The Federal Bank Ltd.

Interim / Quarterly Report • Feb 5, 2024

National Storage Mechanism | Additional information

RNS Number : 9385B

Federal Bank Ltd (The)

05 February 2024

________________________________________________________________________       

SD/LSE/402/2023-24                                                                                        05.02.2024

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 and Nine months ended December 31, 2023 which was approved at the Bank's Board of Directors meeting held on January 16, 2024.

Kindly take the same on your record.

For The Federal Bank Limited

Sd/-

Samir P Rajdev

Company Secretary

M S K A & Associates	Suri & Co
602, Floor 6, Raheja Titanium	Guna Complex, No.443 & 445,
Western Express Highway, Geetanjali,	4th Floor Main Building,
Railway Colony, Ram Nagar, Goregaon (E),	Anna Salai, Teynampet,
Mumbai 400 063.	Chennai  600 018.

Independent Auditor's Review Report on standalone unaudited financial results for the quarter and nine months ended December 31, 2023 of The Federal Bank Limited pursuant to the Regulation 33 and Regulation 52 read with Regulation 63(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

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 December 31, 2023 ('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 Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 as amended ('the Regulations') except, for the disclosures relating to Pillar 3 as at December 31, 2023, 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 Note 9 to the Statement and have not been reviewed by us.

2.    This 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 Act') read with relevant rules issued thereunder, in so far as they apply to the Banks, 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'), other recognised accounting principles generally accepted in India and is in compliance with the Regulations. 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 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.  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 under section 143(10) of the Act and consequently does not enable us to obtain 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.

4.    Based on our review, conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with the recognition and measurement principles laid down in AS 25, prescribed under Section 133 of the Act read with relevant rules issued thereunder, the RBI Guidelines and other recognised accounting principles generally accepted in India has not disclosed the information required to be disclosed in terms of the Regulations, including the manner in which it is to be disclosed or that it contains material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the RBI in respect of income recognition, asset classification, provisioning and other related matters, except for the disclosures relating to Pillar 3 disclosures as at December 31, 2023, 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 Note 9 to the Statement and have not been reviewed by us.

5.    The Statement includes standalone financial results of the Bank for the corresponding quarter and nine months ended December 31, 2022, which were reviewed by another auditor whose report dated -January 16, 2023 expressed an unmodified opinion on those results. The Statement also includes the standalone financial statements of the Bank for the year ended March 31, 2023 which were audited by another auditors whose report dated May 05, 2023 expressed an unmodified opinion on the standalone financial statements.

Our conclusion is not modified in respect of this matter.

For M S K A & Associates	For Suri & Co
Chartered Accountants	Chartered Accountants
ICAI Firm Registration Number: 105047W	ICAI Firm Registration Number: 004283S
Sd/-	Sd/-
Swapnil Kale	G. Rengarajan
Partner	Partner
Membership Number: 117812	Membership Number: 219922
UDIN: 24117812BKFIDB1933	UDIN: 24219922BKCLPC8636
Mumbai	Kochi
January 16, 2024	January 16, 2024

M S K A & Associates	Suri & Co
602, Floor 6, Raheja Titanium	Guna Complex, No.443 & 445,
Western Express Highway, Geetanjali,	4th Floor Main Building,
Railway Colony, Ram Nagar, Goregaon (E),	Anna Salai, Teynampet,
Mumbai 400 063.	Chennai  600 018.

Independent Auditor's Review Report on consolidated unaudited financial results for the quarter and nine months ended December 31, 2023 of The Federal Bank Limited pursuant to the Regulation 33 of the Securities and Exchange Board of India (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 consolidated unaudited financial results of The Federal Bank Limited ('the Bank') and its subsidiaries (the Bank and its subsidiaries together referred to as 'the Group'), its share of the net profit after tax of its associates for the quarter and nine months ended December 31, 2023 ('the Statement'), being submitted by the Bank pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('the Regulations') except, for the disclosures relating to consolidated Pillar 3 as at December 31, 2023, 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 Note 7 to the Statement and have not been reviewed by us.

2.      This 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 Act'), read with relevant rules issued thereunder, in so far as they apply to the Banks, 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 recognised accounting principles generally accepted in India and is in compliance with the Regulations. 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 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. 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 specified under section 143(10) of the Act, and consequently, does not enable us to obtain 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 Securities and Exchange Board of India  under Regulation 33 (8) of the Regulations, to the extent applicable.

4.      The Statement includes the results/financial information of the Bank and the following entities:

Sr. No	Name of the Entity	Relationship with the Bank
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

5.      Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review report of the other auditor referred to in paragraph 6 below and based on the financial information certified by the Management for the subsidiary and the associates as stated in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in AS 25 prescribed under Section 133 of the Act, read with relevant rules issued thereunder, RBI Guidelines and other recognised accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Regulations, 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 RBI in respect of income recognition, asset classification, provisioning and other related matters except, for the disclosures relating to consolidated Pillar 3 disclosure as at December 31, 2023, 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 Note 7 to the Statement and have not been reviewed by us.

6.      We did not review the interim financial information of one subsidiary included in the Statement, whose interim financial information reflect total revenues of Rs. 1,999 lakhs and Rs. 5,692 lakhs and total net profit after tax of Rs. 149 lakhs and Rs. 429 lakhs for the quarter and nine months ended December 31, 2023, respectively, as considered in the Statement. These interim financial results have been reviewed by other auditors whose reports have been furnished to us by the Management of the Bank and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiary, is based solely on the reports of the other auditors.

Our conclusion is not modified in respect of the above matter.

7.      The Statement includes the interim financial information of one subsidiary which have not been reviewed by their auditor, whose interim financial information reflect total revenues of Rs. 43,014 lakhs and Rs. 1,19,735 lakhs and total net profit after tax of Rs. 5,501 lakhs and Rs. 15,184 lakhs for the quarter and nine months ended December 31, 2023, respectively, as considered in the Statement. The Statement also includes the Group's share of net profit after tax of Rs. 403 lakhs and Rs.1,273 lakhs for the quarter and nine months ended December 31, 2023, respectively, as considered in the Statement, in respect of two associates, based on their interim financial information which have not been reviewed by their auditors. These interim financial information have been furnished to us by the 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 management prepared unaudited interim financial information. According to the information and explanations given to us by the Management, these interim financial information are not material to the Group.

Our conclusion is not modified in respect of the above matter.

8.      The Statement includes the consolidated financial results of the Bank for the quarter and nine months ended December 31, 2022, which were reviewed by another auditors whose report dated January 16, 2023, expressed an unmodified conclusion on those consolidated financial results. The Statement also includes the consolidated financial statements of the Bank for the year ended March 31, 2023 which were audited by another auditors whose report dated May 05, 2023 expressed an unmodified opinion on the consolidated financial statements.

Our conclusion is not modified in respect of the above matter.

For M S K A & Associates	For Suri & Co
Chartered Accountants	Chartered Accountants
ICAI Firm Registration Number: 105047W	ICAI Firm Registration Number: 004283S
Sd/-	Sd/-
Swapnil Kale	G. Rengarajan
Partner	Partner
Membership Number: 117812	Membership Number: 219922
UDIN: 24117812BKFIDC9350	UDIN: 24219922BKCLPB2699
Mumbai	Kochi
January 16, 2024	January 16, 2024

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, 2023

(₹ in Lakhs)

Particulars

Quarter ended

Nine months ended

Year ended

31.12.2023

30.09.2023

31.12.2022

31.12.2023

31.12.2022

31.03.2023

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

1. Interest earned (a)+(b)+(c)+(d)

5,73,010

5,45,528

4,43,325

16,20,991

12,08,289

16,80,363

(a)

Interest/discount on advances/bills

4,59,757

4,35,548

3,58,487

12,99,263

9,69,441

13,49,184

(b)

Income on investments

95,024

89,397

72,069

2,65,907

2,01,755

2,79,557

(c)

Interest on balances with Reserve Bank of India and other inter bank funds

7,929

9,028

4,977

24,050

15,474

20,625

(d)

Others

10,300

11,555

7,792

31,771

21,619

30,997

2. Other income

86,256

73,042

53,400

2,32,539

1,59,614

2,33,000

3. TOTAL INCOME (1+2)

6,59,266

6,18,570

4,96,725

18,53,530

13,67,903

19,13,363

4. Interest expended

3,60,674

3,39,886

2,47,672

10,11,154

6,76,002

9,57,147

5. Operating expenses (i)+(ii)

1,54,859

1,46,239

1,21,632

4,35,963

3,45,919

4,76,777

(i)

Employees cost

69,315

62,631

56,083

1,93,620

1,57,578

2,17,300

(ii)

Other operating expenses

85,544

83,608

65,549

2,42,343

1,88,341

2,59,477

6. TOTAL EXPENDITURE (4+5)

(excluding provisions and contingencies)

5,15,533

4,86,125

3,69,304

14,47,117

10,21,921

14,33,924

7. OPERATING PROFIT (3-6)

(Profit before provisions and contingencies)

1,43,733

1,32,445

1,27,421

4,06,413

3,45,982

4,79,439

8. Provisions (other than tax) and contingencies

9,122

4,390

19,869

29,070

63,323

74,989

9. Exceptional items

-  

-  

-  

-  

-  

-  

10. Profit from Ordinary Activities before tax

(7-8-9)

1,34,611

1,28,055

1,07,552

3,77,343

2,82,659

4,04,450

11. Tax expense

33,937

32,673

27,191

95,913

71,861

1,03,391

12. Net Profit from Ordinary Activities after tax  (10-11)

1,00,674

95,382

80,361

2,81,430

2,10,798

3,01,059

13. Extraordinary items (net of tax expense)

-  

-  

-  

-  

-  

-  

14. Net Profit for the period (12-13)

1,00,674

95,382

80,361

2,81,430

2,10,798

3,01,059

15. Paid-up Equity Share Capital

(Face value ₹ 2/- per Equity Share)

48,668

47,032

42,291

48,668

42,291

42,324

16. Reserves excluding Revaluation Reserve

21,07,799

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

15.02

15.50

13.35

15.02

13.35

14.81

(iii)

Earnings per Share (EPS) (in ₹)

(a) Basic EPS  (before and after extraordinary items)

4.16*

4.17*

3.80*

12.36*

10.00*

14.27

(b) Diluted EPS (before and after extraordinary items)

4.11*

4.12*

3.75*

12.21*

9.91*

14.13

(iv)

NPA Ratios

a) Gross NPA

4,62,879

4,43,605

4,14,785

4,62,879

4,14,785

4,18,377

b) Net NPA

1,28,437

1,22,981

1,22,859

1,28,437

1,22,859

1,20,501

c) % of Gross NPA

2.29

2.26

2.43

2.29

2.43

2.36

d) % of Net NPA

0.64

0.64

0.73

0.64

0.73

0.69

(v)

Return on Assets (%)

0.35*

0.34*

0.33*

1.02*

0.92*

1.28

(vi)

Net Worth

28,08,472

26,03,207

20,45,675

28,08,472

20,45,675

21,41,949

(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 #

0.61

0.74

0.96

0.61

0.96

0.90

(xi)

Total Debts to Total Assets #

5.85%

6.67%

7.86%

5.85%

7.86%

7.42%

(xii)

Operating Margin

21.80%

21.41%

25.65%

21.93%

25.29%

25.06%

(xiii)

Net Profit Margin

15.27%

15.42%

16.18%

15.18%

15.41%

15.73%

* Not Annualised

Debt and Total Debts represents Total Borrowings of the Bank

Segment Information@
							(₹ in Lakhs)
Particulars		Quarter ended			Nine months ended		Year ended
31.12.2023	30.09.2023	31.12.2022	31.12.2023	31.12.2022	31.03.2023
Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Segment Revenue:
	Treasury	96,796	88,824	60,885	2,62,863	1,82,818	2,53,996
	Corporate/Wholesale Banking	1,80,205	1,81,524	1,38,045	5,25,974	3,69,539	5,24,048
	Retail Banking	3,75,990	3,42,915	2,93,526	10,50,022	8,05,303	11,20,482
	a) Digital Banking	38,689	36,622	23,960	1,05,651	63,988	90,354
	b) Other Retail Banking	3,37,301	3,06,293	2,69,566	9,44,371	7,41,315	10,30,128
	Other Banking operations	6,119	5,204	4,153	14,272	9,906	14,350
	Unallocated	156	103	116	399	337	487
	Total Revenue	6,59,266	6,18,570	4,96,725	18,53,530	13,67,903	19,13,363
	Less: Inter Segment Revenue	-	-	-	-	-	-
	Income from Operations	6,59,266	6,18,570	4,96,725	18,53,530	13,67,903	19,13,363
Segment Results (net of provisions):
	Treasury	21,713	16,790	9,576	49,758	40,625	50,577
	Corporate/Wholesale Banking	34,950	44,512	26,155	1,19,486	55,510	95,399
	Retail Banking	72,591	62,228	68,175	1,95,570	1,77,767	2,45,789
	a) Digital Banking	6,813	4,680	4,071	15,013	6,866	11,359
	b) Other Retail Banking	65,778	57,548	64,104	1,80,557	1,70,901	2,34,430
	Other Banking operations	5,201	4,423	3,530	12,131	8,420	12,198
	Unallocated	156	102	116	398	337	487
	Profit before tax	1,34,611	1,28,055	1,07,552	3,77,343	2,82,659	4,04,450
Segment Assets:
	Treasury	60,86,667	57,46,602	49,07,856	60,86,667	49,07,856	52,30,629
	Corporate/Wholesale Banking	1,10,41,676	1,05,93,983	93,75,662	1,10,41,676	93,75,662	96,99,651
	Retail Banking	1,17,91,138	1,16,79,738	99,82,259	1,17,91,138	99,82,259	1,04,41,427
	a) Digital Banking	6,30,958	5,54,182	3,55,734	6,30,958	3,55,734	4,16,592
	b) Other Retail Banking	1,11,60,180	1,11,25,556	96,26,525	1,11,60,180	96,26,525	1,00,24,835
	Other Banking operations	-	-	-	-	-	-
	Unallocated	7,01,768	7,22,279	7,81,411	7,01,768	7,81,411	6,62,476
	Total	2,96,21,249	2,87,42,602	2,50,47,188	2,96,21,249	2,50,47,188	2,60,34,183
Segment Liabilities:
	Treasury	27,41,387	29,66,715	26,07,512	27,41,387	26,07,512	29,13,818
	Corporate/Wholesale Banking	31,94,204	29,69,197	22,45,069	31,94,204	22,45,069	24,24,409
	Retail Banking	2,04,96,375	1,98,83,203	1,77,97,499	2,04,96,375	1,77,97,499	1,82,77,723
	a) Digital Banking	14,54,321	13,71,578	10,82,117	14,54,321	10,82,117	12,03,720
	b) Other Retail Banking	1,90,42,054	1,85,11,625	1,67,15,382	1,90,42,054	1,67,15,382	1,70,74,003
	Other Banking operations	-	-	-	-	-	-
	Unallocated	3,72,135	3,11,604	3,38,338	3,72,135	3,38,338	2,67,609
	Total	2,68,04,101	2,61,30,719	2,29,88,418	2,68,04,101	2,29,88,418	2,38,83,559
Capital Employed:
(Segment Assets - Segment Liabilities)
	Treasury	33,45,280	27,79,887	23,00,344	33,45,280	23,00,344	23,16,811
	Corporate/Wholesale Banking	78,47,472	76,24,786	71,30,593	78,47,472	71,30,593	72,75,242
	Retail Banking	(87,05,237)	(82,03,465)	(78,15,240)	(87,05,237)	(78,15,240)	(78,36,296)
	a) Digital Banking	(8,23,363)	(8,17,396)	(7,26,383)	(8,23,363)	(7,26,383)	(7,87,128)
	b) Other Retail Banking	(78,81,874)	(73,86,069)	(70,88,857)	(78,81,874)	(70,88,857)	(70,49,168)
	Other Banking operations	-	-	-	-	-	-
	Unallocated	3,29,633	4,10,675	4,43,073	3,29,633	4,43,073	3,94,867
	Total	28,17,148	26,11,883	20,58,770	28,17,148	20,58,770	21,50,624
@	For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking (with Digital Banking and Other Retail Banking as sub-segments) and Other Banking Operations in compliance with the RBI guidelines. 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, 2023 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on January 16, 2024. These results have been subjected to limited review by the Joint Statutory Auditors of the Bank and an unqualified review report has been issued.
2	The Bank has consistently applied its 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, 2023.
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 Reserve Bank of India (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, 2023, the Bank has allotted 9,109,679 and 14,023,554 equity shares of ` 2 each respectively, pursuant to the exercise of stock options by employees.
7	During the quarter and half year September 30, 2023, the Bank had issued 230,477,634 equity shares of ` 2 each for cash pursuant to a Qualified Institution Placement (QIP) as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at ` 131.90 per share aggregating to ` 304,000.00 Lakhs (including share premium). This resulted in an increase of ` 4,609.55 Lakhs in Share Capital and ` 295,416.80 Lakhs (net of issue expenses) in Share premium account.
8	During the quarter and nine months ended December 31, 2023, the Bank has issued 72,682,048 equity shares of ` 2 each for cash pursuant to a Preferential Allotment as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at `131.91 per share aggregating to ` 95,874.89 Lakhs (including share premium). This resulted in an increase of ` 1,453.64 Lakhs in Share Capital and ` 94,361.59 Lakhs (net of issue expenses) in Share premium account.
9	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 Joint Statutory Auditors of the Bank.
10	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, 2023 are given below:
	i) Details of loans not in default acquired through assignment during the nine months ended December 31, 2023 are given below:
	Particulars			Value
	Aggregate amount of loans acquired (` in lakhs)			1,38,359.74
	Weighted average residual maturity (in years)			8.43
	Weighted average holding period by originator (in years)			1.25
	Retention of beneficial economic interest by the originator (` in lakhs)			15,373.30
	Tangible security coverage			157.10%
	The loans acquired are not rated as the same are to non-corporate borrowers.
	ii) Details of non-performing assets (NPAs) transferred are given below:
					(` in lakhs except number of accounts)
	Particulars				To ARCs	To Permitted Transferees	To other Transferees
	Number of accounts				6	-	-
	Aggregate principal outstanding of loans transferred				1,824.09	-	-
	Weighted average residual tenor of the loans transferred (in years)				1.83	-	-
	Net book value of loans transferred (at the time of transfer)				167.77	-	-
	Aggregate consideration				1,200.00	-	-
	Additional consideration realized in respect of accounts transferred in earlier years				-	-	-
	Provisions reversed to the profit and loss account on account of sale of stressed loans				492.29	-	-
	iii) During the nine months ended December 31, 2023, the Bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA).
	iv)  During the nine months ended December 31, 2023, the Bank has invested `510.00 lakhs in Security Receipts (SR) issued by an Asset Reconstruction Company (ARC) pursuant to transfer of Non-Performing asset to ARC, which is unrated.
11	The figures for the quarter and nine months ended December 31, 2022 and year ended March 31, 2023 were reviewed / audited by previous Joint Statutory Auditors.
12	Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification.
					Sd/-
			SHYAM SRINIVASAN
Kochi			MANAGING DIRECTOR & CEO
January 16, 2024			(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, 2023

(₹ in Lakhs)

Particulars

Quarter ended

Nine months ended

Year ended

31.12.2023

30.09.2023

31.12.2022

31.12.2023

31.12.2022

31.03.2023

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

1. Interest earned (a)+(b)+(c)+(d)

6,08,520

5,79,128

4,69,750

17,22,625

12,79,952

17,81,178

(a)

Interest/discount on advances/bills

4,94,736

4,69,147

3,84,986

14,00,176

10,41,833

14,50,788

(b)

Income on investments

94,776

89,237

71,785

2,65,488

2,00,627

2,78,188

(c)

Interest on balances with Reserve Bank of India and other inter bank funds

7,929

9,028

4,977

24,050

15,474

20,625

(d)

Others

11,079

11,716

8,002

32,911

22,018

31,577

2. Other income

90,835

75,692

56,508

2,40,658

1,66,781

2,43,623

3. TOTAL INCOME (1+2)

6,99,355

6,54,820

5,26,258

19,63,283

14,46,733

20,24,801

4. Interest expended

3,75,968

3,54,414

2,58,490

10,55,833

7,03,770

9,97,524

5. Operating expenses (i)+(ii)

1,70,021

1,60,378

1,32,986

4,77,343

3,76,205

5,21,120

(i)

Employees cost

78,762

71,349

62,915

2,19,437

1,76,799

2,44,024

(ii)

Other operating expenses

91,259

89,029

70,071

2,57,906

1,99,406

2,77,096

6. TOTAL EXPENDITURE (4+5)

(excluding provisions and contingencies)

5,45,989

5,14,792

3,91,476

15,33,176

10,79,975

15,18,644

7. OPERATING PROFIT (3-6)

(Profit before provisions and contingencies)

1,53,366

1,40,028

1,34,782

4,30,107

3,66,758

5,06,157

8. Provisions (other than tax) and contingencies

11,385

5,757

21,364

33,611

67,337

79,863

9. Exceptional items

-  

-  

-  

-  

-  

-  

10. Profit from Ordinary Activities before tax

(7-8-9)

1,41,981

1,34,271

1,13,418

3,96,496

2,99,421

4,26,294

11. Tax expense

35,657

34,255

28,190

1,00,982

75,802

1,08,718

12. Net Profit from Ordinary Activities after tax  (10-11)

1,06,324

1,00,016

85,228

2,95,514

2,23,619

3,17,576

13. Extraordinary items (net of tax expense)

-  

-  

-  

-  

-  

-  

14. Net Profit for the period (12-13)

1,06,324

1,00,016

85,228

2,95,514

2,23,619

3,17,576

15. Minority interest

3,185

1,260

1,278

5,823

3,546

4,510

16. Share in Profit of Associates

403

654

375

1,273

1,008

3,406

17. Consolidated Net Profit of the group

(14-15+16)

1,03,542

99,410

84,325

2,90,964

2,21,081

3,16,472

18. Paid-up Equity Share Capital

(Face value ₹ 2/- per Equity Share)

48,668

47,032

42,291

48,668

42,291

42,324

19. Reserves excluding Revaluation Reserve

21,69,416

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

15.40

15.92

13.81

15.40

13.81

15.24

(iii)

Earnings per Share (EPS) (in `)

(a) Basic EPS  (before and after extraordinary items)

4.28*

4.35*

3.99*

12.78*

10.49*

15.01

(b) Diluted EPS (before and after extraordinary items)

4.22*

4.29*

3.94*

12.62*

10.39*

14.85

(iv)

NPA Ratios

a) Gross NPA

4,79,664

4,61,712

4,30,899

4,79,664

4,30,899

4,34,352

b) Net NPA

1,40,180

1,36,278

1,34,855

1,40,180

1,34,855

1,32,344

c) % of Gross NPA

2.28

2.27

2.42

2.28

2.42

2.35

d) % of Net NPA

0.68

0.68

0.77

0.68

0.77

0.73

(v)

Return on Assets (%)

0.34*

0.34*

0.34*

1.01*

0.91*

1.28

* Not Annualised

Segment Information@
							(₹ in Lakhs)
Particulars		Quarter ended			Nine months ended		Year ended
31.12.2023	30.09.2023	31.12.2022	31.12.2023	31.12.2022	31.03.2023
Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Segment Revenue:
	Treasury	97,756	89,241	61,099	2,63,430	1,82,026	2,53,555
	Corporate/Wholesale Banking	1,78,730	1,80,218	1,37,246	5,22,578	3,66,937	5,20,704
	Retail Banking	4,14,109	3,78,773	3,21,779	11,57,440	8,82,403	12,28,710
	a) Digital Banking	38,689	36,622	23,960	1,05,651	63,988	90,354
	b) Other Retail Banking	3,75,420	3,42,151	2,97,819	10,51,789	8,18,415	11,38,356
	Other Banking operations	8,604	6,485	5,920	19,436	14,932	21,225
	Unallocated	156	103	214	399	435	607
	Total Revenue	6,99,355	6,54,820	5,26,258	19,63,283	14,46,733	20,24,801
	Less: Inter Segment Revenue	-	-	-	-	-	-
	Income from Operations	6,99,355	6,54,820	5,26,258	19,63,283	14,46,733	20,24,801
Segment Results (net of provisions):
	Treasury	23,257	17,793	10,385	52,074	41,628	52,460
	Corporate/Wholesale Banking	34,789	44,463	25,960	1,19,110	54,693	94,335
	Retail Banking	77,680	66,419	72,405	2,10,118	1,91,520	2,61,538
	a) Digital Banking	6,813	4,680	4,071	15,013	6,866	11,359
	b) Other Retail Banking	70,867	61,739	68,334	1,95,105	1,84,654	2,50,179
	Other Banking operations	6,099	5,494	4,455	14,796	11,146	15,817
	Unallocated	156	102	213	398	434	2,144
	Profit before tax	1,41,981	1,34,271	1,13,418	3,96,496	2,99,421	4,26,294
Segment Assets:
	Treasury	60,80,735	57,25,569	48,96,686	60,80,735	48,96,686	52,06,924
	Corporate/Wholesale Banking	1,09,76,368	1,05,29,830	93,42,502	1,09,76,368	93,42,502	96,72,729
	Retail Banking	1,27,82,695	1,26,26,779	1,07,75,908	1,27,82,695	1,07,75,908	1,12,56,964
	a) Digital Banking	6,30,958	5,54,182	3,55,734	6,30,958	3,55,734	4,16,592
	b) Other Retail Banking	1,21,51,737	1,20,72,597	1,04,20,174	1,21,51,737	1,04,20,174	1,08,40,372
	Other Banking operations	1,014	351	798	1,014	798	1,313
	Unallocated	7,01,768	7,22,279	7,81,411	7,01,768	7,81,411	6,62,476
	Total	3,05,42,580	2,96,04,808	2,57,97,305	3,05,42,580	2,57,97,305	2,68,00,406
Segment Liabilities:
	Treasury	27,92,960	30,05,480	26,58,030	27,92,960	26,58,030	29,42,093
	Corporate/Wholesale Banking	31,96,082	29,71,838	22,49,040	31,96,082	22,49,040	24,14,080
	Retail Banking	2,11,90,006	2,05,96,656	1,84,02,087	2,11,90,006	1,84,02,087	1,89,28,892
	a) Digital Banking	14,54,321	13,71,578	10,82,117	14,54,321	10,82,117	12,03,720
	b) Other Retail Banking	1,97,35,685	1,92,25,078	1,73,19,970	1,97,35,685	1,73,19,970	1,77,25,172
	Other Banking operations	356	356	314	356	314	294
	Unallocated	3,72,135	3,11,604	3,38,338	3,72,135	3,38,338	2,67,609
	Total	2,75,51,539	2,68,85,934	2,36,47,809	2,75,51,539	2,36,47,809	2,45,52,968
Capital Employed:
(Segment Assets - Segment Liabilities)
	Treasury	32,87,775	27,20,089	22,38,656	32,87,775	22,38,656	22,64,831
	Corporate/Wholesale Banking	77,80,286	75,57,992	70,93,462	77,80,286	70,93,462	72,58,649
	Retail Banking	(84,07,311)	(79,69,877)	(76,26,179)	(84,07,311)	(76,26,179)	(76,71,928)
	a) Digital Banking	(8,23,363)	(8,17,396)	(7,26,383)	(8,23,363)	(7,26,383)	(7,87,128)
	b) Other Retail Banking	(75,83,948)	(71,52,481)	(68,99,796)	(75,83,948)	(68,99,796)	(68,84,800)
	Other Banking operations	658	(5)	484	658	484	1,019
	Unallocated	3,29,633	4,10,675	4,43,073	3,29,633	4,43,073	3,94,867
	Total	29,91,041	27,18,874	21,49,496	29,91,041	21,49,496	22,47,438
@	For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking (with Digital Banking and Other Retail Banking as sub-segments) and Other Banking Operations in compliance with the RBI guidelines. 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, 2023 were reviewed by the Audit Committee and subsequently approved by the Board of Directors at its meeting held on January 16, 2024. These results have been subjected to limited review by the Joint Statutory 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 for the year ended March 31, 2023.
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 Reserve Bank of India (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 Joint Statutory Auditors of the Bank.
8	During the quarter and half year September 30, 2023 , the Bank has issued 230,477,634 equity shares of ` 2 each for cash pursuant to a Qualified Institution Placement (QIP) as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at ` 131.90 per share aggregating to ` 304,000.00 Lakhs (including share premium). This resulted in an increase of ` 4,609.55 Lakhs in Share Capital and ` 295,416.80 Lakhs (net of issue expenses) in Share premium account.
9	During the quarter and nine months ended December 31, 2023, the Bank has issued 72,682,048 equity shares of ` 2 each for cash pursuant to a Preferential Allotment as per the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at `131.91 per share aggregating to ` 95,874.89 Lakhs (including share premium). This resulted in an increase of ` 1,453.64 Lakhs in Share Capital and ` 94,361.59 Lakhs (net of issue expenses) in Share premium account.
10	The figures for the quarter and nine months ended December 31, 2022 and year ended March 31, 2023 were reviewed / audited by previous Joint Statutory Auditors.
11	Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification.
					Sd/-
			SHYAM SRINIVASAN
Kochi			MANAGING DIRECTOR & CEO
January 16, 2024			(DIN: 02274773)

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