Annual Financial Report

Federal Bank Ltd (The)
08 May 2023
 

Untitled

________________________________________________________________________               

SEC/LSE/58/2023-24                                                                                                               08.05.2023

 

                                              

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, 2023 which was approved at the Bank's Board of Directors meeting held on May 05, 2023.

 

 

Kindly take the same on your record.

 

 

 

For The Federal Bank Limited

 

 

Sd/-

Samir P Rajdev

Company Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Varma & Varma

Chartered Accountants,

No.53/2600, Kerala Varma Tower

Off Kunjanbava Road, Vytilla,

Kochi -682019

Borkar & Muzumdar,

Chartered Accountants,

21/168 Anand Nagar Om CHS, Anand Nagar Lane, Off Nehru Road, Santacruz (East), Mumbai - 400 055

 

 

Independent Auditors' report on Standalone quarterly and year ended Financial Results of The Federal Bank Limited pursuant to the Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

 

To

The Board of Directors

The Federal Bank Limited

 

Report on Audit of the Standalone Financial Results

 

Opinion

 

1.      We have audited the accompanying standalone Financial Results of The Federal Bank Limited ("the Bank") for the quarter and year ended 31st March 2023 ("standalone Financial Results") attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements)  Regulations,  2015,  as  amended  ("Listing  Regulations"),  except  for  the disclosures relating to Pillar 3 disclosure as at 31st March 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 standalone Financial Results and have not been audited by us.

 

2.      In our opinion and to the best of our information and according to the explanations given to us, these standalone Financial Results:

 

i.       are   presented   in   accordance   with   the   requirements   of   Regulation   33  and Regulation 52 read with Regulation 63(2) of   the Listing Regulations  in  this  regard  except  for  the  disclosures  relating  to  Pillar 3 disclosure as at 31st March 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 standalone Financial Results and have not been audited by us; and

 

ii.      give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Accounting Standards prescribed under Section 133 of the Companies Act 2013 (the "Act") read along with the rules issued thereunder, relevant  provisions  of  the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank  of  India  (RBI)  from  time  to  time  ("RBI  Guidelines") and other accounting principles generally accepted in India, of the net profit and other financial information for the quarter and year ended 31st March 2023.

 

Basis for Opinion

 

3.      We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards 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 Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone Financial Results, 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 is sufficient and appropriate to provide a basis for our opinion.

 

Board of Directors responsibilities for the standalone financial results.

 

4.      These standalone Financial Results have been prepared on the basis of the audited standalone annual financial statements for the year ended 31st March 2023 and reviewed quarterly standalone unaudited Financial Results upto the end of the quarter and period ended 31st December 2022.  The Bank's Board of Directors are responsible for the preparation of these standalone Financial Results that give a true and fair view of the net profit and other financial information in accordance with the recognition and measurement principles laid down in the Accounting  Standards specified under section 133 of the Act read with rules issued thereunder,  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/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 standalone Financial Results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

 

5.      In preparing the standalone Financial Results, 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.

 

6.      The Board of Directors is also responsible for overseeing the Bank's financial reporting process.

 

 

Auditors' Responsibilities for the Audit of the Standalone Financial Results

 

7.      Our objectives are to obtain reasonable assurance about whether the standalone Financial Results as a whole are 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 these standalone Financial Results.

 

8.      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 standalone Financial Results, 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 in place adequate internal financial controls with reference to standalone financial statements 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 standalone Financial Results 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 standalone Financial Results, including the disclosures, and whether the standalone Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

 

9.      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.

 

10.   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 Matter

11.   The standalone Financial Results includes the results for the quarter ended 31st March 2023, being the derived balancing figures between the standalone audited figures in respect of the full financial year ended 31st March 2023 and the published standalone unaudited year to date figures upto the nine months ended 31st December 2022, of the current financial year which have only been reviewed and not subjected to audit by us.

 

 

 

 

 

 

Our opinion on the standalone financial results is not modified in respect of above matter.

 

 

For Varma & Varma                                                                        For Borkar & Muzumdar

Chartered Accountants                                                                               Chartered Accountants

FRN: 004532S                                                                                     FRN: 101569W

                                                                                                                               

 

 

Vijay Narayan Govind                                                                                 Kaushal Muzumdar

Partner                                                                                                                 Partner

M. No. 203094                                                                                   M. No.  100938

UDIN:    23203094BGXYLZ4263                                                    UDIN: 23100938BGQQRF6902

Kochi                                                                                                                     Kochi

05th May 2023                                                                                                 05th May 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Varma & Varma

Chartered Accountants,

No.53/2600, Kerala Varma Tower

Off Kunjanbava Road, Vytilla,

Kochi -682019

Borkar & Muzumdar,

Chartered Accountants,

21/168 Anand Nagar Om CHS, Anand Nagar Lane, Off Nehru Road, Santacruz (East), Mumbai - 400 055

 

Independent Auditors' report on Consolidated quarterly and year ended Financial Results of The Federal Bank Limited pursuant to the Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

 

To

The Board of Directors

The Federal Bank Limited

 

Report on Audit of the Consolidated Financial Results

 

Opinion

 

1.    We have audited the accompanying Statement of Consolidated Financial Results of The Federal Bank Limited ("Parent" or the "Bank"), its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") and its associates for the quarter and year ended 31st March 2023 ("Consolidated Financial Results"), being submitted by the Bank pursuant to the requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements)  Regulations,  2015,  as  amended  ("Listing  Regulations"),  except  for  the disclosures relating to Pillar 3 disclosure as at 31st March 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 Consolidated Financial Results and have not been audited by us.

 

2.      In our opinion and to the best of our information and according to the explanations given to us, and based on consideration of reports of the  other auditors on separate audited financial statements/financial results/financial information of the subsidiaries and associates, these consolidated Financial Results:

i.          include the annual audited financial results of the following entities;

a.   The Federal Bank Limited (Parent)

b.   Fedbank Financial Services Limited (Subsidiary)

c.   Federal Operations and Services Limited (Subsidiary)

d.  Ageas Federal Life Insurance Company Limited (Associate)

e.   Equirus Capital Private Limited (Associate)

 

ii.         are   presented   in   accordance   with   the   requirements   of  the Listing  Regulations  in  this  regard  except  for  the  disclosures  relating  to  Pillar 3 disclosure as at 31st March 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 consolidated Financial Results and have not been audited by us; and

 

iii.        give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Accounting Standards specified under section 133 of the Companies Act, 2013 ("the Act") read along with the rules issued thereunder,  relevant  provisions  of  the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank  of  India  (RBI)  from  time  to  time  ("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 quarter and year ended 31st March 2023.

 

Basis for Opinion

 

3.      We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the 'Auditors' Responsibilities for the Audit of the Consolidated Financial Results' section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Consolidated Financial Results, 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 report referred to in "Other Matters" paragraph below, is sufficient and appropriate to provide a basis for our opinion.

 

Board of Directors responsibilities for the consolidated financial results

 

4.      These Consolidated Financial Results have been prepared on the basis of the audited consolidated annual financial statements for the year ended 31st March 2023 and reviewed quarterly consolidated unaudited Financial Results upto the end of the quarter and period ended 31st December 2022.  The Bank's Board of Directors are responsible for the preparation of these Consolidated Financial Results that give a true and fair view of the consolidated net profit and other financial information of the Group including its associates in accordance with the recognition and measurement principles laid down in the Accounting  Standards specified under section 133 of the Act read along with the rules issued thereunder,  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. The respective Board of Directors of the entities included in the Group and of its associates are responsible for the maintenance of adequate accounting records in accordance with the provisions of the Act/ RBI Guidelines for safeguarding of the assets of  the  Group and 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 the accuracy and completeness of  the  accounting  records,  relevant  to  the  preparation  and  presentation  of  the consolidated Financial Results 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 Consolidated Financial Results by the Directors of the Bank, as aforesaid.

 

5.      In preparing the Consolidated Financial Results, 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  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 respective entities in the Group or to cease operations, or has no realistic alternative but to do so.

 

6.      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

 

7.      Our objectives are to obtain reasonable assurance about whether the consolidated Financial Results as a whole are 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 these consolidated Financial Results. 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 consolidated Financial Results, 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 in place adequate internal financial controls with reference to consolidated financial statements 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 consolidated Financial Results 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 its associates to cease to continue as a going concern.

 

·        Evaluate the overall presentation, structure, and content of the consolidated Financial Results, including the disclosures, and whether the consolidated Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

 

·        Obtain sufficient appropriate audit evidence regarding the financial results/ financial information of the entities within the Group and its associates to express an opinion on the Consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Consolidated Financial Results of which we are the independent auditors. For the other entities included in the Consolidated Financial Results, 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.

 

8.      We communicate with those charged with governance of the Bank and such other entities included in the consolidated results 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.

 

9.      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.

 

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

 

Other Matters

11.   The Consolidated Financial Results include the audited financial results of one subsidiary, whose financial statements/financial results/financial information reflect total assets of Rs. 2,607.24 lakhs as at 31st March 2023, total revenues of Rs. 6,185.27 lakhs and total net profit after tax of Rs. 477.67 lakhs for the year ended 31st March 2023, and net cash inflow amounting to Rs. 332.58 lakhs for the year ended on that date, as considered in the Consolidated Financial Results, which have been audited by one of the joint auditors of the Bank whose reports have been furnished to us by the management. The Consolidated Financial Results also include the audited financial results of one subsidiary, whose financial statements/financial results/ financial information reflect total assets of Rs. 9,02,048 lakhs as at 31st March 2023, total revenues of Rs. 1,22,597 lakhs and total net profit after tax of Rs. 16,839 lakhs for the year ended 31st March 2023 and net cash inflow amounting to Rs. 38,492 lakhs for the year ended on that date, as considered in the Consolidated Financial Results, which have been audited by other independent auditors whose reports have been furnished to us by the management. Our opinion on the Consolidated Financial Results, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of such auditors and the procedures performed by us are as stated in section above.

 

12.   The Consolidated Financial Results also include the Group's share of net profit of Rs. 3,405.97 lakhs for the year ended 31st March 2023, as considered in the Consolidated Financial Results, in respect of two associates, whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose report has been furnished to us by the Management and our opinion on the Consolidated Financial Results, in so far as it relates to the amounts and disclosures included in respect of these associates, is based solely on the reports of such auditors and the procedures performed by us are as stated in section above.

 

13.   The Consolidated Financial Results includes the results for the quarter ended 31st March 2023, being the derived balancing figures between the Consolidated audited Financial Results in respect of the full financial year ended 31st March 2023 and the published consolidated unaudited year to date figures upto the nine months ended 31st December 2022, which have only been reviewed and not subjected to audit by us.

 

Our opinion on the Consolidated Financial Results is not modified in respect of the above matters.

 

For Varma & Varma                                                                                        For Borkar & Muzumdar

Chartered Accountants                                                                                 Chartered Accountants

FRN: 004532S                                                                                                     FRN: 101569W

 

               

Vijay Narayan Govind                                                                                Kaushal Muzumdar

Partner                                                                                                                 Partner

M. No. 203094                                                                                   M. No.  100938

UDIN:    23203094BGXYMA8002                                                 UDIN: 23100938BGQQRG6621

Kochi                                                                                                                     Kochi

05th May 2023                                                                                                 05th May 2023































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, 2023

 

 

 

 

 

 

 (₹ in Lakhs)

Particulars

Quarter ended

Year ended

31.03.2023

31.12.2022

31.03.2022

31.03.2023

31.03.2022

Audited
(Refer Note 12 below)

Unaudited

Audited
(Refer Note 12 below)

Audited

Audited

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

472,074

443,325

348,324

1,680,363

1,366,076

(a)

Interest/discount on advances/bills

379,743

358,487

275,446

1,349,184

1,082,975

(b)

Income on investments

77,802

72,069

59,290

279,557

233,867

(c)

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

5,151

4,977

5,614

20,625

22,027

(d)

Others

9,378

7,792

7,974

30,997

27,207

2. Other income

73,386

53,400

46,500

233,000

208,909

3. TOTAL INCOME (1+2)

     545,460

     496,725

     394,824

1,913,363

1,574,985

4. Interest expended

281,145

247,672

195,803

957,147

769,880

5. Operating expenses (i)+(ii)

130,858

121,632

119,201

476,777

429,320

(i)

Employees cost

59,722

56,083

63,725

217,300

232,055

(ii)

Other operating expenses

71,136

65,549

55,476

259,477

197,265

6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)

412,003

369,304

315,004

1,433,924

1,199,200

133,457

127,421

79,820

479,439

375,785

8. Provisions (other than tax) and contingencies

11,666

19,869

7,524

74,989

122,177

9. Exceptional items


-

-

-

-

-

10. Profit from Ordinary Activities before tax
(7-8-9)

121,791

107,552

72,296

404,450

253,608

11. Tax expense


31,530

27,191

18,242

103,391

64,626

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

90,261

80,361

54,054

301,059

188,982

13. Extraordinary items (net of tax expense)


-

-

-

-

-

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

 

90,261

80,361

54,054

301,059

188,982

15. Paid-up Equity Share Capital
(Face value ₹ 2/- per Equity Share)

42,324

42,291

42,051

42,324

42,051

16. Reserves excluding Revaluation Reserve




2,107,799

1,836,832

17. Analytical Ratios and Other Disclosures:







(i)

Percentage of shares held by Government of India

NIL

NIL

NIL

NIL

NIL

(ii)

Capital Adequacy ratio (%)







Under Basel III

14.81

13.35

15.77

14.81

15.77

(iii)

Earnings per Share (EPS) (in ₹)







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

4.27*

3.80*

2.57*

14.27

9.13


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

4.21*

3.75*

2.55*

14.13

9.06

(iv)

NPA Ratios







a) Gross NPA

418,377

414,785

413,674

418,377

413,674


b) Net NPA

120,501

122,859

139,262

120,501

139,262


c) % of Gross NPA

2.36

2.43

2.80

2.36

2.80


d) % of Net NPA

0.69

0.73

0.96

0.69

0.96

(v)

Return on Assets (%)

0.36*

0.33*

0.25*

1.28

0.94

(vi)

Net Worth

2,141,949

2,045,675

1,866,098

2,141,949

1,866,098

(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 #

0.90

0.96

             0.82

             0.90

             0.82

(xi)

Total Debts to Total Assets #

7.42%

7.86%

6.97%

7.42%

6.97%

(xii)

Operating Margin

24.47%

25.65%

20.22%

25.06%

23.86%

(xiii)

Net Profit Margin

16.55%

16.18%

13.69%

15.73%

12.00%








* Not Annualised






# Debt and Total Debts represents Total Borrowings of the Bank




 

Segment Information@

 











 (₹ in Lakhs)

Particulars

Quarter ended

Year ended

31.03.2023

31.12.2022

31.03.2022

31.03.2023

31.03.2022

Audited
(Refer Note 12 below)

Unaudited

Audited
(Refer Note 12 below)

Audited

Audited

Segment Revenue:







Treasury

71,178

60,885

49,475

253,996

235,130


Corporate/Wholesale Banking

154,509

138,045

103,851

524,048

426,734


Retail Banking

315,179

293,526

236,429

1,120,482

898,700


    a) Digital Banking

26,366

23,960

17,681

90,354

56,772


    b) Other Retail Banking

288,813

269,566

218,748

1,030,128

841,928


Other Banking operations

4,444

4,153

3,400

14,350

10,800


Unallocated

150

116

1,669

487

3,621

 

Total Revenue

545,460

496,725

394,824

1,913,363

1,574,985


Less: Inter Segment Revenue

-

-

-

-

-

 

Income from Operations

545,460

496,725

394,824

1,913,363

1,574,985

Segment Results (net of provisions):







Treasury

9,952

9,576

5,512

50,577

64,135


Corporate/Wholesale Banking

39,889

26,155

17,497

95,399

55,657


Retail Banking

68,022

68,175

44,728

245,789

121,015


    a) Digital Banking

4,493

4,071

3,112

11,359

6,880


    b) Other Retail Banking

63,529

64,104

41,616

234,430

114,135


Other Banking operations

3,778

3,530

2,890

12,198

9,180


Unallocated

150

116

1,669

487

3,621

 

Profit before tax

121,791

107,552

72,296

404,450

253,608

Segment Assets:

 

 

 

 

 

 


Treasury

5,230,629

4,907,856

4,768,440

5,230,629

4,768,440


Corporate/Wholesale Banking

9,699,651

9,375,662

7,858,857

9,699,651

7,858,857


Retail Banking

10,441,427

9,982,259

8,798,646

10,441,427

8,798,646


    a) Digital Banking

416,592

355,734

204,346

416,592

204,346


    b) Other Retail Banking

10,024,835

9,626,525

8,594,300

10,024,835

8,594,300


Other Banking operations

-

-

-

-

-


Unallocated

662,476

781,411

668,688

662,476

668,688

 

Total

26,034,183

25,047,188

22,094,631

26,034,183

22,094,631

Segment Liabilities:

 







Treasury

2,913,818

2,607,512

1,802,189

2,913,818

1,802,189


Corporate/Wholesale Banking

2,424,409

2,245,069

1,867,906

2,424,409

1,867,906


Retail Banking

18,277,723

17,797,499

16,298,555

18,277,723

16,298,555


    a) Digital Banking

1,203,720

1,082,117

627,564

1,203,720

627,564


    b) Other Retail Banking

17,074,003

16,715,382

15,670,991

17,074,003

15,670,991


Other Banking operations

-

-

-

-

-


Unallocated

267,609

338,338

246,597

267,609

246,597

 

Total

23,883,559

22,988,418

20,215,247

23,883,559

20,215,247

Capital Employed:






(Segment Assets - Segment Liabilities)







Treasury

        2,316,811

        2,300,344

        2,966,251

        2,316,811

        2,966,251


Corporate/Wholesale Banking

7,275,242

7,130,593

5,990,951

7,275,242

5,990,951


Retail Banking

(7,836,296)

(7,815,240)

(7,499,909)

(7,836,296)

(7,499,909)


    a) Digital Banking

(787,128)

(726,383)

(423,218)

(787,128)

(423,218)


    b) Other Retail Banking

(7,049,168)

(7,088,857)

(7,076,691)

(7,049,168)

(7,076,691)


Other Banking operations

-

-

-

-

-


Unallocated

394,867

443,073

422,091

394,867

422,091

 

Total

2,150,624

2,058,770

1,879,384

2,150,624

1,879,384

 

 






@

For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines.

As per the RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022 on establishment of Digital Banking Unit (DBU), for the purpose of disclosure under 'Accounting Standard 17 - Segment Reporting', 'Digital Banking' has been identified as a sub-segment of the existing 'Retail Banking' segment by Reserve Bank of India (RBI). Accordingly the bank has disclosed the business involving digital banking products acquired by DBU, together with existing digital banking products, under the Digital Banking segment.

The business  operations of the Bank are substantially concentrated in India and for the purpose of Segment Reporting as per Accounting Standard-17, the bank is considered to operate only in domestic segment.


 

 

 











Statement of Assets and Liabilities of the Bank as at March 31, 2023 is given below:







(₹ in Lakhs)

 



Particulars

As at 31.03.2023

As at 31.03.2022

 



Audited

Audited

 



CAPITAL AND LIABILITIES






Capital

42,324

42,051




Reserves and Surplus

2,108,300

1,837,333




Deposits

21,338,604

18,170,059




Borrowings

1,931,928

1,539,311




Other Liabilities and Provisions

613,027

505,877




Total

26,034,183

22,094,631

 



ASSETS






Cash and Balances with Reserve Bank of India

1,259,085

1,604,927




Balance with Banks and Money at Call and Short Notice

509,783

496,108




Investments

4,898,335

3,917,946




Advances

17,444,688

14,492,833




Fixed Assets

93,397

63,394




Other Assets

1,828,895

1,519,423




Total

26,034,183

22,094,631

 









Notes:

 





1

The above Standalone Audited Financial Results for the quarter and year ended March 31, 2023 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on May 05, 2023. These Results have been subjected to Audit by the Statutory Central Auditors of the Bank and an unqualified audit report has been issued.








2

The Bank has consistently applied its significant accounting policies in the preparation of the quarterly financial results and its annual financial statements during the years ended March 31, 2023 and March 31, 2022.








3

The financial results have been arrived at after considering provision for standard assets (including requirements for exposures to entities with unhedged foreign currency exposures), provision for Non-Performing Assets (NPAs), provision for non-performing investments, provision for income-tax and other usual and necessary provisions.








4

Other income includes fees earned from providing services to customers, commission from non-fund-based banking activities, earnings from foreign exchange and derivative transactions, selling of third-party products, profit on sale of investments (net), profit / loss on revaluation of investments, dividend received from subsidiaries / associates, recoveries from advances written off, etc.








5

The Capital Adequacy Ratio is computed on the basis of RBI guidelines applicable on the relevant reporting dates and the ratio for the corresponding previous period is not adjusted to consider the impact of subsequent changes if any, in the guidelines.








6

During the quarter and year ended March 31, 2023, the Bank has allotted 1,630,775 and 13,637,270 equity shares of ` 2 each respectively, pursuant to the exercise of stock options by employees.








7

As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank.








8

The Board of Directors have recommended a dividend of 50% i.e. ` 1.00/- per Equity Share on face value of ` 2/- each for the year 2022-23 (Previous Year ` 1.80/- 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 ` 21,162.01 Lakhs from the Profit and loss account for the year ended March 31, 2023. 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, 2023.








9

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 
classified as Standard 
consequent to  implementation of resolution  plan  - Position as at the end of the previous  half-year ended September 30 , 2022 (A) (1)

Of (A), aggregate debt that slipped into NPA during the 
half-year

Of (A) amount 
written off during the half-year

Of (A) amount paid  by the borrowers 
during the half- year(2)

Exposure to accounts 
classified as Standard 
consequent to  implementation of resolution  plan  - Position as at the end of this half-year ended March 31 , 2023 (1)


Personal Loans

191,029.53

8,032.09

-

13,480.56

171,125.31


Corporate persons

23,498.94

528.65

-

4,272.00

18,780.68


Of which, MSMEs

-

-

-

-

-


Others

33,829.26

2,307.98

-

4,652.49

26,890.61


Total

248,357.73

10,868.72

-

22,405.05

216,796.60

 








1. Excludes other facilities to the borrowers which have not been restructured.


2. Represents net movement in balance outstanding.








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 year ended March 31, 2023 are given below:


i) Details of loans not in default acquired through assignment during the year ended March 31, 2023 are given below:









Particulars

Value

 


Aggregate amount of loans acquired (` in lakhs)

9,225.00



Weighted average residual maturity (in years)

6.50



Weighted average holding period by originator (in years)

0.50



Retention of beneficial economic interest by the originator

NIL



Tangible security coverage

93.56%



Rating-wise distribution

AA-












ii)  During the year ended March 31, 2023, the bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA).









iii)  During the year ended March 31, 2023, the bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of stressed loans transferred to ARCs.















11

The bank has raised ` 99,500.00 Lakhs Tier II capital on March 29, 2023, by way of issuance of unsecured Basel III compliant Tier-II Subordinate Bonds on private placement basis.








12

The figures of the last quarter are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the respective financial year, which were subjected to limited review.








13

Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification.











 SHYAM SRINIVASAN

Kochi


 MANAGING DIRECTOR & CEO

May 05, 2023


 (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, 2023



(₹ in Lakhs)

 Particulars

 Year ended
 March 31, 2023

Year ended
 March 31, 2022

Cash Flow from Operating Activities



Net Profit Before Taxes

                      404,450

                      253,608

Adjustments for:



Depreciation on Bank's Property

                        16,461

                        12,296

Provision / Depreciation on Investments

                         4,113

                         7,979

Amortisation of Premium on Held to Maturity Investments

                        17,446

                        16,923

Provision / Charge for Non Performing Advances

                        59,134

                        61,111

Provision for Standard Assets and Contingencies

                        16,523

                        61,222

(Profit)/Loss on Sale of Fixed Assets (net)

                            (82)

                           (531)

Dividend From Subsidiaries / Joint ventures / Associates

                           (837)

                        (2,767)

Employees Stock Option Expense

                            111

                              51

 

                          517,319

                          409,892

Adjustments for working capital changes:-



(Increase)/ Decrease in Investments [excluding Held to Maturity Investments]

                      (65,669)

                     (328,778)

(Increase)/ Decrease in Advances

                  (3,010,990)

                  (1,366,084)

(Increase)/ Decrease in Other Assets

                     (297,492)

                     (279,436)

Increase/ (Decrease) in Deposits

                    3,168,545

                      905,611

Increase/ (Decrease) in Other Liabilities and Provisions

                        90,627

                        93,340


                     (114,979)

                    (975,347)

Direct taxes paid (net)

                     (115,370)

                      (84,286)

Net Cash Flow from / (Used in) Operating Activities

                          286,970

                        (649,741)




Cash Flow from Investing Activities



Purchase of Fixed Assets

                      (46,683)

                      (26,770)

Proceeds from Sale of Fixed Assets

                            302

                           724

Dividend From Subsidiaries / Joint ventures / Associates

                            837

                          2,767

Investment in Subsidiary

                             -  

                      (14,799)

Investment in Associate

                             -  

                           (241)

(Increase)/ Decrease in Held to Maturity Investments

                     (936,280)

                      119,591

Net Cash generated / (Used in) Investing Activities

                       (981,824)

                       81,272




Cash Flow from Financing Activities



Proceeds from Issue of Share Capital

                            273

                         2,128

Proceeds from Share Premium (Net of Share Issue Expenses)

                         9,249

                        90,385

Proceeds from Issue of Subordinate Debt

                        99,500

                        70,000

Increase/(Decrease) in Borrowings (Excluding Subordinate Debt)

                      293,117

                      562,461

Dividend Paid

                      (37,866)

                      (13,974)




Net Cash generated from Financing Activities

                          364,273

                      711,000

 

 

 

Effect of Exchange Fluctuation on Translation Reserve

                        (1,586)

                           (635)




Net Increase / (Decrease) in Cash and Cash Equivalents

                        (332,167)

                          141,896




Cash and Cash Equivalents at the beginning of the year

                    2,101,035

                    1,959,139

Cash and Cash Equivalents at the end of the year

                    1,768,868

                    2,101,035




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 05, 2023

 (DIN: 02274773) 




 

 


 

 

 

 

 






























THE FEDERAL BANK LIMITED

 

 

 

 

 

 

(₹ in Lakhs)

Particulars

Quarter ended

Year ended

31.03.2023

31.12.2022

31.03.2022

31.03.2023

31.03.2022

Audited
(Refer Note 10 below)

 Unaudited

Audited
(Refer Note 10 below)

 Audited

 Audited

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

501,226

469,750

368,630

1,781,178

1,438,153

(a)

Interest/discount on advances/bills

408,955

384,986

296,150

1,450,788

1,156,431

(b)

Income on investments

77,561

71,785

58,821

278,188

231,649

(c)

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

5,151

4,977

5,614

20,625

22,027

(d)

Others

9,559

8,002

8,045

31,577

28,046

2. Other income

76,842

56,508

48,425

243,623

212,094

3. TOTAL INCOME (1+2)

578,068

526,258

417,055

2,024,801

1,650,247

4. Interest expended

293,754

258,490

202,995

997,524

795,938

5. Operating expenses (i)+(ii)

144,915

132,986

127,884

521,120

459,215

(i)

Employees cost

67,225

62,915

68,954

244,024

251,166

(ii)

Other operating expenses

77,690

70,071

58,930

277,096

208,049

6. TOTAL EXPENDITURE (4+5)
(excluding provisions and contingencies)

438,669

391,476

330,879

1,518,644

1,255,153

7. OPERATING PROFIT (3-6)
 (Profit before provisions and contingencies)

139,399

134,782

86,176

506,157

395,094

8. Provisions (other than tax) and contingencies

12,526

21,364

8,394

79,863

130,466

9. Exceptional items


-

-

-

-

-

10. Profit from Ordinary Activities before tax
(7-8-9)

126,873

113,418

77,782

426,294

264,628

11. Tax expense


32,916

28,190

19,606

108,718

68,088

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

93,957

85,228

58,176

317,576

196,540

13. Extraordinary items (net of tax expense)


-

-

-

-

-

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

 

93,957

85,228

58,176

317,576

196,540

15. Minority interest


964

1,278

1,137

4,510

2,664

16. Share in Profit of Associates


2,398

375

1,715

3,406

3,103

17. Consolidated Net Profit of the group
(14-15+16)

95,391

84,325

58,754

316,472

196,979

18. Paid-up Equity Share Capital
(Face value ₹ 2/- per Equity Share)

42,324

42,291

42,051

42,324

42,051

19. Reserves excluding Revaluation Reserve




2,169,416

1,883,000

20. Analytical Ratios and Other Disclosures:







(i)

Percentage of shares held by Government of India

NIL

NIL

NIL

NIL

NIL

(ii)

Capital Adequacy ratio (%)







Under Basel III

15.24

13.81

16.33

15.24

16.33

(iii)

Earnings per Share (EPS) (in `)







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

4.51*

3.99*

2.79*

15.01

9.52


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

4.45*

3.94*

2.77*

14.85

9.44

(iv)

NPA Ratios







a) Gross NPA

434,352

430,899

425,653

434,352

425,653


b) Net NPA

132,344

134,855

147,977

132,344

147,977


c) % of Gross NPA

2.35

2.42

2.78

2.35

2.78


d) % of Net NPA

0.73

0.77

0.98

0.73

0.98

(v)

Return on Assets (%)

0.36*

0.34*

0.27*

1.28

0.91

* Not Annualised






 

 

Segment Information@

 





 






 

 (₹ in Lakhs)

 

Particulars

Quarter ended

Year ended

 

31.03.2023

31.12.2022

31.03.2022

 31.03.2023

31.03.2022

 

Audited
(Refer Note 10 below)

Unaudited

Audited
(Refer Note 10 below)

 Audited

Audited

 

Segment Revenue:






 


Treasury

71,529

61,099

49,102

253,555

231,327

 


Corporate/Wholesale Banking

153,767

137,246

102,659

520,704

422,307

 


Retail Banking

346,307

321,779

258,742

1,228,710

978,155

 


    a) Digital Banking

26,366

23,960

17,681

90,354

56,772

 


    b) Other Retail Banking

319,941

297,819

241,061

1,138,356

921,383

 


Other Banking operations

6,293

5,920

4,883

21,225

14,837

 


Unallocated

172

214

1,669

607

3,621

 

 

Total Revenue

578,068

526,258

417,055

2,024,801

1,650,247

 


Less: Inter Segment Revenue

-

-

-

-

-

 

 

Income from Operations

578,068

526,258

417,055

2,024,801

1,650,247

 

Segment Results (net of provisions):






 


Treasury

10,832

10,385

5,713

52,460

62,722

 


Corporate/Wholesale Banking

39,642

25,960

16,397

94,335

54,114

 


Retail Banking

70,018

72,405

50,418

261,538

133,433

 


    a) Digital Banking

4,493

4,071

3,112

11,359

6,880

 


    b) Other Retail Banking

65,525

68,334

47,306

250,179

126,553

 


Other Banking operations

4,671

4,455

3,585

15,817

10,738

 


Unallocated

1,710

213

1,669

2,144

3,621

 

 

Profit before tax

126,873

113,418

77,782

426,294

264,628

 

Segment Assets:

 

 

 

 

 

 

 


Treasury

5,206,924

4,896,686

4,763,764

5,206,924

4,763,764

 


Corporate/Wholesale Banking

9,672,729

9,342,502

7,808,465

9,672,729

7,808,465

 


Retail Banking

11,256,964

10,775,908

9,378,255

11,256,964

9,378,255

 


    a) Digital Banking

416,592

355,734

204,346

416,592

204,346

 


    b) Other Retail Banking

10,840,372

10,420,174

9,173,909

10,840,372

9,173,909

 


Other Banking operations

1,313

798

401

1,313

401

 


Unallocated

662,476

781,411

673,219

662,476

673,219

 

 

Total

   26,800,406

   25,797,305

   22,624,104

   26,800,406

   22,624,104

 

Segment Liabilities:

 






 


Treasury

2,942,093

2,658,030

1,859,584

2,942,093

1,859,584

 


Corporate/Wholesale Banking

2,414,080

2,249,040

1,877,366

2,414,080

1,877,366

 


Retail Banking

18,928,892

18,402,087

16,684,108

18,928,892

16,684,108

 


    a) Digital Banking

1,203,720

1,082,117

627,564

1,203,720

627,564

 


    b) Other Retail Banking

17,725,172

17,319,970

16,056,544

17,725,172

16,056,544

 


Other Banking operations

294

314

364

294

364

 


Unallocated

267,609

338,338

246,597

267,609

246,597

 

 

Total

24,552,968

23,647,809

20,668,019

24,552,968

20,668,019

 

Capital Employed:






 

(Segment Assets - Segment Liabilities)






 


Treasury

2,264,831

2,238,656

2,904,180

2,264,831

2,904,180

 


Corporate/Wholesale Banking

7,258,649

7,093,462

5,931,099

7,258,649

5,931,099

 


Retail Banking

(7,671,928)

(7,626,179)

(7,305,853)

(7,671,928)

(7,305,853)

 


    a) Digital Banking

(787,128)

(726,383)

(423,218)

(787,128)

(423,218)

 


    b) Other Retail Banking

(6,884,800)

(6,899,796)

(6,882,635)

(6,884,800)

(6,882,635)

 


Other Banking operations

1,019

484

37

1,019

37

 


Unallocated

394,867

443,073

426,622

394,867

426,622

 

 

Total

2,247,438

2,149,496

1,956,085

2,247,438

1,956,085

 

 

 






 

@

For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines.

As per the RBI Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 07, 2022 on establishment of Digital Banking Unit (DBU), for the purpose of disclosure under 'Accounting Standard 17 - Segment Reporting', 'Digital Banking' has been identified as a sub-segment of the existing 'Retail Banking' segment by Reserve Bank of India (RBI). Accordingly the bank has disclosed the business involving digital banking products acquired by DBU, together with existing digital banking products, under the Digital Banking segment.

The business  operations of the Bank are substantially concentrated in India and for the purpose of Segment Reporting as per Accounting Standard-17, the bank is considered to operate only in domestic segment.

 








 


Statement of Assets and Liabilities of the group as at March 31, 2023 is given below:

 





(` in Lakhs)

 


 


Particulars

As at 31.03.2023

As at 31.03.2022

 


 


Audited

Audited

 


 


CAPITAL AND LIABILITIES





 


Capital

42,324

42,051



 


Reserves and Surplus

2,169,917

1,883,501



 


Minority Interest

35,197

30,533



 


Deposits

21,298,850

18,167,752



 


Borrowings

2,586,198

1,958,739



 


Other Liabilities and Provisions

667,920

541,528



 


Total

26,800,406

22,624,104

 


 


ASSETS





 


Cash and Balances with Reserve Bank of India

1,260,424

1,606,611



 


Balance with Banks and Money at Call and Short Notice

519,969

507,000



 


Investments

4,870,224

3,906,519



 


Advances

18,195,675

14,995,146



 


Fixed Assets

97,171

67,210



 


Other Assets

1,856,943

1,541,618



 


Total

26,800,406

22,624,104

 


 








 

Notes:

 





 

1

The above Consolidated Audited Financial Results for the quarter and year ended March 31, 2023 were reviewed by the Audit Committee and subsequently approved by the Board of Directors at its meeting held on May 05, 2023. These Results have been subjected to Audit by the Statutory Central Auditors of the Bank and an unqualified audit 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

The group has not made any changes in the significant accounting policies applied in the preparation of the quarterly financial results and its annual financial statements for the years ended March 31, 2023 and March 31, 2022 having a material impact on the results.

 

4

The financial results have been arrived at after considering provision for standard assets (including requirements for exposures to entities with unhedged foreign currency exposures), provision for Non-Performing Assets (NPAs), provision for non-performing investments, provision for income-tax and other usual and necessary provisions.

 








 

5

Other income includes fees earned from providing services to customers, commission from non-fund-based banking activities, earnings from foreign exchange and derivative transactions, selling of third-party products, profit on sale of investments (net), profit / loss on revaluation of investments, recoveries from advances written off etc.

 








 

6

The Capital Adequacy Ratio is computed on the basis of RBI guidelines applicable on the relevant reporting dates and the ratio for the corresponding previous period is not adjusted to consider the impact of subsequent changes if any, in the guidelines.

 








 

7

As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank.

 








 

8

The Board of Directors have recommended a dividend of 50% i.e. ` 1.00/- per Equity Share on face value of ` 2/- each for the year 2022-23 (Previous Year ` 1.80/- 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 ` 21,162.01 Lakhs from the Profit and loss account for the year ended March 31, 2023. 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, 2023.

 








 

9

The bank has raised ` 99,500.00 Lakhs Tier II capital on March 29, 2023, by way of issuance of unsecured Basel III compliant Tier-II Subordinate Bonds on private placement basis.

 








 

10

The figures of the last quarter are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the respective financial year, which were subjected to limited review.

 








 

11

Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification.

 

 

 




 SHYAM SRINIVASAN

 

Kochi


 MANAGING DIRECTOR & CEO

 

May 05, 2023


 (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, 2023

 

(₹ in Lakhs)

 Particulars

 Year ended
 March 31, 2023

Year ended
 March 31, 2022

Cash Flow from Operating Activities



Net Profit Before Taxes

                     425,190

265,067

Adjustments for:



Depreciation on Group's Property

                       18,218

13,890

Provision / Depreciation on Investments

                         4,075

8,063

Amortisation of Premium on Held to Maturity Investments

                       17,446

16,922

Provision / Charge for Non Performing Advances

                       65,528

66,154

Provision for Standard Assets and Contingencies

                       15,003

64,384

(Profit)/ Loss on Sale of Fixed Assets (net)

                           (83)

(533)

Employees Stock Option Expense

                           113

57

 

                         545,490

434,004

Adjustments for working capital changes:-



(Increase)/ Decrease in Investments [excluding Held to Maturity Investments]

                      (48,947)

(377,928)

(Increase)/ Decrease in Advances

                 (3,266,057)

(1,509,859)

(Increase)/ Decrease in Other Assets

                    (302,838)

(281,657)

Increase/ (Decrease) in Deposits

                   3,131,098

 949,142

Increase/ (Decrease) in Other Liabilities and Provisions

                     111,388

 98,261


                       (375,356)

(1,122,041)

Direct taxes paid (net)

                    (121,204)

(89,328)

Net Cash Flow from / (Used in) Operating Activities

                           48,930

(777,365)




Cash Flow from Investing Activities



Purchase of Fixed Assets

                      (48,402)

(29,552)

Proceeds from Sale of Fixed Assets

                           307

734

(Increase)/ Decrease in Held to Maturity Investments

                    (936,279)

119,592

Net Cash generated / (Used in) Investing Activities

                       (984,374)

90,774

 

 

 

Cash Flow from Financing Activities



Proceeds from Issue of Share Capital

                           273

 2,128

Proceeds from Share Premium (Net of Share Issue Expenses)

                         9,309

90,573

Increase / (Decrease) in Minority Interest

                         4,637

8,858

Proceeds from Issue of Subordinate Debt

                       99,500

70,480

Increase/(Decrease) in Borrowings (Excluding Subordinate Debt)

                     527,959

661,199

Dividend Paid

                      (37,866)

(13,974)




Net Cash generated  from Financing Activities

                         603,812

819,264

 

 

 

Effect of Exchange Fluctuation on Translation Reserve

                       (1,586)

(635)




Increase/(Decrease) in Cash and Cash Equivalents

                       (333,218)

132,038




Cash and Cash Equivalents at the beginning of the year

                   2,113,611

1,981,573

Cash and Cash Equivalents at the end of the year

                   1,780,393

2,113,611




 

 

 

 

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 05, 2023

 (DIN: 02274773)











 

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