MIRA INFORM REPORT
|
Report Date : |
29.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
THE FEDERAL BANK LIMITED |
|
|
|
|
Registered
Office : |
Federal Towers, P. B. No. 103, Alwaye, Eranakulam – 683101, Kerala |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
23.04.1931 |
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Com. Reg. No.: |
09-000368 |
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Capital
Investment / Paid-up Capital : |
Rs.1710.587
Millions |
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|
|
CIN No.: [Company Identification
No.] |
L65191KL1931PLC000368 |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Banking, Leasing, Merchant Banking |
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|
No. of Employees
: |
10059 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 254500000 |
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|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed bank. Financially company
seems to be performance well. Liquidity are reported to be healthy and
strong. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The bank can be considered for normal business dealings at usual trade
terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial years
of the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Lower Tier II Bond: AA |
|
Rating Explanation |
Having high degree of safety regarding
timely servicing of financial obligation it carry very low credit risk. |
|
Date |
January 2013. |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
Federal Towers, P. B. No. 103, Alwaye, Eranakulam – 683101, Kerala,
India |
|
Tel. No.: |
91-484-2623698/ 2623620/ 29 |
|
Fax No.: |
Not Available |
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E-Mail : |
|
|
Website : |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Shyam Srinivasan |
|
Designation : |
Managing Director and Chief Executive Officer |
|
Date of Birth/Age : |
51 Years |
|
Qualification : |
B.E., P.G.D.M. |
|
Experience : |
27 Years |
|
|
|
|
Name : |
Mr. Abraham Chacko |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
60 Years |
|
Qualification : |
Post graduate diploma in Business Management |
|
Experience : |
34 Years |
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|
|
|
MANAGEMENT TEAM |
|
|
Name : |
Mr. Suresh Kumar |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Ashutosh Khajuria |
|
Designation : |
President |
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|
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|
Name : |
Mr. Radhakrishnan Nair |
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Designation : |
Chief Human Resources Officer |
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Name : |
Mr. Harikumar K S |
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Designation : |
General Manager |
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Name : |
Mr. Varghese K I |
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Designation : |
General Manager |
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Name : |
Mr. Mohanachandran K R |
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Designation : |
General Manager |
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Name : |
Mr. Sampath D, |
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Designation : |
Additional General Manager |
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Name : |
Mr. Jose V Joseph, |
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Designation : |
Additional General Manager |
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|
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Name : |
Mr. Nagarajan R, |
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Designation : |
Additional General Manager |
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Name : |
Mr. Surendran A, |
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Designation : |
Additional General Manager |
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|
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Name : |
Mr. Madhavakumar V R, |
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Designation : |
Additional General Manager |
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|
|
|
Name : |
Mr. Pradosh Kumar |
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Designation : |
Additional General Manager |
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|
|
|
Name : |
Mr. Thampy Kurian, |
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Designation : |
Additional General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
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|
|
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|
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|
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(B) Public
Shareholding |
|
|
|
|
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|
25224760 |
15.04 |
|
|
9164852 |
5.47 |
|
|
75846009 |
45.23 |
|
|
1333792 |
0.80 |
|
|
144095 |
0.09 |
|
|
1189697 |
0.71 |
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|
111569413 |
66.54 |
|
|
|
|
|
|
14912906 |
8.89 |
|
|
|
|
|
|
19120906 |
11.40 |
|
|
12951942 |
7.72 |
|
|
9122653 |
5.44 |
|
|
600 |
0.00 |
|
|
8224239 |
4.90 |
|
|
686385 |
0.41 |
|
|
178229 |
0.11 |
|
|
33200 |
0.02 |
|
|
56108407 |
33.46 |
|
Total Public
shareholding (B) |
167677820 |
100.00 |
|
Total (A)+(B) |
167677820 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
3381312 |
0.00 |
|
|
3381312 |
0.00 |
|
Total (A)+(B)+(C) |
171059132 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Banking, Leasing, Merchant Banking |
GENERAL INFORMATION
|
No. of Employees : |
10059 (Approximately) |
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Bankers : |
Reserve Bank of India |
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Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||||||||||||||
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Nilesh S. Vikamsey Chartered Accountant |
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Associates : |
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Subsidiaries: |
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CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs. 2000.000 Millions |
|
|
|
|
|
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
171329541 |
Equity Shares |
Rs.10/- each |
Rs.1713.295 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
171059132 |
Equity Shares |
Rs.10/- each |
Rs.1710.591 Millions |
|
|
Less: Calls in arrears |
|
Rs.0.004 Million |
|
|
|
|
|
|
|
Total |
|
Rs.1710.587 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
Capital |
1710.587 |
1710.471 |
1710.471 |
|
Reserve and Surplus |
61936.003 |
55352.798 |
49376.146 |
|
Deposits |
576148.633 |
489371.221 |
430147.806 |
|
Borrowings |
51869.908 |
42410.341 |
18883.626 |
|
Other Liabilities and Provisions |
18830.596 |
17422.890 |
14445.593 |
|
TOTAL |
710495.727 |
606267.721 |
514563.642 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and Bank Balances with
Reserve Bank of |
27424.961 |
24241.466 |
29350.531 |
|
Balances with Banks and money at call and short notice |
9774.943 |
11084.048 |
8132.504 |
|
Investments |
211545.909 |
174024.877 |
145376.750 |
|
Advances |
440967.029 |
377559.859 |
319532.337 |
|
Fixed Assets |
3974.746 |
3261.392 |
2898.168 |
|
Other Assets |
16808.139 |
16096.079 |
9273.352 |
|
TOTAL |
710495.727 |
606267.721 |
514563.642 |
|
|
|
|
|
|
Contingent Liabilities |
302459.180 |
358494.040 |
221127.497 |
|
Bills for collection |
12266.208 |
11893.140 |
9125.204 |
PROFIT & LOSS
ACCOUNT
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
INCOME |
|
|
|
|
Interest earned |
61675.657 |
55583.924 |
40520.283 |
|
Other Income |
6644.398 |
5323.432 |
5168.141 |
|
TOTAL |
68320.055 |
60907.356 |
45688.424 |
|
|
|
|
|
|
EXPENDITURE |
|
|
|
|
Interest expended |
41929.123 |
36049.851 |
23054.496 |
|
Operating Expenses |
11795.389 |
9792.731 |
8361.391 |
|
Provision and contingencies |
6213.867 |
7296.779 |
8401.705 |
|
TOTAL |
59938.379 |
53139.361 |
39817.592 |
|
|
|
|
|
|
Net profit for the year |
8381.676 |
7767.995 |
5870.832 |
|
Profit brought forward |
2966.787 |
257.766 |
231.393 |
|
|
11348.463 |
8025.761 |
6102.225 |
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
Less: |
|
|
|
|
Transfer to Revenue Reserve |
1721.400 |
988.800 |
2321.100 |
|
Transfer to Statutory Reserve |
2095.500 |
1942.000 |
1468.000 |
|
Transfer to Capital Reserve |
229.500 |
54.017 |
- |
|
Transfer to Contingency Reserve |
- |
- |
- |
|
Transfer to Special Reserve (sec 36(1)(viii) of IT Act) |
337.000 |
285.000 |
365.600 |
|
Provision for proposed dividend |
1539.528 |
1539.424 |
1453.900 |
|
Provision for Dividend Tax |
261.643 |
249.733 |
235.859 |
|
Balance carried over to balance sheet |
5163.892 |
2966.787 |
257.766 |
|
TOTAL |
11348.463 |
8025.761 |
6102.225 |
|
|
|
|
|
|
Earnings per Share (Basic and Diluted) |
49.00 |
45.41 |
34.32 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
Profile
|
Client Industry |
Banking and Finance |
|
Client's discipline |
Banking |
General
|
The growth of the client's industry is best described as: |
Growing |
|
Brief description of the services and/or goods the client provides to the marketplace: |
Providing banking facility to public |
|
What is the legal structure of the client? |
Standalone entity without subsidiary |
|
What type of company is the client? |
Public |
Credit Rating
|
Client's debt tracked by a credit rating agency? |
Yes CARE: AA |
|
Name of credit rating agency: |
S&P – CARE |
|
Credit rating class provided by credit rating agency: |
Investment Grade |
|
Client credit rating: |
AA |
|
Report on credit worthiness of client purchased from: |
Not obtained |
Client Financials
|
Does the client have a credit facility? |
Yes |
|
Do you have financial information on this client? |
Yes |
|
Credit facility type: |
Borrowings |
|
Amount of credit facility: |
Rs. 51869.908 Millions |
|
Currency of financial statements/data: |
INR Millions |
|
Annualized revenues: |
Rs. 61675.657 Millions |
|
Annualized COGS: |
-- |
|
Annualized EBITDA: |
-- |
|
Annualized net income: |
Rs. 8381.676 Millions |
|
Cash balance: |
Rs. 5288.505 Millions |
|
Marketable Securities balance: |
-- |
|
Accounts Receivable balance: |
-- |
|
Current Assets balance: |
-- |
|
Total assets balance: |
Rs. 710495.727 Millions |
|
Current Liabilities balance: |
-- |
|
Long-Term Debt balance: |
-- |
|
Equity balance: |
Rs.63646.590 Millions |
|
Net cash provided by operating activities: |
Rs. (917.873) Millions |
|
Date of client's financial data populated: |
31.03.2013 |
|
Financial information provided above audited? |
Yes |
AWARDS AND ACCOLADES
The Bank received the NPCI award for being the highest contributor in number of IMPS Immediate Payment Service) transactions, which is one of the clearest indicators of the technological preeminence of the Bank
The Bank received the NPCI Award for Excellence in promotion of Inter Bank Payment Service.
The Bank won the following IDRBT Banking Technology.
Excellence Awards for the year 2011-12:
a) Best Bank Award among Small Banks for ‘Mobile Banking and Electronic Payments’.
b) Best Bank Award among Small Banks for ‘CRM and Business Intelligence Initiatives’.
IDRBT (Institute for Development and Research in Banking Technology) sets the benchmark and recognizes technology implementation and absorption among banks aimed at improving customer service, customer convenience and overall productivity.
National award of excellence ‘Quality Brands India 2012-14’
The Bank received the National award of excellence ‘Quality Brands India 2012-14’. National award of excellence ‘Quality Brands India 2012-14’ was awarded to the Bank on 20th June 2012. This is a prestigious award instituted by Quality Brands India Private Limited, an independent appraiser organisation established in 2008 to identify, recognise and honour business enterprises that excel in performance, research, growth and brand building in India.
Rashtriya Udyog Ratna Award
The Bank bagged the Rashtriya Udyog Ratna Award on 20th June 2012. The National Education and Human Resource Development Organisation (NEHRDO) has recognised the Bank’s outstanding contribution to the national economic growth by presenting this award. NEHRDO is an organization established to ensure the economic and social well-being of the nation through the development of individuals and institutions.
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL SCENARIO
In the fiscal year 2012-13, the world economy remained under stress as in the immediately preceding years. With
fiscal cliffs hovering over America and a meltdown in Europe, the year 2013 started off uncertainly. Developed economies (more so in Europe) faced recession as a fallout of the mounting public debt and inherent financial weaknesses. The growth of the American economy may continue to remain low on account of concerns over fiscal tightening. Among emerging markets, the Chinese economy continued to grow at a modest rate of 7.8% in 2013 as against its aggressive show of 9.3% in the year 2012. While the policy environment in the developed economies was tailor-made to prevent any sudden crises, uncertainty around the revival in global growth remained a concern throughout the year. The central banks of the developed world pursued a policy of maintaining low interest rates in the FY 2012-13.
The continuance of the euro zone sovereign debt crisis and the uncertainty over the US fiscal cliff proved to be major hindrances to global growth and financial stability. While Europe continues with its efforts to contain the crisis, emerging economies face the threat of spillovers in the face of global trade and volatile capital flows.
INDIAN ECONOMIC
SCENARIO
The Indian economy registered moderate recovery in the fiscal 2013, tracking the global economic conditions and fortunes of the developed and emerging economies. In the first nine months of the fiscal 2013, India’s gross domestic product (GDP) grew by 5.0%, as against the growth of 6.6% in the corresponding period of fiscal 2012. The service sector, industrial sector and agriculture sector demonstrated growth rates of 6.7%, 3.2% and 4.0% during the initial 9 months of the financial year 2013 as against 8.5%, 4.0% and 4.3% respectively for the same period of the fiscal 2012.
The primary reason for the stymied growth can be attributed to the weak industrial performance clocking 3.2% in 2012- 13. Similarly, agricultural growth also suffered on account of a weak monsoon. The second half of the financial year was adversely impacted by fiscal consolidation which resulted in the shrinking of government expenditure, resulting in further slowdown, specially in the service sector.
Headline inflation moderated to 7.4% in 2012-13 after registering 9.6% in 2010-11 and 9.0% in 2011-12. The monetary measures pursued by the RBI, the recent softening of global commodity prices and a relatively stable rupee saw core inflation decline continuously.
THE BANKING SCENARIO
Throughout the past couple of years, the Indian banking sector has demonstrated a high level of resilience in the face of high domestic inflation, rupee depreciation and fiscal uncertainty in the US and Europe.
The slowdown of the economy led to subdued demand and hampered the credit growth of the banking sector. Another fallout of the slowdown was the deterioration of the existing stock of credit on banks’ books. Credit growth suffered in most major sub-sectors, with the exception of some - viz. cement, textiles, food processing among others.
On the deposits front also, the banking industry put forth a modest growth of 13.5%. With the economy poised for better growth in the coming fiscal and with the inflation declining, the deposit growth is expected to show a better performance in the coming fiscal.
Capital adequacy, asset quality, financial inclusion and talent acquisition and efficient management are some of the key challenges for the Indian banking industry, which has a total of 87 banks (26 public sector banks, 20 private banks and 41 foreign banks).
The RBI’s mandate to license new private sector banks may have a considerable impact on the status quo of the industry and define new lines of activity in the sector. Capital adequacy will be a challenge for the commercial banks in India, as they look towards achieving further growth as well as complying with Basel III guidelines.
REVIEW OF BUSINESS
PERFORMANCE
The FY 2012-13 was a point of inflection in the journey of the Bank. The Bank crossed an important landmark figure of Rs.1000000.000 millions in total business. Several of the Bank’s processes that were watched keenly over the past two years stabilized in the FY 2012-13 viz. the risk independence strategy – which separated sourcing and sanctioning (was streamlined through manpower strengthening), centralisation of account opening through document management system, the creation of a new organizational blueprint via the introduction of the zone and region concept, clearly defining service quality parameters, establishment of separate compliance wing to ensure strict statutory adherence among others. The Balance Sheet of the Bank grew to Rs.710495.700 millions, keeping pace with the volume growth in the Bank
The Bank’s networth stood at Rs.62392.700 millions as on 31.03.2013 indicating the financial strength of the Bank. The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel II guidelines, stood at a robust level of 14.73% as on 31.3.2013. The Tier-I (core CRAR) capital was 14.09%.
In FY 2013, the Bank posted net profit of Rs.8381.700 millions registering a growth of 7.90%. Despite the challenging economic scenario, the Bank could restrain the gross NPA ratio at 3.44% and net NPA at 0.98%.
The advances portfolio of the Bank grew by 16.79% to reach Rs.440967.100 millions and the deposit portfolio grew by 17.73% to reach Rs.576148.600 millions Advances and deposit portfolio of the Bank grew in tandem with the industry.
The total income posted a growth of 12.17% and amounted to Rs.68320.100 millions Tracking the industry, the net profit of the Bank grew by 7.90% to touch Rs.8381.700 millions as on 31st March 2013. Return on average assets of the Bank stood at 1.35%. Earnings per share improved to reach Rs.49.00 from Rs.45.41 from the previous fiscal.
The business per employee of the Bank as on March 31, 2013 increased to Rs.107.500 millions from Rs.101.300 millions at the end of the previous financial year. The profit per employee for the year 2012-13 stood at Rs.0.891 millions. The cost to income ratio increased to 44.69% as on 31 Mar 2013 as against 39.40% as on 31 Mar 2012. The Bank had invested substantially in expanding its geographical foot print by opening a record number of 153 branches and recruited 1,843 employees during the year, resulting in an increase in the cost to income ratio. New business to be generated through this expanded infrastructure may produce improvement in this ratio in the coming years.
The SME advances of the Bank constituted 28.37% of the gross advances while retail credit contributed 29.49%. The Bank’s priority sector advances stood at Rs.117949.700 millions, of which lending to the agricultural sector stood at Rs.47028.000 millions.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2013
(Rs. In Millions)
|
Particulars |
Quarter ended |
||
|
|
30.06.2013 |
||
|
|
|
(Unaudited) |
|
|
1 |
Interest earned (a)+(b)+(c)+(d) |
16532.600 |
|
|
|
(a) Interest/discount on advances/bills |
12420.600 |
|
|
|
(b) Income on Investments |
3970.500 |
|
|
|
(c) Interest on balances with Reserve Bank of India and other interbank funds |
132.400 |
|
|
|
(d) Others |
9.100 |
|
|
2 |
Other Income |
2157.900 |
|
|
3 |
TOTAL INCOME (1+2) |
18690.500 |
|
|
4 |
Interest expended |
11436.500 |
|
|
5 |
Operating Expenses |
3248.600 |
|
|
|
(i) Employees Cost |
1735.100 |
|
|
|
(ii) Other operating expenses |
1513.500 |
|
|
6 |
TOTAL EXPENDITURE (4)+(5) (excluding Provisions and Contingencies) |
14685.100 |
|
|
7 |
OPERATING PROFIT (3-6) (Profit before Provisions and Contingencies) |
4005.400 |
|
|
8 |
Provisions (other than Tax) and Contingencies |
2451.000 |
|
|
9 |
Exceptional Items |
- |
|
|
10 |
Profit from Ordinary Activities before tax (7-8-9) |
1554.400 |
|
|
11 |
Tax expense |
497.800 |
|
|
12 |
Net Profit from Ordinary Activities after tax (10-11) |
1056.600 |
|
|
13 |
Extraordinary items (net of tax expense) |
- |
|
|
14 |
Net Profit for the period (12-13) |
1056.600 |
|
|
15 |
Paid-up Equity Share Capital (Face value ? 10/- each) |
1710.600 |
|
|
16 |
Reserves excluding Revaluation Reserve |
- |
|
|
17 |
Analytical Ratios |
|
|
|
|
(i) Percentage of shares held by Government of India |
NIL |
|
|
|
(ii) Capital Adequacy ratio (%) |
|
|
|
|
(a) Under Basel II |
15.00 |
|
|
|
(b) Under Basel III (Refer note 7) |
14.27 |
|
|
|
(iii) Earnings per Share (EPS) (in ?) |
|
|
|
|
(a) Basic and diluted EPS before Extra ordinary Items |
6.18* |
|
|
|
(b) Basic and diluted EPS after Extra ordinary items |
6.18* |
|
|
|
(iv) NPA Ratios |
|
|
|
|
a) Gross NPA |
148325 |
|
|
|
b) Net NPA |
37362 |
|
|
|
c) % of Gross NPA |
3.51 |
|
|
|
d) % of Net NPA |
0.91 |
|
|
|
(v) Return on Asset (%) |
0.15* |
|
|
18 |
Public Shareholding: |
|
|
|
|
Number of Shares (in Millions) |
1676.78 |
|
|
|
Percentage of shareholding # |
98.02 |
|
|
19 |
Promoters and Promoter group share holding |
|
|
|
|
(a) |
Pledged/Encumbered |
|
|
|
- |
Number of Shares |
NIL |
|
|
- |
Percentage of Shares (as a % of the total shareholding of promoter and promoter group) |
NIL |
|
|
- |
Percentage of Shares (as a % of the total share capital of the company) |
NIL |
|
|
(b) |
Non-encumbered |
|
|
|
- |
Number of Shares |
NIL |
|
|
- |
Percentage of Shares (as a % of the total shareholding ot promoter and promoter group) |
NIL |
|
|
- |
Percentage of Shares (as a % of the total share capital of the company) |
NIL |
* Not annualized
# excludes shares held by custodian against which Global Depository Receipts have been issued.
* Segment Information
(Rs. In Millions)
|
Particulars |
Quarter ended |
|
30.06.2013 |
|
|
|
(Unaudited) |
|
Segment Revenue: |
|
|
Treasury |
5337.600 |
|
Corporate/Wholesale Banking |
5798.500 |
|
Retail Banking |
7458.000 |
|
Other Banking operations |
96.400 |
|
Unallocated |
- |
|
Total Revenue |
18690.500 |
|
Less: Inter Segment Revenue |
- |
|
Income from Operations |
18690.500 |
|
Segment Results
(net of provisions): |
|
|
Treasury |
1068.200 |
|
Corporate/Wholesale Banking |
(505.100) |
|
Retail Banking |
905.300 |
|
Other Banking operations |
86.000 |
|
Unallocated |
- |
|
Profit before tax |
1554.400 |
|
Capital employed: |
|
|
Treasury |
29759.600 |
|
Corporate/Wholesale Banking |
12138.400 |
|
Retail Banking |
14187.400 |
|
Other Banking operations |
186.000 |
|
Unallocated |
8431.900 |
|
Total |
64703.300 |
* 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 revised RBI guidelines. The Bank operates only in India.
Notes:
- The above financial results, subjected to Limited Review by statutory central auditors, have been taken on record by the Audit Committee and approved at meeting of the Board of Directors held on 19th July 2013.
- As a prudent policy, the Bank holds provisions for Non Performing Assets over and above the minimum required under the Reserve Bank of India (RBI) norms. Further, provision for restructured advances has been made as per RBI guidelines.
The bank has changed its policy on valuation of swap contracts against the overseas borrowings, by amortizing the cost over the period of swap tenure, as against the earlier practice of writing back/writing off the mark-to-market gain or loss at the end of each reporting period. This change in policy does not have any financial impact over the full period of swap.
- However, the impact of change in the policy on valuation and amortization as described above on a quarterly basis, is increase in the profit by Rs.3653.900 millions for Quarter ended 30 June, 2013. Had this policy been adopted in the previous year, the effect would have been increase in profit by Rs.2838.500 millions for the quarter ended 30 June 2012 and decrease in profit by Rs.1486.800 millions for the quarter and year ended 31 March,2013.
- The Pension liability arising on exercise of second option by employees (other than separated/retired employees) is being amortized equally over a period of 5 years commencing from the year ended on 31.03.2011 and accordingly an amount of Rs.84.200 millions, being the proportionate liability in respect thereof, for the quarter ended 30.06.2013 have been charged to Profit and Loss Account and the balance amount of Rs.5.894 millions yet to be written off is carried forward to be amortized in future periods as permitted by the Reserve Bank of India vide letter no. DBOD.BP.BC.15896/21.04.018/2010-11 dated 08.04.2011.
- Number of Investor complaints received and disposed off during the quarter ended 30th June 2013:
a) Pending at the beginning of the quarter : 2
b) Received during the quarter : 32
c) Disposed off during the quarter : 34
d) Pending at the end of the quarter : Nil
- The figures for the quarter ended March 31, 2013 are the balancing figures between audited figures in respect of financial year 2012-13 and the published year to date figures up to December 31, 2012.
- In accordance with the RBI guidelines, banks are required to disclose capital adequacy ratio computed under Basel III capital regulations from the quarter ended June 30, 2013. Hence, disclosure has been made for the current quarter only.
- Figures for the previous periods/year have been recast/ regrouped wherever necessary.
AS PER WEBSITE
DETAILS
PRESS RELEASE
FEDERAL BANK
OPERATING PROFIT GROWS BY 15.59% TO RS. 4005.400 MILLIONS GROSS AND NET NPAS
IMPROVE ON A SEQUENTIAL BASIS
Federal Bank announced
Unaudited Financial Results for the quarter ended 30th June 2013.
The Bank registered Operating profit of Rs.4005.400 Millions during Q1 of FY 2013-14
as against operating profit of Rs. 3465.100 Millions during Q1 of FY 2012-13.
Bank's Total Income grew from Rs. 16610.400 Millions recorded in Q1 of FY 12-13
to reach Rs. 18690.500 Millions in Q1 FY 2013-14. The Bank registered growth in
Top line and Operating Profit in the backdrop of an extremely challenging macro
environment.
The Bank's Retail, SME and NRI franchise were the key drivers of growth during the first quarter of FY 2013-14. Retail advances grew by 20.95% during Q1 FY 13-14 to reach Rs.132030.000 Millions, on a Y-o-Y basis. Advances to SMEs grew by 19.81% to reach Rs.130800.000 Millions (Y-o-Y). Retail deposits grew by 16.02% to reach Rs.503270.000 Millions (Y-o-Y). NRE deposits grew by 50.79% to reach Rs. 151080.000 Millions (Y-o-Y).
The Bank was able to
improve its Gross and Net NPA position sequentially. The Gross NPA came down
from Rs.15540.100 Millions as at March 31, 2013 to Rs.14832.500 Millions as at
June 30, 2013. The Net NPAs came down from Rs. 4319.400 Millions as at March 31,
2013 to Rs.3736.200 Millions. Net NPAs as a percentage to Net Advances also came down from 0.98% to 0.91% on a sequential
basis. Provision Coverage Ratio (including technically written off assets) also
improved from 80.96% to 83% sequentially.
Performance for the quarter
ended 30.06.2013 vs quarter ended 30.06.2012
- Total income for the Q1 grew by 12.52 % on a y-o-y basis to Rs.18690.500 Millions.
- Net profit stood at Rs.1056.600 Millions
- Net Interest Margin (NIM) at 3.13 %
- Total Deposits increased by 12.73 % from Rs. 505581.300 Millions to Rs. 569956.600 Millions
- Advances increased by 8.46% from Rs.380429.000 Millions to Rs. 412630.400 Millions
- Investments increased by 24.47 % from Rs. 193134.800 Millions to Rs. 240401.900 Millions Net NPA at 0.91 %
- Return on Average Assets at 0.61%
- Earnings Per Share at Rs.24.71 (annualized)
- Book Value per share increased to Rs. 365.31
- Capital Adequacy Ratio at 14.27 % (Basel III)
- Tier I Capital at 13.60% (Basel III)
- Return on Equity at 6.77%
- Cost to Income stood at 44.78%
- Savings deposits grew by 15.32% to reach Rs.138111.000 Millions CASA ratio improved by 61 bps from 28.35% to reach 28.96%.
- NRE Savings deposits grew by 15.73% to reach level of Rs.58416.400 Millions
- NRE deposits grew by 50.79% to reach Rs. 151085.400 Millions
- Gold loans grew by 39.02% to reach Rs. 59171.300 Millions
WORKING RESULTS AT A GLANCE
(Rs. In Millions)
|
Particulars |
Q1 |
Q1 |
% y-o-y Growth |
Q1 |
Q4 |
% y-o-y growth |
|
|
2013-14 |
2012-13 |
2013-14 |
2012-13 |
||
|
Interest Income |
16532.600 |
15367.100 |
7.58 % |
16532.600 |
15834.600 |
4.41 % |
|
Other Income |
2157.900 |
1243.300 |
73.56 % |
2157.900 |
1968.500 |
9.62 % |
|
Total Income |
18690.500 |
16610.400 |
12.52 % |
18690.500 |
17803.100 |
4.98 % |
|
Net Interest Income |
5096.100 |
4916.400 |
3.66 % |
5096.100 |
4797.600 |
6.22 % |
|
Operating Profit |
4005.400 |
3465.100 |
15.59 % |
4005.400 |
3694.700 |
8.41 % |
|
Provisions (incl. Tax) |
2948.800 |
1561.600 |
88.83 % |
2948.800 |
1475.300 |
99.88 % |
|
Net Profit |
1056.600 |
1903.500 |
44.49 % |
105.6.600 |
2219.400 |
52.39 % |
Total income for the first quarter went up by 12.52 %
on a y-o-y basis to Rs. 18690.500 Millions from Rs. 16610.400 Millions reported
for corresponding period of the previous fiscal. The interest earned for the
three months period ending June 30, 2013 increased by 7.58 % on a y-o-y basis
to Rs. 16532.600 Millions from Rs. 15367.100 Millions as on 30.06.2012. Other
Income earned for the same period as on 30.6.2013 showed an increase of 73.56%
to reach Rs. 2157.900 Millions from Rs.1243.300 Millions of Q1 FY 13. The Net
Interest Income recorded an increase of 3.66 % to reach Rs. 5096.100 Millions
as on 30.06.2013.
The Operating Profit of the Bank for
the first quarter increased by 15.59% to reach Rs. 4005.400 Millions and Net profit for the quarter stood at Rs. 1056.600 Millions.
Net Interest Margin for the quarter was 3.13 %. Net
NPA, Return on Average Assets and Capital Adequacy Ratio were at 0.91 %, 0.61 %
and 14.27 % (Basel III) respectively as on 30.06.2013, compared to 0.62 %, 1.26
% and 15.45 % (Basel II) as on 30.06.2012.
The business per employee and profit
per employee as on June 30, 2013 stood at Rs. 97.400 Millions and Rs. 0.421 Millions
respectively compared to Rs. 99.100 Millions and Rs.0.853 Millions as on June 30, 2012. The Cost to Income ratio declined
sequentially to 44.78% as on 30.06.2013 from 45.39% as on 31.03.2013.
The Earning Per Share (annualized), Book Value per share
and Return on average Equity (RoE) for the quarter ended 30.06.2013 is Rs.
24.71, Rs. 365.31 and 6.77 % respectively as against Rs.44.51, Rs. 344.73 and
13.12 % respectively as at June 30, 2012.
GROWTH IN BUSINESS
Total business of the Bank reached Rs.982587.000 Millions, showing an increase of 10.90 % on a y-o-y basis. Total deposits increased by 12.73 % from Rs. 505581.300 Millions as on 30.06.2012 to Rs. 569956.600 Millions as on 30.06.2013. NRI deposits clocked an increase of 31.73% from June 2012, to reach Rs. 170191.500 millions. NRE Deposits registered 50.79% growth on Y-o-Y and 14.83% on Q-o-Q reaching Rs. 151080.000 Millions. Retail deposits grew by 16.02% to touch Rs. 503273.800 millions CASA deposits grew by 15.13% to reach Rs.165035.500 millions Savings Deposits registered a growth of 15.32%. CASA ratio improved from 28.35% in Q1 FY12 to reach 28.96% in Q1 FY13.
Net Advances went up by 8.46 %
to Rs.412630.400 Millions as on 30th June 2013 from Rs.380429.000
Millions as on 30th June 2012. This growth was contributed by SME
and retail segments. The retail and SME advances of the Bank form 61.85 % of
the gross advances. The advance to priority sector was at Rs. 119121.300
millions as on 30th June 2013. Gold Business registered a growth of
39.02%. Lending to Agriculture sector was at Rs. 44909.900 Millions as on
30.06.2013, growing at 6.95%.
NET WORTH AND CAPITAL ADEQUACY
The Net Worth of the Bank
increased to Rs.62489.200 millions as on 30.06.2013. The Capital Adequacy Ratio
(CRAR) of the Bank, computed as per Basel III guidelines, stands at a
comfortable level of 14.27 % as on 30.06.2013. The Tier-I (core CRAR) capital
is at 13.60 %.
ASSET QUALITY
The Bank's Gross NPA and Net
NPA stand at 3.51% and 0.91% respectively as against 3.44% and 0.98% as at the
end of March 2013. The total provisions held against non-performing advances,
including written off assets, expressed as a percentage of gross NPAs amounted
to 83.00% at the end of the first quarter of FY 2013-14.
MAJOR FINANCIAL INDICATORS
|
Particulars |
3 Months 30.06.2013 |
3 Months 30.06.2012 |
% Growth |
Financial Year
ended 31.03.2013 |
|
Income &
Expenses |
||||
|
Interest Income |
16532.600 |
15367.100 |
7.58 |
61675.700 |
|
Other Income |
2157.900 |
1243.300 |
73.56 |
6644.400 |
|
Total Income |
18690.500 |
16610.400 |
12.52 |
68320.100 |
|
Total Expenditure |
14685.100 |
13145.300 |
11.71 |
53724.500 |
|
Operating Profit |
4005.400 |
3465.100 |
15.59 |
14595.600 |
|
Net Profit |
1056.600 |
1903.500 |
(44.49) |
8381.700 |
|
Earnings Per Share (annualized) (?) |
247.100 |
445.100 |
|
490.000 |
|
Business Figures |
As on 30.6.2013 |
As on 30.6.2012 |
Growth |
|
Total Deposits |
56995.66 |
50558.13 |
12.73 |
|
SB & Demand Deposits |
16679.41 |
14490.56 |
15.11 |
|
Term Deposits |
40316.26 |
36067.57 |
11.78 |
|
Net Advances |
41263.04 |
38042.90 |
8.46 |
|
Retail Advances |
13202.78 |
10916.25 |
20.95 |
|
Investments |
24040.19 |
19313.48 |
24.47 |
|
Gross NPA (%) |
3.51 |
3.60 |
|
|
Net NPA (%) |
0.91 |
0.62 |
|
|
|
|
|
|
|
Capital |
|
|
|
|
Equity Capital |
171.06 |
171.05 |
|
|
Net Worth |
6248.92 |
5896.68 |
5.97 |
|
Capital Adequacy Ratio (Basel II) |
15.00 |
15.45 |
|
|
Tier 1 |
14.37 |
14.74 |
|
|
Tier 2 |
0.63 |
0.71 |
|
CUSTOMER TOUCHPOINTS
The Bank added 4 branches and 52 ATMs during the
quarter to take the branch and ATM network to 1107 and 1224 respectively. The
Bank also became the first Sponsor Bank to a company belonging to a large
corporate house for setting up White label ATMs in the country.
AWARDS
During the quarter, the Bank
was recognized as 'The Best Bank among Private Sector Banks' by Institute of
Public Enterprises (IPE). The award was presented by Hon. Ambassador of Burundi
and Padma Vibhushan Shri. P. Rama Rao, President of IPE.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 68.36 |
|
|
1 |
Rs. 106.03 |
|
Euro |
1 |
Rs. 91.47 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
69 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.