Federal Bank Ltd (The)
19 May 2007
THE FEDERAL BANK LTD
REG. OFFICE :ALUVA
PB NO 103. KERALA , INDIA
PIN 683 101 PHONE DIRECT +91 484 2622263, FAX 2622672,2622283
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SD/F24/ /2007 SECRETARIAL DEPARTMENT
18 May 2007
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 audited financial results of the Bank for the period
ended 31 March 2007, 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 LTD.
Regd Office: Aluva, Kerala
AUDITED FINANCIAL RESULTS
For the Quarter and Year ended 31 March 2007
(Rs crore)
Quarter ended Year ended Consolidated figures
31 March 31 March for the year ended
31 March
2007 2006 2007 2006 2007 2006
1. Interest earned (a)+(b)+(c)+(d) 531.27 390.31 1817.35 1436.53 1817.35 1436.53
(a) Interest/discount on 381.82 261.63 1281.45 916.00 1281.45 916.00
advances/bills
(b) Income on Investments 129.04 120.69 482.49 458.17 482.49 458.17
(c) Interest on balances with RBI 13.43 4.24 43.81 35.94 43.81 35.94
and other inter bank funds
(d) Others 6.98 3.75 9.60 26.42 9.60 26.42
2. Other Income 105.36 69.73 286.69 216.95 286.69 216.95
A. TOTAL INCOME (1+2) 636.63 460.04 2104.04 1653.48 2104.04 1653.48
3. Interest expended 303.31 218.09 1084.96 836.73 1084.89 836.67
4. Operating Expenses (a)+(b) 108.60 99.24 406.10 364.57 406.14 364.65
(a) Payments to and provisions 69.74 60.78 260.45 228.36 260.48 228.43
for employees
(b) Other operating expenses 38.86 38.46 145.65 136.21 145.66 136.22
B. TOTAL EXPENDITURE (3)+(4) 411.91 317.33 1491.06 1201.30 1491.03 1201.32
(excluding Provisions and
Contingencies)
C. OPERATING PROFIT (A-B) 224.72 142.71 612.98 452.18 613.01 .52.16
(Profit before Provisions and
Contingencies)
D. Other Provisions and 86.65 81.27 214.75 171.41 214.75 171.41
Contingencies
(of which provision for NPAs) (7.45) (37.58) (89.29) (95.58) (95.58) (97.58)
E. Provision for Taxes 38.82 10.71 105.50 55.56 105.51 55.56
F. NET PROFIT (C-D-E) 99.25 50.73 292.73 225.21 292.75 225.19
5. Paid-up equity share capital 85.60 85.60 85.60 85.60 85.60 85.60
6. Reserves excluding revaluation
reserve (as per Balance Sheet of
the previous accounting year) 1409.97 1157.30 1410.98 1158.29
7. Analytical Ratios
(i) Percentage of shares held by NIL NIL NIL NIL NIL NIL
Government of India
(ii) Capital Adequacy ratio (%) 13.43 13.75 13.43 13.75 13.44 13.76
(iii) Earnings per Share-Basic (Rs.) 11.59* 7.37* 34.20 32.71 34.20 32.70
(iv) (a) Amount of Gross
Non-performing Assets 450.80 563.05 450.80 563.05 450.80 563.05
(b) Amount of Net
Non-performing Assets 65.05 111.60 65.05 111.60 65.05 111.60
(c) % of Gross NPAs 2.95 4.62 2.95 4.62 2.95 4.62
(d) % of Net NPAs 0.44 0.95 0.44 0.95 0.44 0.95
8. Aggregate of Non-Promoter
Shareholding:
- Number of Shares 856.03 lakh 856.03 lakh 856.03 lakh 856.03 lakh 856.03 lakh 856.03 lakh
- Percentage of
shareholding 100 100 100 100 100 100
* 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 gratuity, pension, bonus, income-tax including deferred
tax, fringe benefit tax and other usual and necessary items have also been
made.
3. 'Payments to and Provisions for employees' include a sum of Rs.28.43
crore being the provision made under revised Accounting Standard 15 (AS-15) on '
Employee Benefits' issued by the Institute of Chartered Accountants of India.
The said sum has been debited to the Profit & Loss Account in the quarter ended
September 2006 instead of adjusting against the opening balance of Revenue
Reserves & Surplus as per the said standard.
4. Bank has introduced a Voluntary Separation Scheme for its employees
during the year. An amount of Rs.14.32 crore paid as compensation has been
debited to 'Payments and Provisions for employees'.
5. As per the Scheme of amalgamation notified by the Central Government
and communicated by RBI, The Ganesh Bank of Kurundwad Ltd has been amalgamated
with the Bank with effect from 2 September 2006. The excess of liabilities over
assets as on 2 September 2006 amounting to Rs.23.28 crore has been fully
provided for in the Profit & Loss Account for the current year. The above
results include the operations of the merged entity with effect from 2 September
2006.
6. As a prudent policy Bank has decided to make appropriation of 5% of
its net profit every year towards the marked to market losses in the investments
held in the HTM category. After appropriating Rs.14.64 crore during the year
Bank holds Rs.171.31 crore under its Investment Fluctuation Reserve.
7. The Bank has been following the policy of charging software expenses
to Profit & Loss Account fully. However, during the current year, in respect of
the expenses on CBS implementation, the Bank has changed the policy to amortise
the same in three years on straight line basis. Accordingly, the amount of
Rs.4.94 crore spent during the year on CBS has been capitalised and an amount of
Rs.41 lakh being pro-rata amortisation charged to P&L Account.
8. On 31st March 2007 after the trading hours Reserve Bank of India made
certain announcements which affected the prices of Government Securities/bonds
on the next trading day. Hence as a prudent measure the bank has made a
provision of Rs.19.32 crore over and above the minimum requirement based on the
prices on 3rd April 2007, being the next trading day, as against the practice of
valuing the securities based on the market value as on 31 March. As a result of
the above change the profit for the year is lower and the provision for
depreciation on investment is higher by Rs.19.32 crore with consequential impact
on Reserves and Surplus and Investments.
9. 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.
10. The Bank had no investor complaints pending as on 31 December 2006.
All the 49 complaints received during the quarter were disposed of and there are
no pending complaints as on 31 March 2007.
11. Details of Customer complaints are given below.
a. No. of complaints pending at the beginning of the year 11
b. No. of complaints received during the year 199
c. No. of complaints redressed during the year 200
d. No. of complaints pending at the end of the year 10
12. Details of awards passed by the Banking Ombudsman are given below.
a. No. of unimplemented Awards at the beginning of the year Nil
b. No. of Awards passed during the year 4
c. No. of Awards implemented during the year 3
d. No. of unimplemented Awards at the end of the year 1 (under appeal)
13. Figures of previous period/year have been regrouped and recast wherever
necessary.
14. The above financial results have been taken on record by the Board of
Directors at its meeting held on 18 May 2007.
15. The Board of Directors have recommended a dividend of 40% on equity
shares.
16. Consolidated financial statements include that of the fully owned
subsidiary viz. Fedbank Financial Services Ltd.
Segment Information
The Bank's operations are classified into two business segments, viz, Treasury
Operations (investment and trading in securities, shares, debentures etc) and
Other Banking Operations (other than Treasury), and the information on them is
as under.
(Rs. crore)
Quarter ended Year ended
31-Mar-07 31-Mar-06 31-Mar-07 31-Mar-06
Segment Revenue:
Treasury operations 128.51 119.54 523.98 483.50
Banking operations (other than 508.12 340.50 1580.06 1169.98
Treasury)
Total Revenue 636.63 460.04 2104.04 1653.48
Segment Results (net of provisions):
Treasury operations -52.32 6.01 -0.97 37.06
Banking operations (other than 190.39 55.43 399.20 243.71
Treasury)
Total Profit before Tax 138.07 61.44 398.23 280.77
Capital employed:
Treasury operations 158.71 139.96 158.71 139.96
Banking operations (other than 1343.50 1110.04 1343.50 1110.04
Treasury)
Total 1502.21 1250.00 1502.21 1250.00
The Bank has only the domestic geographic segment. Under business segments,
residual operations, being of insignificant volume, have not been considered as
a separate reportable segment, and have been included in Other Banking
operations.
Kochi M. VENUGOPALAN
18 May 2007 CHAIRMAN
This information is provided by RNS
The company news service from the London Stock Exchange