1st Quarter Results

Federal Bank Ltd (The)

19 August 2024

 

________________________________________________________________________________    

SD/LSE/185/2024-25                                                                                           19.08.2024

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 ended June 30, 2024 which was approved at the Bank's Board of Directors meeting held on July 24, 2024.

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 ended June 30, 2024 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 ended June 30, 2024 ('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 June 30, 2024, 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 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 Act') 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, directions issued by the Reserve Bank of India ('the RBI') from time to time ('the RBI Guidelines') and other recognized 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. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement are free of material misstatement. A review 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 Act 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 Act read with relevant rules issued thereunder, the RBI Guidelines and other 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 June 30, 2024, 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. 5.  The Statement includes standalone unaudited financial results of the Bank for the corresponding quarter ended June 30, 2023, which were reviewed by another auditors whose report dated July 13, 2023 expressed an unmodified conclusion on those results. 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: 24117812BKFITP3589 UDIN: 24219922BKCLUA7323 Kochi Kochi July 24, 2024 July 24, 2024 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 ended June 30, 2024 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 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'), its share of the net profit after tax of its associates for the quarter ended June 30, 2024 ('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 Regulation') except, for the disclosures relating to consolidated Pillar 3 as at June 30, 2024, 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 6 to the Statement and have not been reviewed by us. 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 Act') 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, directions issued by the Reserve Bank of India ('the RBI') from time to time ('the RBI Guidelines') and other recognized 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. 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 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 Act, 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 Securities and Exchange Board of India under Regulation 33 (8) of the Regulations, to the extent applicable. 4.   The Statement includes the 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 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 AS 25 prescribed under Section 133 of the Act read with relevant rules issued thereunder, the RBI Guidelines and other 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 June 30, 2024, 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 6 to the Statement and have not been reviewed by us. 6.   We did not review the interim financial information of two subsidiaries included in the statement, whose interim financial information reflect total revenues of Rs.49,886 Lakhs and total net profit after tax of Rs.5,311 Lakhs for the quarter ended June 30, 2024 as considered in the Statement. These interim financial information 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 reports of the other auditors and the procedures performed by us as stated in paragraph 3 above. Our conclusion is not modified in respect of the above matter. 7.   The Statement includes the Group's share of net profit after tax of Rs. 741 Lakhs for the quarter ended June 30, 2024 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 consolidated unaudited financial results of the Bank for the corresponding quarter ended June 30, 2023, which were reviewed by another auditors whose report dated July 13, 2023 expressed an unmodified conclusion on those results. 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: 24117812BKFITP3589 UDIN: 24219922BKCLUA7323 Kochi Kochi July 24, 2024 July 24, 2024

THE FEDERAL BANK LIMITED
REGD.OFFICE: P.B.NO. 103, FEDERAL TOWERS, ALUVA-683101
(CIN: L65191KL1931PLC000368)
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2024
					(₹ in Lakhs)
Particulars		Quarter ended			Year ended
		30.06.2024	31.03.2024	30.06.2023	31.03.2024
		Unaudited	Audited (Refer Note 9 below)	Unaudited	Audited
1. Interest earned (a)+(b)+(c)+(d)		6,33,088	5,97,835	5,02,453	22,18,826
(a)	Interest/discount on advances/bills	5,02,614	4,74,189	4,03,958	17,73,452
(b)	Income on investments	1,10,825	1,03,255	81,486	3,69,162
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	10,269	9,837	7,093	33,887
(d)	Others	9,380	10,554	9,916	42,325
2. Other income (Refer note 4)		91,518	75,388	73,241	3,07,927
3. TOTAL INCOME (1+2)		7,24,606	6,73,223	5,75,694	25,26,753
4. Interest expended		4,03,890	3,78,324	3,10,594	13,89,478
5. Operating expenses (i)+(ii)		1,70,625	1,83,864	1,34,865	6,19,827
(i)	Employees cost	73,802	88,689	61,674	2,82,309
(ii)	Other operating expenses	96,823	95,175	73,191	3,37,518
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies)		5,74,515	5,62,188	4,45,459	20,09,305
7. OPERATING PROFIT (3-6)  (Profit before provisions and contingencies)		1,50,091	1,11,035	1,30,235	5,17,448
8. Provisions (other than tax) and contingencies		14,427	(9,460)	15,558	19,610
9. Exceptional items		-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		1,35,664	1,20,495	1,14,677	4,97,838
11. Tax expense		34,711	29,865	29,303	1,25,778
12. Net Profit from Ordinary Activities after tax  (10-11)		1,00,953	90,630	85,374	3,72,060
13. Extraordinary items (net of tax expense)		-	-	-	-
14. Net Profit for the period (12-13)		1,00,953	90,630	85,374	3,72,060
15. Paid-up Equity Share Capital (Face value ₹ 2/- per Equity Share)		48,953	48,707	42,360	48,707
16. Reserves excluding Revaluation Reserve					28,60,234
17. Analytical Ratios and Other Disclosures:
(i)	Percentage of shares held by Government of India	NIL	NIL	NIL	NIL
(ii)	Capital Adequacy ratio (%) (Refer note 5)
	Under Basel III	15.57	16.13	14.28	16.13
(iii)	Earnings per Share (EPS) (in ₹)
	(a) Basic EPS  (before and after extraordinary items)	4.14*	3.72*	4.03*	16.07
	(b) Diluted EPS (before and after extraordinary items)	4.09*	3.68*	3.98*	15.87
(iv)	NPA Ratios
	a) Gross NPA	4,73,835	4,52,887	4,43,477	4,52,887
	b) Net NPA	1,33,044	1,25,533	1,27,459	1,25,533
	c) % of Gross NPA	2.11	2.13	2.38	2.13
	d) % of Net NPA	0.60	0.60	0.69	0.60
(v)	Return on Assets (%)	0.32*	0.30*	0.32*	1.32
(vi)	Net Worth	30,30,084	29,08,941	22,24,775	29,08,941
(vii)	Outstanding Redeemable Preference Shares	NIL	NIL	NIL	NIL
(viii)	Capital Redemption Reserve	NIL	NIL	NIL	NIL
(ix)	Debenture Redemption Reserve	NIL	NIL	NIL	NIL
(x)	Debt - Equity Ratio #	0.71	0.62	0.95	0.62
(xi)	Total Debts to Total Assets #	6.62%	5.85%	7.72%	5.85%
(xii)	Operating Margin	20.71%	16.49%	22.62%	20.48%
(xiii)	Net Profit Margin	13.93%	13.46%	14.83%	14.72%
* Not Annualised
# Debt and Total Debts represents Total Borrowings of the Bank

Segment Information@
					(₹ in Lakhs)
Particulars		Quarter ended			Year ended
		30.06.2024	31.03.2024	30.06.2023	31.03.2024
		Unaudited	Audited (Refer Note 9 below)	Unaudited	Audited
Segment Revenue:
	Treasury	1,11,473	90,473	77,243	3,53,336
	Corporate/Wholesale Banking	1,99,879	1,95,562	1,64,245	7,21,536
	Retail Banking	4,08,592	3,81,224	3,31,117	14,31,246
	a) Digital Banking	46,198	44,452	30,340	1,50,103
	b) Other Retail Banking	3,62,394	3,36,772	3,00,777	12,81,143
	Other Banking operations	4,606	5,799	2,949	20,071
	Unallocated	56	165	140	564
	Total Revenue	7,24,606	6,73,223	5,75,694	25,26,753
	Less: Inter Segment Revenue	-	-	-	-
	Income from Operations	7,24,606	6,73,223	5,75,694	25,26,753
Segment Results (net of provisions):
	Treasury	22,291	6,814	11,255	56,572
	Corporate/Wholesale Banking	37,245	42,671	40,024	1,62,157
	Retail Banking	72,157	65,916	60,751	2,61,486
	a) Digital Banking	4,094	7,546	3,520	22,559
	b) Other Retail Banking	68,063	58,370	57,231	2,38,927
	Other Banking operations	3,915	4,929	2,507	17,060
	Unallocated	56	165	140	563
	Profit before tax	1,35,664	1,20,495	1,14,677	4,97,838
Segment Assets:
	Treasury	69,91,289	63,09,635	55,44,511	63,09,635
	Corporate/Wholesale Banking	1,16,06,254	1,11,57,372	98,95,207	1,11,57,372
	Retail Banking	1,33,87,844	1,25,55,959	1,12,69,975	1,25,55,959
	a) Digital Banking	7,05,217	6,81,296	4,82,219	6,81,296
	b) Other Retail Banking	1,26,82,627	1,18,74,663	1,07,87,756	1,18,74,663
	Other Banking operations	-	-	-	-
	Unallocated	8,11,707	8,08,214	7,09,865	8,08,214
	Total	3,27,97,094	3,08,31,180	2,74,19,558	3,08,31,180
Segment Liabilities:
	Treasury	32,96,960	28,80,492	30,91,221	28,80,492
	Corporate/Wholesale Banking	35,29,046	32,02,646	26,25,089	32,02,646
	Retail Banking	2,24,96,965	2,13,10,663	1,91,51,679	2,13,10,663
	a) Digital Banking	16,83,976	16,26,328	12,74,681	16,26,328
	b) Other Retail Banking	2,08,12,989	1,96,84,335	1,78,76,998	1,96,84,335
	Other Banking operations	-	-	-	-
	Unallocated	4,17,703	5,27,937	3,14,055	5,27,937
	Total	2,97,40,674	2,79,21,738	2,51,82,044	2,79,21,738
Capital Employed:
(Segment Assets - Segment Liabilities)
	Treasury	36,94,329	34,29,143	24,53,290	34,29,143
	Corporate/Wholesale Banking	80,77,208	79,54,726	72,70,118	79,54,726
	Retail Banking	(91,09,121)	(87,54,704)	(78,81,704)	(87,54,704)
	a) Digital Banking	(9,78,759)	(9,45,032)	(7,92,462)	(9,45,032)
	b) Other Retail Banking	(81,30,362)	(78,09,672)	(70,89,242)	(78,09,672)
	Other Banking operations	-	-	-	-
	Unallocated	3,94,004	2,80,277	3,95,810	2,80,277
	Total	30,56,420	29,09,442	22,37,514	29,09,442
@	For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking (with Digital Banking and Other Retail Banking as sub-segments) and Other Banking Operations in compliance with the Reserve Bank of India (RBI) guidelines. The business  operations of the Bank are substantially concentrated in India and for the purpose of Segment Reporting as per Accounting Standard-17, the bank is considered to operate only in domestic segment.
	Notes:
1	The above Standalone Unaudited Financial Results for the quarter ended June 30, 2024 were approved by the Board of Directors at its meeting held on July 24, 2024. These financial results have been subjected to limited review by the Joint Statutory Auditors of the Bank and an unmodified review report has been issued.
2	The above financial results of the Bank have been prepared in accordance with the provisions of the Banking Regulation Act, 1949, Generally Accepted Accounting Principles in India, including Accounting Standards as specified under Section 133 of the Companies Act, 2013, Regulation 33 and Regulation 52 read with Regulation 63(2) of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, as amended, in so far as they apply to banks, and the guidelines issued by the RBI.
3	The Bank has applied significant accounting policies in the preparation of these financial results consistent with those followed in the annual financial statements for the year ended March 31, 2024 except as stated in Note 10 below. Any circular / direction issued by RBI is implemented prospectively when it becomes applicable, unless specifically required as per that circular / direction.
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), profit / loss on revaluation of investments, dividend received from subsidiaries / associates, recoveries from advances written off, etc.
5	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.
6	During the quarter ended June 30, 2024, the Bank has allotted 12,289,136 equity shares of ₹2 each, pursuant to the exercise of stock options by employees.
7	As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Joint Statutory Auditors of the Bank.
8	Disclosures as per 'Master Direction - Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021' dated September 24, 2021 for the loans transferred / acquired during the quarter ended June 30, 2024 are given below:
	i) Details of loans not in default acquired through assignment during the quarter ended June 30, 2024 are given below:
	Particulars			Value
	Aggregate amount of loans acquired (₹ in lakhs)			18,103.99
	Weighted average residual maturity (in years)			0.97
	Weighted average holding period by originator (in years)			0.28
	Retention of beneficial economic interest by the originator (₹ in lakhs)			41,784.61
	Tangible security coverage			55.81%
	Rating-wise distribution
	A1+			55.81%
	Unrated			44.19%
	ii) During the quarter ended June 30, 2024, the bank has not acquired any stressed loans and not transferred any loan not in default / Special Mention Accounts (SMA) / stressed loans.
	iii) Book value of security receipts outstanding as on June 30, 2024 is nil.
9	The figures for the quarter ended March 31, 2024 are the balancing figures between audited figures in respect of the financial year 2023-24 and the published year to date figures upto December 31, 2023, which were subjected to limited review.
10	During the quarter ended June 30, 2024, the Bank implemented the RBI Master Direction - Classification, Valuation, and Operation of Investment Portfolio of Commercial Banks (Directions), 2023, dated September 12, 2023. This directive is applicable to banks from April 01, 2024. Consequent to the transition provisions, the Bank's reserves increased by ₹ 33,975.39 lakhs (net of taxes) as on April 01, 2024, on account of revision in the carrying value of investments to the fair value as on such date. The impact of the revised framework for the period subsequent to transition is not ascertainable, making the income/profit or loss from investments for the quarter ended June 30, 2024, incomparable with the previous year/periods.
11	The figures for the quarter ended June 30, 2023 were reviewed by previous Joint Statutory Auditors.
12	Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification.
			SHYAM SRINIVASAN
Kochi			MANAGING DIRECTOR & CEO
July 24, 2024			(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 ENDED JUNE 30, 2024
					(₹ in Lakhs)
Particulars		Quarter ended			Year ended
		30.06.2024	31.03.2024	30.06.2023	31.03.2024
		Unaudited	Audited (Refer Note 7 below)	Unaudited	Audited
1. Interest earned (a)+(b)+(c)+(d)		6,72,760	6,33,922	5,34,977	23,56,547
(a)	Interest/discount on advances/bills	5,41,918	5,09,954	4,36,293	19,10,130
(b)	Income on investments	1,10,722	1,03,082	81,475	3,68,570
(c)	Interest on balances with Reserve Bank of India and other inter bank funds	10,269	9,837	7,093	33,887
(d)	Others	9,851	11,049	10,116	43,960
2. Other income (Refer note 5)		93,605	80,990	74,131	3,21,648
3. TOTAL INCOME (1+2)		7,66,365	7,14,912	6,09,108	26,78,195
4. Interest expended		4,21,153	3,93,634	3,25,451	14,49,467
5. Operating expenses (i)+(ii)		1,87,490	1,99,327	1,46,944	6,76,670
(i)	Employees cost	84,455	98,533	69,326	3,17,970
(ii)	Other operating expenses	1,03,035	1,00,794	77,618	3,58,700
6. TOTAL EXPENDITURE (4+5) (excluding provisions and contingencies)		6,08,643	5,92,961	4,72,395	21,26,137
7. OPERATING PROFIT (3-6)  (Profit before provisions and contingencies)		1,57,722	1,21,951	1,36,713	5,52,058
8. Provisions (other than tax) and contingencies		17,288	(7,653)	16,469	25,958
9. Exceptional items		-	-	-	-
10. Profit from Ordinary Activities before tax (7-8-9)		1,40,434	1,29,604	1,20,244	5,26,100
11. Tax expense		36,432	32,365	31,070	1,33,347
12. Net Profit from Ordinary Activities after tax  (10-11)		1,04,002	97,239	89,174	3,92,753
13. Extraordinary items (net of tax expense)		-	-	-	-
14. Net Profit for the period (12-13)		1,04,002	97,239	89,174	3,92,753
15. Minority interest		1,992	2,538	1,378	8,361
16. Share in Profit of Associates		741	2,378	216	3,651
17. Consolidated Net Profit of the group (14-15+16)		1,02,751	97,079	88,012	3,88,043
18. Paid-up Equity Share Capital (Face value ₹ 2/- per Equity Share)		48,953	48,707	42,360	48,707
19. Reserves excluding Revaluation Reserve					29,61,328
20. Analytical Ratios and Other Disclosures:
(i)	Percentage of shares held by Government of India	NIL	NIL	NIL	NIL
(ii)	Earnings per Share (EPS) (in `)
	(a) Basic EPS  (before and after extraordinary items)	4.21*	3.99*	4.16*	16.76
	(b) Diluted EPS (before and after extraordinary items)	4.16*	3.94*	4.11*	16.55
* Not Annualised

Segment Information@
					(₹ in Lakhs)
Particulars		Quarter ended			Year ended
		30.06.2024	31.03.2024	30.06.2023	31.03.2024
		Unaudited	Audited (Refer Note 7 below)	Unaudited	Audited
Segment Revenue:
	Treasury	1,10,312	91,225	76,433	3,54,655
	Corporate/Wholesale Banking	1,97,774	1,94,207	1,63,630	7,16,785
	Retail Banking	4,51,420	4,20,444	3,64,558	15,77,884
	a) Digital Banking	46,198	44,452	30,340	1,50,103
	b) Other Retail Banking	4,05,222	3,75,992	3,34,218	14,27,781
	Other Banking operations	6,719	8,871	4,347	28,307
	Unallocated	140	165	140	564
	Total Revenue	7,66,365	7,14,912	6,09,108	26,78,195
	Less: Inter Segment Revenue	-	-	-	-
	Income from Operations	7,66,365	7,14,912	6,09,108	26,78,195
Segment Results (net of provisions):
	Treasury	21,710	8,144	11,024	60,218
	Corporate/Wholesale Banking	37,077	42,631	39,858	1,61,741
	Retail Banking	76,300	71,655	66,019	2,81,773
	a) Digital Banking	4,094	7,546	3,520	22,559
	b) Other Retail Banking	72,206	64,109	62,499	2,59,214
	Other Banking operations	5,207	7,009	3,203	21,805
	Unallocated	140	165	140	563
	Profit before tax	1,40,434	1,29,604	1,20,244	5,26,100
Segment Assets:
	Treasury	70,22,857	63,38,835	55,42,708	63,38,835
	Corporate/Wholesale Banking	1,15,05,466	1,10,79,450	98,40,909	1,10,79,450
	Retail Banking	1,44,73,648	1,35,59,659	1,21,32,226	1,35,59,659
	a) Digital Banking	7,05,217	6,81,296	4,82,219	6,81,296
	b) Other Retail Banking	1,37,68,431	1,28,78,363	1,16,50,007	1,28,78,363
	Other Banking operations	679	508	1,413	508
	Unallocated	8,07,038	8,05,443	7,09,865	8,05,443
	Total	3,38,09,688	3,17,83,895	2,82,27,121	3,17,83,895
Segment Liabilities:
	Treasury	33,84,765	29,64,257	31,49,951	29,64,257
	Corporate/Wholesale Banking	35,28,378	32,00,510	26,28,875	32,00,510
	Retail Banking	2,32,38,699	2,20,01,023	1,97,95,561	2,20,01,023
	a) Digital Banking	16,83,976	16,26,328	12,74,681	16,26,328
	b) Other Retail Banking	2,15,54,723	2,03,74,695	1,85,20,880	2,03,74,695
	Other Banking operations	330	356	330	356
	Unallocated	4,13,034	5,25,166	3,14,055	5,25,166
	Total	3,05,65,206	2,86,91,312	2,58,88,772	2,86,91,312
Capital Employed:
(Segment Assets - Segment Liabilities)
	Treasury	36,38,092	33,74,578	23,92,757	33,74,578
	Corporate/Wholesale Banking	79,77,088	78,78,940	72,12,034	78,78,940
	Retail Banking	(87,65,051)	(84,41,364)	(76,63,335)	(84,41,364)
	a) Digital Banking	(9,78,759)	(9,45,032)	(7,92,462)	(9,45,032)
	b) Other Retail Banking	(77,86,292)	(74,96,332)	(68,70,873)	(74,96,332)
	Other Banking operations	349	152	1,083	152
	Unallocated	3,94,004	2,80,277	3,95,810	2,80,277
	Total	32,44,482	30,92,583	23,38,349	30,92,583
@	For the above segment reporting, the reportable segments are identified as Treasury, Corporate/Wholesale Banking, Retail Banking (with Digital Banking and Other Retail Banking as sub-segments) and Other Banking Operations in compliance with the RBI guidelines. The business  operations of the Bank are substantially concentrated in India and for the purpose of Segment Reporting as per Accounting Standard-17, the bank is considered to operate only in domestic segment.
	Notes:
1	The above Consolidated Unaudited Financial Results for the quarter ended June 30, 2024 were approved by the Board of Directors at its meeting held on July 24, 2024. These financial results have been subjected to review by the Joint Statutory Auditors of the Bank and an unmodified review report has been issued.
2	The above financial results of the group have been prepared in accordance with the provisions of the Banking Regulation Act, 1949, Generally Accepted Accounting Principles in India, including Accounting Standards as specified under Section 133 of the Companies Act, 2013, Regulation 33 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, as amended and the guidelines issued by the RBI.
3	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. Ageas Federal Life Insurance Company Limited & Equirus Capital Private Limited.
4	There has been no material change in the accounting policies applied in the preparation of these financial results with those followed in the annual financial statements for the year ended March 31, 2024  except as stated in Note 8 below.
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), profit / loss on revaluation of investments, recoveries from advances written off, etc.
6	As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio , liquidity coverage ratio and Net Stable Funding Ratio (NSFR) under the Basel III framework. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.federalbank.co.in/regulatory-disclosures. These disclosures have not been subjected to audit or review by the Joint Statutory Auditors of the Bank.
7	The figures for the quarter ended March 31, 2024 are the balancing figures between audited figures in respect of the financial year 2023-24 and the published year to date figures upto December 31, 2023, which were subjected to limited review.
8	During the quarter ended June 30, 2024, the Group implemented the RBI Master Direction - Classification, Valuation, and Operation of Investment Portfolio of Commercial Banks (Directions), 2023, dated September 12, 2023. This directive is applicable to banks from April 01, 2024. Consequent to the transition provisions, the group's reserves increased by ₹ 34,171.80 lakhs (net of taxes) as on April 01, 2024, on account of revision in the carrying value of investments to the fair value as on such date. The impact of the revised framework for the period subsequent to transition is not ascertainable, making the income/profit or loss from investments for the quarter ended June 30, 2024, incomparable with the previous year/periods.
9	The figures for the quarter ended June 30, 2023 were reviewed by previous Joint Statutory Auditors.
10	Previous period's figures have been regrouped / reclassified, wherever necessary to conform to current period's classification.
			SHYAM SRINIVASAN
Kochi			MANAGING DIRECTOR & CEO
July 24, 2024			(DIN: 02274773)

 

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