37	15.77
(iii)	Earnings per Share (EPS) (in `)
	(a) Basic EPS  (before and after extraordinary items)	3.80*	3.34*	2.48*	10.00*	6.56*	9.13
	(b) Diluted EPS (before and after extraordinary items)	3.75*	3.31*	2.46*	9.91*	6.51*	9.06
(iv)	NPA Ratios
	a) Gross NPA	4,14,785	4,03,106	4,40,126	4,14,785	4,40,126	4,13,674
	b) Net NPA	1,22,859	1,26,235	1,47,118	1,22,859	1,47,118	1,39,262
	c) % of Gross NPA	2.43	2.46	3.06	2.43	3.06	2.80
	d) % of Net NPA	0.73	0.78	1.05	0.73	1.05	0.96
(v)	Return on Assets (%)	0.33*	0.30*	0.26*	0.92*	0.68*	0.94
(vi)	Net Worth	20,45,675	19,61,782	18,08,919	20,45,675	18,08,919	18,66,098
(vii)	Outstanding Redeemable Preference Shares	NIL	NIL	NIL	NIL	NIL	NIL
(viii)	Capital Redemption Reserve	NIL	NIL	NIL	NIL	NIL	NIL
(ix)	Debenture Redemption Reserve	NIL	NIL	NIL	NIL	NIL	NIL
(x)	Debt - Equity Ratio #	0.96	1.04	0.45	0.96	0.45	0.82
(xi)	Total Debts to Total Assets #	7.86%	8.61%	3.90%	7.86%	3.90%	6.97%
(xii)	Operating Margin	25.65%	26.18%	23.28%	25.29%	25.08%	23.86%
(xiii)	Net Profit Margin	16.18%	15.20%	13.29%	15.41%	11.43%	12.00%
* Not Annualised
# Debt and Total Debts represents Total Borrowings of the Bank

Segment Information@
							(` in Lakhs)
Particulars		Quarter ended			Nine months ended		Year ended
31.12.2022	30.09.2022	31.12.2021	31.12.2022	31.12.2021	31.03.2022
Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Segment Revenue:
	Treasury	60,885	67,069	52,104	1,82,818	1,85,655	2,35,130
	Corporate/Wholesale Banking	1,38,045	1,23,736	1,04,829	3,69,539	3,22,883	4,26,734
	Retail Banking	2,93,526	2,68,416	2,30,357	8,05,303	6,62,271	8,98,700
	a) Digital Banking	23,960	22,729	14,801	63,988	39,091	56,772
	b) Other Retail Banking	2,69,566	2,45,687	2,15,556	7,41,315	6,23,180	8,41,928
	Other Banking operations	4,153	3,630	3,500	9,906	7,400	10,800
	Unallocated	116	179	1,885	337	1,952	3,621
	Total Revenue	4,96,725	4,63,030	3,92,675	13,67,903	11,80,161	15,74,985
	Less: Inter Segment Revenue	-	-	-	-	-	-
	Income from Operations	4,96,725	4,63,030	3,92,675	13,67,903	11,80,161	15,74,985
Segment Results (net of provisions):
	Treasury	9,576	18,469	11,022	40,625	58,623	64,135
	Corporate/Wholesale Banking	26,155	14,850	21,396	55,510	38,160	55,657
	Retail Banking	68,175	57,855	32,753	1,77,767	76,287	1,21,015
	a) Digital Banking	4,071	3,203	(667)	6,866	3,768	6,880
	b) Other Retail Banking	64,104	54,652	33,420	1,70,901	72,519	1,14,135
	Other Banking operations	3,530	3,085	2,975	8,420	6,290	9,180
	Unallocated	116	179	1,885	337	1,952	3,621
	Profit before tax	1,07,552	94,438	70,031	2,82,659	1,81,312	2,53,608
Segment Assets:
	Treasury	49,07,856	43,88,999	41,05,806	49,07,856	41,05,806	47,68,440
	Corporate/Wholesale Banking	93,75,662	89,70,342	77,61,124	93,75,662	77,61,124	78,58,857
	Retail Banking	99,82,259	95,72,293	83,65,479	99,82,259	83,65,479	87,98,646
	a) Digital Banking	3,55,734	2,69,151	1,87,578	3,55,734	1,87,578	2,04,346
	b) Other Retail Banking	96,26,525	93,03,142	81,77,901	96,26,525	81,77,901	85,94,300
	Other Banking operations	-	-	-	-	-	-
	Unallocated	7,81,411	7,79,609	6,55,228	7,81,411	6,55,228	6,68,688
	Total	2,50,47,188	2,37,11,243	2,08,87,637	2,50,47,188	2,08,87,637	2,20,94,631
Segment Liabilities:
	Treasury	26,07,512	22,74,543	10,66,903	26,07,512	10,66,903	18,02,189
	Corporate/Wholesale Banking	22,45,069	19,85,235	16,70,529	22,45,069	16,70,529	18,67,906
	Retail Banking	1,77,97,499	1,71,10,829	1,60,75,581	1,77,97,499	1,60,75,581	1,62,98,555
	a) Digital Banking	10,82,117	8,90,517	5,32,804	10,82,117	5,32,804	6,27,564
	b) Other Retail Banking	1,67,15,382	1,62,20,312	1,55,42,777	1,67,15,382	1,55,42,777	1,56,70,991
	Other Banking operations	-	-	-	-	-	-
	Unallocated	3,38,338	3,65,759	2,49,306	3,38,338	2,49,306	2,46,597
	Total	2,29,88,418	2,17,36,366	1,90,62,319	2,29,88,418	1,90,62,319	2,02,15,247
Capital Employed:
(Segment Assets - Segment Liabilities)
	Treasury	23,00,344	21,14,456	30,38,903	23,00,344	30,38,903	29,66,251
	Corporate/Wholesale Banking	71,30,593	69,85,107	60,90,595	71,30,593	60,90,595	59,90,951
	Retail Banking	(78,15,240)	(75,38,536)	(77,10,102)	(78,15,240)	(77,10,102)	(74,99,909)
	a) Digital Banking	(7,26,383)	(6,21,366)	(3,45,226)	(7,26,383)	(3,45,226)	(4,23,218)
	b) Other Retail Banking	(70,88,857)	(69,17,170)	(73,64,876)	(70,88,857)	(73,64,876)	(70,76,691)
	Other Banking operations	-	-	-	-	-	-
	Unallocated	4,43,073	4,13,850	4,05,922	4,43,073	4,05,922	4,22,091
	Total	20,58,770	19,74,877	18,25,318	20,58,770	18,25,318	18,79,384
@	For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines. As per the RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022 on establishment of Digital Banking Unit (DBU), for the purpose of disclosure under 'Accounting Standard 17 - Segment Reporting', 'Digital Banking' has been identified as a sub-segment of the existing 'Retail Banking' segment by Reserve Bank of India (RBI). The DBU of the Bank has commenced operations during the quarter and nine months ended December 31, 2022 and accordingly the bank has disclosed the business involving digital banking products acquired by DBU, together with existing digital banking products (including for comparative periods, which are not audited), under the Digital Banking segment. The business  operations of the Bank are substantially concentrated in India and for the purpose of Segment Reporting as per Accounting Standard-17, the bank is considered to operate only in domestic segment.
Notes:
1	The above Standalone Unaudited Financial Results for the quarter and nine months ended December 31, 2022 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on January 16, 2023. These Results have been subjected to limited review by the Statutory Central Auditors of the Bank and an unqualified review report has been issued.
2	The Bank has followed, in all material aspects, the same significant accounting policies in the preparation of the interim financial results as those followed in the annual financial statements for the year ended March 31, 2022.
3	The financial results have been arrived at after considering provision for standard assets (including requirements for exposures to entities with unhedged foreign currency exposures), provision for non-performing assets (NPAs), provision for non-performing investments, provision for income-tax and other usual and necessary provisions.
4	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 on sale of investments (net), profit / loss on revaluation of investments, dividend received from subsidiaries / associates, recoveries from advances written off, etc.
5	The Capital Adequacy Ratio is computed on the basis of RBI guidelines applicable on the relevant reporting dates and the ratio for the corresponding previous period is not adjusted to consider the impact of subsequent changes if any, in the guidelines.
6	During the quarter and nine months ended December 31, 2022, the Bank has allotted 5,017,460 and 12,006,495 equity shares of ` 2 each respectively, pursuant to the exercise of stock options by employees.
7	As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank.
8	Disclosures as per 'Master Direction - Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021' dated September 24, 2021 for the loans transferred / acquired during the nine months ended December 31, 2022 are given below:
	i) Details of loans not in default acquired through assignment during the nine months ended December 31, 2022 are given below:
	Particulars				Value
	Aggregate amount of loans acquired (` in lakhs)				9,225.00
	Weighted average residual maturity (in years)				6.50
	Weighted average holding period by originator (in years)				0.50
	Retention of beneficial economic interest by the originator				NIL
	Tangible security coverage				93.56%
	Rating-wise distribution				AA-
	ii)  During the nine months ended December 31, 2022, the bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA).
	iii)  During the nine months ended December 31, 2022, the bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of stressed loans transferred to ARCs.
9	Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification.
			SHYAM SRINIVASAN
Kochi			MANAGING DIRECTOR & CEO
January 16, 2023			(DIN: 02274773)

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2022
							(` in Lakhs)
Particulars		Quarter ended			Nine months ended		Year ended
31.12.2022	30.09.2022	31.12.2021	31.12.2022	31.12.2021	31.03.2022
Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Interest earned (a)+(b)+(c)+(d)		4,69,750	4,25,893	3,60,398	12,79,952	10,69,523	14,38,153
(a)	Interest/discount on advances/bills	3,84,986	3,46,427	2,89,480	10,41,833	8,60,281	11,56,431
(b)	Income on investments	71,785	66,308	56,833	2,00,627	1,72,828	2,31,649
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	4,977	6,017	6,089	15,474	16,413	22,027
(d)	Others	8,002	7,141	7,996	22,018	20,001	28,046
2. Other income		56,508	62,765	52,132	1,66,781	1,63,669	2,12,094
3. TOTAL INCOME (1+2)		5,26,258	4,88,658	4,12,530	14,46,733	12,33,192	16,50,247
4. Interest expended		2,58,490	2,34,904	1,96,980	7,03,770	5,92,943	7,95,938
5. Operating expenses (i)+(ii)		1,32,986	1,25,639	1,19,089	3,76,205	3,31,331	4,59,215
(i)	Employees cost	62,915	58,047	63,437	1,76,799	1,82,212	2,51,166
(ii)	Other operating expenses	70,071	67,592	55,652	1,99,406	1,49,119	2,08,049
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies)		3,91,476	3,60,543	3,16,069	10,79,975	9,24,274	12,55,153
7. OPERATING PROFIT (3-6)  (Profit before provisions and contingencies)		1,34,782	1,28,115	96,461	3,66,758	3,08,918	3,95,094
8. Provisions (other than tax) and contingencies		21,364	28,452	23,980	67,337	1,22,072	1,30,466
9. Exceptional items		-	-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		1,13,418	99,663	72,481	2,99,421	1,86,846	2,64,628
11. Tax expense		28,190	25,572	18,472	75,802	48,482	68,088
12. Net Profit from Ordinary Activities after tax  (10-11)		85,228	74,091	54,009	2,23,619	1,38,364	1,96,540
13. Extraordinary items (net of tax expense)		-	-	-	-	-	-
14. Net Profit for the period (12-13)		85,228	74,091	54,009	2,23,619	1,38,364	1,96,540
15. Minority interest		1,278	1,164	458	3,546	1,527	2,664
16. Share in Profit of Associates		375	407	426	1,008	1,388	3,103
17. Consolidated Net Profit of the group (14-15+16)		84,325	73,334	53,977	2,21,081	1,38,225	1,96,979
18. Paid-up Equity Share Capital (Face value ` 2/- per Equity Share)		42,291	42,191	42,041	42,291	42,041	42,051
19. Reserves excluding Revaluation Reserve							18,83,000
20. Analytical Ratios and Other Disclosures:
(i)	Percentage of shares held by Government of India	NIL	NIL	NIL	NIL	NIL	NIL
(ii)	Capital Adequacy ratio (%)
	Under Basel III	13.81	14.30	14.97	13.81	14.97	16.33
(iii)	Earnings per Share (EPS) (in `)
	(a) Basic EPS  (before and after extraordinary items)	3.99*	3.48*	2.57*	10.49*	6.72*	9.52
	(b) Diluted EPS (before and after extraordinary items)	3.94*	3.45*	2.55*	10.39*	6.67*	9.44
(iv)	NPA Ratios
	a) Gross NPA	4,30,899	4,17,310	4,59,280	4,30,899	4,59,280	4,25,653
	b) Net NPA	1,34,855	1,36,396	1,61,315	1,34,855	1,61,315	1,47,977
	c) % of Gross NPA	2.42	2.45	3.10	2.42	3.10	2.78
	d) % of Net NPA	0.77	0.82	1.11	0.77	1.11	0.98
(v)	Return on Assets (%)	0.34*	0.31*	0.25*	0.91*	0.66*	0.91
* Not Annualised

Segment Information@
							(` in Lakhs)
Particulars		Quarter ended			Nine months ended		Year ended
31.12.2022	30.09.2022	31.12.2021	31.12.2022	31.12.2021	31.03.2022
Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Segment Revenue:
	Treasury	61,099	66,222	51,768	1,82,026	1,82,225	2,31,327
	Corporate/Wholesale Banking	1,37,246	1,22,907	1,03,817	3,66,937	3,19,648	4,22,307
	Retail Banking	3,21,779	2,94,019	2,50,466	8,82,403	7,19,413	9,78,155
	a) Digital Banking	23,960	22,729	14,801	63,988	39,091	56,772
	b) Other Retail Banking	2,97,819	2,71,290	2,35,665	8,18,415	6,80,322	9,21,383
	Other Banking operations	5,920	5,331	4,594	14,932	9,954	14,837
	Unallocated	214	179	1,885	435	1,952	3,621
	Total Revenue	5,26,258	4,88,658	4,12,530	14,46,733	12,33,192	16,50,247
	Less: Inter Segment Revenue	-	-	-	-	-	-
	Income from Operations	5,26,258	4,88,658	4,12,530	14,46,733	12,33,192	16,50,247
Segment Results (net of provisions):
	Treasury	10,385	18,243	11,276	41,628	57,009	62,722
	Corporate/Wholesale Banking	25,960	14,371	21,370	54,693	37,717	54,114
	Retail Banking	72,405	62,871	35,570	1,91,520	83,015	1,33,433
	a) Digital Banking	4,071	3,203	(667)	6,866	3,768	6,880
	b) Other Retail Banking	68,334	59,668	36,237	1,84,654	79,247	1,26,553
	Other Banking operations	4,455	3,999	2,380	11,146	7,153	10,738
	Unallocated	213	179	1,885	434	1,952	3,621
	Profit before tax	1,13,418	99,663	72,481	2,99,421	1,86,846	2,64,628
Segment Assets:
	Treasury	48,96,686	43,66,944	40,59,405	48,96,686	40,59,405	47,63,764
	Corporate/Wholesale Banking	93,42,502	89,31,093	77,07,515	93,42,502	77,07,515	78,08,465
	Retail Banking	1,07,75,908	1,02,55,021	89,37,571	1,07,75,908	89,37,571	93,78,255
	a) Digital Banking	3,55,734	2,69,151	1,87,578	3,55,734	1,87,578	2,04,346
	b) Other Retail Banking	1,04,20,174	99,85,870	87,49,993	1,04,20,174	87,49,993	91,73,909
	Other Banking operations	798	851	286	798	286	401
	Unallocated	7,81,411	7,79,609	6,54,674	7,81,411	6,54,674	6,73,219
	Total	2,57,97,305	2,43,33,518	2,13,59,451	2,57,97,305	2,13,59,451	2,26,24,104
Segment Liabilities:
	Treasury	26,58,030	23,14,458	10,83,754	26,58,030	10,83,754	18,59,584
	Corporate/Wholesale Banking	22,49,040	19,88,499	16,81,586	22,49,040	16,81,586	18,77,366
	Retail Banking	1,84,02,087	1,76,03,969	1,64,51,320	1,84,02,087	1,64,51,320	1,66,84,108
	a) Digital Banking	10,82,117	8,90,517	5,32,804	10,82,117	5,32,804	6,27,564
	b) Other Retail Banking	1,73,19,970	1,67,13,452	1,59,18,516	1,73,19,970	1,59,18,516	1,60,56,544
	Other Banking operations	314	483	103	314	103	364
	Unallocated	3,38,338	3,65,759	2,47,486	3,38,338	2,47,486	2,46,597
	Total	2,36,47,809	2,22,73,168	1,94,64,249	2,36,47,809	1,94,64,249	2,06,68,019
Capital Employed:
(Segment Assets - Segment Liabilities)
	Treasury	22,38,656	20,52,486	29,75,651	22,38,656	29,75,651	29,04,180
	Corporate/Wholesale Banking	70,93,462	69,42,594	60,25,929	70,93,462	60,25,929	59,31,099
	Retail Banking	(76,26,179)	(73,48,948)	(75,13,749)	(76,26,179)	(75,13,749)	(73,05,853)
	a) Digital Banking	(7,26,383)	(6,21,366)	(3,45,226)	(7,26,383)	(3,45,226)	(4,23,218)
	b) Other Retail Banking	(68,99,796)	(67,27,582)	(71,68,523)	(68,99,796)	(71,68,523)	(68,82,635)
	Other Banking operations	484	368	183	484	183	37
	Unallocated	4,43,073	4,13,850	4,07,188	4,43,073	4,07,188	4,26,622
	Total	21,49,496	20,60,350	18,95,202	21,49,496	18,95,202	19,56,085
@	For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines. As per the RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022 on establishment of Digital Banking Unit (DBU), for the purpose of disclosure under 'Accounting Standard 17 - Segment Reporting', 'Digital Banking' has been identified as a sub-segment of the existing 'Retail Banking' segment by Reserve Bank of India (RBI). The DBU of the Bank has commenced operations during the quarter and nine months ended December 31, 2022 and accordingly the bank has disclosed the business involving digital banking products acquired by DBU, together with existing digital banking products (including for comparative periods, which are not audited), under the Digital Banking segment. The business  operations of the Bank are substantially concentrated in India and for the purpose of Segment Reporting as per Accounting Standard-17, the bank is considered to operate only in domestic segment.
Notes:
1	The above Consolidated Unaudited Financial Results for the quarter and nine months ended December 31, 2022 were reviewed by the Audit Committee and subsequently approved by the Board of Directors at its meeting held on January 16, 2023. These Results have been subjected to limited review by the Statutory Central Auditors of the Bank and an unqualified review report has been issued.
2	The Consolidated Financial Results of the Group comprise the financial results of The Federal Bank Limited and its subsidiaries viz. Fedbank Financial Services Limited & Federal Operations and Services Limited and its associates viz. Ageas Federal Life Insurance Company Limited & Equirus Capital Private Limited.
3	There has been no material change in the accounting policies adopted in the preparation of the interim financial results  as compared to those followed  in the consolidated annual financial statements for the year ended March 31, 2022.
4	The financial results have been arrived at after considering provision for standard assets (including requirements for exposures to entities with unhedged foreign currency exposures), provision for non-performing assets (NPAs), provision for non-performing investments, provision for income-tax and other usual and necessary provisions.
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 on sale of investments (net), profit / loss on revaluation of investments, recoveries from advances written off etc.
6	The Capital Adequacy Ratio is computed on the basis of RBI guidelines applicable on the relevant reporting dates and the ratio for the corresponding previous period is not adjusted to consider the impact of subsequent changes if any, in the guidelines.
7	As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank.
8	Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification.
			SHYAM SRINIVASAN
Kochi			MANAGING DIRECTOR & CEO
January 16, 2023			(DIN: 02274773)

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