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Half-year Report

RNS Announcement

RNS Number : 2620Q

Federal Bank Ltd (The)

17 October 2019

SDF-24/ /2019-20 17^th October 2019

To,

The London Stock Exchange

Dear Sir,

We enclose herewith the Un- Audited Financial Results of the Bank for the period ended September 30, 2019 which was approved at the Bank's Board of Directors meeting held on 16^th October 2019.

Kindly take the same on your record.

For The Federal Bank Limited

Girish Kumar G

COMPANY SECRETARY

B S R & Co. LLP	M.M. Nissim & Co.
Chartered Accountants	Chartered Accountants
5^th Floor, Lodha Excelus	Barodawala Mansion, B-Wing
Apollo Mills Compound	3^rd Floor, 81
N.M. Joshi Marg, Mahalaxmi	Dr. Annie Besant Road
Mumbai - 400 011	Worli, Mumbai - 400 018

Limited review report on unaudited quarterly standalone financial results and standalone year to date financial results of The Federal Bank Limited pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To the Board of Directors of

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 ended 30 September 2019 and year to date results for the period from 1 April 2019 to 30 September 2019 ('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 Pillar 3 disclosure as at 30 September 2019, 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 Statement and have not been reviewed by us. Attention is drawn to the fact that the figures for the cash flow statement for the corresponding period from 1 April 2018 to 30 September 2018, as reported in these financial results have been approved by the Bank's Board of Directors, but have not been subjected to review by us since the requirement of submission of cash flow statement has become mandatory only from 1 April 2019.

2. This statement, which is the responsibility of the Bank's Management and approved by the 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 ('RBI') from time to time ('RBI Guidelines') 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 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. 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 Bank 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. The Standalone Financial Results incorporate the relevant returns of 117 Branches and Treasury Branch reviewed by either of us and un-reviewed returns in respect of 1,134 branches. These Branches cover 50.06% of the advances portfolio (excluding outstanding of asset recovery branches and food credit advance) of the Bank and 55.56% of non-performing advances of the Bank.

5. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards and other recognised accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, except for the disclosures relating to Pillar 3 disclosure as at 30 September 2019, 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 Statement and have not been reviewed by us, 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 India in respect of income recognition, asset classification, provisioning and other related matters.

For B S R & Co. LLP	For M.M. Nissim & Co.
Chartered Accountants	Chartered Accountants
Firm's Registration No: 101248W / W-100022	Firm's Registration No: 107122W




Akeel Master	Sanjay Khemani
Partner	Partner
Membership No: 046768	Membership No: 044577
ICAI UDIN:19046768AAABMY3113	ICAI UDIN:19044577AAAABB4135

Mumbai	Mumbai
16 October 2019	16 October 2019

Limited review report on unaudited quarterly consolidated financial results and consolidated year to date financial results of The Federal Bank Limited pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To the Board of Directors of

The Federal Bank Limited

1. We have reviewed the accompanying Statement of Unaudited Consolidated 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 30 September 2019 and year to date results for the period from 1 April 2019 to 30 September 2019 ("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 ('Listing Regulations'), except for the disclosures relating to Pillar 3 disclosure as at 30 September 2019, 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 Statement and have not been reviewed by us. Attention is drawn to the fact that the consolidated figures for the corresponding quarter ended 30 September 2018, the corresponding period from 1 April 2018 to 30 September 2018 and the cash flow statement for the corresponding period from 1 April 2018 to 30 September 2018, as reported in these financial results have been approved by the Bank's Board of Directors, but have not been subjected to review by us since the requirement of submission of quarterly consolidated financial results and cashflow statement has become mandatory only from 1 April 2019.

2. This Statement, which is the responsibility of the Bank's management and 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 ('RBI') from time to time ('RBI Guidelines') 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 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 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. The Statement includes the results of the following entities:

a. Fedbank Financial Services Limited ('the Subsidiary')

b. Federal Operations and Services Limited ('the Subsidiary')

c. IDBI Federal Life Insurance Company Limited ('the Associate')

d. Equirus Capital Private Limited ('the Associate')

5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 6 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 the aforesaid Accounting Standard, RBI Guidelines and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, as amended, including the manner in which it is to be disclosed, except for the disclosures relating to Pillar 3 disclosure as at 30 September 2019, 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 Statement and have not been reviewed by us, or that it contains any material misstatement.

6. We did not review the interim financial results of two subsidiaries included in the Statement whose unaudited interim financial results reflect total assets of Rs. 284,849 lakhs as at 30 September 2019 and total revenues of Rs. 10,661 lakhs and Rs. 19,590 lakhs, total net profit after tax of Rs. 771 lakhs and Rs. 1,835 lakhs for the quarter ended 30 September 2019 and for the period from 1 April 2019 to 30 September 2019, respectively, and cash flows (net) of Rs 3,181 lakhs for the period from 1 April 2019 to 30 September 2019, as considered in the consolidated unaudited financial results. These interim financial results have been reviewed by other auditors 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 the report of the other auditors and the procedures performed by us as stated in paragraph 3 above.

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

7. The Statement also includes the Group's share of net profit after tax of Rs. 224 lakhs and Rs. 454 lakhs for the quarter ended 30 September 2019 and for the period from 1 April 2019 to 30 September 2019, respectively, as considered in the unaudited consolidated financial results, in respect of two associates, based on their interim financial results which have neither been reviewed by their auditors nor by us. According to the information and explanations given to us by the Management, the interim financial results are not material to the Group.

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

For B S R & Co. LLP	For M.M. Nissim & Co.
Chartered Accountants	Chartered Accountants
Firm's Registration No: 101248W / W-100022	Firm's Registration No: 107122W



Akeel Master	Sanjay Khemani
Partner	Partner
Membership No: 046768	Membership No: 044577
ICAI UDIN:19046768AAABMZ2756	ICAI UDIN:19044577AAAABC5588

Mumbai	Mumbai
16 October 2019	16 October 2019

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2019
							(` in Lakhs)
Particulars		Quarter ended			Half year ended		Year ended
		30.09.2019	30.06.2019	30.09.2018	30.09.2019	30.09.2018	31.03.2019
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Interest earned (a)+(b)+(c)+(d)		3,25,425	3,22,930	2,76,492	6,48,355	5,43,230	11,41,903
(a)	Interest/discount on advances/bills	2,63,766	2,60,608	2,21,051	5,24,374	4,28,995	9,08,962
(b)	Income on investments	52,744	55,523	48,834	1,08,267	99,549	2,03,745
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	3,811	1,972	2,089	5,783	4,612	7,347
(d)	Others	5,104	4,827	4,518	9,931	10,074	21,849
2. Other income		42,092	39,152	32,289	81,244	59,375	1,35,102
3. TOTAL INCOME (1+2)		3,67,517	3,62,082	3,08,781	7,29,599	6,02,605	12,77,005
4. Interest expended		2,13,047	2,07,513	1,74,245	4,20,560	3,42,977	7,24,268
5. Operating expenses (i)+(ii)		82,590	76,293	64,776	1,58,883	1,29,576	2,76,427
(i)	Employees cost	44,070	39,784	30,893	83,854	65,395	1,37,776
(ii)	Other operating expenses	38,520	36,509	33,883	75,029	64,181	1,38,651
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies)		2,95,637	2,83,806	2,39,021	5,79,443	4,72,553	10,00,695
7. OPERATING PROFIT (3-6) (Profit before provisions and contingencies)		71,880	78,276	69,760	1,50,156	1,30,052	2,76,310
8. Provisions (other than tax) and contingencies		25,177	19,204	28,882	44,381	48,797	85,585
9. Exceptional items		-	-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		46,703	59,072	40,878	1,05,775	81,255	1,90,725
11. Tax expense		5,033	20,651	14,274	25,684	28,380	66,336
12. Net Profit from Ordinary Activities after tax (10-11)		41,670	38,421	26,604	80,091	52,875	1,24,389
13. Extraordinary items (net of tax expense)		-	-	-	-	-	-
14. Net Profit for the period (12-13)		41,670	38,421	26,604	80,091	52,875	1,24,389
15. Paid-up Equity Share Capital (Face value ` 2/- per Equity Share)		39,762	39,720	39,612	39,762	39,612	39,701
16. Reserves excluding Revaluation Reserve							12,87,102
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	13.98	14.10	13.29	13.98	13.29	14.14
(iii)	Earnings per Share (EPS) (in `)
	(a) Basic EPS (before and after extra ordinary items)	2.10*	1.94*	1.34*	4.03*	2.67*	6.28
	(b) Diluted EPS (before and after extra ordinary items)	2.08*	1.92*	1.33*	4.00*	2.65*	6.24
(iv)	NPA Ratios
	a) Gross NPA	3,61,211	3,39,469	3,18,453	3,61,211	3,18,453	3,26,068
	b) Net NPA	1,84,364	1,67,282	1,79,629	1,84,364	1,79,629	1,62,620
	c) % of Gross NPA	3.07	2.99	3.11	3.07	3.11	2.92
	d) % of Net NPA	1.59	1.49	1.78	1.59	1.78	1.48
(v)	Return on Assets (%)	0.26*	0.24*	0.19*	0.51*	0.39*	0.88

* Not Annualised

Segment Information@

Particulars		Quarter ended			Half year ended		Year ended
		30.09.2019	30.06.2019	30.09.2018	30.09.2019	30.09.2018	31.03.2019
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Segment Revenue:
	Treasury	68,830	72,964	61,715	1,41,794	1,24,011	2,54,761
	Corporate/Wholesale Banking	1,38,806	1,48,081	1,18,582	2,86,887	2,31,381	5,07,376
	Retail Banking	1,52,491	1,35,331	1,23,312	2,87,822	2,37,576	4,88,342
	Other Banking operations	7,390	5,706	5,172	13,096	9,637	26,526
	Unallocated	-	-	-	-	-	-
	Total Revenue	3,67,517	3,62,082	3,08,781	7,29,599	6,02,605	12,77,005
	Less: Inter Segment Revenue	-	-	-	-	-	-
	Income from Operations	3,67,517	3,62,082	3,08,781	7,29,599	6,02,605	12,77,005
Segment Results (net of provisions):
	Treasury	12,259	15,452	3,468	27,711	13,264	41,085
	Corporate/Wholesale Banking	(4,633)	18,774	4,999	14,141	6,913	25,969
	Retail Banking	39,012	26,319	33,062	65,331	61,385	1,20,186
	Other Banking operations	2,157	(927)	216	1,230	966	6,690
	Unallocated	(2,092)	(546)	(867)	(2,638)	(1,273)	(3,205)
	Profit before tax	46,703	59,072	40,878	1,05,775	81,255	1,90,725
Segment Assets
	Treasury	34,09,896	34,94,567	31,18,628	34,09,896	31,18,628	35,75,297
	Corporate/Wholesale Banking	59,08,518	57,61,147	58,56,115	59,08,518	58,56,115	58,16,960
	Retail Banking	62,19,085	59,11,252	46,80,773	62,19,085	46,80,773	56,68,073
	Other Banking operations	1,927	934	1,965	1,927	1,965	1,138
	Unallocated	11,03,023	8,65,911	7,83,415	11,03,023	7,83,415	8,72,531
	Total	1,66,42,449	1,60,33,811	1,44,40,896	1,66,42,449	1,44,40,896	1,59,33,999
Segment Liabilities
	Treasury	32,85,495	33,46,484	30,05,316	32,85,495	30,05,316	34,76,144
	Corporate/Wholesale Banking	57,97,969	55,54,101	56,26,533	57,97,969	56,26,533	56,00,730
	Retail Banking	61,07,417	57,02,225	44,99,891	61,07,417	44,99,891	54,61,130
	Other Banking operations	-	5	-	-	-	4
	Unallocated	76,137	64,833	55,023	76,137	55,023	68,687
	Total	1,52,67,018	1,46,67,648	1,31,86,763	1,52,67,018	1,31,86,763	1,46,06,695
Capital employed:
(Segment Assets - Segment Liabilities)
	Treasury	1,24,401	1,48,083	1,13,312	1,24,401	1,13,312	99,153
	Corporate/Wholesale Banking	1,10,549	2,07,046	2,29,582	1,10,549	2,29,582	2,16,230
	Retail Banking	1,11,668	2,09,027	1,80,882	1,11,668	1,80,882	2,06,943
	Other Banking operations	1,927	929	1,965	1,927	1,965	1,134
	Unallocated	10,26,886	8,01,078	7,28,392	10,26,886	7,28,392	8,03,844
	Total	13,75,431	13,66,163	12,54,133	13,75,431	12,54,133	13,27,304
@	For the above segment reporting, the reportable segments are identified into Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines.
	Statement of Assets and Liabilities of the Bank as on September 30, 2019 is given below:
					(` in Lakhs)
	Particulars		As at 30.09.2019	As at 30.09.2018	As at 31.03.2019
	Particulars		Unaudited	Unaudited	Audited
	CAPITAL AND LIABILITIES
	Capital		39,762	39,612	39,701
	Reserves and Surplus		13,35,669	12,14,521	12,87,603
	Deposits		1,39,54,652	1,18,18,242	1,34,95,434
	Borrowings		7,76,384	8,87,349	7,78,132
	Other Liabilities and Provisions		5,35,982	4,81,172	3,33,129
	Total		1,66,42,449	1,44,40,896	1,59,33,999
	ASSETS
	Cash and Balances with Reserve Bank of India		7,73,319	5,71,829	6,41,917
	Balance with Banks and Money at Call and Short Notice		3,67,442	2,42,941	3,64,763
	Investments		31,09,436	28,21,385	31,82,447
	Advances		1,15,89,321	1,00,94,088	1,10,22,295
	Fixed assets		47,248	45,705	47,204
	Other assets		7,55,683	6,64,948	6,75,373
	Total		1,66,42,449	1,44,40,896	1,59,33,999

Notes:
1	The above Standalone Unaudited Financial Results for the quarter and half year ended September 30, 2019 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on October 16, 2019. These Results have been subjected to "Limited review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued. The cash flow statement for the half year ended September 30, 2018 has been approved by the Bank's Board of Directors, but has not been subjected to review since the requirement of submission of Cash flow statement has become mandatory only from April 01, 2019.

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, 2019.

3	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.

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), recoveries from advances written off etc.

5	During the quarter ended June 30, 2018, as per RBI Circular, the Bank had exercised the option of spreading the provision for Mark to Market (MTM) losses of ` 5,893.97 Lakhs equally over 4 quarters and accordingly unamortised MTM losses of ` 4,420.48 Lakhs were deferred to be amortised in remaining quarters of FY 2019, which was fully amortised in FY 2019.

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	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.

8	During the quarter and half year ended September 30, 2019, the Bank has allotted 2,136,193 and 3,068,052 equity shares of ` 2 each, pursuant to the exercise of stock options by employees.

9	During the quarter ended June 30, 2019, the bank had raised ` 30,000.00 Lakhs Tier II capital by way of issuance of Basel III compliant Tier II Bonds.

10	The Bank has elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Bank has recognised Provision for Income Tax for quarter and the half year ended September 30, 2019 and re-measured its Deferred tax liability basis the rate prescribed in the aforesaid section and recognized the effect of change by revising the annual effective income tax rate.

11	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.

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







			SHYAM SRINIVASAN
Mumbai			MANAGING DIRECTOR & CEO
October 16, 2019			(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, 2019
		(` in Lakhs)
	Half year ended September 30, 2019	Half year ended September 30, 2018
Cash Flow from Operating Activities
Net Profit before taxes	1,05,775	81,255
Adjustments for:
Depreciation on Bank's Property	5,835	6,203
Depreciation on Investments	2,603	12,737
Amortisation of Premium on Held to Maturity Investments	3,116	2,913
Provision for Non Performing Investments	188	759
Provision / Charge for Non Performing Assets	35,177	31,824
Provision for Standard Assets	6,178	3,450
(Profit)/Loss on sale of fixed assets (net)	(45)	9
Provision for Other Contingencies	235	27
	1,59,062	1,39,177
Adjustments for working capital changes:-
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments]	(21,727)	3,13,790
(Increase)/ Decrease in Advances	(6,02,202)	(9,30,165)
(Increase)/ Decrease in Other Assets	(65,540)	(69,315)
Increase/ (Decrease) in Deposits	4,59,218	6,18,993
Increase/ (Decrease) in Other liabilities and provisions	1,96,440	2,19,923
	(33,811)	1,53,226
Direct taxes paid	(40,454)	(32,551)
Net Cash Flow from / (Used in) Operating Activities	84,797	2,59,852

Cash Flow from Investing Activities
Purchase of Fixed Assets	(6,010)	(6,241)
Proceeds from Sale of Fixed Assets	176	61
Investment in Subsidiary	(500)	-
(Increase)/ Decrease in Held to Maturity Investments	89,331	(73,477)
Net Cash generated / (Used in) Investing Activities	82,997	(79,657)

Cash Flow from Financing Activities
Proceeds from Issue of Share Capital	61	169
Proceeds from Share Premium	1,342	3,457
Proceeds from Issue of Subordinate Debt	30,000	-
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt)	(31,749)	(2,66,001)
Dividend Paid (Including Tax on Dividend)	(33,541)	(23,871)

Net Cash generated from Financing Activities	(33,887)	(2,86,246)

Effect of exchange fluctuation on translation reserve	174	480

Net Increase in Cash and Cash Equivalents	1,34,081	(1,05,571)

Cash and Cash Equivalents at the beginning of period	10,06,680	9,20,341
Cash and Cash Equivalents at the end of period	11,40,761	8,14,770

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.



Mumbai	SHYAM SRINIVASAN
October 16, 2019	MANAGING DIRECTOR & CEO
	(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, 2019
							(` in Lakhs)
Particulars		Quarter ended			Half year ended		Year ended
		30.09.2019	30.06.2019	30.09.2018	30.09.2019	30.09.2018	31.03.2019
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Interest earned (a)+(b)+(c)+(d)		3,33,675	3,29,521	2,81,301	6,63,196	5,52,607	11,63,544
(a)	Interest/discount on advances/bills	2,72,087	2,67,052	2,25,776	5,39,139	4,38,265	9,30,412
(b)	Income on investments	52,674	55,669	48,917	1,08,343	99,656	2,03,936
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	3,810	1,973	2,090	5,783	4,612	7,347
(d)	Others	5,104	4,827	4,518	9,931	10,074	21,849
2. Other income		41,169	37,097	32,296	78,266	59,404	1,33,522
3. TOTAL INCOME (1+2)		3,74,844	3,66,618	3,13,597	7,41,462	6,12,011	12,97,066
4. Interest expended		2,15,422	2,09,707	1,76,117	4,25,129	3,46,636	7,31,633
5. Operating expenses (i)+(ii)		86,305	79,077	66,319	1,65,382	1,32,622	2,83,658
(i)	Employees cost	46,321	41,541	31,970	87,862	67,454	1,42,566
(ii)	Other operating expenses	39,984	37,536	34,349	77,520	65,168	1,41,092
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies)		3,01,727	2,88,784	2,42,436	5,90,511	4,79,258	10,15,291
7. OPERATING PROFIT (3-6) (Profit before provisions and contingencies)		73,117	77,834	71,161	1,50,951	1,32,753	2,81,775
8. Provisions (other than tax) and contingencies		25,343	19,332	28,560	44,675	48,554	85,765
9. Exceptional items		-	-	-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		47,774	58,502	42,601	1,06,276	84,199	1,96,010
11. Tax expense		5,334	21,131	14,670	26,465	29,143	67,758
12. Net Profit from Ordinary Activities after tax (10-11)		42,440	37,371	27,931	79,811	55,056	1,28,252
13. Extraordinary items (net of tax expense)		-	-	-	-	-	-
14. Net Profit for the period (12-13)		42,440	37,371	27,931	79,811	55,056	1,28,252
15. Minority interest		129	182	-	311	-	180
16. Share in Profit of Associates		223	231	130	454	300	3,556
17. Consolidated Net Profit of the group (14-15+16)		42,534	37,420	28,061	79,954	55,356	1,31,628
18. Paid-up Equity Share Capital (Face value ` 2/- per Equity Share)		39,762	39,720	39,612	39,762	39,612	39,701
19. Reserves excluding Revaluation Reserve							13,09,624
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	14.32	14.41	13.43	14.32	13.43	14.43
(iii)	Earnings per Share (EPS) (in `)
	(a) Basic EPS (before and after extra ordinary items)	2.14*	1.88*	1.42*	4.03*	2.80*	6.65
	(b) Diluted EPS (before and after extra ordinary items)	2.13*	1.87*	1.41*	3.99*	2.78*	6.60
(iv)	NPA Ratios
	a) Gross NPA	3,65,317	3,43,375	3,20,299	3,65,317	3,20,299	3,30,178
	b) Net NPA	1,87,941	1,70,726	1,81,217	1,87,941	1,81,217	1,66,218
	c) % of Gross NPA	3.06	2.98	3.10	3.06	3.10	2.92
	d) % of Net NPA	1.60	1.50	1.78	1.60	1.78	1.49
(v)	Return on Assets (%)	0.26*	0.23*	0.20*	0.49*	0.39*	0.88

* Not Annualised

Particulars		Quarter ended			Half year ended		Year ended
		30.09.2019	30.06.2019	30.09.2018	30.09.2019	30.09.2018	31.03.2019
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Segment Revenue:
	Treasury	68,830	70,881	61,715	1,39,711	1,24,011	2,54,761
	Corporate/Wholesale Banking	1,38,806	1,48,081	1,18,582	2,86,887	2,31,381	5,07,376
	Retail Banking	1,59,818	1,41,950	1,28,128	3,01,768	2,46,982	5,08,403
	Other Banking operations	7,390	5,706	5,172	13,096	9,637	26,526
	Unallocated	-	-	-	-	-	-
	Total Revenue	3,74,844	3,66,618	3,13,597	7,41,462	6,12,011	12,97,066
	Less: Inter Segment Revenue	-	-	-	-	-	-
	Income from Operations	3,74,844	3,66,618	3,13,597	7,41,462	6,12,011	12,97,066
Segment Results (net of provisions):
	Treasury	12,258	13,338	3,874	25,596	13,670	41,469
	Corporate/Wholesale Banking	(4,633)	18,774	4,999	14,141	6,913	25,969
	Retail Banking	40,043	27,845	34,379	67,888	63,923	1,25,087
	Other Banking operations	2,198	(909)	216	1,289	966	6,690
	Unallocated	(2,092)	(546)	(867)	(2,638)	(1,273)	(3,205)
	Profit before tax	47,774	58,502	42,601	1,06,276	84,199	1,96,010
Segment Assets
	Treasury	34,11,608	34,96,055	31,18,765	34,11,608	31,18,765	35,78,232
	Corporate/Wholesale Banking	59,08,518	57,61,147	58,56,115	59,08,518	58,56,115	58,16,960
	Retail Banking	63,86,249	60,33,252	47,81,410	63,86,249	47,81,410	57,86,386
	Other Banking operations	1,057	725	1,965	1,057	1,965	1,138
	Unallocated	11,03,023	8,65,911	7,83,415	11,03,023	7,83,415	8,72,531
	Total	1,68,10,455	1,61,57,090	1,45,41,670	1,68,10,455	1,45,41,670	1,60,55,247
Segment Liabilities
	Treasury	32,85,495	33,46,484	30,05,316	32,85,495	30,05,316	34,76,144
	Corporate/Wholesale Banking	57,97,969	55,54,101	56,26,532	57,97,969	56,26,532	56,00,730
	Retail Banking	62,33,582	57,95,756	45,91,627	62,33,582	45,91,627	55,51,810
	Other Banking operations	-	5	-	-	-	4
	Unallocated	76,137	64,833	55,023	76,137	55,023	68,687
	Total	1,53,93,183	1,47,61,179	1,32,78,498	1,53,93,183	1,32,78,498	1,46,97,375
Capital employed:
(Segment Assets - Segment Liabilities)
	Treasury	1,26,113	1,49,571	1,13,449	1,26,113	1,13,449	1,02,088
	Corporate/Wholesale Banking	1,10,549	2,07,046	2,29,583	1,10,549	2,29,583	2,16,230
	Retail Banking	1,52,667	2,37,496	1,89,783	1,52,667	1,89,783	2,34,576
	Other Banking operations	1,057	720	1,965	1,057	1,965	1,134
	Unallocated	10,26,886	8,01,078	7,28,392	10,26,886	7,28,392	8,03,844
	Total	14,17,272	13,95,911	12,63,172	14,17,272	12,63,172	13,57,872
@	For the above segment reporting, the reportable segments are identified into Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations in compliance with the RBI guidelines.
	Statement of Assets and Liabilities of the Group as on September 30, 2019 is given below:
					(` in Lakhs)
	Particulars		As at 30.09.2019	As at 30.09.2018	As at 31.03.2019
	Particulars		Unaudited	Unaudited	Audited
	CAPITAL AND LIABILITIES
	Capital		39,762	39,612	39,701
	Reserves and Surplus		13,62,141	12,23,560	13,10,125
	Minority Interest		15,369	-	8,046
	Deposits		1,39,52,139	1,18,18,241	1,34,87,893
	Borrowings		8,93,823	9,74,545	8,70,629
	Other Liabilities and Provisions		5,47,221	4,85,712	3,38,853
	Total		1,68,10,455	1,45,41,670	1,60,55,247
	ASSETS
	Cash and Balances with Reserve Bank of India		7,74,158	5,72,084	6,42,267
	Balance with Banks and Money at Call and Short Notice		3,73,480	2,43,385	3,63,080
	Investments		30,96,818	28,04,023	31,67,570
	Advances		1,17,54,542	1,02,06,755	1,11,53,592
	Fixed assets		48,809	46,079	47,993
	Other assets		7,62,648	6,69,344	6,80,745
	Total		1,68,10,455	1,45,41,670	1,60,55,247

Notes:
1	The above Consolidated Financial Results for the quarter and half year ended September 30, 2019 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, 2019. These Results have been subjected to "Limited review" by the Statutory Central Auditors of the Bank and an unqualified review report has been issued. The figures for the quarter and half year ended September 30, 2018 and the cash flow statement for the half year ended September 30, 2018 have been approved by the Bank's Board of Directors, but have not been subjected to review since the requirement of submission of quarterly consolidated financial results and cash flow statement has become mandatory only from April 01, 2019.

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.

3	There has been no material change in the accounting policies adopted during the quarter and half year ended September 30, 2019 as compared to those followed for the year ended March 31, 2019.

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.

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.

6	During the quarter ended June 30, 2018, as per RBI Circular, the Bank had exercised the option of spreading the provision for Mark to Market (MTM) losses of ` 5,893.97 Lakhs equally over 4 quarters and accordingly unamortised MTM losses of ` 4,420.48 Lakhs were deferred to be amortised in remaining quarters of FY 2019, which was fully amortised in FY 2019.

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.

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.

9	During the quarter and half year ended September 30, 2019, the Bank has allotted 2,136,193 and 3,068,052 equity shares of ` 2 each, pursuant to the exercise of stock options by employees.

10	During the quarter ended June 30, 2019, the bank had raised ` 30,000.00 Lakhs Tier II capital by way of issuance of Basel III compliant Tier II Bonds.

11	The Bank has elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Bank has recognised Provision for Income Tax for quarter and the half year ended September 30, 2019 and re-measured its Deferred tax liability basis the rate prescribed in the aforesaid section and recognized the effect of change by revising the annual effective income tax rate.

12	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.

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






			SHYAM SRINIVASAN
Mumbai			MANAGING DIRECTOR & CEO
October 16, 2019			(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, 2019
	(` in Lakhs)
	Half year ended September 30, 2019	Half year ended September 30, 2018
Cash Flow from Operating Activities
Net Profit before taxes	1,06,420	84,499
Adjustments for:	-	-
Depreciation on Group's Property	6,039	6,268
Depreciation on Investments	2,634	12,331
Amortisation of Premium on Held to Maturity Investments	3,116	2,913
Provision for Non Performing Investments	188	759
Provision / Charge for Non Performing Assets	35,194	31,910
Provision for Standard Assets	6,423	3,527
(Profit)/ Loss on sale of fixed assets (net)	(47)	9
(Income) / Loss From Associate	(454)	(300)
Provision for Other Contingencies	235	27
	1,59,748	1,41,943
Adjustments for working capital changes:-
(Increase)/ Decrease in Investments [excluding Held to Maturity Investments]	(23,563)	3,13,218
(Increase)/ Decrease in Advances	(6,36,145)	(9,37,577)
(Increase)/ Decrease in Other Assets	(66,781)	(69,731)
Increase/ (Decrease) in Deposits	4,64,246	6,21,231
Increase/ (Decrease) in Other liabilities and provisions	2,01,710	2,18,109
	(60,533)	1,45,250
Direct taxes paid	(41,587)	(33,601)
Net Cash Flow from / (Used in) Operating Activities	57,628	2,53,592

Cash Flow from Investing Activities
Purchase of Fixed Assets	(6,987)	(6,282)
Proceeds from Sale of Fixed Assets	179	61
Investment in Subsidiary	(500)	-
(Increase)/ Decrease in Held to Maturity Investments	89,331	(73,477)
Net Cash generated / (Used in) Investing Activities	82,023	(79,698)

Cash Flow from Financing Activities
Proceeds from Issue of Share Capital	61	169
Proceeds from Share Premium	6,497	3,457
Increase / (Decrease) in Minority Interest	6,255	-
Proceeds from Issue of Subordinate Debt	30,000	-
Increase/(Decrease) in Borrowings (Excluding Subordinate Debt)	(6,806)	(2,58,181)
Dividend Paid (Including Tax on Dividend)	(33,541)	(23,871)

Net Cash generated from financing Activities	2,466	(2,78,426)

Effect of exchange fluctuation on translation reserve	174	480

Increase/(Decrease) in Cash and Cash Equivalents	1,42,291	(1,04,052)

Cash and Cash Equivalents at the beginning of year	10,05,347	9,19,521
Cash and Cash Equivalents at the end of year	11,47,638	8,15,469

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



Mumbai	SHYAM SRINIVASAN
October 16, 2019	MANAGING DIRECTOR & CEO
	(DIN: 02274773)

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END

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RNS metadata

Title: Half-year Report
Time: 14:03:20
Date: 17 Oct 2019
Category: Results
ID: 2620Q