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Monday 24 July, 2006

Federal Bank Ltd The

1st Quarter Results

Federal Bank Ltd (The)
22 July 2006



THE FEDERAL BANK LTD
REG. OFFICE :ALUVA
PB NO 103. KERALA, INDIA
PIN 683 101                  PHONE DIRECT STD 0484/  622263, FAX 622672,2622283
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SD/F24/                 /2006                            SECRETARIAL DEPARTMENT
                                                                  21 July 2006.



The London Stock Exchange,
10 Paternoster Square,
London, EC4M 7LS.

Dear Sir,

As required under the Listing Agreement entered into by us with your Stock
Exchange, we enclose the unaudited financial results of the Bank for the period
ended 30 June 2006, which was taken on record at the Bank's Board of Directors
Meeting held today.


Kindly acknowledge


Thanking you,


Yours faithfully,


COMPANY SECRETARY




                                        THE FEDERAL BANK LIMITED

                                        REGD. OFFICE:  ALUVA
                              UNAUDITED (PROVISIONAL) FINANCIAL RESULTS
                              FOR THE FIRST QUARTER ENDED 30 JUNE 2006
                                                                                            (Rs. Crore)
PARTICULARS                                                 Quarter ended                    Year ended
                                                  30  June 2006         30  June 2005      31 March 2006
                                                                                               (Audited)
1. Interest Earned (a)+(b)+(c)+(d)                       408.27                347.29            1436.53
  (a)  Interest/discount on advances/bills               278.64                204.98             916.00
  (b) Income on investments                              115.11                103.60             458.17
  (c) Interest on balances with RBI and other             13.69                 17.56              35.94
inter bank funds
  (d) Others                                               0.83                 21.15              26.42
2. Other Income                                           54.25                 42.21             216.95
A.       TOTAL  INCOME  (1+2)                            462.52                389.50            1653.48
3. Interest Expended                                     249.66                203.12             836.73
4. Operating Expenses (e)+(f)                             99.13                 91.26             364.57
   (e)  Payments to and provisions for                    64.91                 59.35             228.36
employees
   (f) Other operating expenses                           34.22                 31.91             136.21
B.     TOTAL EXPENDITURE (3)+(4)  (excluding             348.79                294.38            1201.30
Provisions and Contingencies)
C. OPERATING PROFIT (A-B) (Profit before                 113.73                 95.12             452.18
Provisions and Contingencies)
D. Other  Provisions and Contingencies                    55.92                 33.19             171.41
    (of which provision for NPAs)                       (24.51)               (24.10)            (95.58)
E.  Provision for Taxes                                   17.63                 13.25              55.56
F.  Net Profit/(Loss) (C-D-E)                             40.18                 48.68             225.21
5.  Paid-up Equity Share Capital                          85.60                 65.60              85.60
6.  Reserves excluding revaluation reserve (as
per Balance Sheet of the previous accounting
year)                                                                                            1157.30

                                                                                                 
7. Analytical Ratios
  (i)  Percentage of shares held by Government              Nil                   Nil                NIL
of India
  (ii) Capital Adequacy Ratio (%)                         13.04                 11.98              13.75
  (iii) Earnings per Share -Basic (Rs.)                   *4.69                 *7.42              32.71
  (iv) (a) Amount of Gross Non-performing
               Assets                                    549.20                652.88             563.05
       (b) Amount of Net Non-performing
               Assets                                     91.15                170.77             111.60
       (c) % of Gross NPAs                                 4.44                  7.10               4.62
       (d) % of Net NPAs                                   0.76                  1.96               0.95
8. Aggregate of Non-Promoter Shareholding:
-          Number of Shares                        856.03 lakh     656.02 lakh               856.03 lakh
-          Percentage of Shareholding                      100                100                    100
                                                           

* Not annualised







Notes

1.      As a prudent policy, the Bank holds provisions for NPAs and standard
assets over and above the minimum required under the RBI norms. The said
provisions have not been utilised for  provision required for the above period.

2.      Provisions for standard assets and also for gratuity, pension, bonus,
income-tax including deferred tax & fringe benefit tax and other usual and
necessary items have been made on estimated basis.

3.      A sum of Rs.17.02 crore (previous period Rs.Nil) has been provided for
on equity investments due to fall in equity price.

4.      Reconciliation/adjustment of outstanding entries in Inter branch/Office
transactions is in progress. In the opinion of the Bank, consequential effect of
the same on the revenue/assets/liabilities is not likely to be material.

5.      The Bank had  2 investor complaints pending as on 31 March 2006 and has
received  66 complaints during the quarter. Out of this, 66 complaints were
disposed of and 2 are pending as on 30 June 2006.

6.      The above financial results, subjected to limited review by statutory
central auditors, have been taken on record by the Board of Directors at its
meeting  held on 21 July 2006.



  Segment Information



Information is provided below on the Bank's operations, classified into two
business segments, viz, Treasury Operations (investment and trading in
securities, shares, debentures, etc) and Banking Operations (other than
Treasury).


                                                                                            (Rs. crore)
                                                                Quarter ended                Year ended
                                                         30  June 2006     30  June 2005       31 March 2006
                                                                                                   (Audited)
Segment Revenue:
   Treasury operations                                          123.46            117.00              483.50
    Banking operations (other than Treasury)                    339.06            272.50             1169.98
    Total                                                       462.52            389.50             1653.48
Segment Results:
    Treasury operations                                         -22.24              6.68               37.06
    Banking operations (other than Treasury)                     80.05             55.25              243.71
    Total Profit before Tax                                      57.81             61.93              280.77
Capital employed:
    Treasury operations                                         171.00             57.22              139.96
    Banking operations (other than Treasury)                   1119.16            714.80             1110.04
    Total                                                      1290.16            772.02             1250.00



The Bank has only the Domestic geographic segment.  Residual operations, being
of insignificant volume, have not been considered as a separate reportable
segment, but included in Banking Operations.





Kochi                                                  M. VENUGOPALAN
21 July  2006                                               CHAIRMAN






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