REG - Federal Bank Ltd The - Annual Financial Report
30/05/2024 07:00
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RNS Number : 4238Q Federal Bank Ltd (The) 30 May 2024
________________________________________________________________________
SD/LSE/87/2024-25
22.05.2024
To
The London Stock Exchange
10 Paternoster Square
London
Dear Sir,
We enclose herewith the Audited Standalone and Consolidated Financial Results
of the Bank for the Quarter and Year ended March 31, 2024 which was approved
at the Bank's Board of Directors meeting held on May 02, 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 Report on the Standalone Financial Results for the year
ended March 31, 2024 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) 2015, as
amended.
TO THE BOARD OF DIRECTORS OF
THE FEDERAL BANK LIMITED
Report on the Audit of the Standalone Financial Results
Opinion
We have audited the accompanying Standalone Financial Results of The Federal
Bank Limited (hereinafter referred to as the "the Bank") for the year ended
March 31, 2024 ("the Statement"), 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 Obligations and Disclosure
Requirements) Regulations, 2015, as amended ("the Listing Regulations") except
for the disclosure relating to Pillar 3 as at March 31, 2024, 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 Note 10 to the Statement and
have not been audited by us.
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Statement:
i. is presented in accordance with the requirements of the Listing
Regulations in this regards except for the disclosures relating to Pillar 3 as
at March 31, 2024, 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 Note 10 to the Statement and have not been audited by us; and
ii. gives a true and fair view, in conformity with the recognition and
measurement principle laid down in the applicable accounting standards
prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with
Companies (Accounting Standards) Rules, 2021, as amended to the extent
applicable, 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 of the net profit and other financial information
for the year ended March 31, 2024.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing ("SAs")
specified under section 143(10) of the Act and other applicable authoritative
pronouncements issued by the Institute of Chartered Accountants of India ("the
ICAI"). Our responsibilities under those SAs are further described in the
Auditors' Responsibilities for the Audit of the Standalone Financial Results
section of our report. We are independent of the Bank in accordance with the
Code of Ethics issued by the ICAI together with the ethical requirements that
are relevant to our audit of the Statement, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Management and Board of Directors' Responsibility for the Standalone Financial
Results
The Statement which is the responsibility of the Bank's Management and
approved by the Board of Directors, has been compiled from the Standalone
Audited Financial Statements. The Bank's Board of Directors are responsible
for the preparation of the Statement that gives a true and fair view of the
net profit and other financial information of the Bank in accordance with the
Accounting Standards specified under section 133 of the Act read with
Companies (Accounting Standards) Rules, 2021, as amended to the extent
applicable, the relevant provisions of the Banking Regulation Act, 1949, the
RBI Guidelines and other accounting principles generally accepted in India and
in compliance with the Listing Regulations. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions
of the Act, Banking Regulation Act, 1949 and the RBI Guidelines for
safeguarding of the assets of the Bank and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the
Statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Statement, the Board of Directors are responsible for
assessing the Bank's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the Board of Directors either intends to liquidate the
Bank or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Bank's
financial reporting process.
Auditors' Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement
as a whole is free from material misstatement, whether due to fraud or error,
and to issue an auditors' report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of
this Statement.
As part of an audit in accordance with SAs, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the
Statement, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
· Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Bank has internal financial controls
with reference to Standalone Financial Statements in place and the operating
effectiveness of such controls.
· Evaluate the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related disclosures made by the
Board of Directors.
· Conclude on the appropriateness of the Board of Directors use
of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Bank's ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditors' report to the related disclosures
in the Statement or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditors' report. However, future events or conditions may cause
the Bank to cease to continue as a going concern.
· Evaluate the overall presentation, structure and content of the
Statement, including the disclosures, and whether the Statement represent the
underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related
safeguards.
Other Matters
1. The Statement includes the Standalone Financial Results of the Bank for
the corresponding quarter and year ended March 31, 2023, which were audited by
another auditors whose report dated ------May 05, 2023, expressed an
unmodified opinion on those results.
2. The Statement includes the results for the quarter ended March 31, 2024,
being the balancing figure between the audited figures in respect of the full
financial year and the published unaudited year to date figures up to the
third quarter of the current financial year prepared in accordance with the
Accounting Standard 25 "Interim Financial Reporting" which were subject to
limited review by us.
Our opinion on the statement is not modified in respect of the above matters.
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: 24117812BKFIEL3626 UDIN: 24219922BKCLRB4003
Mumbai Kochi
May 02, 2024 May 02, 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 Report on the Consolidated Financial Results for the
year ended March 31, 2024 of The Federal Bank Limited pursuant to the
Regulation 33 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) 2015, as amended
TO THE BOARD OF DIRECTORS OF
THE FEDERAL BANK LIMITED
Report on the Audit of the Consolidated Financial Results
Opinion
We have audited the accompanying Consolidated Financial Results of The Federal
Bank Limited (hereinafter referred to as the "the Bank") and its subsidiaries
(the Bank and its subsidiaries together referred to as "the Group") and its
associates, for the year ended March 31, 2024 ("the Statement"), being
submitted by the Bank pursuant to the requirements of Regulation 33 and of
Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended ("the Listing Regulations")
except, for the disclosures relating to consolidated Pillar 3 as at March 31,
2024, 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 Note 8
to the Statement and have not been audited by us.
In our opinion and to the best of our information and according to the
explanations given to us and based on the consideration of the reports of the
other auditors on separate audited financial statements of the two
subsidiaries and one associate and financial information of one associate as
certified by the Management of the associate, the aforesaid Statement:
a. includes the annual financial results of the Bank and the following
entities:
Sr. No Name of the Entities 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
b. is presented in accordance with the requirements of the Listing
Regulations in this regards except for the disclosures relating to
consolidated Pillar 3 as at March 31, 2024, 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 Note 8 to the Statement and have not been
audited by us; and
c. gives a true and fair view, in conformity with applicable accounting
standards prescribed under Section 133 of the Companies Act, 2013 ("the Act")
read with Companies (Accounting Standards) Rules, 2021 to the extent
applicable, 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 of the consolidated net profit and other financial
information of the Group and its associates for the year ended March 31, 2024.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing ("SAs")
specified under section 143(10) of the Act and other applicable authoritative
pronouncements issued by the Institute of Chartered Accountants of India ("the
ICAI"). Our responsibilities under those SAs are further described in the
Auditors' Responsibilities for the Audit of the Consolidated Financial Results
section of our report. We are independent of the Group and it's associates in
accordance with the Code of Ethics issued by the ICAI together with the
ethical requirements that are relevant to our audit of the Statement, and we
have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics.
We believe that the audit evidence obtained by us and other auditors in terms
of their reports referred to in "Other Matters" paragraph below, is sufficient
and appropriate to provide a basis for our opinion.
Management and Board of Directors' Responsibility for the Consolidated
Financial Results
The Statement which is the responsibility of the Bank's Management and
approved by the Board of Directors, has been compiled from the Consolidated
Audited Financial statements. The Bank's Board of Directors are responsible
for the preparation and presentation of the Statement that gives a true and
fair view of the net profit and other financial information of the Group
including its associates in accordance with the Accounting Standard specified
under section 133 of the Act read with Companies (Accounting Standards) Rules,
2021 to the extent applicable, the relevant provisions of the Banking
Regulation Act, 1949, RBI Guidelines and other accounting principles generally
accepted in India and in compliance with the Listing Regulations. The
respective Board of Directors of the entities included in the Group and of its
associates are responsible for maintenance of adequate accounting records in
accordance with the provisions of the Act, Banking Regulation Act, 1949 and
the RBI Guidelines for safeguarding of the assets of the Group and of its
associates and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls that were operating
effectively for ensuring accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the Statement that give a true
and fair view and are free from material misstatement, whether due to fraud or
error which have been used for the purpose of preparation of the Statement by
the Board of Directors of the Bank, as aforesaid.
In preparing the Statement, the respective Board of Directors of the entities
included in the Group and of its associates are responsible for assessing the
ability of the Group and of its associates to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Board of Directors either intends
to liquidate the Group and its associates or to cease operations, or has no
realistic alternative but to do so.
The respective Board of Directors of the entities included in the Group and of
its associates are responsible for overseeing the financial reporting process
of the Group and of its associates.
Auditors' Responsibilities for the Audit of the Consolidated Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement
as a whole is free from material misstatement, whether due to fraud or error,
and to issue an auditors' report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of
this Statement.
As part of an audit in accordance with SAs, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the
Statement, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
· Obtain an understanding of internal control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances.
Under section 143(3)(i) of the Act, we are also responsible for expressing our
opinion on whether the Bank has internal financial controls with reference to
Consolidated Financial Statements in place and the operating effectiveness of
such controls.
· Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by the
Board of Directors.
· Conclude on the appropriateness of the Board of Directors' use of the
going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the ability of the Group and of its associates to
continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditors' report to the
related disclosures in the Statement or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors' report. However, future events or
conditions may cause the Group and of its associates to cease to continue as a
going concern.
· Evaluate the overall presentation, structure and content of the
Statement, including the disclosures, and whether the Statement represent the
underlying transactions and events in a manner that achieves fair
presentation.
· Obtain sufficient appropriate audit evidence regarding the financial
information of the entities within the Group and of its associates to express
an opinion on the Statement. We are responsible for the direction, supervision
and performance of the audit of financial information of such entities
included in the Statement of which we are the independent auditors. For the
other entities included in the Statement, which have been audited by other
auditors, such other auditors remain responsible for the direction,
supervision and performance of the audits carried out by them. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance of the Bank and such other
entities included in the Statement of which we are the independent auditors
regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related
safeguards.
We also performed procedures in accordance with the circular issued by the
Securities and Exchange Board of India under Regulation 33(8) of the Listing
Regulations, as amended, to the extent applicable.
Other Matters
a. The Statement includes the audited financial statements of two
subsidiaries, whose Financial Statements reflect Group's share of total assets
of Rs. 11,04,959 lakhs as at March 31, 2024, Group's share of total revenue of
Rs. 1,72,504 lakhs and Group's share of total net profit after tax of Rs.
22,360 lakhs for the year ended March 31, 2024, respectively and Group's net
cash flow of Rs. (26,640) lakhs for the year ended as on date, as considered
in the Statement, which have been audited by their respective independent
auditors. The independent auditors' reports on Financial statements of these
entities have been furnished to us and our opinion on the Statement, in so far
as it relates to the amounts and disclosures included in respect of these
entities, is based solely on the report of such auditors.
b. The Statement includes the audited financial statements of one
associate, whose Financial statements reflect Group's share of net profit
after tax of Rs. 2,781 lakhs, for the year ended March 31, 2024, as considered
in the Statement. The independent auditors' reports on Financial statements of
this entity has been furnished to us and our opinion on the Statement, in so
far as it relates to the amounts and disclosures included in respect of these
entities, is based solely on the report of such auditors.
Our opinion is not modified in respect of the above matter with respect to our
reliance on the work done and the report of other auditor.
c. The Statement includes the unaudited financial information of one
associate, whose Financial information reflect Group's share of net profit
after tax of Rs. 869 lakhs, for the year ended March 31, 2024, as considered
in the Statement. This unaudited financial information has been furnished to
us by the Management and our opinion on the Statement, in so far as it relates
to the amounts and disclosures included in respect of this associate is based
solely on such Management prepared unaudited Financial information. In our
opinion and according to the information and explanations given to us by the
Management, this Financial information are not material to the Group.
Our opinion on the Statement is not modified with respect to the Financial
information certified by the Management.
d. The Statement includes the Consolidated Financial Results of the Bank
for the corresponding quarter and year ended March 31, 2023, which were
audited by another auditors whose report dated May 05, 2023, expressed an
unmodified opinion on those results.
e. The Statement includes the results for the quarter ended March 31,
2024, being the balancing figure between the audited figures in respect of the
full financial year and the published unaudited year to date figures up to the
third quarter of the current financial year prepared in accordance with the
Accounting Standard 25 "Interim Financial Reporting" which were subject to
limited review by us.
Our opinion on the statement is not modified in respect of the above matters.
For M S K A & Associates For Suri & Co
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number: 105047W ICAI Firm Registration Number: 004283S
Swapnil Kale G. Rengarajan
Partner Partner
Membership Number: 117812 Membership Number: 219922
UDIN: 24117812BKFIEM1709 UDIN: 24219922BKCLRA3009
Mumbai Kochi
May 02, 2024 May 02, 2024
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31,
2024
(₹ in Lakhs)
Particulars Quarter ended Year ended
31.03.2024 31.12.2023 31.03.2023 31.03.2024 31.03.2023
Audited Unaudited Audited Audited Audited
(Refer Note
(Refer Note
15 below)
15 below)
1. Interest earned (a)+(b)+(c)+(d) 5,97,835 5,73,010 4,72,074 22,18,826 16,80,363
(a) Interest/discount on advances/bills 4,74,189 4,59,757 3,79,743 17,73,452 13,49,184
(b) Income on investments 1,03,255 95,024 77,802 3,69,162 2,79,557
(c) Interest on balances with Reserve Bank of India and other inter bank funds 9,837 7,929 5,151 33,887 20,625
(d) Others 10,554 10,300 9,378 42,325 30,997
2. Other income (Refer note 5) 75,388 86,256 73,386 3,07,927 2,33,000
3. TOTAL INCOME (1+2) 6,73,223 6,59,266 5,45,460 25,26,753 19,13,363
4. Interest expended 3,78,324 3,60,674 2,81,145 13,89,478 9,57,147
5. Operating expenses (i)+(ii) 1,83,864 1,54,859 1,30,858 6,19,827 4,76,777
(i) Employees cost 88,689 69,315 59,722 2,82,309 2,17,300
(ii) Other operating expenses 95,175 85,544 71,136 3,37,518 2,59,477
6. TOTAL EXPENDITURE (4+5) 5,62,188 5,15,533 4,12,003 20,09,305 14,33,924
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 1,11,035 1,43,733 1,33,457 5,17,448 4,79,439
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies (9,460) 9,122 11,666 19,610 74,989
9. Exceptional items - - - - -
10. Profit from Ordinary Activities before tax 1,20,495 1,34,611 1,21,791 4,97,838 4,04,450
(7-8-9)
11. Tax expense 29,865 33,937 31,530 1,25,778 1,03,391
12. Net Profit from Ordinary Activities after tax (10-11) 90,630 1,00,674 90,261 3,72,060 3,01,059
13. Extraordinary items (net of tax expense) - - - - -
14. Net Profit for the period (12-13) 90,630 1,00,674 90,261 3,72,060 3,01,059
15. Paid-up Equity Share Capital 48,707 48,668 42,324 48,707 42,324
(Face value ₹ 2/- per Equity Share)
16. Reserves excluding Revaluation Reserve 28,60,234 21,07,799
17. Analytical Ratios and Other Disclosures:
(i) Percentage of shares held by Government of India NIL NIL NIL NIL NIL
(ii) Capital Adequacy ratio (%) (Refer note 6)
Under Basel III 16.13 15.02 14.81 16.13 14.81
(iii) Earnings per Share (EPS) (in ₹)
(a) Basic EPS (before and after extraordinary items) 3.72* 4.16* 4.27* 16.07 14.27
(b) Diluted EPS (before and after extraordinary items) 3.68* 4.11* 4.21* 15.87 14.13
(iv) NPA Ratios
a) Gross NPA 4,52,887 4,62,879 4,18,377 4,52,887 4,18,377
b) Net NPA 1,25,533 1,28,437 1,20,501 1,25,533 1,20,501
c) % of Gross NPA 2.13 2.29 2.36 2.13 2.36
d) % of Net NPA 0.60 0.64 0.69 0.60 0.69
(v) Return on Assets (%) 0.30* 0.35* 0.36* 1.32 1.28
(vi) Net Worth 29,08,941 28,08,472 21,41,949 29,08,941 21,41,949
(vii) Outstanding Redeemable Preference Shares NIL NIL NIL NIL NIL
(viii) Capital Redemption Reserve NIL NIL NIL NIL NIL
(ix) Debenture Redemption Reserve NIL NIL NIL NIL NIL
(x) Debt - Equity Ratio (#) 0.62 0.61 0.90 0.62 0.90
(xi) Total Debts to Total Assets (#) 5.85% 5.85% 7.42% 5.85% 7.42%
(xii) Operating Margin 16.49% 21.80% 24.47% 20.48% 25.06%
(xiii) Net Profit Margin 13.46% 15.27% 16.55% 14.72% 15.73%
(*) Not Annualised
(#) Debt and Total Debts represents Total Borrowings of the Bank
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31,
2024
(₹ in Lakhs)
Particulars
Quarter ended
Year ended
31.03.2024
31.12.2023
31.03.2023
31.03.2024
31.03.2023
Audited
(Refer Note
15 below)
Unaudited
Audited
(Refer Note
15 below)
Audited
Audited
1. Interest earned (a)+(b)+(c)+(d)
5,97,835
5,73,010
4,72,074
22,18,826
16,80,363
(a)
Interest/discount on advances/bills
4,74,189
4,59,757
3,79,743
17,73,452
13,49,184
(b)
Income on investments
1,03,255
95,024
77,802
3,69,162
2,79,557
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
9,837
7,929
5,151
33,887
20,625
(d)
Others
10,554
10,300
9,378
42,325
30,997
2. Other income (Refer note 5)
75,388
86,256
73,386
3,07,927
2,33,000
3. TOTAL INCOME (1+2)
6,73,223
6,59,266
5,45,460
25,26,753
19,13,363
4. Interest expended
3,78,324
3,60,674
2,81,145
13,89,478
9,57,147
5. Operating expenses (i)+(ii)
1,83,864
1,54,859
1,30,858
6,19,827
4,76,777
(i)
Employees cost
88,689
69,315
59,722
2,82,309
2,17,300
(ii)
Other operating expenses
95,175
85,544
71,136
3,37,518
2,59,477
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)
5,62,188
5,15,533
4,12,003
20,09,305
14,33,924
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)
1,11,035
1,43,733
1,33,457
5,17,448
4,79,439
8. Provisions (other than tax) and contingencies
(9,460)
9,122
11,666
19,610
74,989
9. Exceptional items
-
-
-
-
-
10. Profit from Ordinary Activities before tax
(7-8-9)
1,20,495
1,34,611
1,21,791
4,97,838
4,04,450
11. Tax expense
29,865
33,937
31,530
1,25,778
1,03,391
12. Net Profit from Ordinary Activities after tax (10-11)
90,630
1,00,674
90,261
3,72,060
3,01,059
13. Extraordinary items (net of tax expense)
-
-
-
-
-
14. Net Profit for the period (12-13)
90,630
1,00,674
90,261
3,72,060
3,01,059
15. Paid-up Equity Share Capital
(Face value ₹ 2/- per Equity Share)
48,707
48,668
42,324
48,707
42,324
16. Reserves excluding Revaluation Reserve
28,60,234
21,07,799
17. Analytical Ratios and Other Disclosures:
(i)
Percentage of shares held by Government of India
NIL
NIL
NIL
NIL
NIL
(ii)
Capital Adequacy ratio (%) (Refer note 6)
Under Basel III
16.13
15.02
14.81
16.13
14.81
(iii)
Earnings per Share (EPS) (in ₹)
(a) Basic EPS (before and after extraordinary items)
3.72*
4.16*
4.27*
16.07
14.27
(b) Diluted EPS (before and after extraordinary items)
3.68*
4.11*
4.21*
15.87
14.13
(iv)
NPA Ratios
a) Gross NPA
4,52,887
4,62,879
4,18,377
4,52,887
4,18,377
b) Net NPA
1,25,533
1,28,437
1,20,501
1,25,533
1,20,501
c) % of Gross NPA
2.13
2.29
2.36
2.13
2.36
d) % of Net NPA
0.60
0.64
0.69
0.60
0.69
(v)
Return on Assets (%)
0.30*
0.35*
0.36*
1.32
1.28
(vi)
Net Worth
29,08,941
28,08,472
21,41,949
29,08,941
21,41,949
(vii)
Outstanding Redeemable Preference Shares
NIL
NIL
NIL
NIL
NIL
(viii)
Capital Redemption Reserve
NIL
NIL
NIL
NIL
NIL
(ix)
Debenture Redemption Reserve
NIL
NIL
NIL
NIL
NIL
(x)
Debt - Equity Ratio (#)
0.62
0.61
0.90
0.62
0.90
(xi)
Total Debts to Total Assets (#)
5.85%
5.85%
7.42%
5.85%
7.42%
(xii)
Operating Margin
16.49%
21.80%
24.47%
20.48%
25.06%
(xiii)
Net Profit Margin
13.46%
15.27%
16.55%
14.72%
15.73%
(*) Not Annualised
(#) Debt and Total Debts represents Total Borrowings of the Bank
Segment Information@
(₹ in Lakhs)
Particulars Quarter ended Year ended
31.03.2024 31.12.2023 31.03.2023 31.03.2024 31.03.2023
Audited Unaudited Audited Audited Audited
(Refer Note
(Refer Note
15 below)
15 below)
Segment Revenue:
Treasury 90,473 96,796 71,178 3,53,336 2,53,996
Corporate/Wholesale Banking 1,95,562 1,80,205 1,54,509 7,21,536 5,24,048
Retail Banking 3,81,224 3,75,990 3,15,179 14,31,246 11,20,482
a) Digital Banking 44,452 38,689 26,366 1,50,103 90,354
b) Other Retail Banking 3,36,772 3,37,301 2,88,813 12,81,143 10,30,128
Other Banking operations 5,799 6,119 4,444 20,071 14,350
Unallocated 165 156 150 564 487
Total Revenue 6,73,223 6,59,266 5,45,460 25,26,753 19,13,363
Less: Inter Segment Revenue - - - - -
Income from Operations 6,73,223 6,59,266 5,45,460 25,26,753 19,13,363
Segment Results (net of provisions): -
Treasury 6,814 21,713 9,952 56,572 50,577
Corporate/Wholesale Banking 42,671 34,950 39,889 1,62,157 95,399
Retail Banking 65,916 72,591 68,022 2,61,486 2,45,789
a) Digital Banking 7,546 6,813 4,493 22,559 11,359
b) Other Retail Banking 58,370 65,778 63,529 2,38,927 2,34,430
Other Banking operations 4,929 5,201 3,778 17,060 12,198
Unallocated 165 156 150 563 487
Profit before tax 1,20,495 1,34,611 1,21,791 4,97,838 4,04,450
Segment Assets:
Treasury 63,09,635 60,86,667 52,30,629 63,09,635 52,30,629
Corporate/Wholesale Banking 1,11,57,372 1,10,41,676 96,99,651 1,11,57,372 96,99,651
Retail Banking 1,25,55,959 1,17,91,138 1,04,41,427 1,25,55,959 1,04,41,427
a) Digital Banking 6,81,296 6,30,958 4,16,592 6,81,296 4,16,592
b) Other Retail Banking 1,18,74,663 1,11,60,180 1,00,24,835 1,18,74,663 1,00,24,835
Other Banking operations - - - - -
Unallocated 8,08,214 7,01,768 6,62,476 8,08,214 6,62,476
Total 3,08,31,180 2,96,21,249 2,60,34,183 3,08,31,180 2,60,34,183
Segment Liabilities:
Treasury 28,80,492 27,41,387 29,13,818 28,80,492 29,13,818
Corporate/Wholesale Banking 32,02,646 31,94,204 24,24,409 32,02,646 24,24,409
Retail Banking 2,13,10,663 2,04,96,375 1,82,77,723 2,13,10,663 1,82,77,723
a) Digital Banking 16,26,328 14,54,321 12,03,720 16,26,328 12,03,720
b) Other Retail Banking 1,96,84,335 1,90,42,054 1,70,74,003 1,96,84,335 1,70,74,003
Other Banking operations - - - - -
Unallocated 5,27,937 3,72,135 2,67,609 5,27,937 2,67,609
Total 2,79,21,738 2,68,04,101 2,38,83,559 2,79,21,738 2,38,83,559
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 34,29,143 33,45,280 23,16,811 34,29,143 23,16,811
Corporate/Wholesale Banking 79,54,726 78,47,472 72,75,242 79,54,726 72,75,242
Retail Banking (87,54,704) (87,05,237) (78,36,296) (87,54,704) (78,36,296)
a) Digital Banking (9,45,032) (8,23,363) (7,87,128) (9,45,032) (7,87,128)
b) Other Retail Banking (78,09,672) (78,81,874) (70,49,168) (78,09,672) (70,49,168)
Other Banking operations - - - - -
Unallocated 2,80,277 3,29,633 3,94,867 2,80,277 3,94,867
Total 29,09,442 28,17,148 21,50,624 29,09,442 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 Reserve Bank of India (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 Statement of Assets and Liabilities of the Bank as at March 31, 2024 is given
below:
(₹ in Lakhs)
Particulars As at 31.03.2024 As at 31.03.2023
Audited Audited
CAPITAL AND LIABILITIES
Capital 48,707 42,324
Reserves and Surplus 28,60,735 21,08,300
Deposits 2,52,53,402 2,13,38,604
Borrowings 18,02,641 19,31,928
Other Liabilities and Provisions 8,65,695 6,13,027
Total 3,08,31,180 2,60,34,183
ASSETS
Cash and Balances with Reserve Bank of India 11,49,357 12,59,085
Balance with Banks and Money at Call and Short Notice 7,46,935 5,09,783
Investments 60,85,953 48,98,335
Advances 2,09,40,333 1,74,44,688
Fixed Assets 1,02,006 93,397
Other Assets 18,06,596 18,28,895
Total 3,08,31,180 2,60,34,183
2 The above Standalone Audited Financial Results for the quarter and year ended
March 31, 2024 were approved by the Board of Directors at its meeting held on
May 02, 2024. These financial results have been subjected to Audit by the
Joint Statutory Auditors of the Bank and an unmodified audit opinion has been
issued.
3 The above financial results of the Bank have been prepared in accordance with
the provisions of the Banking Regulation Act, 1949, Generally Accepted
Accounting Principles in India, including Accounting Standards as specified
under Section 133 of the Companies Act, 2013, Regulation 33 and Regulation 52
read with Regulation 63(2) of the Securities and Exchange Board of India
(SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, as
amended, in so far as they apply to banks, and the guidelines issued by the
RBI.
4 The Bank has applied significant accounting policies in the preparation of
these financial results consistent with those followed in the annual financial
statements for the year ended March 31, 2023. Any circular / direction issued
by RBI is implemented prospectively when it becomes applicable, unless
specifically required as per that circular / direction.
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,
dividend received from subsidiaries / associates, 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 During the quarter and year ended March 31, 2024, the Bank has allotted
1,967,559 and 15,991,113 equity shares of ₹2 each respectively, pursuant to
the exercise of stock options by employees.
8 During the quarter and half year ended 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.
9 During the quarter and nine months ended December 31, 2023, the Bank had
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 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.
11 Details of resolution plan implemented under the Resolution Framework for
COVID-19-related Stress as per RBI circular dated August 06, 2020 (Resolution
Framework 1.0) and May 05, 2021 (Resolution Framework 2.0) are given below:
(` in Lakhs)
Type of borrower Exposure to accounts Of (A), aggregate debt that slipped into NPA during the Of (A) amount Of (A) amount paid by the borrowers Exposure to accounts
classified as Standard
half-year
written off during the half-year
during the half- year((2))
classified as Standard
consequent to implementation of resolution plan - Position as at the
consequent to implementation of resolution plan - Position as at the
end of the previous half-year ended September 30 , 2023 (A) ((1)) end of this half-year ended March 31 , 2024 ((1),(3))
Personal Loans 1,46,913.60 6,533.10 24.61 13,177.94 1,29,244.68
Corporate persons 13,902.19 460.09 - 548.15 12,893.95
Of which, MSMEs - - - - -
Others 22,325.98 430.37 - 4,882.84 17,084.36
Total 1,83,141.77 7,423.56 24.61 18,608.93 1,59,222.99
1. Excludes other facilities to the borrowers which have not been
restructured.
2. Represents net movement in balance outstanding.
3. Includes accounts which were classified as NPA earlier and subsequently
upgraded to standard during the half year ended March 31, 2024.
12 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 year ended March 31, 2024 are given below:
i) Details of loans not in default acquired through assignment during the year
ended March 31, 2024 are given below:
Particulars Value
Aggregate amount of loans acquired (₹ in lakhs) 1,95,606.76
Weighted average residual maturity (in years) 7.23
Weighted average holding period by originator (in years) 1.17
Retention of beneficial economic interest by the originator (₹ in lakhs) 21,734.07
Tangible security coverage 151.03%
The loans acquired are not rated as the same are to non-corporate borrowers.
ii) Details of non-performing assets (NPAs) (excluding prudentially written
off advances) transferred are given below:
(₹ in lakhs except number of accounts)
Particulars To ARCs To Permitted Transferees To other Transferees
Number of accounts 61 - -
Aggregate principal outstanding of loans transferred 10,181.50 - -
Weighted average residual tenor of the loans transferred (in years) 0.31 - -
Net book value of loans transferred (at the time of transfer) 385.96 - -
Aggregate consideration 3,670.00 - -
Additional consideration realized in respect of accounts transferred in - - -
earlier years
Provisions reversed to the profit and loss account on account of sale of 2,744.10 - -
stressed loans
iii) During the year ended March 31, 2024, the Bank has not acquired any
stressed loans and not transferred any loan not in default / Special Mention
Accounts (SMA).
iv) During the year ended March 31, 2024, 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. Details of the
recovery ratings assigned to Security Receipts outstanding as on March 31,
2024 are given below:
(` in Lakhs)
Rating Recovery Rating Gross Book Value Provision Held Net Book Value
RR5 0%-25% 3,278.79 3,278.79 -
RR4 25%- 50% 7,935.79 7,935.79 -
RR1 100%-150% 442.71 442.71 -
Unrated - 28,565.78 28,565.78 -
Total 40,223.07 40,223.07 -
13 The Board of Directors have recommended a dividend of 60% i.e. ₹1.20/- per
equity share on face value of ₹2.00/- each for the year 2023-24 (Previous
Year ₹1.00/- per equity share) subject to the approval of the members at the
ensuing Annual General Meeting. In terms of Accounting Standard (AS) 4
"Contingencies and Events Occurring after the Balance Sheet Date", the Bank
has not appropriated proposed dividend aggregating to ₹ 29,224.22 Lakhs from
the profit and loss account for the year ended March 31, 2024. However the
effect of the proposed dividend has been reckoned in determining capital funds
in the computation of Capital Adequacy Ratio as on March 31, 2024.
14 The 12th Bipartite Settlement for wage revision between staff unions and Banks
represented by Indian Bank's Association (IBA) was due from November 01, 2022.
The negotiation was concluded on March 08, 2024, and the joint note for wage
revision detailing the salary components and other terms were signed between
staff unions and IBA. The bank has created an incremental provision of ₹
16,220.55 lakhs during the quarter ended March 31, 2024, towards the final
increase on payslip components agreed as per the joint note.
15 The figures of the last quarter of the respective financial years 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, which were subjected to limited review.
16 The figures for the quarter and year ended March 31, 2023 were audited by
previous Joint Statutory Auditors.
17 Previous period's figures have been regrouped / reclassified, wherever
necessary to conform to current period's classification.
Sd/-
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 02, 2024 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE AUDITED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2024
(₹ in Lakhs)
Particulars Year ended Year ended
March 31, 2024
March 31, 2023
Cash Flow from Operating Activities
Net Profit Before Taxes 4,97,838 4,04,450
Adjustments for:
Depreciation on Bank's Property 21,515 16,461
Provision / Depreciation on Investments (2,772) 4,113
Amortisation of Premium on Held to Maturity Investments 17,318 17,446
Provision / Charge for Non Performing Advances 40,114 59,134
Provision for Standard Assets and Contingencies (20,630) 16,523
Profit on Sale of Fixed Assets (net) (843) (82)
Profit on Sale of Investment in Subsidiary (9,911) -
Dividend From Subsidiaries / Associates (1,658) (837)
Employees Stock Option Expense 158 111
5,41,129 5,17,319
Adjustments for working capital changes:-
Increase in Investments [excluding Held to Maturity Investments] (3,34,689) (65,669)
Increase in Advances (35,35,760) (30,10,990)
(Increase)/ Decrease in Other Assets 23,447 (2,97,492)
Increase in Deposits 39,14,798 31,68,545
Increase in Other Liabilities and Provisions 2,70,528 90,627
3,38,324 (1,14,979)
Direct taxes paid (net) (1,24,156) (1,15,370)
Net Cash Flow from Operating Activities 7,55,297 2,86,970
Cash Flow from Investing Activities
Purchase of Fixed Assets (30,367) (46,683)
Proceeds from Sale of Fixed Assets 1,087 302
Dividend From Subsidiaries / Associates 1,658 837
Proceeds from sale of investment in Subsidiary 11,500 -
Purchase of Held to Maturity Investments (net) (8,69,064) (9,36,280)
Net Cash Used in Investing Activities (8,85,186) (9,81,824)
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital 6,383 273
Proceeds from Share Premium (Net of Share Issue Expenses) 4,04,087 9,249
Proceeds from Issue of Subordinate Debt - 99,500
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) (1,29,287) 2,93,117
Dividend Paid (23,491) (37,866)
Net Cash flow from Financing Activities 2,57,692 3,64,273
Effect of Exchange Fluctuation on Translation Reserve (379) (1,586)
Net Increase / (Decrease) in Cash and Cash Equivalents 1,27,424 (3,32,167)
Cash and Cash Equivalents at the beginning of the year 17,68,868 21,01,035
Cash and Cash Equivalents at the end of the year 18,96,292 17,68,868
Note:
Cash and Cash Equivalents comprise of Cash in hand (including foreign currency
notes), Balances with Reserve Bank of India, Balances with banks and money at
call and short notice.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 02, 2024 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH
31, 2024
(₹ in Lakhs)
Particulars Quarter ended Year ended
31.03.2024 31.12.2023 31.03.2023 31.03.2024 31.03.2023
Audited Unaudited Audited Audited Audited
(Refer Note
(Refer Note
13 below)
13 below)
1. Interest earned (a)+(b)+(c)+(d) 6,33,922 6,08,520 5,01,226 23,56,547 17,81,178
(a) Interest/discount on advances/bills 5,09,954 4,94,736 4,08,955 19,10,130 14,50,788
(b) Income on investments 1,03,082 94,776 77,561 3,68,570 2,78,188
(c) Interest on balances with Reserve Bank of India and other inter bank funds 9,837 7,929 5,151 33,887 20,625
(d) Others 11,049 11,079 9,559 43,960 31,577
2. Other income (Refer note 6) 80,990 90,835 76,842 3,21,648 2,43,623
3. TOTAL INCOME (1+2) 7,14,912 6,99,355 5,78,068 26,78,195 20,24,801
4. Interest expended 3,93,634 3,75,968 2,93,754 14,49,467 9,97,524
5. Operating expenses (i)+(ii) 1,99,327 1,70,021 1,44,915 6,76,670 5,21,120
(i) Employees cost 98,533 78,762 67,225 3,17,970 2,44,024
(ii) Other operating expenses 1,00,794 91,259 77,690 3,58,700 2,77,096
6. TOTAL EXPENDITURE (4+5) 5,92,961 5,45,989 4,38,669 21,26,137 15,18,644
(excluding provisions and contingencies)
7. OPERATING PROFIT (3-6) 1,21,951 1,53,366 1,39,399 5,52,058 5,06,157
(Profit before provisions and contingencies)
8. Provisions (other than tax) and contingencies (7,653) 11,385 12,526 25,958 79,863
9. Exceptional items - - - - -
10. Profit from Ordinary Activities before tax 1,29,604 1,41,981 1,26,873 5,26,100 4,26,294
(7-8-9)
11. Tax expense 32,365 35,657 32,916 1,33,347 1,08,718
12. Net Profit from Ordinary Activities after tax (10-11) 97,239 1,06,324 93,957 3,92,753 3,17,576
13. Extraordinary items (net of tax expense) - - - - -
14. Net Profit for the period (12-13) 97,239 1,06,324 93,957 3,92,753 3,17,576
15. Minority interest 2,538 3,185 964 8,361 4,510
16. Share in Profit of Associates 2,378 403 2,398 3,651 3,406
17. Consolidated Net Profit of the group 97,079 1,03,542 95,391 3,88,043 3,16,472
(14-15+16)
18. Paid-up Equity Share Capital 48,707 48,668 42,324 48,707 42,324
(Face value ₹ 2/- per Equity Share)
19. Reserves excluding Revaluation Reserve 29,61,328 21,69,416
20. Analytical Ratios and Other Disclosures:
(i) Percentage of shares held by Government of India NIL NIL NIL NIL NIL
(ii) Capital Adequacy ratio (%) (Refer note 7)
Under Basel III 16.45 15.40 15.24 16.45 15.24
(iii) Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extraordinary items) 3.99* 4.28* 4.51* 16.76 15.01
(b) Diluted EPS (before and after extraordinary items) 3.94* 4.22* 4.45* 16.55 14.85
(iv) NPA Ratios
a) Gross NPA 4,67,729 4,79,664 4,34,352 4,67,729 4,34,352
b) Net NPA 1,36,555 1,40,180 1,32,344 1,36,555 1,32,344
c) % of Gross NPA 2.11 2.28 2.35 2.11 2.35
d) % of Net NPA 0.63 0.68 0.73 0.63 0.73
(v) Return on Assets (%) 0.31* 0.34* 0.36* 1.32 1.28
(*) Not Annualised
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH
31, 2024
(₹ in Lakhs)
Particulars
Quarter ended
Year ended
31.03.2024
31.12.2023
31.03.2023
31.03.2024
31.03.2023
Audited
(Refer Note
13 below)
Unaudited
Audited
(Refer Note
13 below)
Audited
Audited
1. Interest earned (a)+(b)+(c)+(d)
6,33,922
6,08,520
5,01,226
23,56,547
17,81,178
(a)
Interest/discount on advances/bills
5,09,954
4,94,736
4,08,955
19,10,130
14,50,788
(b)
Income on investments
1,03,082
94,776
77,561
3,68,570
2,78,188
(c)
Interest on balances with Reserve Bank of India and other inter bank funds
9,837
7,929
5,151
33,887
20,625
(d)
Others
11,049
11,079
9,559
43,960
31,577
2. Other income (Refer note 6)
80,990
90,835
76,842
3,21,648
2,43,623
3. TOTAL INCOME (1+2)
7,14,912
6,99,355
5,78,068
26,78,195
20,24,801
4. Interest expended
3,93,634
3,75,968
2,93,754
14,49,467
9,97,524
5. Operating expenses (i)+(ii)
1,99,327
1,70,021
1,44,915
6,76,670
5,21,120
(i)
Employees cost
98,533
78,762
67,225
3,17,970
2,44,024
(ii)
Other operating expenses
1,00,794
91,259
77,690
3,58,700
2,77,096
6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)
5,92,961
5,45,989
4,38,669
21,26,137
15,18,644
7. OPERATING PROFIT (3-6)
(Profit before provisions and contingencies)
1,21,951
1,53,366
1,39,399
5,52,058
5,06,157
8. Provisions (other than tax) and contingencies
(7,653)
11,385
12,526
25,958
79,863
9. Exceptional items
-
-
-
-
-
10. Profit from Ordinary Activities before tax
(7-8-9)
1,29,604
1,41,981
1,26,873
5,26,100
4,26,294
11. Tax expense
32,365
35,657
32,916
1,33,347
1,08,718
12. Net Profit from Ordinary Activities after tax (10-11)
97,239
1,06,324
93,957
3,92,753
3,17,576
13. Extraordinary items (net of tax expense)
-
-
-
-
-
14. Net Profit for the period (12-13)
97,239
1,06,324
93,957
3,92,753
3,17,576
15. Minority interest
2,538
3,185
964
8,361
4,510
16. Share in Profit of Associates
2,378
403
2,398
3,651
3,406
17. Consolidated Net Profit of the group
(14-15+16)
97,079
1,03,542
95,391
3,88,043
3,16,472
18. Paid-up Equity Share Capital
(Face value ₹ 2/- per Equity Share)
48,707
48,668
42,324
48,707
42,324
19. Reserves excluding Revaluation Reserve
29,61,328
21,69,416
20. Analytical Ratios and Other Disclosures:
(i)
Percentage of shares held by Government of India
NIL
NIL
NIL
NIL
NIL
(ii)
Capital Adequacy ratio (%) (Refer note 7)
Under Basel III
16.45
15.40
15.24
16.45
15.24
(iii)
Earnings per Share (EPS) (in `)
(a) Basic EPS (before and after extraordinary items)
3.99*
4.28*
4.51*
16.76
15.01
(b) Diluted EPS (before and after extraordinary items)
3.94*
4.22*
4.45*
16.55
14.85
(iv)
NPA Ratios
a) Gross NPA
4,67,729
4,79,664
4,34,352
4,67,729
4,34,352
b) Net NPA
1,36,555
1,40,180
1,32,344
1,36,555
1,32,344
c) % of Gross NPA
2.11
2.28
2.35
2.11
2.35
d) % of Net NPA
0.63
0.68
0.73
0.63
0.73
(v)
Return on Assets (%)
0.31*
0.34*
0.36*
1.32
1.28
(*) Not Annualised
Segment Information@
(₹ in Lakhs)
Particulars Quarter ended Year ended
31.03.2024 31.12.2023 31.03.2023 31.03.2024 31.03.2023
Audited Unaudited Audited Audited Audited
(Refer Note
(Refer Note
13 below)
13 below)
Segment Revenue:
Treasury 91,225 97,756 71,529 3,54,655 2,53,555
Corporate/Wholesale Banking 1,94,207 1,78,730 1,53,767 7,16,785 5,20,704
Retail Banking 4,20,444 4,14,109 3,46,307 15,77,884 12,28,710
a) Digital Banking 44,452 38,689 26,366 1,50,103 90,354
b) Other Retail Banking 3,75,992 3,75,420 3,19,941 14,27,781 11,38,356
Other Banking operations 8,871 8,604 6,293 28,307 21,225
Unallocated 165 156 172 564 607
Total Revenue 7,14,912 6,99,355 5,78,068 26,78,195 20,24,801
Less: Inter Segment Revenue - - - - -
Income from Operations 7,14,912 6,99,355 5,78,068 26,78,195 20,24,801
Segment Results (net of provisions):
Treasury 8,144 23,257 10,832 60,218 52,460
Corporate/Wholesale Banking 42,631 34,789 39,642 1,61,741 94,335
Retail Banking 71,655 77,680 70,018 2,81,773 2,61,538
a) Digital Banking 7,546 6,813 4,493 22,559 11,359
b) Other Retail Banking 64,109 70,867 65,525 2,59,214 2,50,179
Other Banking operations 7,009 6,099 4,671 21,805 15,817
Unallocated 165 156 1,710 563 2,144
Profit before tax 1,29,604 1,41,981 1,26,873 5,26,100 4,26,294
Segment Assets:
Treasury 63,38,835 60,80,735 52,06,924 63,38,835 52,06,924
Corporate/Wholesale Banking 1,10,79,450 1,09,76,368 96,72,729 1,10,79,450 96,72,729
Retail Banking 1,35,59,659 1,27,82,695 1,12,56,964 1,35,59,659 1,12,56,964
a) Digital Banking 6,81,296 6,30,958 4,16,592 6,81,296 4,16,592
b) Other Retail Banking 1,28,78,363 1,21,51,737 1,08,40,372 1,28,78,363 1,08,40,372
Other Banking operations 508 1,014 1,313 508 1,313
Unallocated 8,05,443 7,01,768 6,62,476 8,05,443 6,62,476
Total 3,17,83,895 3,05,42,580 2,68,00,406 3,17,83,895 2,68,00,406
Segment Liabilities:
Treasury 29,64,257 27,92,960 29,42,093 29,64,257 29,42,093
Corporate/Wholesale Banking 32,00,510 31,96,082 24,14,080 32,00,510 24,14,080
Retail Banking 2,20,01,023 2,11,90,006 1,89,28,892 2,20,01,023 1,89,28,892
a) Digital Banking 16,26,328 14,54,321 12,03,720 16,26,328 12,03,720
b) Other Retail Banking 2,03,74,695 1,97,35,685 1,77,25,172 2,03,74,695 1,77,25,172
Other Banking operations 356 356 294 356 294
Unallocated 5,25,166 3,72,135 2,67,609 5,25,166 2,67,609
Total 2,86,91,312 2,75,51,539 2,45,52,968 2,86,91,312 2,45,52,968
Capital Employed:
(Segment Assets - Segment Liabilities)
Treasury 33,74,578 32,87,775 22,64,831 33,74,578 22,64,831
Corporate/Wholesale Banking 78,78,940 77,80,286 72,58,649 78,78,940 72,58,649
Retail Banking (84,41,364) (84,07,311) (76,71,928) (84,41,364) (76,71,928)
a) Digital Banking (9,45,032) (8,23,363) (7,87,128) (9,45,032) (7,87,128)
b) Other Retail Banking (74,96,332) (75,83,948) (68,84,800) (74,96,332) (68,84,800)
Other Banking operations 152 658 1,019 152 1,019
Unallocated 2,80,277 3,29,633 3,94,867 2,80,277 3,94,867
Total 30,92,583 29,91,041 22,47,438 30,92,583 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 Statement of Assets and Liabilities of the group as at March 31, 2024 is given
below:
(₹ in Lakhs)
Particulars As at 31.03.2024 As at 31.03.2023
Audited Audited
CAPITAL AND LIABILITIES
Capital 48,707 42,324
Reserves and Surplus 29,61,828 21,69,917
Minority Interest 82,048 35,197
Deposits 2,52,45,502 2,12,98,850
Borrowings 25,15,962 25,86,198
Other Liabilities and Provisions 9,29,848 6,67,920
Total 3,17,83,895 2,68,00,406
ASSETS
Cash and Balances with Reserve Bank of India 11,50,911 12,60,424
Balance with Banks and Money at Call and Short Notice 7,68,471 5,19,969
Investments 61,04,312 48,70,224
Advances 2,18,11,028 1,81,95,675
Fixed Assets 1,06,304 97,171
Other Assets 18,42,869 18,56,943
Total 3,17,83,895 2,68,00,406
2 The above Consolidated Audited Financial Results for the quarter and year
ended March 31, 2024 were approved by the Board of Directors at its meeting
held on May 02, 2024. These financial results have been subjected to audit by
the Joint Statutory Auditors of the Bank and an unmodified audit opinion has
been issued.
3 The above financial results of the group have been prepared in accordance with
the provisions of the Banking Regulation Act, 1949, Generally Accepted
Accounting Principles in India, including Accounting Standards as specified
under Section 133 of the Companies Act, 2013, Regulation 33 of the Securities
and Exchange Board of India (SEBI) Listing Obligations and Disclosure
Requirements Regulations, 2015, as amended and the guidelines issued by the
RBI.
4 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.
5 There has been no material change in the accounting policies applied in the
preparation of these financial results with those followed in the annual
financial statements for the year ended March 31, 2023.
6 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.
7 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.
8 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.
9 During the quarter and half year ended 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.
10 During the quarter and nine months ended December 31, 2023, the Bank had
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.
11 The Board of Directors have recommended a dividend of 60% i.e. ₹1.20/- per
equity share on face value of ₹2.00/- each for the year 2023-24 (Previous
Year ₹1.00/- per equity share) subject to the approval of the members at the
ensuing Annual General Meeting. In terms of Accounting Standard (AS) 4
"Contingencies and Events Occurring after the Balance Sheet Date" the Bank
has not appropriated proposed dividend aggregating to ₹ 29,224.22 Lakhs from
the profit and loss account for the year ended March 31, 2024. However the
effect of the proposed dividend has been reckoned in determining capital funds
in the computation of Capital Adequacy Ratio as on March 31, 2024.
12 The 12th Bipartite Settlement for wage revision between staff unions and Banks
represented by Indian Bank's Association (IBA) was due from November 01, 2022.
The negotiation was concluded on March 08, 2024, and the joint note for wage
revision detailing the salary components and other terms were signed between
staff unions and IBA. The bank has created an incremental provision of ₹
16,220.55 lakhs during the quarter ended March 31, 2024, towards the final
increase on payslip components agreed as per the joint note.
13 The figures of the last quarter of the respective financial years 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, which were subjected to limited review.
14 The figures for the quarter and year ended March 31, 2023 were audited by
previous Joint Statutory Auditors.
15 Previous period's figures have been regrouped / reclassified, wherever
necessary to conform to current period's classification.
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 02, 2024 (DIN: 02274773)
THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
CONSOLIDATED AUDITED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2024
(₹ in Lakhs)
Particulars Year ended Year ended
March 31, 2024
March 31, 2023
Cash Flow from Operating Activities
Net Profit Before Taxes 5,21,390 4,25,190
Adjustments for:
Depreciation on Group's Property 23,395 18,218
Provision / Depreciation on Investments (2,763) 4,075
Amortisation of Premium on Held to Maturity Investments 17,318 17,446
Provision / Charge for Non Performing Advances 46,327 65,528
Provision for Standard Assets and Contingencies (20,495) 15,003
Profit on Sale of Fixed Assets (net) (843) (83)
Profit on Sale of Investment in Subsidiary (9,911) -
Employees Stock Option Expense 158 113
5,74,576 5,45,490
Adjustments for working capital changes:-
Increase in Investments [excluding Held to Maturity Investments] (3,79,579) (48,947)
Increase in Advances (36,61,681) (32,66,057)
(Increase)/ Decrease in Other Assets 13,032 (3,02,838)
Increase in Deposits 39,46,651 31,31,098
Increase in Other Liabilities and Provisions 2,82,423 1,11,388
2,00,846 (3,75,356)
Direct taxes paid (net) (1,32,305) (1,21,204)
Net Cash Flow from Operating Activities 6,43,117 48,930
Cash Flow from Investing Activities
Purchase of Fixed Assets (32,792) (48,402)
Proceeds from Sale of Fixed Assets 1,108 307
Profit on Sale of Investment in Subsidiary 9,911 -
Purchase of Held to Maturity Investments (net) (8,69,063) (9,36,279)
Net Cash Used in Investing Activities (8,90,836) (9,84,374)
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital 6,383 273
Proceeds from Share Premium (Net of Share Issue Expenses) 4,33,005 9,309
Increase in Minority Interest 41,427 4,637
Proceeds from Issue of Subordinate Debt 20,000 99,500
Increase / (Decrease) in Borrowings (Excluding Subordinate Debt) (90,236) 5,27,959
Dividend Paid (23,491) (37,866)
Net Cash flow from Financing Activities 3,87,088 6,03,812
Effect of Exchange Fluctuation on Translation Reserve (380) (1,586)
Increase/(Decrease) in Cash and Cash Equivalents 1,38,989 (3,33,218)
Cash and Cash Equivalents at the beginning of the year 17,80,393 21,13,611
Cash and Cash Equivalents at the end of the year 19,19,382 17,80,393
Note:
Cash and Cash Equivalents comprise of Cash in hand (including foreign currency
notes), Balances with Reserve Bank of India, Balances with banks and money at
call and short notice.
Sd/-
SHYAM SRINIVASAN
Kochi MANAGING DIRECTOR & CEO
May 02, 2024 (DIN: 02274773)
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