SD/F-24/129/2020-21 22 October 2020
To,
The London Stock Exchange
Dear Sir,
We enclose herewith the Un- Audited Standalone and Consolidated Financial Results of the Bank for the period ended September 30, 2020 which was approved at the Bank's Board of Directors meeting held on 16th October 2020
Kindly take the same on your record.
For The Federal Bank Limited
Samir P Rajdev
Company Secretary
Varma & Varma Borkar & Muzumdar
Chartered Accountants, Chartered Accountants
No.53/2600, Kerala Varma Tower Anand Nagar, Om Co-op
Off Kunjanbava Road, Hsg Society, Anand Nagar Lane
Vytilla, Off Nehru Road, Santacruz(East)
Kochi -682019 Mumbai - 400 055
Limited Review Report on unaudited standalone financial results of The Federal Bank Limited for the quarter/half year ended 30th September 2020, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015
Review Report to
The Board of Directors,
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of The Federal Bank Limited ('the Bank') for the quarter/half year ended 30th September, 2020 ('the Statement') attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (as amended), except for the disclosures relating to Pillar 3 disclosure under Basel III Capital Regulations, as at 30th September 2020, including Leverage Ratio and Liquidity Coverage Ratio as have been disclosed on the Bank's website and in respect of which a link has been provided in the aforesaid Statement, which have not been reviewed by us.
2. The Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25'), prescribed under section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines'), SEBI circular CIR/CFD/FAC/62/2016 dated 5th July, 2016 (hereinafter referred to as the 'SEBI Circular'), and other accounting principles generally accepted in India. Our responsibility is to issue a report on the Statement based on our review.
3. We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
4. Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.
5. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of Unaudited Standalone Financial Results prepared in accordance with applicable accounting standards, the RBI Guidelines, the SEBI circular and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) including the manner in which it is to be disclosed, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters.
6. We draw attention to Note No.10 of the accompanying Statement of Unaudited Standalone Financial results, regarding the impact of COVID-19 pandemic and the adjustments made in the accounts for the quarter/half year ended 30th September, 2020 on account of the same. As stated therein, in view of continuing uncertainties, the extent of impact of the pandemic on the Bank's operations and financial position would depend on various aspects, including actions taken to mitigate its impact and other regulatory measures.
Our conclusion on the Statement is not modified in respect of this matter.
7. The review of unaudited quarterly/half yearly financial results for the quarter ended 30th June 2020 and the quarter/half year ended 30th September 2019 and audit of financial results for the year ended 31st March 2020 included in the Statement were carried out and reported by predecessor auditors who have expressed unmodified conclusion vide review reports dated 15th July, 2020 and 16th October 2019 respectively for the periods ended 30th June 2020 and 30th September 2019 and unmodified opinion vide audit report dated 28th May, 2020, whose reports have been furnished to us and which have been relied upon by us for the purpose of our review of the Statement.
Our conclusion on the Statement is not modified in respect of this matter.
For Varma & Varma For Borkar & Muzumdar
Chartered Accountants Chartered Accountants
FRN:004532S FRN:101569W
R Rajasekharan Devang Vaghani
Partner Partner
M. No. 22703 M. No. 109386
UDIN: 20022703AAAAAA8316 UDIN: 20109386AAAAFN1336
Kochi-19 Mumbai-55
16th October 2020 16th October 2020
Varma & Varma Borkar & Muzumdar
Chartered Accountants, Chartered Accountants
No.53/2600, Kerala Varma Tower Anand Nagar, Om Co-op
Off Kunjanbava Road, Hsg Society, Anand Nagar Lane
Vytilla, Off Nehru Road, Santacruz(East)
Kochi -682019 Mumbai - 400 055
Limited Review Report on consolidated unaudited financial results of The Federal Bank Limited for the quarter/half year ended 30th September 2020, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015
Review Report to
The Board of Directors,
The Federal Bank Limited
1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of The Federal Bank Limited (the 'Bank') and its Subsidiaries (the Bank and its subsidiaries together referred to as 'the Group') and its share of the net profit after tax of its Associates for the quarter ended 30th September 2020 and the year to date results for the period from 1st April 2020 to 30th September 2020 (the 'Statement'), attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations'), except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30th September 2020, including Leverage Ratio and Liquidity Coverage Ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the aforesaid Statement, which have not been reviewed by us.
2. The Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25'), prescribed under section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines'), SEBI circular CIR/CFD/FAC/62/2016 dated 5th July, 2016 (hereinafter referred to as the 'SEBI Circular'), and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, to the extent applicable.
4. Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.
5. This Statement includes the results of the following entities:
a. Fedbank Financial Services Limited (Subsidiary)
b. Federal Operations and Services Limited (Subsidiary)
c. IDBI Federal Life Insurance Company Limited (Associate)
d. Equirus Capital Private Limited (Associate)
6. Based on our review conducted and procedures performed as stated in Paragraphs 3 and 4 above and based on the consideration of the review reports of other auditors referred to in Paragraphs 8 and 9 below, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards, the RBI Guidelines, the SEBI circular and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) including the manner in which it is to be disclosed, except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30th September 2020, including Leverage Ratio and Liquidity Coverage Ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the aforesaid Statement, which have not been reviewed by us, or that it contains any material misstatement.
7. We draw attention to Note No.11 of the accompanying Statement, regarding the impact of COVID-19 pandemic and the adjustments made in the accounts for the quarter/half year ended 30th September, 2020 on account of the same. As stated therein, in view of continuing uncertainties, the extent of impact of the pandemic on the Bank's operations and financial position would depend on various aspects, including actions taken to mitigate its impact and other regulatory measures.
Our conclusion on the Statement is not modified in respect of this matter.
8. The statement of consolidated unaudited financial results includes the interim financial statements / financial information/ financial results of the two subsidiaries whose unaudited financial results reflects total assets of Rs. 4,54,990.48 Lakhs as at 30th September 2020 and total revenues of Rs. 17,416.68 Lakhs and Rs.32,940.75 Lakhs and total net profit after tax of Rs.808.06 Lakhs and Rs.2241.69 Lakhs for the quarter ended 30th September 2020 and for the period from 1st April 2020 to 30th September 2020 respectively, and cash flows (net) of Rs.15,560.19 for the period from 1st April 2020 to 30th September 2020. These interim financial statements/financial information/ financial results have been reviewed by one of the Joint auditors of the Bank, whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on their reports and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
9. The statement of consolidated unaudited financial results includes the Group's share of net loss after tax of Rs.42.73 Lakhs and Rs.49.55 Lakhs for the quarter ended 30th September 2020 and for the period from 01st April 2020 to 30th September 2020, respectively, in respect of one associate whose interim financial results have not been reviewed by us. These interim financial results have been reviewed by another auditor whose report has been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said associate, is based solely on the report of the other auditor and the procedures performed by us as stated in Paragraphs 3 and 4 above.
Our conclusion on the Statement is not modified in respect of this matter.
10. The statement of consolidated unaudited financial results also includes the Group's share of net profit after tax of Rs.216.74 lakhs and Rs.379.95 lakhs for the quarter ended 30th September 2020 and for the period from 1st April 2020 to 30th September 2020, respectively, in respect of one associate, based on their interim financial results which have not been reviewed/audited. According to the information and explanations given to us by the Management, these interim financial statements / financial information / financial results are not material to the Group.
Our conclusion on the Statement is not modified in respect of this matter.
11. The review of unaudited quarterly/half yearly financial results for the quarter ended 30th June 2020 and the quarter/half year ended 30th September 2019 and audit of financial results for the year ended 31st March 2020 included in the Statement were carried out and reported by predecessor auditors who has expressed unmodified conclusion vide review reports dated 15th July, 2020 and 16th October 2019 respectively for the periods ended 30th June 2020 and 30th September 2019 and unmodified opinion vide audit report dated 28th May, 2020, whose reports have been furnished to us and which have been relied upon by us for the purpose of our review of the Statement.
Our conclusion on the Statement is not modified in respect of this matter.
For Varma & Varma For Borkar & Muzumdar
Chartered Accountants Chartered Accountants
FRN:004532S FRN:101569W
R Rajasekharan Devang Vaghani
Partner Partner
M. No. 22703 M. No. 109386
UDIN: 20022703AAAAAB2436 UDIN: 20109386AAAAFO6674
Kochi-19 Mumbai-55
16th October 2020 16th October 2020
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THE FEDERAL BANK LIMITED |
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REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 |
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(CIN: L65191KL1931PLC000368) |
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STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2020 |
|||||||
|
|
|
|
|
|
|
|
(` in Lakhs) |
|
Particulars |
Quarter ended |
Half year ended |
Year ended |
||||
|
30.09.2020 |
30.06.2020 |
30.09.2019 |
30.09.2020 |
30.09.2019 |
31.03.2020 |
||
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited |
||
|
1. Interest earned (a)+(b)+(c)+(d) |
348,790 |
344,415 |
325,425 |
693,205 |
648,355 |
1,321,075 |
|
|
(a) |
Interest/discount on advances/bills |
271,749 |
270,598 |
263,766 |
542,347 |
524,374 |
1,067,087 |
|
(b) |
Income on investments |
59,252 |
60,612 |
52,744 |
119,864 |
108,267 |
218,407 |
|
(c) |
Interest on balances with Reserve Bank of India and other inter bank funds |
11,661 |
7,067 |
3,811 |
18,728 |
5,783 |
13,996 |
|
(d) |
Others |
6,128 |
6,138 |
5,104 |
12,266 |
9,931 |
21,585 |
|
2. Other income |
50,933 |
48,837 |
42,092 |
99,770 |
81,244 |
193,141 |
|
|
3. TOTAL INCOME (1+2) |
399,723 |
393,252 |
367,517 |
792,975 |
729,599 |
1,514,216 |
|
|
4. Interest expended |
210,805 |
214,771 |
213,047 |
425,576 |
420,560 |
856,185 |
|
|
5. Operating expenses (i)+(ii) |
88,265 |
85,243 |
82,590 |
173,508 |
158,883 |
337,561 |
|
|
(i) |
Employees cost |
48,746 |
49,585 |
44,070 |
98,331 |
83,854 |
177,236 |
|
(ii) |
Other operating expenses |
39,519 |
35,658 |
38,520 |
75,177 |
75,029 |
160,325 |
|
6. TOTAL EXPENDITURE (4+5) |
299,070 |
300,014 |
295,637 |
599,084 |
579,443 |
1,193,746 |
|
|
7. OPERATING PROFIT (3-6) |
100,653 |
93,238 |
71,880 |
193,891 |
150,156 |
320,470 |
|
|
8. Provisions (other than tax) and contingencies |
59,206 |
39,462 |
25,177 |
98,668 |
44,381 |
117,217 |
|
|
9. Exceptional items |
|
- |
- |
- |
- |
- |
- |
|
10. Profit from Ordinary Activities before tax |
41,447 |
53,776 |
46,703 |
95,223 |
105,775 |
203,253 |
|
|
11. Tax expense |
|
10,685 |
13,699 |
5,033 |
24,384 |
25,684 |
48,975 |
|
12. Net Profit from Ordinary Activities after tax (10-11) |
30,762 |
40,077 |
41,670 |
70,839 |
80,091 |
154,278 |
|
|
13. Extraordinary items (net of tax expense) |
|
- |
- |
- |
- |
- |
- |
|
14. Net Profit for the period (12-13) |
|
30,762 |
40,077 |
41,670 |
70,839 |
80,091 |
154,278 |
|
15. Paid-up Equity Share Capital |
39,893 |
39,875 |
39,762 |
39,893 |
39,762 |
39,853 |
|
|
16. Reserves excluding Revaluation Reserve |
|
|
|
|
|
1,411,407 |
|
|
17. Analytical Ratios |
|
|
|
|
|
|
|
|
(i) |
Percentage of shares held by Government of India |
NIL |
NIL |
NIL |
NIL |
NIL |
NIL |
|
(ii) |
Capital Adequacy ratio (%) |
|
|
|
|
|
|
|
|
Under Basel III |
14.64 |
14.17 |
13.98 |
14.64 |
13.98 |
14.35 |
|
(iii) |
Earnings per Share (EPS) (in `) |
|
|
|
|
|
|
|
|
(a) Basic EPS (before and after extra ordinary items) |
1.54* |
2.01* |
2.10* |
3.55* |
4.03* |
7.76 |
|
|
(b) Diluted EPS (before and after extra ordinary items) |
1.54* |
2.01* |
2.08* |
3.55* |
4.00* |
7.70 |
|
(iv) |
NPA Ratios |
|
|
|
|
|
|
|
|
a) Gross NPA |
355,219 |
365,559 |
361,211 |
355,219 |
361,211 |
353,083 |
|
|
b) Net NPA |
121,814 |
147,746 |
184,364 |
121,814 |
184,364 |
160,717 |
|
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c) % of Gross NPA |
2.84 |
2.96 |
3.07 |
2.84 |
3.07 |
2.84 |
|
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d) % of Net NPA |
0.99 |
1.22 |
1.59 |
0.99 |
1.59 |
1.31 |
|
(v) |
Return on Assets (%) |
0.16* |
0.22* |
0.26* |
0.38* |
0.51* |
0.94 |
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* Not Annualised |
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Segment Information@ |
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(` in Lakhs) |
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Particulars |
Quarter ended |
Half year ended |
Year ended |
||||||
|
30.09.2020 |
30.06.2020 |
30.09.2019 |
30.09.2020 |
30.09.2019 |
31.03.2020 |
||||
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited |
||||
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Segment Revenue: |
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|
|
|
|
|
|||
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|
Treasury |
60,754 |
93,782 |
61,427 |
154,536 |
115,775 |
226,846 |
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Corporate/Wholesale Banking |
131,976 |
115,894 |
122,637 |
247,870 |
246,201 |
489,365 |
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Retail Banking |
206,993 |
183,576 |
183,453 |
390,569 |
367,623 |
798,005 |
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|
Other Banking operations |
- |
- |
- |
- |
- |
- |
||
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Unallocated |
- |
- |
- |
- |
- |
- |
||
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Total Revenue |
399,723 |
393,252 |
367,517 |
792,975 |
729,599 |
1,514,216 |
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Less: Inter Segment Revenue |
- |
- |
- |
- |
- |
- |
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Income from Operations |
399,723 |
393,252 |
367,517 |
792,975 |
729,599 |
1,514,216 |
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Segment Results (net of provisions): |
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|
|
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|
|
|||
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Treasury |
4,154 |
42,628 |
15,748 |
46,782 |
25,298 |
41,518 |
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Corporate/Wholesale Banking |
15,063 |
(8,149) |
11,334 |
6,914 |
29,580 |
17,058 |
||
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|
Retail Banking |
22,230 |
19,299 |
19,621 |
41,529 |
50,897 |
145,113 |
||
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|
Other Banking operations |
- |
- |
- |
- |
- |
- |
||
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Unallocated |
- |
(2) |
- |
(2) |
- |
(436) |
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Profit before tax |
41,447 |
53,776 |
46,703 |
95,223 |
105,775 |
203,253 |
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Segment Assets |
|
|
|
|
|
|
|
||
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Treasury |
4,378,891 |
4,219,642 |
2,930,670 |
4,378,891 |
2,930,670 |
3,787,323 |
||
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|
Corporate/Wholesale Banking |
6,809,139 |
7,013,384 |
6,778,385 |
6,809,139 |
6,778,385 |
7,056,243 |
||
|
|
Retail Banking |
6,937,457 |
6,529,646 |
6,066,964 |
6,937,457 |
6,066,964 |
6,480,887 |
||
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|
Other Banking operations |
- |
- |
- |
- |
- |
- |
||
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|
Unallocated |
777,184 |
819,363 |
866,430 |
777,184 |
866,430 |
739,352 |
||
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Total |
18,902,671 |
18,582,035 |
16,642,449 |
18,902,671 |
16,642,449 |
18,063,805 |
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Segment Liabilities |
|
|
|
|
|
|
|
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Treasury |
1,305,303 |
1,396,438 |
1,326,738 |
1,305,303 |
1,326,738 |
1,627,269 |
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|
Corporate/Wholesale Banking |
1,405,908 |
1,227,165 |
999,919 |
1,405,908 |
999,919 |
1,258,540 |
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Retail Banking |
14,461,623 |
14,227,797 |
12,708,464 |
14,461,623 |
12,708,464 |
13,458,149 |
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|
Other Banking operations |
- |
- |
- |
- |
- |
- |
||
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Unallocated |
206,312 |
238,354 |
231,897 |
206,312 |
231,897 |
268,086 |
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Total |
17,379,146 |
17,089,754 |
15,267,018 |
17,379,146 |
15,267,018 |
16,612,044 |
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Capital employed: |
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|
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|||
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(Segment Assets - Segment Liabilities) |
|
|
|
|
|
|
|||
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Treasury |
3,073,588 |
2,823,204 |
1,603,932 |
3,073,588 |
1,603,932 |
2,160,054 |
||
|
|
Corporate/Wholesale Banking |
5,403,231 |
5,786,219 |
5,778,466 |
5,403,231 |
5,778,466 |
5,797,703 |
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|
|
Retail Banking |
(7,524,166) |
(7,698,151) |
(6,641,500) |
(7,524,166) |
(6,641,500) |
(6,977,262) |
||
|
|
Other Banking operations |
- |
- |
- |
- |
- |
- |
||
|
|
Unallocated |
570,872 |
581,009 |
634,533 |
570,872 |
634,533 |
471,266 |
||
|
|
Total |
1,523,525 |
1,492,281 |
1,375,431 |
1,523,525 |
1,375,431 |
1,451,761 |
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@ |
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. |
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Statement of Assets and Liabilities of the Bank as on September 30, 2020 is given below: |
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(` in Lakhs) |
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Particulars |
As at 30.09.2020 |
As at 30.09.2019 |
As at 31.03.2020 |
|
|
|||
|
|
Unaudited |
Unaudited |
Audited |
|
|
||||
|
|
CAPITAL AND LIABILITIES |
|
|
|
|
|
|||
|
|
Capital |
39,893 |
39,762 |
39,853 |
|
|
|||
|
|
Reserves and Surplus |
1,483,632 |
1,335,669 |
1,411,908 |
|
|
|||
|
|
Deposits |
15,674,739 |
13,954,652 |
15,229,008 |
|
|
|||
|
|
Borrowings |
1,104,314 |
776,384 |
1,037,243 |
|
|
|||
|
|
Other Liabilities and Provisions |
600,093 |
535,982 |
345,793 |
|
|
|||
|
|
Total |
18,902,671 |
16,642,449 |
18,063,805 |
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|
|||
|
|
ASSETS |
|
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|
|
|
|||
|
|
Cash and Balances with Reserve Bank of India |
611,989 |
773,319 |
617,491 |
|
|
|||
|
|
Balance with Banks and Money at Call and Short Notice |
1,352,867 |
367,442 |
639,967 |
|
|
|||
|
|
Investments |
3,625,263 |
3,109,436 |
3,589,268 |
|
|
|||
|
|
Advances |
12,291,199 |
11,589,321 |
12,226,791 |
|
|
|||
|
|
Fixed assets |
45,717 |
47,248 |
47,999 |
|
|
|||
|
|
Other assets |
975,636 |
755,683 |
942,289 |
|
|
|||
|
|
Total |
18,902,671 |
16,642,449 |
18,063,805 |
|
|
|||
|
|
|
|
|
|
|
|
|
||
|
Notes: |
|
|
|
|
|
|
|||
|
1 |
The above Standalone Unaudited Financial Results for the quarter and half year ended September 30, 2020 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on October 16, 2020. These Results have been subjected to "Limited review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued. |
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||
|
2 |
The Bank has followed the same significant accounting policies in the preparation of the interim financial results as those followed in the annual financial statements for the year ended March 31, 2020. |
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||
|
3 |
Pursuant to Board approved policy on preparation of segment information, the Bank, with effect from quarter ended June 30, 2020, has revised the basis of preparation of segment information on a direct identification basis with the aid of Internal Transfer pricing mechanism for more appropriate presentation of the segment results. Accordingly, figures for the previous periods have been regrouped / reclassified to conform to current period's classification. |
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||
|
4 |
The working results have been arrived at after considering provision for standard assets, including requirements for exposures to entities with Unhedged Foreign Currency Exposures, non-performing assets (NPAs), depreciation on investments, income-tax and other usual and necessary provisions. |
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||
|
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), recoveries from advances written off etc. |
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||
|
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. |
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||
|
7 |
The Business operations of the Bank are largely concentrated in India and for the purpose of Segment reporting, the bank is considered to operate only in domestic segment, though the bank has its operations in International Finance Service Centre (IFSC) Banking Unit in Gujarat International Finance Tec-city (GIFT). The business conducted from the same is considered as part of Indian operations. |
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|
8 |
During the quarter and half year ended September 30, 2020, the Bank has allotted 930,455 and 2,010,385 equity shares of ` 2 each, pursuant to the exercise of stock options by employees. |
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||
|
9 |
In accordance with RBI Circular DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015 and RBI Circular DBR.No.BP.BC.80/21.06.201/2014-15 dated March 31, 2015 - 'Prudential Guidelines on Capital Adequacy and Liquidity Standards - Amendments', Banks are required to make Pillar 3 disclosure requirements including Leverage Ratio disclosure requirements that are to be made along with the publication of Financial Results. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: http://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank. |
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|
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|
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||
|
10 |
On account of uncertainties arising from the COVID-19 pandemic across the world and in India, the extent to which the same will impact the Bank's operations and financial position will depend on various aspects including actions taken to mitigate its impact and other regulatory measures. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during this period.
As per the 'COVID-19 Regulatory Packages' announced by the RBI ('the RBI guidelines'), with regard to providing relief to borrowers' on account of COVID-19 pandemic, whose accounts were standard as on February 29, 2020, the Bank, in accordance with the Board approved policy had offered moratorium on repayment of loan instalments and/or deferment of interest due between March 1, 2020 and August 31, 2020, including relaxation in certain parameters, to all eligible borrowers, without considering the same as restructuring.
As on June 30, 2020 Bank was maintaining provision against the likely impact of COVID-19 amounting to ` 18,630.00 Lakhs, which was in excess of RBI mandated 10% provision on asset classification benefit extended accounts. During the current quarter, as a prudent measure, the Bank has made additional provision of ` 40,161.00 Lakhs (` 9,300.00 Lakhs during the quarter ended June 30, 2020), against the further likely impact of COVID-19 pandemic in respect of exposure of the Bank to certain specified sectors based on the assessment of presently available information. The aggregate provision against the likely impact of COVID-19, including the RBI mandated provision, as on September 30, 2020 stands at ` 58,791.00 Lakhs and is grouped under Other liabilities and provisions in the Balance sheet of the Bank.
The Honourable Supreme Court in a writ petition by Gajendra Sharma Vs Union of India & Anr vide its interim order dated September 3, 2020 has directed Banks that the accounts which were not declared Non performing asset (NPA) till August 31, 2020 shall not be declared NPA till further orders, pending disposal of the case by Supreme Court. Pursuant to the order, the Bank has not declared any account as NPA, which was not declared as NPA till August 31, 2020 as per the RBI Prudential norms on Income Recognition, Asset classification, and provisioning pertaining to advances. However, as a prudent measure Bank has created sufficient provisions in respect of these advances. |
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|
|
|
|
|
||
|
11 |
The disclosures as required under RBI circular DOR.No.BP.BC.63/21.04.048/2019-20 dated April 17, 2020 is given below for the half year ended as on September 30, 2020: |
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|
|
|
|
|
|
|
|
(` in Lakhs) |
||
|
|
Amounts in SMA/overdue categories, where the moratorium/deferment was extended (As of March 31, 2020) |
371,262 |
|||||||
|
|
Amount where asset classification benefits is extended (As of September 30, 2020) |
76,397 |
|||||||
|
|
Provisions made during the quarter ended March 31, 2020 and June 30, 2020 (Mandatory 10% Provision) |
7,640 |
|||||||
|
|
Provisions adjusted during the half year ended September 30, 2020 against slippages |
- |
|||||||
|
|
|
|
|
|
|
|
|
||
|
12 |
The disclosures as required under RBI circular DOR.No.BP.BC.62/21.04.048/2020-21 dated April 17, 2020 with respect to the number of accounts and the Amount involved in those accounts where the Resolution period was extended is given below for the half year ended as on September 30, 2020: |
||||||||
|
|
No. of accounts in which Resolution Period was extended |
3 |
|
||||||
|
|
Amount Involved (` in Lakhs) |
4,170 |
|
||||||
|
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|
|
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|
|
|
|
||
|
13 |
The figures for the quarter ended June 30, 2020, quarter and half year ended September 30, 2019 and year ended March 31, 2020 were reviewed / audited by previous statutory auditors. |
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|
|
|
|
||
|
14 |
Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification. |
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|
|
SHYAM SRINIVASAN |
||||||
|
Kochi |
|
MANAGING DIRECTOR & CEO |
|||||||
|
October 16, 2020 |
|
(DIN: 02274773) |
|||||||
|
THE FEDERAL BANK LIMITED |
||
|
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 |
||
|
(CIN: L65191KL1931PLC000368) |
||
|
CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2020 |
||
|
|
|
(` in Lakhs) |
|
|
Half year ended |
Half year ended |
|
Cash Flow from Operating Activities |
|
|
|
Net Profit before taxes |
95,223 |
105,775 |
|
Adjustments for: |
|
|
|
Depreciation on Bank's Property |
6,133 |
5,835 |
|
Depreciation on Investments |
(809) |
2,603 |
|
Amortisation of Premium on Held to Maturity Investments |
6,761 |
3,116 |
|
Provision for Non Performing Investments |
(69) |
188 |
|
Provision / Charge for Non Performing Assets |
42,573 |
35,177 |
|
Provision for Standard Assets |
56,462 |
6,178 |
|
(Profit)/Loss on sale of fixed assets (net) |
(24) |
(45) |
|
Provision for Other Contingencies |
511 |
235 |
|
|
206,761 |
159,062 |
|
Adjustments for working capital changes:- |
|
|
|
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] |
92,983 |
(21,727) |
|
(Increase)/ Decrease in Advances |
(106,980) |
(602,202) |
|
(Increase)/ Decrease in Other Assets |
(30,787) |
(65,540) |
|
Increase/ (Decrease) in Deposits |
445,730 |
459,218 |
|
Increase/ (Decrease) in Other liabilities and provisions |
197,327 |
196,440 |
|
|
598,273 |
(33,811) |
|
Direct taxes paid |
(26,945) |
(40,454) |
|
Net Cash Flow from / (Used in) Operating Activities |
778,089 |
84,797 |
|
|
|
|
|
Cash Flow from Investing Activities |
|
|
|
Purchase of Fixed Assets |
(3,922) |
(6,010) |
|
Proceeds from Sale of Fixed Assets |
96 |
176 |
|
Investment in Subsidiary |
- |
(500) |
|
(Increase)/ Decrease in Held to Maturity Investments |
(134,861) |
89,331 |
|
Net Cash generated / (Used in) Investing Activities |
(138,687) |
82,997 |
|
|
|
|
|
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Share Capital |
40 |
61 |
|
Proceeds from Share Premium |
711 |
1,342 |
|
Proceeds from Issue of Subordinate Debt |
- |
30,000 |
|
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) |
67,071 |
(31,749) |
|
Dividend Paid (Including Tax on Dividend) |
- |
(33,541) |
|
|
|
|
|
Net Cash generated from Financing Activities |
67,822 |
(33,887) |
|
|
|
|
|
Effect of exchange fluctuation on translation reserve |
174 |
174 |
|
|
|
|
|
Net Increase in Cash and Cash Equivalents |
707,398 |
134,081 |
|
|
|
|
|
Cash and Cash Equivalents at the beginning of the period |
1,257,458 |
1,006,680 |
|
Cash and Cash Equivalents at the end of the period |
1,964,856 |
1,140,761 |
|
|
|
|
|
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. |
||
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
SHYAM SRINIVASAN |
|
|
Kochi |
MANAGING DIRECTOR & CEO |
|
|
October 16, 2020 |
(DIN: 02274773) |
|
|
THE FEDERAL BANK LIMITED |
|||||||
|
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 |
|||||||
|
(CIN: L65191KL1931PLC000368) |
|||||||
|
CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2020 |
|||||||
|
|
|
|
|
|
|
|
(` in Lakhs) |
|
Particulars |
Quarter ended |
Half year ended |
Year ended |
||||
|
30.09.2020 |
30.06.2020 |
30.09.2019 |
30.09.2020 |
30.09.2019 |
31.03.2020 |
||
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited |
||
|
1. Interest earned (a)+(b)+(c)+(d) |
362,188 |
357,211 |
333,675 |
719,399 |
663,196 |
1,359,039 |
|
|
(a) |
Interest/discount on advances/bills |
285,376 |
282,774 |
272,087 |
568,150 |
539,139 |
1,104,518 |
|
(b) |
Income on investments |
59,284 |
60,654 |
52,674 |
119,938 |
108,343 |
218,550 |
|
(c) |
Interest on balances with Reserve Bank of India and other inter bank funds |
11,661 |
7,067 |
3,810 |
18,728 |
5,783 |
13,996 |
|
(d) |
Others |
5,867 |
6,716 |
5,104 |
12,583 |
9,931 |
21,975 |
|
2. Other income |
50,944 |
48,331 |
41,169 |
99,275 |
78,266 |
188,181 |
|
|
3. TOTAL INCOME (1+2) |
413,132 |
405,542 |
374,844 |
818,674 |
741,462 |
1,547,220 |
|
|
4. Interest expended |
215,941 |
219,655 |
215,422 |
435,596 |
425,129 |
867,831 |
|
|
5. Operating expenses (i)+(ii) |
92,710 |
89,595 |
86,305 |
182,305 |
165,382 |
354,670 |
|
|
(i) |
Employees cost |
52,136 |
52,656 |
46,321 |
104,792 |
87,862 |
187,598 |
|
(ii) |
Other operating expenses |
40,574 |
36,939 |
39,984 |
77,513 |
77,520 |
167,072 |
|
6. TOTAL EXPENDITURE (4+5) |
308,651 |
309,250 |
301,727 |
617,901 |
590,511 |
1,222,501 |
|
|
7. OPERATING PROFIT (3-6) |
104,481 |
96,292 |
73,117 |
200,773 |
150,951 |
324,719 |
|
|
8. Provisions (other than tax) and contingencies |
62,543 |
40,935 |
25,343 |
103,478 |
44,675 |
118,722 |
|
|
9. Exceptional items |
|
- |
- |
- |
- |
- |
- |
|
10. Profit from Ordinary Activities before tax |
41,938 |
55,357 |
47,774 |
97,295 |
106,276 |
205,997 |
|
|
11. Tax expense |
|
10,368 |
14,199 |
5,334 |
24,567 |
26,465 |
50,720 |
|
12. Net Profit from Ordinary Activities after tax (10-11) |
31,570 |
41,158 |
42,440 |
72,728 |
79,811 |
155,277 |
|
|
13. Extraordinary items (net of tax expense) |
|
- |
- |
- |
- |
- |
- |
|
14. Net Profit for the period (12-13) |
|
31,570 |
41,158 |
42,440 |
72,728 |
79,811 |
155,277 |
|
15. Minority interest |
|
199 |
364 |
129 |
563 |
311 |
1,028 |
|
16. Share in Profit of Associates |
|
174 |
156 |
223 |
330 |
454 |
3,771 |
|
17. Consolidated Net Profit of the group |
31,545 |
40,950 |
42,534 |
72,495 |
79,954 |
158,020 |
|
|
18. Paid-up Equity Share Capital |
39,893 |
39,875 |
39,762 |
39,893 |
39,762 |
39,853 |
|
|
19. Reserves excluding Revaluation Reserve |
|
|
|
|
|
1,441,882 |
|
|
20. Analytical Ratios |
|
|
|
|
|
|
|
|
(i) |
Percentage of shares held by Government of India |
NIL |
NIL |
NIL |
NIL |
NIL |
NIL |
|
(ii) |
Capital Adequacy ratio (%) |
|
|
|
|
|
|
|
|
Under Basel III |
15.19 |
14.53 |
14.32 |
15.19 |
14.32 |
14.63 |
|
(iii) |
Earnings per Share (EPS) (in `) |
|
|
|
|
|
|
|
|
(a) Basic EPS (before and after extra ordinary items) |
1.58* |
2.05* |
2.14* |
3.64* |
4.03* |
7.94 |
|
|
(b) Diluted EPS (before and after extra ordinary items) |
1.58* |
2.05* |
2.13* |
3.63* |
3.99* |
7.88 |
|
(iv) |
NPA Ratios |
|
|
|
|
|
|
|
|
a) Gross NPA |
359,172 |
371,207 |
365,317 |
359,172 |
365,317 |
358,015 |
|
|
b) Net NPA |
124,985 |
152,566 |
187,941 |
124,985 |
187,941 |
164,953 |
|
|
c) % of Gross NPA |
2.80 |
2.94 |
3.06 |
2.80 |
3.06 |
2.82 |
|
|
d) % of Net NPA |
0.99 |
1.23 |
1.60 |
0.99 |
1.60 |
1.32 |
|
(v) |
Return on Assets (%) |
0.17* |
0.22* |
0.26* |
0.39* |
0.49* |
0.92 |
|
|
|
|
|
|
|
|
|
|
* Not Annualised |
|
|
|
|
|
|
|
|
Segment Information@ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(` in Lakhs) |
|
Particulars |
Quarter ended |
Half year ended |
Year ended |
||||
|
30.09.2020 |
30.06.2020 |
30.09.2019 |
30.09.2020 |
30.09.2019 |
31.03.2020 |
||
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited |
||
|
Segment Revenue: |
|
|
|
|
|
|
|
|
|
Treasury |
60,827 |
93,782 |
61,427 |
154,609 |
113,692 |
223,796 |
|
|
Corporate/Wholesale Banking |
130,786 |
114,942 |
122,637 |
245,728 |
246,201 |
486,614 |
|
|
Retail Banking |
221,519 |
196,818 |
190,780 |
418,337 |
381,569 |
836,810 |
|
|
Other Banking operations |
- |
- |
- |
- |
- |
- |
|
|
Unallocated |
- |
- |
- |
- |
- |
- |
|
|
Total Revenue |
413,132 |
405,542 |
374,844 |
818,674 |
741,462 |
1,547,220 |
|
|
Less: Inter Segment Revenue |
- |
- |
- |
- |
- |
- |
|
|
Income from Operations |
413,132 |
405,542 |
374,844 |
818,674 |
741,462 |
1,547,220 |
|
Segment Results (net of provisions): |
|
|
|
|
|
|
|
|
|
Treasury |
4,234 |
42,275 |
15,747 |
46,509 |
23,183 |
38,436 |
|
|
Corporate/Wholesale Banking |
15,493 |
(8,038) |
11,334 |
7,455 |
29,580 |
18,421 |
|
|
Retail Banking |
22,211 |
21,122 |
20,693 |
43,333 |
53,513 |
149,576 |
|
|
Other Banking operations |
- |
- |
- |
- |
- |
- |
|
|
Unallocated |
- |
(2) |
- |
(2) |
- |
(436) |
|
|
Profit before tax |
41,938 |
55,357 |
47,774 |
97,295 |
106,276 |
205,997 |
|
Segment Assets |
|
|
|
|
|
|
|
|
|
Treasury |
4,332,971 |
4,197,586 |
2,932,382 |
4,332,971 |
2,932,382 |
3,765,464 |
|
|
Corporate/Wholesale Banking |
6,742,587 |
6,953,817 |
6,778,385 |
6,742,587 |
6,778,385 |
6,997,531 |
|
|
Retail Banking |
7,330,321 |
6,894,109 |
6,233,258 |
7,330,321 |
6,233,258 |
6,832,986 |
|
|
Other Banking operations |
- |
- |
- |
- |
- |
- |
|
|
Unallocated |
777,293 |
819,363 |
866,430 |
777,293 |
866,430 |
739,352 |
|
|
Total |
19,183,172 |
18,864,875 |
16,810,455 |
19,183,172 |
16,810,455 |
18,335,333 |
|
Segment Liabilities |
|
|
|
|
|
|
|
|
|
Treasury |
1,298,917 |
1,395,636 |
1,326,738 |
1,298,917 |
1,326,738 |
1,626,174 |
|
|
Corporate/Wholesale Banking |
1,417,520 |
1,249,280 |
999,919 |
1,417,520 |
999,919 |
1,291,143 |
|
|
Retail Banking |
14,686,523 |
14,439,516 |
12,834,629 |
14,686,523 |
12,834,629 |
13,649,598 |
|
|
Other Banking operations |
- |
- |
- |
- |
- |
- |
|
|
Unallocated |
205,895 |
238,354 |
231,897 |
205,895 |
231,897 |
268,086 |
|
|
Total |
17,608,855 |
17,322,786 |
15,393,183 |
17,608,855 |
15,393,183 |
16,835,001 |
|
Capital employed: |
|
|
|
|
|
|
|
|
(Segment Assets - Segment Liabilities) |
|
|
|
|
|
|
|
|
|
Treasury |
3,034,054 |
2,801,950 |
1,605,644 |
3,034,054 |
1,605,644 |
2,139,290 |
|
|
Corporate/Wholesale Banking |
5,325,067 |
5,704,537 |
5,778,466 |
5,325,067 |
5,778,466 |
5,706,388 |
|
|
Retail Banking |
(7,356,202) |
(7,545,407) |
(6,601,371) |
(7,356,202) |
(6,601,371) |
(6,816,612) |
|
|
Other Banking operations |
- |
- |
- |
- |
- |
- |
|
|
Unallocated |
571,398 |
581,009 |
634,533 |
571,398 |
634,533 |
471,266 |
|
|
Total |
1,574,317 |
1,542,089 |
1,417,272 |
1,574,317 |
1,417,272 |
1,500,332 |
|
@ |
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. |
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|
|
Statement of Assets and Liabilities of the Group as on September 30, 2020 is given below: |
|
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|
|||
|
|
|
|
|
|
(` in Lakhs) |
|
|
|
|
Particulars |
As at 30.09.2020 |
As at 30.09.2019 |
As at 31.03.2020 |
|
|
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
||
|
|
CAPITAL AND LIABILITIES |
|
|
|
|
|
|
|
|
Capital |
39,893 |
39,762 |
39,853 |
|
|
|
|
|
Reserves and Surplus |
1,515,764 |
1,362,141 |
1,442,383 |
|
|
|
|
|
Minority Interest |
18,660 |
15,369 |
18,096 |
|
|
|
|
|
Deposits |
15,648,514 |
13,952,139 |
15,225,191 |
|
|
|
|
|
Borrowings |
1,347,911 |
893,823 |
1,252,772 |
|
|
|
|
|
Other Liabilities and Provisions |
612,430 |
547,221 |
357,038 |
|
|
|
|
|
Total |
19,183,172 |
16,810,455 |
18,335,333 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and Balances with Reserve Bank of India |
613,172 |
774,158 |
618,254 |
|
|
|
|
|
Balance with Banks and Money at Call and Short Notice |
1,363,110 |
373,480 |
657,477 |
|
|
|
|
|
Investments |
3,579,343 |
3,096,818 |
3,571,539 |
|
|
|
|
|
Advances |
12,590,255 |
11,754,542 |
12,484,950 |
|
|
|
|
|
Fixed assets |
48,378 |
48,809 |
50,481 |
|
|
|
|
|
Other assets |
988,914 |
762,648 |
952,632 |
|
|
|
|
|
Total |
19,183,172 |
16,810,455 |
18,335,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|
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|
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|
|
|
1 |
The above Consolidated Unaudited Financial Results for the quarter and half year ended September 30, 2020 were reviewed by the Audit Committee and subsequently taken on record and approved by the Board of Directors at its meeting held on October 16, 2020. These Results have been subjected to "Limited review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued. |
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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. IDBI Federal Life Insurance Company Limited & Equirus Capital Private Limited. |
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3 |
There has been no material change in the accounting policies adopted during the quarter and half year ended September 30, 2020 as compared to those followed for the year ended March 31, 2020. |
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4 |
Pursuant to Board approved policy on preparation of segment information, the Bank, with effect from quarter ended June 30, 2020, has revised the basis of preparation of segment information on a direct identification basis with the aid of Internal Transfer pricing mechanism for more appropriate presentation of the segment results. Accordingly, figures for the previous periods have been regrouped / reclassified to conform to current period's classification. |
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5 |
The working results have been arrived at after considering provision for standard assets, including requirements for exposures to entities with Unhedged Foreign Currency Exposures, non-performing assets (NPAs), depreciation on investments, income-tax and other usual and necessary provisions. |
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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), recoveries from advances written off etc. |
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7 |
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. |
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8 |
The Business operations of the Bank are largely concentrated in India and for the purpose of Segment reporting, the bank is considered to operate only in domestic segment, though the bank has its operations in International Finance Service Centre (IFSC) Banking Unit in Gujarat International Finance Tec-city (GIFT). The business conducted from the same is considered as a part of Indian operations. |
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9 |
During the quarter and half year ended September 30, 2020, the Bank has allotted 930,455 and 2,010,385 equity shares of ` 2 each, pursuant to the exercise of stock options by employees. |
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10 |
In accordance with RBI Circular DBR.No.BP.BC.1/21.06.201/2015-16 on Basel III Capital Regulations dated July 01, 2015 and RBI Circular DBR.No.BP.BC.80/21.06.201/2014-15 dated March 31, 2015 - 'Prudential Guidelines on Capital Adequacy and Liquidity Standards - Amendments', Banks are required to make Pillar 3 disclosure requirements including Leverage Ratio disclosure requirements that are to be made along with the publication of Financial Results. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: http://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank. |
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11 |
On account of uncertainties arising from the COVID-19 pandemic across the world and in India, the extent to which the same will impact the Bank's operations and financial position will depend on various aspects including actions taken to mitigate its impact and other regulatory measures. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during this period.
As per the 'COVID-19 Regulatory Packages' announced by the RBI ('the RBI guidelines'), with regard to providing relief to borrowers' on account of COVID-19 pandemic, whose accounts were standard as on February 29, 2020, the Bank, in accordance with the Board approved policy had offered moratorium on repayment of loan instalments and/or deferment of interest due between March 1, 2020 and August 31, 2020, including relaxation in certain parameters, to all eligible borrowers, without considering the same as restructuring.
As on June 30, 2020 Bank was maintaining provision against the likely impact of COVID-19 amounting to ` 18,630.00 Lakhs, which was in excess of RBI mandated 10% provision on asset classification benefit extended accounts. During the current quarter, as a prudent measure, the Bank has made additional provision of ` 40,161.00 Lakhs (` 9,300.00 Lakhs during the quarter ended June 30, 2020), against the further likely impact of COVID-19 pandemic in respect of exposure of the Bank to certain specified sectors based on the assessment of presently available information. The aggregate provision against the likely impact of COVID-19, including the RBI mandated provision, as on September 30, 2020 stands at ` 58,791.00 Lakhs and is grouped under Other liabilities and provisions in the Balance sheet of the Bank.
The Honourable Supreme Court in a writ petition by Gajendra Sharma Vs Union of India & Anr vide its interim order dated September 3, 2020 has directed Banks that the accounts which were not declared Non performing asset (NPA) till August 31, 2020 shall not be declared NPA till further orders, pending disposal of the case by Supreme Court. Pursuant to the order, the Bank has not declared any account as NPA, which was not declared as NPA till August 31, 2020 as per the RBI Prudential norms on Income Recognition, Asset classification, and provisioning pertaining to advances. However, as a prudent measure Bank has created sufficient provisions in respect of these advances. |
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12 |
The figures for the quarter ended June 30, 2020, quarter and half year ended September 30, 2019 and year ended March 31, 2020 were reviewed / audited by previous statutory auditors. |
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13 |
Previous period's / year's figures have been regrouped / reclassified, where necessary to conform to current period's classification. |
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|
SHYAM SRINIVASAN |
||||
|
Kochi |
|
MANAGING DIRECTOR & CEO |
|||||
|
October 16, 2020 |
|
(DIN: 02274773) |
|||||
|
THE FEDERAL BANK LIMITED |
||
|
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101 |
||
|
(CIN: L65191KL1931PLC000368) |
||
|
CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2020 |
||
|
|
(` in Lakhs) |
|
|
|
Half year ended |
Half year ended |
|
Cash Flow from Operating Activities |
|
|
|
Net Profit before taxes |
97,062 |
106,420 |
|
Adjustments for: |
|
|
|
Depreciation on Group's Property |
6,547 |
6,039 |
|
Depreciation on Investments |
(456) |
2,634 |
|
Amortisation of Premium on Held to Maturity Investments |
6,761 |
3,116 |
|
Provision for Non Performing Investments |
(69) |
188 |
|
Provision / Charge for Non Performing Assets |
42,653 |
35,194 |
|
Provision for Standard Assets |
60,831 |
6,423 |
|
(Profit)/ Loss on sale of fixed assets (net) |
(25) |
(47) |
|
(Income) / Loss From Associate |
(330) |
(454) |
|
Provision for Other Contingencies |
519 |
235 |
|
|
213,493 |
159,748 |
|
Adjustments for working capital changes:- |
|
|
|
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments] |
121,152 |
(23,563) |
|
(Increase)/ Decrease in Advances |
(147,958) |
(636,145) |
|
(Increase)/ Decrease in Other Assets |
(31,396) |
(66,781) |
|
Increase/ (Decrease) in Deposits |
423,324 |
464,246 |
|
Increase/ (Decrease) in Other liabilities and provisions |
194,703 |
201,710 |
|
|
559,825 |
(60,533) |
|
Direct taxes paid |
(30,115) |
(41,587) |
|
Net Cash Flow from / (Used in) Operating Activities |
743,203 |
57,628 |
|
|
|
|
|
Cash Flow from Investing Activities |
|
|
|
Purchase of Fixed Assets |
(4,522) |
(6,987) |
|
Proceeds from Sale of Fixed Assets |
103 |
179 |
|
Investment in Subsidiary |
- |
(500) |
|
(Increase)/ Decrease in Held to Maturity Investments |
(134,861) |
89,331 |
|
Net Cash generated / (Used in) Investing Activities |
(139,280) |
82,023 |
|
|
|
|
|
Cash Flow from Financing Activities |
|
|
|
Proceeds from Issue of Share Capital |
40 |
61 |
|
Proceeds from Share Premium |
712 |
6,497 |
|
Increase / (Decrease) in Minority Interest |
563 |
6,255 |
|
Proceeds from Issue of Subordinate Debt |
- |
30,000 |
|
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt) |
95,139 |
(6,806) |
|
Dividend Paid (Including Tax on Dividend) |
- |
(33,541) |
|
|
|
|
|
Net Cash generated from financing Activities |
96,454 |
2,466 |
|
|
|
|
|
Effect of exchange fluctuation on translation reserve |
174 |
174 |
|
|
|
|
|
Increase/(Decrease) in Cash and Cash Equivalents |
700,551 |
142,291 |
|
|
|
|
|
Cash and Cash Equivalents at the beginning of the period |
1,275,731 |
1,005,347 |
|
Cash and Cash Equivalents at the end of the period |
1,976,282 |
1,147,638 |
|
|
|
|
|
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. |
||
|
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|
|
|
|
|
|
|
SHYAM SRINIVASAN |
|
|
Kochi |
MANAGING DIRECTOR & CEO |
|
|
October 16, 2020 |
(DIN: 02274773) |
|
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|
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