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SD/LSE/286/2023-24                                                                                        31.10.2023

 

                                              

To

The London Stock Exchange

10 Paternoster Square

London

 

Dear Sir,

 

We enclose herewith the Un-Audited Standalone and Consolidated Financial Results of the Bank for the Quarter and Half year ended September 30, 2023 which was approved at the Bank's Board of Directors meeting held on October 16, 2023.

 

 

Kindly take the same on your record.

 

 

 

For The Federal Bank Limited

 

Sd/-

Samir P Rajdev

Company Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Independent Auditor's Review Report on standalone unaudited financial results for the quarter and half year ended September 30, 2023 of The Federal Bank Limited pursuant to the Regulation 33 and Regulation 52 read with Regulation 63(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

 

The Board of Directors of

The Federal Bank Limited

 

1.   We have reviewed the accompanying statement of standalone unaudited financial results of The Federal Bank Limited  ('the Bank') for the quarter and half year ended September 30, 2023 (the 'Statement') attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 as amended ('the Regulations') except, for the disclosures relating to Pillar 3 as at September 30, 2023, including leverage ratio, liquidity coverage ratio and net stable funding ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the Note 8 to the Statement and have not been reviewed by us.

 

2.   This Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard 25 'Interim Financial Reporting' ('AS 25') prescribed under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder, in so far as they apply to the Banks, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India ('the RBI') from time to time ('RBI Guidelines'), other recognised accounting principles generally accepted in India and is in compliance with the Regulations. Our responsibility is to express a conclusion on the Statement based on our review.

 

3.   We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing under section 143(10) of the Companies Act 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

4.   Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with the recognition and measurement principles laid down in AS 25, prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder, the RBI Guidelines and other recognised accounting principles generally accepted in India has not disclosed the information required to be disclosed in terms of the Regulations, including the manner in which it is to be disclosed or that it contains material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the RBI in respect of income recognition, asset classification, provisioning and other related matters, except for the disclosures relating to Pillar 3 disclosures as at September 30, 2023, including leverage ratio, liquidity coverage ratio and net stable funding ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the Note 8 to the  Statement and have not been reviewed by us.

 

5.   The Statement includes the standalone financial results of the Bank for the quarter ended June 30, 2023 and corresponding quarter and half year ended September 30, 2022, which were reviewed by another auditors whose report dated July 13, 2023 and October 14, 2022 respectively, expressed an unmodified conclusion on those standalone financial results. The Statement also includes the standalone financial statements of the Bank for the year ended March 31, 2023 which were audited by another auditors whose report dated May 05, 2023 expressed an unmodified opinion on the standalone financial statements.

Our conclusion is not modified in respect of this matter.

 

For M S K A & Associates	For Suri & Co
Chartered Accountants	Chartered Accountants
ICAI Firm Registration Number: 105047W	ICAI Firm Registration Number: 004283S
Swapnil Kale	G. Rengarajan
Partner	Partner
Membership Number: 117812	Membership Number: 219922
UDIN: 23117812BGXRCG7931	UDIN: 23219922BGWKLY5781
Kochi	Kochi
October 16, 2023	October 16, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Independent Auditor's Review Report on consolidated unaudited financial results for the quarter and half year ended September 30, 2023 of The Federal Bank Limited pursuant to the Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.        

 

The Board of Directors of

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 and half year ended September 30, 2023 ('the Statement'), being submitted by the Bank pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('the Regulations') except, for the disclosures relating to consolidated Pillar 3 as at September 30, 2023, including leverage ratio, liquidity coverage ratio and net stable funding ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the Note 7 to the Statement and have not been reviewed by us.

 

2.     This Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard 25 "Interim Financial Reporting' ('AS 25'), prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder, in so far as they apply to the Banks, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India   ('the RBI') from time to time ('the RBI Guidelines') and other recognised accounting principles generally accepted in India and is in compliance with the Regulations. Our responsibility is to express a conclusion on the Statement based on our review.

 

3.     We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013 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 Regulations, to the extent applicable.

 

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

 

Sr. No	Name of the Entity	Relationship with the Bank
a.	Fedbank Financial Services Limited	Subsidiary
b.	Federal Operations and Services Limited	Subsidiary
c.	Ageas Federal Life Insurance Company Limited	Associate
d.	Equirus Capital Private Limited	Associate

 

 

5.     Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review report of the other auditor referred to in paragraph 6 below and based on the financial information certified by the Management for the subsidiary and the associates as stated in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in AS 25 prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder, RBI Guidelines and other recognised accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Regulation, including the manner in which it is to be disclosed or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the RBI in respect of income recognition, asset classification, provisioning and other related matters except, for the disclosures relating to consolidated Pillar 3 disclosure as at September 30, 2023, including leverage ratio, liquidity coverage ratio and net stable funding ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the Note 7 to the Consolidated Statement and have not been reviewed by us.

 

6.      We did not review the interim financial results of one subsidiary included in the Statement, whose interim financial results reflect total assets of Rs. 2,940.31 lakhs as at September 30, 2023 and total revenues of Rs. 1,906.56 lakhs and Rs. 3,692.30 lakhs and total net profit after tax of Rs. 142.58 lakhs and Rs. 279.58 lakhs for the quarter and half year ended September 30, 2023, respectively, and net cash flows of Rs. (505.62) lakhs for the half year ended September 30, 2023, as considered in the Statement. These interim financial results have been reviewed by other auditors whose reports have been furnished to us by the Management of the Bank and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors.

 

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

 

7.     The Statement includes the interim financial information of one subsidiary which have not been reviewed by their auditor, whose interim financial information reflect total assets of Rs. 10,01,246 lakhs as at September 30, 2023 and total revenues of Rs. 39,415 lakhs and Rs. 76,721 lakhs and total net profit after tax of Rs. 4,540 lakhs and Rs. 9,683 lakhs for the quarter and half year ended September 30, 2023, respectively, and net cash flows of Rs. 46,042 lakhs for the half year ended September 30, 2023, as considered in the Statement. The Statement also includes the Group's share of net profit after tax of Rs. 654.63 lakhs and Rs. 870.57 lakhs for the quarter and half year ended September 30, 2023 respectively, as considered in the Statement, in respect of two associates, based on their interim financial information which have not been reviewed by their auditors. These interim financial information have been furnished to us by the Management and our conclusion on the Statement in so far as it relates to the amounts and disclosures included in respect of these associates is based solely on such management prepared unaudited interim financial information. According to the information and explanations given to us by the Management, these interim financial information are not material to the Group.

 

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

8.    The Statement includes the consolidated financial results of the Bank for the quarter ended June 30, 2023 and corresponding quarter and half year ended September 30, 2022, which were reviewed by another auditors whose report dated July 13, 2023 and October 14, 2022 respectively, expressed an unmodified conclusion on those consolidated financial results. The Statement also includes the consolidated financial statements of the Bank for the year ended March 31, 2023 which were audited by another auditors whose report dated May 05, 2023 expressed an unmodified opinion on the consolidated financial statements.

 

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

 

 

 

For M S K A & Associates	For Suri & Co
Chartered Accountants	Chartered Accountants
ICAI Firm Registration Number: 105047W	ICAI Firm Registration Number: 004283S
Swapnil Kale	G. Rengarajan
Partner	Partner
Membership Number: 117812	Membership Number: 219922
UDIN: 23117812BGXRCF4558	UDIN: 23219922BGWKLZ3968
Kochi	Kochi
October 16, 2023	October 16, 2023