Financial Ratios of ------------------- in Rs. Cr.

-------------------
Federal Bank

Mar
Mar '07 Mar '08 Mar '09 Mar '10
'06

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share 3.50 4.00 4.00 5.00 5.00
Operating Profit Per Share (Rs) 30.82 48.04 23.99 38.41 42.74
Net Operating Profit Per Share (Rs) 180.58 229.85 157.25 206.51 235.82
Free Reserves Per Share (Rs) 65.49 80.81 168.04 180.00 192.25
Bonus in Equity Capital 51.09 51.09 25.57 25.57 25.57
Profitability Ratios
Interest Spread 4.84 5.01 4.79 6.31 5.21
Adjusted Cash Margin(%) 15.05 15.02 13.80 14.25 11.95
Net Profit Margin 13.64 13.91 12.78 13.14 10.79
Return on Long Term Fund(%) 89.71 99.01 55.12 65.47 65.91
Return on Net Worth(%) 22.99 19.57 9.39 11.58 9.91
Adjusted Return on Net Worth(%) 17.92 19.52 9.39 11.57 9.90
Return on Assets Excluding
1.09 174.71 229.16 252.57 273.90
Revaluations
Return on Assets Including
1.09 175.48 229.53 252.93 274.24
Revaluations
Management Efficiency Ratios
Interest Income / Total Funds 8.26 8.61 9.34 9.90 9.78
Net Interest Income / Total Funds 3.79 3.86 3.62 4.29 4.29
Non Interest Income / Total Funds 0.56 0.59 0.66 0.77 0.65
Interest Expended / Total Funds 4.47 4.75 5.72 5.61 5.48
Operating Expense / Total Funds 2.38 2.06 2.19 2.45 2.52
Profit Before Provisions / Total Funds 1.83 2.29 1.98 2.49 2.30
Net Profit / Total Funds 1.20 1.28 1.28 1.40 1.13
Loans Turnover 0.15 0.15 0.16 0.17 0.16
Total Income / Capital Employed(%) 8.82 9.20 10.00 10.67 10.43
Interest Expended / Capital
4.47 4.75 5.72 5.61 5.48
Employed(%)
Total Assets Turnover Ratios 0.08 0.09 0.09 0.10 0.10
Asset Turnover Ratio 4.67 5.42 6.19 6.84 7.21
Profit And Loss Account Ratios
Interest Expended / Interest Earned 58.25 59.70 65.49 60.32 61.59
Other Income / Total Income 6.37 6.45 6.58 7.23 6.24
Operating Expense / Total Income 26.97 22.41 21.94 22.99 24.17
Selling Distribution Cost Composition 0.18 0.19 0.28 0.23 0.25
Balance Sheet Ratios
Capital Adequacy Ratio 13.75 13.43 22.46 20.22 18.36
Advances / Loans Funds(%) 69.31 72.96 77.07 75.07 76.40
Debt Coverage Ratios
Credit Deposit Ratio 62.17 67.49 71.17 71.06 72.29
Investment Deposit Ratio 36.50 33.72 35.92 38.11 36.88
Cash Deposit Ratio 5.76 6.20 7.55 7.86 6.64
Total Debt to Owners Fund 14.38 14.43 6.61 7.45 7.70
Financial Charges Coverage Ratio 1.44 0.50 0.36 0.47 0.44
Financial Charges Coverage Ratio
1.30 1.29 1.24 1.27 1.23
Post Tax
Leverage Ratios
Current Ratio 0.03 0.03 0.02 0.02 0.02
Quick Ratio 14.98 13.62 11.65 15.99 21.68
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 15.16 13.68 21.74 19.99 21.46
Dividend Payout Ratio Cash Profit 13.61 12.64 20.14 18.41 19.37
Earning Retention Ratio 84.67 86.29 78.26 79.99 78.52
Cash Earning Retention Ratio 86.26 87.33 79.86 81.57 80.62
Adjusted Cash Flow Times 71.94 68.31 65.22 59.32 70.11

Mar
Mar '07 Mar '08 Mar '09 Mar '10
'06

Earnings Per Share 26.31 34.20 21.52 29.26 27.16

Book Value 145.19 174.71 229.16 252.57 273.9
Directors Report Year End : Mar '10
The Directors take great pleasure in presenting the 79th Annual Report
on the business and operations of your Bank together with the audited
accounts for the year ended March 31, 2010.

FINANCIAL PERFORMANCE

The financial highlights of your Bank for the financial year 2009-10
are given below:

Rs. in crore

For the year ended

Financial Parameters March 31,2010 March 31, 2009

Net Interest Income 1410.83 1,315.46

Fee and Other Income 530.91 515.77

Net Revenue 1941.74 1,831.23

Operating Expenses 676.89 571.45

Profit before Depreciation and Tax 909.73 835.85

Net Profit 464.55 500.49

Profit Brought Forward 21.93 14.62

Total Profit Available for Appropriation486.48 515.11

Appropriations:

Transfer to Statutory Reserves 116.14 125.12

Transfer to Revenue Reserves 208.27 197.25

Transfer to Capital Reserves 8.20 29.75

Transfer to Special Reserves 31.00 11.00

Transfer to Investment Fluctuation

Reserve 0.00 0.00

Transfer to Contingency Reserve 0.00 30.00

Proposed Dividend 85.52 85.52

Provision for Dividend Tax 14.21 14.54

Balance Carried Over to Balance Sheet 23.14 21.93

Financial Position:

Deposits 36057.95 32,198.19

Advances 26950.11 22,391.88

Total Business (Deposits + Advances) 63008.06 54,590.07

Other Borrowings 1546.76 748.94

Investments 13054.65 12,118.97

Total Assets (Balance Sheet Size) 43675.61 38,850.86

Capital 171.03 171.03

Ratios:

Return on Total Assets (%) 1.15 1.48

Return on Equity (%) 10.30 12.13

Earnings Per Share (Rs.) 27.16 29.26

Book Value Per Share (Rs.) 274.24 252.93

Operating Cost to Income (%) 34.86 31.21

Capital Adequacy Ratio (%) 17.27 20.14

Considering the economic slowdown and the risks in going for

exponential growth, your Bank had opted for a consolidation phase. But
at the same time, the Bank used the opportunity for reaching out to new
areas through Branch expansion, putting up of new ATMs and to improve
and enhance various channels. Strategic investments were also made to
enhance the shareholder value .

OPERATING PROFIT

Operating Profit registered a small growth from Rs.l, 259.78 crore to

reach Rs. 1,264.85 crore. The liquidity overhang throughout the period
under review affected the growth of operating profit. There was an
increase in net interest income from Rs.l, 315.46 crore to Rs. 1,410.83
crore and the non-interest income has gone up from Rs.515.77 crore to
Rs. 530.91 crore.
INCOME GROWTH

The interest/discount income from advances has gone up from Rs.2564.25

crore to Rs.2, 849.73 crore. In spite of the uncertainties prevailed
in the economy, the Bank could create select good quality earning
assets. Bank continued to enjoy a decent interest spread (4.75%) on
advances. Based on the increase in interest income, total income has
gone up from Rs.3831.15 crore to Rs.4204.14 crore registering a growth
of 9.74%. Income from advances as percentage to total income was
67.78%. Income from investments recorded an increase of Rs. 118.86
crore and touched Rs.894.90 crore. Cumulative income from advances and
investments recorded a growth of 11.92% and stood at Rs. 3,744.63 crore
against Rs. 3,345.79 crore of the previous year. Yield on advances
moved in tandem with the market movement of interest rates and
decreased by 100 bps to 11.30%. Return on advances plus investments
decreased to 10.20%% from 11 %. As a result of the adverse movement in
the yield on advances, the net interest margin declined from 4.28% to
3.82% , still one of the best in the industry. The growth in other
income was marginal with a growth of 2.93%from a level of Rs.515.77
crore to Rs.530.91 crore. Recovery from written off accounts
contributed Rs.l 27.70 crore as against Rs.l 32.77 crore during the
last financial year.

The net revenue, that is the net interest income plus other income, of
the Bank increased by Rs. 110.51 crore fromRs. 1,831.23 crore as on
March 31, 2009 to Rs. 1,941.74 crore.

EXPENDITURE

The Bank embarked upon organic expansion adding 60 branches and 115
ATMs. Total expenses for the financial year 2009-10 increased from Rs.
2,571.37 crore, to Rs. 2,939.29 crore registering an increase of 14.31
%. Interest expenses increased from Rs. 1,999.92 crore in FY 09 to Rs.
2,262.40 crore in FY 10. Cost of all funds (deposits plus borrowings
plus bonds) decreased to 6.62% from 7.08% of last financial year. Cost
of deposits witnessed a downward trend and has fallen by 43 bps to
6.55% from last years 6.98%. The Bank was conscious in shedding bulk
deposits and concentrated on retail deposits. Interest rates did not
show large movements during the last financial year. Operating expenses
increased by Rs. 105.44 crore and amounted to Rs, 676.89 crore.
Employee costs came to Rs.366.05 crore during the year compared to last
years figure of Rs. 317.45 crore. Other operating expenses came to Rs.
310.84 crore. Employee costs as percentage to total income has gone up
from 8.29% for the year ended March 31, 2009 to 8.71% for the year
ended March 31, 2010. Cost to income ratio is 34.86% (31.21% % in FY
2008-09) which is still one of the best in the industry. This figure is
maintained even after the spurt in recruitment during the last 2
financial years and increase in other operating expenses including
expenses for technological advancement.

NET PROFIT

The net profit for the year after making all provisions, was Rs.464.55
crore as on March 31,2010 as against Rs. 500.49 crore showing a
marginal decrease of 7.18%. Total provisions amounted to Rs. 800.30
crore, excluding Income Tax provisions amounting to Rs.395 crore. The
profit margin decreased from 13.07% to

11.05%. Return on average equity stood at 10.30%. Earnings per share

was at Rs.27.16 and the return on average total assets at 1.15%. Book
value increased from Rs.252.93 as on March 31, 2009 to Rs.274.24 as of
March 31, 2010.

DIVIDEND

The Bank has been consistently rewarding shareholders through cash pay
outs after taking into account the requirement for ploughing back of
profits to support growth. Retained profits add impetus for the future
growth and enhance the value of the stake of the shareholders. In view
of the satisfactory performance, the Board of Directors recommends a
dividend of 50% on the paid up capital of the Bank which is the same
percentage as that of last financial year.

GROWTH IN BUSINESS

Attracting new customers and further enhancing relationships with the

existing customers were the cornerstones of the business philosophy of
the Bank. New products were introduced taking into account the customer
preferences. The policy of the Bank is to enter new geographies to
enhance visibility of the Bank. Tiered Current and Savings Bank account
products have started attracting customer interest. Most of the back
office functions were centralised to take advantage of volume as well
as expertise. Deposits grew to Rs.36057.95 crore clocking 11.99%
growth. The Bank had assiduously avoided bulk deposits and hence the
fall in growth rate of deposits. However, average deposits have shown a
decent growth of 23.33%. Advances registered 20.36% growth touching a
figure of Rs.26, 950.11 crore. Savings Bank deposits has grown from a
base of Rs.6, 445.84 crore to Rs.7, 611.13 crore. The NRI deposits of
the Bank stood at Rs. 7,350.71 crore. Investments grew to Rs. 13054.65
crore from Rs.12,118.97 crore. The size of the balance sheet for the
year grew to Rs. 43,675.61 crore from Rs. 38,850.86 crore.

LOAN ASSET QUALITY

Loan delinquencies were higher during the year which was a fall out of
the economic recession. Gross NPA as on March 31, 2010 stood at
Rs.820.97 crore as against Rs.589.54 crore in the previous year. Gross
NPAs as percentage to Gross Advance is 2.97% as against 2. 57 % in the
previous year. Net NPAs stood at Rs. 128.79 crore (0.48% of Net
Advances) as against Rs. 68.12 crore (0.30% of Net advances) in the
previous financial year.

The Bank has initiated various measures to contain the NPA. Maximum
thrust is given for recovery through SARFAESI Act. Proceedings and
settlements are reached through compromise with a humanitarian
approach. Services of Recovery Officers/Agents are used strictly
adhering to Codes of Conduct prescribed by RBI. During the financial
year 132 recovery camps and 14 Lok Adalaths were held at different
centres and the results were overwhelming. A Mega Adalath was held
exclusively for the Bank, which was inaugurated by the acting Chief
Justice of Kerala.

As on 31.03.2010, the Bank held a total provision of Rs 684.43 crore.

This includes a Floating Provision of Rs.l 79.52 crore. The total
provision coverage for NPAs as on March 31, 2010 is 83.37 %. As per the
extant RBI directive, banks should achieve provision coverage of 70 %
(by Sept. 2010) including technically written off accounts. As on 31st
March 2010, Provision Coverage Ratio of your bank including technically
written off accounts is 91.82%.

EXPANSION OF NETWORK

During the financial year, the Bank opened 60 new branches and 115 new
ATM centres. As on March 31, 2010, the total number of branches and ATM
centres of the Bank increased to 672 and 732 respectively, as against
612 and 617 of last financial year.

CAPITAL ADEQUACY

The Capital to Risk-weighted Assets Ratio (CRAR) as per BASEL I as on

March 31, 2010 stood at 17.27%. As per BASEL II CRAR came to 18.36%.
As per RBI guidelines lower of the above two shall be reckoned and
accordingly CRAR is 17.27%. Tier-1 CRAR (core CRAR) was 15.27%.

BUSINESS PRODUCTIVITY

The business per average employee increased to Rs. 8.13 crore as

against Rs.7.50 crore of the fast financial year. Profit per employee
stood at Rs. 6.01 lakh on an enhanced workforce.

EXTERNAL RATING

The certificate of deposit and short term fixed deposits (with a

contracted maturity upto one year) of the bank are rated PI + by
Crisil. Tier II subordinated debts issued by the bank aggregating to
Rs.320 crore is rated CARE AA by Care and AA - (Ind) by Fitch.

CORPORATE GOVERNANCE

Your Bank is committed to achieving highest levels of ethical

standards, professional integrity, corporate governance and regulatory
compliance. The corporate governance practices followed by the Bank are
given in the annexure.

BOARD OF DIRECTORS

The Board consists of nine members as on 31 March 2010, including

Managing Director and Chief Executive Officer and two Executive
Directors (whole time directors). All other members of the Board are
Non-Executive & Independent Directors.

Shri. M. Venugopalan, Managing Director & Chief Executive Officer has

laid down the office on July 31, 2010 after being at the helm of
affairs for 63 months. He was Chairman & Chief Executive Officer of the
Bank from May 01, 2005 to July 30, 2008. Pursuant to the implementation
of the Dr.Ganguly Committee recommendations on Corporate Governance, he
was designated as Managing Director & Chief Executive Officer from July
31, 2008. Shri. M. Venugopalan made significant contribution towards
the development, growth and visibility of the Bank. He could
successfully position the Bank with capital and bring in strategic
structural and technological changes to remain agile to meet todays
competition. The Board acknowledges his valuable services.

The Board has appointed Shri. Shyam Srinivasan, as the MD & CEO of the
Bank on the retirement of Shri. M. Venugopalan. RBI has also accorded
their approval vide letter DBOD No: 1785/08.38.001/2010-11 July 29,
2010 for the appointment of Shri. Shyam Srinivasan,

Shri. P. R. Kalyanaraman has taken charge of the office of MD and CEO

from 31st July, 2010, as an interim arrangement as approved by RBI
(Shri P. R. Kalyanaraman has been designated as MD & CEO in charge
during the interim period,) and will work subject to the overall
control of the Board, until Shri. Shyam Srinivasan, the new MD & CEO
designate assumes office.

Prof. A.M. Salim retired from the Board on August 22, 2009 after
rendering 8 years of valuable service in the Board. The Board extends
its appreciation to the meritorious services of Prof. Salim as a member
of the Board of the Bank.

Executive Director, Shri. K. S. Harshan retired from the Bank after

completing a five year tenure in the Bank, out of which three years as
a member of the Board, The Board acknowledges his valuable services.

Shri. P C Cyriac and Prof. Abraham Koshy are due to retire by rotation
at the forthcoming Annual General Meeting (AGM), as per the Articles of
Association of the Bank, our Code of Corporate Governance and the
provisions of the Companies Act, 1956, Shri. P C Cyriac and Prof.
Abraham Koshy being eligible, offer themselves for re-appointment.

Shri P Surendra Pai is retiring at the forthcoming AGM, after

completing his term of appointment of three years as approved by the
Board at the time of his initial appointment and is not offering
himself for re-appointment. The Board records its appreciation of the
valuable services of Shri P Surendra Pai as a member of the Board of
the Bank.

A shareholder of the Bank has expressed his intention to propose

Dr.T.C.Nair as a candidate for the office of directorship in this
vacancy and has given notice in writing along with deposit of Rs.500/-
in terms of Sec.257 of the Companies Act, 1956.

The Board also co-opted Shri. P.C. John as Executive Director from 1st
May 2010 and RBI approval has been received vide letter DBOD No:
21949/08.38.001/2009-10 dated June 24, 2010.

SUBSIDIARY

Fedbank Financial Services Ltd. is a fully owned subsidiary of the

Bank. As required under Section 212 of the Companies Act, 1956, the
financial statements relating to this company, the sole subsidiary of
the Bank, for FY10 are attached.

ANNUAL FINANCIAL STATEMENTS AND AUDIT REPORT

As required by section 212 of the Companies Act, 1956, the Banks

balance sheet as on 31 March 2010, its profit and loss account for
FY10, and the statutory auditors report and statements required under
the section, are attached.

STATUTORY AUDIT

M/s. Varma & Varma, Chartered Accountants, Kochi, and M/s. Price Patt &
Co., Chartered Accountants, Chennai, jointly carried out the statutory
central audit of the Bank. The statutory central/branch auditors
audited all the branches and other offices of the Bank.

Special Reserve created under section 36(l)(viii) of the Income Tax Act
1961.

As per section 36(1 )(viii) of the Income tax Act, 1961, deduction is
available for any Special Reserve created and maintained to the extent
of 20% of the profit derived from the business of providing long term
finance for industrial or agricultural development or development of
infrastructure facility or housing in India. Because of Banks term
lending for housing, power, bridges, roads and other segments of
infrastructure in the last year and the availability of the tax benefit
under the section 36(l)(viii) of the Income tax Act, the Bank has
created a Special Reserve of Rs.31crore during this year (previous year
Rs.l 1 Crore), being the eligible amount of deduction available under
the said section.

JOINT VENTURE IN LIFE INSURANCE BUSINESS

The Banks joint venture Life Insurance Company, in association with

IDBI Bank Limited and Fortis Insurance International N.V., namely IDBI
Fortis Life Insurance Company Limited commenced its operation in March
2008. The Bank has infused Rs. 117 crore as its share of capital into
this company holding 26% of the equity capital of the company. The
performance of this Life Insurance Company is encouraging and it has a
range of customer-centric products.

AWARDS RECEIVED DURING THE YEAR

- Most Efficient Bank in India in the large bank category by Business

Today - KPMG survey

- Federal Bank was adjudged, as the best bank among the Old Private
Sector Banks category in the survey conducted by the Financial Express
in association with Ernst & Young.

- Federal Bank has won the Great Mind Challenge award for
implementing the most innovative solution for business. This award was
introduced by IBM for the first time in India for business development
initiatives. Federal Bank is the first Bank in India to receive the
award

- Ranked 8th among all banks in India, in a study conducted by Economic

Times under four parameters of growth, efficiency, financial strength
and shareholder returns. Of these, our Bank was ranked No. 1 in
Efficiency and Financial Strength.

STATUTORY DISCLOSURE

STOCK EXCHANGE INFORMATION

The Banks equity shares are listed on:

1. Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers Dalai

Street, Mumbai - 400 001.

2. National Stock Exchange Ltd. Exchange Plaza

Bandra - Kurla Complex Bandra East, Mumbai-400 051.

3. Cochin Stock Exchange Ltd. MES, DrPK Abdul Gafoor Memorial

Cultural Complex 4th Fl, 36/1565, Judges Avenue, Kaloor, Kochi - 682
017.

The GDRs issued by the Bank are listed on the London Stock Exchange.

The annual listing fees have been paid to all the Stock Exchanges
listed above.

The requirement of disclosure of steps taken for conservation of energy

and technology absorption does not apply to the Bank.

Through its export-financing operations, the Bank supports and

encourages the countrys export efforts.

The requirement of disclosure under section 217(2A) of the Companies

Act, 1956, is given as a separate annexure.

PERSONNEL

As required by the provisions of Section 217(2A) of the Companies Act,

1956, read with Companies (Particulars of Employees) Rules, 1975, as
amended, the names and other particulars of the employees are set out
in the Annexure to the Directors Report.

DIRECTORS RESPONSIBILITY STATEMENT

As required by section 21 7(2AA) of the Companies Act, 1956, the

Directors state that:

a. in the preparation of the annual accounts, the applicable

accounting standards have been followed along with proper explanation
relating to material departures;

b. the Directors have selected such accounting policies and applied

them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Bank at the end of the financial year and of the profit of the
Bank for that period;

c. the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Bank and for
preventing and detecting fraud and other irregularities; and

d. the Directors have prepared the annual accounts on a going-concern

basis.

Acknowledgement

The Board of Directors places on record its sincere thanks to

Government of India, Reserve Bank of India, various State Governments
and regulatory authorities in India and overseas for their valuable
guidance, support and co-operation. The Directors also place on record
the gratitude to investment banks, rating agencies and stock exchanges
for their excellent support.

Your Directors record their sincere gratitude to the Banks

shareholders, esteemed customers and all other well-wishers for their
continued patronage. The Directors express their appreciation for the
contributions from every employee of the Bank.

For and on behalf of the Board of Directors

Aluva P.C. Cyriac

August 6, 2010 Chairman of the Board

 Competition
Last Price Market Cap. Net Interest Net Profit Total Assets
(Rs. cr.)
Income
ICICI Bank 1,006.15 115,885.58 25,974.05 5,151.38 363,399.71
HDFC Bank 2,254.95 104,906.07 19,928.21 3,926.39 222,458.56
Axis Bank 1,180.00 48,487.32 15,154.81 3,388.49 242,713.37
Kotak Mahindra 421.40 31,051.77 4,303.56 818.18 37,436.31
IndusInd Bank 245.50 11,439.56 3,589.36 577.32 35,369.52
YES BANK 283.95 9,857.24 4,041.74 727.13 36,382.50
Federal Bank 420.00 7,180.52 4,052.03 587.08 43,675.61
Karur Vysya 407.75 4,350.44 2,217.69 415.59 21,993.49
ING Vysya Bank 324.25 3,922.99 2,694.06 318.65 33,880.24
JK Bank 790.50 3,832.17 3,713.13 615.20 42,546.80

Balance Sheet of Federal ------------------- in Rs. Cr. -------------------

Bank
Mar '06 Mar '07 Mar '08 Mar '09 Mar '

12 mths 12 mths 12 mths 12 mths 12 mt

Capital and Liabilities:

Total Share Capital 85.60 85.60 171.03 171.03 171.
Equity Share Capital 85.60 85.60 171.03 171.03 171.
Share Application Money 0.00 0.00 0.00 0.00 0.
Preference Share Capital 0.00 0.00 0.00 0.00 0.
Reserves 1,157.30 1,409.98 3,748.30 4,148.74 4,513.
Revaluation Reserves 7.08 6.63 6.36 6.11 5.
Net Worth 1,249.98 1,502.21 3,925.69 4,325.88 4,690.
17,878.7
Deposits 21,584.44 25,913.36 32,198.19 36,057.
4
Borrowings 610.49 770.21 791.95 748.94 1,546.
18,489.2
Total Debt 22,354.65 26,705.31 32,947.13 37,604.
3
Other Liabilities & Provisions 903.69 1,233.08 1,875.45 1,577.86 1,380.
20,642.9
Total Liabilities 25,089.94 32,506.45 38,850.87 43,675.
0
Mar '06 Mar '07 Mar '08 Mar '09 Mar '

12 mths 12 mths 12 mths 12 mths 12 mt

Assets
Cash & Balances with RBI 1,214.59 1,231.54 2,355.69 2,214.40 2,318.
Balance with Banks, Money at Call 657.91 1,081.60 389.79 1,222.70 404.
11,736.4
Advances 14,899.10 18,904.66 22,391.88 26,950.
7
Investments 6,272.38 7,032.66 10,026.59 12,118.97 13,054.
Gross Block 330.78 362.71 434.75 516.40 559.
Accumulated Depreciation 156.91 176.61 201.91 235.62 269.
Net Block 173.87 186.10 232.84 280.78 289.
Capital Work In Progress 0.00 0.00 0.00 0.00 0.
Other Assets 587.70 658.93 596.87 622.15 657.
20,642.9
Total Assets 25,089.93 32,506.44 38,850.88 43,675.
2

Contingent Liabilities 7,834.42 5,005.69 5,632.10 6,239.48 8,424.

Bills for collection 9,145.27 8,479.74 8,500.40 2,137.62 2,160.
Book Value (Rs) 145.19 174.71 229.16 252.57 273.
Auditor's Report (Federal Bank) Year End : Mar '10
1. We have audited the attached Balance Sheet of FEDBANK FINANCIAL
SERVICES LIMITED as at 31st March, 2010, Profit and Loss Account and
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards

generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued

by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 (hereinafter referred to as the Act), we annex
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said Order, to the extent applicable.

4. Further to our comments in the Annexure referred to in paragraph 3

above, we report that:-

a. We have obtained all the information and explanations which to the

best of our knowledge and belief were necessary for the purposes of our
audit;

b. In our opinion, proper books of account as required by law have

been kept by the Company so far as it appears from our examination of
the books;
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;

d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report have been prepared in
compliance with the accounting standards referred to in Section 211
(3C) of the Act, to the extent applicable;

e. On the basis of the written representation received from the

Directors and taken on record by the Board of Directors, we report that
none of the Directors is disqualified as on 31st March, 2010 from being
appointed as a director of the Company under Section 274(1 )(g) of the
Act;

f. In our opinion and to the best of our information and according to

the explanations given to us, the said accounts read together with
Principal Accounting Policies and Notes of Accounts in Schedule 9
and other notes appearing elsewhere in the accounts, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the

Company as at 31 st March, 2010 and

ii) in the case of the Profit & Loss Account, of the profit for the
year ended as on that date.

iii) in the case of the Cash Flow Statement, of the cash flow of the
company for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDIT REPORT OF EVEN DATE

On the basis of such checks as were considered appropriate and

according to the information and explanations given to us during the
course of audit, we state that:

1. (a) The company is maintaining proper records showing full

particulars, including quantitative details and situation of fixed
assets;

(b) The fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed in such
verification, and the same has been properly dealt with in the books of
accounts;

(c) No fixed assets have been disposed off during the year.

2. The company has no inventories.

3. The Company has not taken / granted any loans from/to companies,
firms and other parties covered under Section 301 of the Act.
4. The Company has adequate internal control system commensurate with
the size of the company, and the nature of its business, for the
purchase of fixed assets, and for sale of services. We have not
observed any major weaknesses in the internal control system.

5. The Company has not entered into any contracts or arrangements

referred to in section 301 of the Act.

6. The Company has not accepted any deposits during the year.

7. The Company has an internal audit system commensurate with the size
and nature of its business.

8. Maintenance of cost records is not prescribed by the Central

Government in respect of the activities of the company.

9. (a) According to the information and explanations given to us, the

company is generally regular in depositing undisputed amounts payable
in respect of income-tax, wealth tax, sales tax, customs duty, service
tax, excise duty, cess and other statutory dues. No undisputed amounts
payable in respect of above were outstanding as at 31.3.2010 for a
period of more than six months from the date they become payable. (b)
According to the records of the company, there are no dues of sales
tax, income-tax, customs duty, wealth tax, excise duty, service tax and
cess which have not been deposited on account of any dispute.

10. The Company has no accumulated losses as at 31st March 2010 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.

11. The company has not borrowed any money from financial institutions
or banks or debenture holders.

12. The company has not granted any loans and advances on the basis of
security, by way of pledge of shares, debentures and other securities.

13. The company is not a chit fund, Nidhi, or a mutual benefit

society.

14. The company is not dealing in shares, securities, debentures and

other investments.

15. The company has not given any guarantee for loans taken by others.

16. The company has not taken any term loans.

17. No funds have been raised on short term basis.

18. The company has not made any preferential allotment of shares.

19. No debentures have been issued.

20. Company has not raised any money by way of public issue.
 21. During the course of our examination of the books and records for
the Company, carried out in accordance with the generally accepted
audit practices in India, and according to the information and
explanation given to us, we have not come across any instances of fraud
on or by the Company, noticed or reported during the year.

For R KRISHNA IYER & CO.

CHARTERED ACCOUNTANTS
R KRISHNA IYER
Kochi
PARTNER

13.05.2009 (Membership No. 10525)

Firm Registratio n No. 14745

Notes to Accounts Year End : Mar '10

1. Reconciliation

The reconciliation of outstanding entries in inter branch/office

transactions as on 31st March 2010 has been substantially completed and
the effect, if any, of pending entries will not be material.

2.2 Investments

2.2.1a) Investments under HTM (excluding specified investments as per

RBI norms) account for 22.76% of demand and time liabilities as at the
end of March 2010 as against permitted ceiling of 25% stipulated by
RBI.

b) In respect of securities held under HTM category premium of Rs.23.93

crore (previous year Rs. 17.35 crore) has been amortised during the
year and debited under interest received on government securities.

c) Profit on sale of securities from HTM category amounting to Rs.

16.58 crore (previous year Rs.60.08 crore) has been taken to Profit and
Loss Account and a sum of Rs.8.20 crore (previous year Rs.29.75 crore)
being net of taxes and transferto statutory reserve of such profit,
appropriated to Capital Reserve.

2.3.3 Disclosure on Risk exposure in Derivatives Qualitative

Disclosures

Structure, organization, scope and nature of management of risk in

derivatives etc

The organizational structure consists of Treasury Department which is

segregated into three functional areas, ie, front office, mid office
and back office. Derivative deals are executed for hedging and market
making.

The risk in the derivatives is monitored by regularly assessing Marked

to Market Position (MTM) of the entire portfolio and the impact on
account of the probable market movements. Various risk limits have been
put in place under different segments of the derivatives, as approved
by Board, he risk profile of the outstanding portfolio is reviewed by
Board at regular intervals. For own balance sheet management, hedging
policies are devised to mitigate risks; lower borrowing costs and
enhance yields. The current outstanding under the derivatives portfolio
were executed for trading only.

Accounting:

Board Approved Accounting Policies as per RBI guidelines have been

adopted. The hedge swaps are accounted for like a hedge of the asset or
liability. The hedge swaps are accounted on accrual basis except where
swaps for hedging marked to market asset/liability. Such hedge swaps
are marked to market on a monthly basis and the gain/losses are
recorded as an adjustment to the designated asset/liability. The Non
hedge swaps are marked to market every month and the MTM losses in the
basket are accounted in the books while MTM profits are ignored.

Collateral Security:

As per market practice, no collateral security is insisted on for the

contracts with counter parties like Banks/PDs etc. For deals with
Corporate Clients, appropriate collateral security/margin etc. are
stipulated wherever considered necessary.

Credit Risk Mitigation:

Most of the deals have been contracted with Banks/ Major PDs and no
default risk is anticipated on the deals with them. In the case of
deals with corporate clients, the outstanding positions are closely
monitored for the default risks and appropriate measures are initiated.

2.7.4 Details of Overseas Assets, NPAs and Revenue

Nil

2.7.5 Off balance Sheet SPV sponsored

Nil

2.7.6 Country Risk (As compiled by the Management)

The net funded exposure of the Bank in respect of foreign exchange

transactions with each country is within 1% of the total assets of the
Bank and hence no provision is required to be made in respect of
country risk as per the RBI circular DBOD.BP.BC.96/21.04.103/2003-04
dated 17 June 2004.

2.7.7 Details of Single Borrower limit (SGL), Group Borrower Limit

(GBL) where the bank has exceeded the prudential exposure during the
year. Nil
2.8.2 Details of penalties imposed by RBI under the provision of
Section 46 (4) of BR Act, 1949 Nil

3. Fixed Assets

i. During the year 1995-96, the appreciation of Rs 9.65 crore in the

value of land and buildings consequent upon revaluation by approved
valuers was credited to Capital Reserve. Depreciation for the year on
the net addition to value on such revaluation of assets at Rs 0.24
crore (previous year Rs 0.26 crore) has been transferred from Capital
Reserve to Profit & Loss Account. There has been no revaluation of
assets during this year.

ii. Land and premises include flats Rs.0.37 crore (previous year
Rs.0.37 crore), written down value Rs. 0.21 crore (previous year
Rs.0.21 crore), taken possession of and being used by the Bank, for
which documentation/registration formalities are to be completed.

iii. Safe & Furniture includes cost of software relating to Core

Banking solution of Rs.l 5.26 crore (Previous year Rs.l 5.26 crore)
with written down value of Rsl. 68 crore (previous year Rs.6.04 crore)

4. Pending finalisation of wage agreement a provision of Rs.60.00

crore (previous year Rs 61 crore) has been made towards the revision in
employee costs and other benefits on the basis of the estimate of the
management. Impact of exercisable pension option is not ascertainable
as at the close of the financial year.

5. The Bank has implemented Agricultural Debt waiver and Debt Relief
Scheme 2008 notified by the Government of India. In accordance with the
scheme a final claim of Rs.l05.70 crores has been preferred with RBI,
against which the Bank has received the 3 installments amounting to
Rs.68.44 crores and the balance amount due is included under advances.
Further an amount of Rs. 18.80 crore has been subjected to debt relief
receivable from Government included under other assets.

6. Disclosure in terms of Accounting Standard

6.1 There is no material prior period income/expenditure requiring

disclosure under AS 5 Net Profit or Loss for the Period, Prior period
items and changes in Accounting policies issued by the Institute of
Chartered Accountants of India.

6.2 Employee Benefits (AS 15)

(a) Defined Contribution Plan

Provident Fund

Eligible employees (employees not opted for pension plan) receive

benefits from a provident fund, which is a defined contribution plan.
Aggregate contributions along with interest thereon are paid at
retirement, death, incapacitation or termination of employment. Both
the employee and the Bank make monthly contributions to the Federal
Bank Employees Provident Fund equal to a specified percentage of the
covered employees salary. The Bank has no other obligation than the
monthly contribution.

The Bank recognized Rs.6.44 Crore (Previous year Rs.6.99Crore) for

provident fund contribution in the Profit and Loss account.

(b) Defined benefit plan

1) Gratuity

The Bank provides for gratuity, a defined benefit retirement plan (the
Gratuity Plan) covering eligible employee. The Gratuity Plan provides
a lump sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on the
respective employees salary and the tenure of employment. Vesting
occurs upon completion of five years of service as per Payment of
Gratuity Act, 1972 or as per the provisions of the Federal Bank
Employees Gratuity Trust Fund Rules/Award. Liabilities with regard to
the Gratuity Plan are determined by actuarial valuation as of the
Balance Sheet date, based upon which, the company contributes all the
ascertained liabilities to the Federal Bank Employees Gratuity Trust
Fund (the Trust). Trustees administer contributions made to the Trust
and contributions are invested in specific investments as permitted by
law.

2) Superannuation / Pension

The Bank provides for monthly pension, a defined benefit retirement

plan (the pension plan) covering eligible employees. The pension plan
provides a monthly pension after retirement of the employees till death
and to the family after the death of the pensioner. The monthly pension
is based on the respective employees salary and the tenure of
employment. Vesting occurs upon completion of ten years of service. The
bank pays the monthly pension by purchasing annuities from Life
Insurance Corporation of India (LIC). Liabilities with regard to the
pension plan are determined by actuarial valuation as of the Balance
Sheet date, based upon which, the company contributes all the
ascertained liabilities to the Federal Bank (Employees) Pension Fund
(the Trust). Trustees administer contributions made to the Trust and
contributions are invested in specific investments as permitted by law.

6.4 Related Party Disclosures

The following are the significant transactions with related parties

during the year ended 31 March 2010

Name of the Party Nature of Relationship

IDBI Fortis Life Insurance

Company Limited Associate/Joint Venture

Fed Bank Financial Services

Limited Subsidiary
 Shri. M Venugopalan Key Management Personnel

Shri. K S Harshan Key Management Personnel

Shri. P R Kalyanaraman Key Management Personnel

6.6 Taxation (AS 22)

i. Other Assets include Rs. 95.11 crore (previous Year Rs 0.34 crore)
paid/adjusted towards disputed income tax demand aggregating to Rs.
298.77 crore. In the opinion of the Bank no provision is considered
necessary in respect of the above disputed demand in view of various
judicial decisions and the same has been disclosed as contingent
liability.

ii. The Bank has accounted for income tax in compliance with ICAIs
Accounting Standard 22. Accordingly, timing differences resulting in
deferred tax assets and deferred tax liabilities are recognised. The
major components of deferred tax liabilities and assets as on 31 March
2010 are shown below:

7.4.1 There are no dues to micro and smali enterprises as at 31 March

2010. This disclosure is based on the records available with the Bank.

7.4.2 The Bank has not issued any letters of comforts coming within the
Prudential Norms for Issuance of Letters of Comforts by banks regarding
their subsidiaries (DBOD.No. BP.BC.65/21.04.009/2007-08 dated March 4,
2008).
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 85.60 85.60 171.03 171.03 171.03
Equity Share Capital 85.60 85.60 171.03 171.03 171.03
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 1,157.30 1,409.98 3,748.30 4,148.74 4,513.55
Revaluation Reserves 7.08 6.63 6.36 6.11 5.86
Net Worth 1,249.98 1,502.21 3,925.69 4,325.88 4,690.44
17,878.7
Deposits 21,584.44 25,913.36 32,198.19 36,057.95
4
Borrowings 610.49 770.21 791.95 748.94 1,546.76
18,489.2
Total Debt 22,354.65 26,705.31 32,947.13 37,604.71
3
Other Liabilities & Provisions 903.69 1,233.08 1,875.45 1,577.86 1,380.45
20,642.9
Total Liabilities 25,089.94 32,506.45 38,850.87 43,675.60
0
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
 12 mths 12 mths 12 mths 12 mths 12 mths

Assets
Cash & Balances with RBI 1,214.59 1,231.54 2,355.69 2,214.40 2,318.88
Balance with Banks, Money at Call 657.91 1,081.60 389.79 1,222.70 404.51
11,736.4
Advances 14,899.10 18,904.66 22,391.88 26,950.11
7
Investments 6,272.38 7,032.66 10,026.59 12,118.97 13,054.65
Gross Block 330.78 362.71 434.75 516.40 559.26
Accumulated Depreciation 156.91 176.61 201.91 235.62 269.49
Net Block 173.87 186.10 232.84 280.78 289.77
Capital Work In Progress 0.00 0.00 0.00 0.00 0.00
Other Assets 587.70 658.93 596.87 622.15 657.69
20,642.9
Total Assets 25,089.93 32,506.44 38,850.88 43,675.61
2

Contingent Liabilities 7,834.42 5,005.69 5,632.10 6,239.48 8,424.89

Bills for collection 9,145.27 8,479.74 8,500.40 2,137.62 2,160.83
Book Value (Rs) 145.19 174.71 229.16 252.57 273.90

7.4.3 The Bank has not made any draw down of reserves during the year.

7.4.5 Provision coverage ratio

Provision coverage ratio as on 31 March 2010 stood at 91.82%

7.4.6 Amount of advances for which intangible securities such as charge

over rights, licences, authority etc has been taken as collateral
security and the value of such collateral security

Nil

7.5 Previous years figures have been regrouped and recast wherever
necessary.

Balance Sheet of Federal ------------------- in Rs. Cr. -------------------

Bank
Profit & Loss account of ------------------- in Rs. Cr. -------------------
Federal Bank
Mar '06 Mar '07 Mar '08 Mar '09 Mar '

12 mths 12 mths 12 mths 12 mths 12 mt

Income
1,436.5
Interest Earned 1,817.35 2,515.44 3,315.38 3,673.
3
Other Income 233.10 302.59 394.99 515.78 530.
1,669.6
Total Income 2,119.94 2,910.43 3,831.16 4,204.
3
Expenditure
Interest expended 836.73 1,084.96 1,647.42 1,999.92 2,262.
Employee Cost 228.36 260.45 271.23 317.45 366.
Selling and Admin Expenses 176.61 171.06 297.72 477.85 566.
Depreciation 25.74 23.97 29.22 42.84 50.
Miscellaneous Expenses 176.99 286.77 296.78 492.60 494.
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.
Operating Expenses 471.06 495.39 660.93 917.96 1,090.
Provisions & Contingencies 136.64 246.86 234.02 412.78 387.
1,444.4
Total Expenses 1,827.21 2,542.37 3,330.66 3,739.
3
Mar '06 Mar '07 Mar '08 Mar '09 Mar '

12 mths 12 mths 12 mths 12 mths 12 mt

Net Profit for the Year 225.21 292.73 368.05 500.49 464.
Extraordionary Items 0.00 0.00 0.00 0.00 0.
Profit brought forward 2.30 13.46 14.46 14.62 21.
Total 227.51 306.19 382.51 515.11 486.
Preference Dividend 0.00 0.00 0.00 0.00 0.
Equity Dividend 29.96 34.24 68.41 85.52 85.
Corporate Dividend Tax 4.20 5.82 11.63 14.54 14.
Per share data (annualised)
Earning Per Share (Rs) 26.31 34.20 21.52 29.26 27.
Equity Dividend (%) 35.00 40.00 40.00 50.00 50.
Book Value (Rs) 145.19 174.71 229.16 252.57 273.
Appropriations
Transfer to Statutory Reserves 79.31 121.47 156.11 195.87 155.
Transfer to Other Reserves 100.57 130.21 131.74 197.25 208.
Proposed Dividend/Transfer to Govt 34.16 40.06 80.04 100.06 99.
Balance c/f to Balance Sheet 13.46 14.46 14.62 21.93 23.
Total 227.50 306.20 382.51 515.11 486.

Company History - Federal Bank

YEAR EVENTS
1931 - The Bank was incorporated in 1931 as Travancore Federal Bank
Limited to cater to the banking needs of Travancore Province
by a
small group of local citizens. It embarked on a phase of
sustained growth under the leadership of K.P. Hormist. The
bank
along with six other banks co-promoted Bharat Overseas Bank
Ltd.

1949 - The Board of Directors of the Bank was reconstituted and

fresh
Articles of Association were adopted and the Bank was renamed
as
The Federal Bank Limited.

1993 - During March, the bank issued 25,25,000 No. of equity shares
of
Rs 10 each at a premium of Rs 25 per share in proportion 1:2.
Another 5,25,000 No. of equity shares were offered to the
employees on an equity basis. Only 30,47,894 shares of the
above
taken up (2,106 shares kept in abeyance). Another 30,00,000
No.
of equity shares were allotted at a prem. of Rs 30 per share
to
ICICI associates companies.
1994 - During March, the company offered to the public 35,45,500
shares
at a prem. of Rs 80 per share. Additional 1,72,600 shares
were
allotted to retain oversubscription. During January 1996,
the
bank issued 74,08,122 rights equity shares (prem. Rs 140;
prop.
1:2) 73,51,734 shares taken up.

1995 - 50,50,000 No. of equity shares were issued and paid-up of

which
3,318 No. of equity shares were issued for consideration
other
than cash on 27.1.1965 to shareholders of erstwhile St.
George
Union Bank Ltd., Puthenpully, Kerala.

1996 - The Company undertook as 3 year Information Technology

Strategic
Plan 2000 for automating its branches in a phased programme.

1997 - The bank has developed Fedsoft the automation software

package
in-house which is being used by 40 branches. An Automatic
Teller
Machine (ATM) was installed at the Vile Parle branch in
Mumbai
during the year.

- The bank is the second largest private sector bank with a

network
of more than 360 branches which till recently was restricted
to
the southern States.

- The Aluva-based Federal Bank Ltd. has set up its site on the
World Wide Web on the Internet, Information about the bank
and
its products and services can be accessed form
http://www.federal-bank.com.

- Federal Bank has infused an additional Rs.10 crore in the

equity capital of its investment banking subsidiary, Fedbank
Financial Services in 1996-97.

- The Federal Bank Limited, the largest scheduled bank in

Kerala,
had developed its own computer software named FedSoft.

- The software was developed by the bank in collaboration with

Datanet Corporation, Bangalore and the package was based on
state-of-the-art technology and the latest workflow concepts.
 - Industrial Credit and Investment Corporation of India (ICICI)
has entered into a strategic alliance with two Kerala-based
private sector banks-Federal Bank Ltd (FBL) and South Indian
Bank Ltd (SIBL)-to share business interests and strategies.

- Federal Bank Ltd, the largest scheduled bank in Kerala, with

a
network of over 350 branches throughout the country.

- The Federal Bank Limited, the largest private sector banking

network in the country, has taken over an Abu Dhabi-based
financial institution Exchange Bank dealing in foreign
exchange.

- The Federal Bank, the largest banking network in India in the

private sector, is working on various customer-friendly
schemes
in the wake of the liberalisation globalisation measures
unleashed by the government.

1998 - The Federal Bank Limited has launched a new deposit scheme
named Fed Flexi.

- The Kochi-based Federal Bank will open 100 more branch spread
across the country by the turn of the century. With this,
the
total branch strength of the bank will cross 500.

- The Alwaye-based Federal Bank has launched three tailor-made

loan schemes.

1999 - As part of its plan to widen the retail credit portfolio, the
Aluva-based Federal Bank has launched three new schemes to
promote travel and tourism, fund short and long-term needs of
the trading community and to finance payments of premium of
LIC's Bima Nivesh.

- Federal Bank, one of the country's old private banks, opened

its first specialised branch for asset recovery in Mumbai on
December 16, '99.

- The Bank has also set up a target of Rs 86 crore in the

current
year for the recovery of the non-performing assets (NPAs).

- The bank has set up an asset recovery department at it

corporate
office at Alwaye and strengthened asset recovery cells at
regional offices.

2000 - Federal Bank is to foray into internet banking and E-commerce

in
the month April. The Bank will be he first among the old
private
sector banks in the country to diversify into internet
banking.

- The Bank has entered into marketing pacts with some

commercial
agencies for its E-commerce business.

2001 - The Aluva-based Federal Bank has tied up with Escotel

Communications to
launch mobile banking services using SMS technology.

- Federal Bank has launched a new deposit scheme

christened as `Suraksha' for
senior citizens.

2003

-Unveils Anywhere Banking provides the convenience of doing

transactions from 300-plus interconnected branches

-ICICI Bank divests 0.31% stake in Federal Bank.

-Federal Bank cuts Home loan interest rates.

2004

-Achieves 100% interconnectivity among all its branches

-Launches Equity Subscription Scheme, a new retail product for

financing the IPOs and public issue applications of its customers

-Acquires a prime property in Chennai-owned by Ramco Super Leathers

under Securtisation and Reconstruction of Financial Assets and
Enforcement of Security Act. The property, spread over six grounds
and 26,000 sq ft on Anna Salai, is estimated to have a market value
of Rs 16 crore.

-Federal Bank unveils treasurer's calendar

-Federal Bank join hands with ICICI Prudential Life Insurance Co.
Ltd. for premium collection through its branches

-Federal Bank introduces new Fed e-Pay services

2005

-JRG Securities Ltd has forged alliance with Federal Bank Ltd for
providing loans for subscribing to initial public offers (IPOs).

-FedBank gets award for best use of IT

-Federal Bank keen on merger with southern entity

2006
-Federal Bank to acquire Ganesh Bank

-Federal Bank rolls out savings deposit schemes

-Federal Bank gets banking tech awards

-Federal Bank bags YMCA award

-IDBI Bank, Fortis join Federal Bank for risk JV

2007

-The company has issued rights in the ratio of 1:1 at a premium of

Rs.240/- Per Share.

-Federal Bank buys stake in LVB, South Indian

-Federal Bank to set up office in Abu Dhabi

2008

-Federal Bank Ltd has informed that Reserve Bank of India vide letter
dated July 08, 2008 approved the appointment of Shri. P R
Kalyanaraman, Executive Director as Whole Time Director of the Bank
for a period of 3 years w.e.f. January 03, 2008.

2009

- Federal Bank in association with Geojit Financial Services has

unveiled its online trading product called Fed-e-Trade as part of the
bank's efforts to provide various products and services to customers.
However, the retail clients of the bank will now have the access to
online trading in equities as well as the derivatives, IPOs and
mutual funds through Geojit's online trading platform.

- Federal Bank Ltd has informed that Dr. M Y Khan has been appointed
on the Board of the Bank as a non-executive, independent director.

- Federal Bank has launched a call centre facility where the 24-hour
service of the contact centre would be available on dialing a
toll-free number 18004251199.

2010

- Federal Bank unveiled FedSelect, a premium product for their high

networth individual (HNI) customers.

- Shyam Srinivasan has taken charge as the Managing Director & CEO of
Federal Bank with effect from September 23.

- Federal Bank Ltd has appointed Shri. Shyam Srinivasan as Managing

 Director & Chief Executive Officer of the Bank.

Cash Flow of Federal ------------------- in Rs. Cr. -------------------

Bank
Mar '06 Mar '07 Mar '08 Mar '09 Mar '

12 mths 12 mths 12 mths 12 mths 12 mt

Net Profit Before Tax 452.18 612.98 794.12 1259.77 1264.

Net Cash From Operating Activities 8.88 467.76 -1525.86 918.11 -555.
Net Cash (used in)/from
-11.74 -24.63 -137.47 -155.76 -58.
Investing Activities
Net Cash (used in)/from Financing
319.46 -29.96 2095.68 -70.74 -99.
Activities
Net (decrease)/increase In Cash and 316.60 413.17 432.35 691.61 -713.
Cash Equivalents
Opening Cash & Cash Equivalents 1555.89 1899.97 2313.14 2745.49 3437.
Closing Cash & Cash Equivalents 1872.49 2313.14 2745.49 3437.09 2723.

Capital Structure (Federal Bank) Period Instrument Authorized Capital Issued Capital - P A I D U P - From
To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital 2009 2010 Equity Share 200 171.32 171033430 10 171.03
2008 2009 Equity Share 200 171.32 171033430 10 171.03 2007 2008 Equity Share 200 171.32
171033430 10 171.03 2006 2007 Equity Share 200 85.66 85603667 10 85.6 2005 2006 Equity Share 200
85.66 85603367 10 85.6 2004 2005 Equity Share 200 65.66 65602767 10 65.6 2003 2004 Equity Share 50
22.23 22170034 10 22.17 2002 2003 Equity Share 50 22.23 22170034 10 22.17 2001 2002 Equity Share
50 22.23 22170034 10 22.17 2000 2001 Equity Share 50 21.72 21715700 10 21.72 1999 2000 Equity
Share 15 15 15000000 10 15 1998 1999 Equity Share 50 22.23 22169834 10 22.17 1997 1998 Equity
Share 50 22.23 22169834 10 22.17 1996 1997 Equity Share 50 22.23 22169834 10 22.17 1995 1996
Equity Share 50 24.29 14816244 10 14.82 1994 1995 Equity Share 50 14.82 14816244

Quarterly Results of ------------------- in Rs. Cr. -------------------

Federal Bank

Mar '10 Jun '10 Sep '10 Dec '10 Mar '

Sales Turnover 953.14 951.79 978.34 1,021.88 1,100.

Other Income 130.59 109.89 144.04 121.69 141.
Total Income 1,083.73 1,061.68 1,122.38 1,143.57 1,241.
Total Expenses 286.39 321.25 367.69 354.61 318.
Operating Profit 666.75 630.54 610.65 667.27 781.
Profit On Sale Of Assets -- -- -- --
Profit On Sale Of Investments -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- --
VRS Adjustment -- -- -- --
Other Extraordinary Income/Expenses -- -- -- --
Total Extraordinary Income/Expenses -- -- -- --
Tax On Extraordinary Items -- -- -- --
Net Extra Ordinary Income/Expenses -- -- -- --
Gross Profit 797.34 740.43 754.69 788.96 923.
Interest 543.45 538.47 539.97 574.63 652.
PBDT 253.89 201.96 214.72 214.33 270.
Depreciation -- -- -- --
Depreciation On Revaluation Of Assets -- -- -- --
PBT 253.89 201.96 214.72 214.33 270.
Tax 137.04 70.10 74.32 71.23 99.
Net Profit 116.85 131.86 140.40 143.10 171.
Prior Years Income/Expenses -- -- -- --
Depreciation for Previous Years
-- -- -- --
Written Back/ Provided
Dividend -- -- -- --
Dividend Tax -- -- -- --
Dividend (%) -- -- -- --
Earnings Per Share 6.83 7.71 8.21 8.37 10.
Book Value -- -- -- --
Equity 171.03 171.03 171.03 171.03 171.
Reserves -- -- -- --
Face Value 10.00 10.00 10.00 10.00 10.

Half Yearly Results of ------------------- in Rs. Cr. -------------------

Federal Bank
Mar '09 Sep '09 Mar '10 Sep '10 Mar '

6 mths 6 mths 6 mths 6 mths 6 mt

Sales Turnover 1,742.16 1,775.45 1,897.78 1,930.13 2,121.
Other Income 315.35 283.84 247.07 253.93 262.
Total Income 2,057.51 2,059.29 2,144.85 2,184.06 2,384.
Total Expenses 455.01 524.44 557.75 688.94 672.
Operating Profit 1,287.15 1,251.01 1,340.03 1,241.19 1,449.
Profit On Sale Of Assets -- -- -- --
Profit On Sale Of Investments -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- --
VRS Adjustment -- -- -- --
Other Extraordinary Income/Expenses -- -- -- --
Total Extraordinary Income/Expenses -- -- -- --
Tax On Extraordinary Items -- -- -- --
Net Extra Ordinary Income/Expenses -- -- -- --
Gross Profit 1,602.50 1,534.85 1,587.10 1,495.12 1,712.
Interest 1,036.67 1,155.42 1,106.98 1,078.44 1,227.
PBDT 565.83 379.43 480.12 416.68 485.
Depreciation -- -- -- --
Depreciation On Revaluation Of Assets -- -- -- --
PBT 565.83 379.43 480.12 416.68 485.
Tax 247.77 141.98 253.02 144.42 170.
Net Profit 318.06 237.45 227.10 272.26 314.
Prior Year Income/Expenses -- -- -- --
Depreciation for Previous Years
-- -- -- --
Written Back/ Provided
Dividend -- -- -- --
Dividend Tax -- -- -- --
Dividend (%) -- -- -- --
Earnings Per Share(Rs) 18.60 13.88 13.28 15.92 18.
Book Value(Rs) -- -- -- --
Equity 171.03 171.03 171.03 171.03 171.
Reserves 4,148.74 -- 4,513.55 --
Face Value(Rs) 10.00 10.00 10.00 10.00 10.

Half Yearly Results of ------------------- in Rs. Cr. -------------------

Federal Bank
 Mar '09 Sep '09 Mar '10 Sep '10 Mar '

6 mths 6 mths 6 mths 6 mths 6 mt

Sales Turnover 1,742.16 1,775.45 1,897.78 1,930.13 2,121.

Other Income 315.35 283.84 247.07 253.93 262.
Total Income 2,057.51 2,059.29 2,144.85 2,184.06 2,384.
Total Expenses 455.01 524.44 557.75 688.94 672.
Operating Profit 1,287.15 1,251.01 1,340.03 1,241.19 1,449.
Profit On Sale Of Assets -- -- -- --
Profit On Sale Of Investments -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- --
VRS Adjustment -- -- -- --
Other Extraordinary Income/Expenses -- -- -- --
Total Extraordinary Income/Expenses -- -- -- --
Tax On Extraordinary Items -- -- -- --
Net Extra Ordinary Income/Expenses -- -- -- --
Gross Profit 1,602.50 1,534.85 1,587.10 1,495.12 1,712.
Interest 1,036.67 1,155.42 1,106.98 1,078.44 1,227.
PBDT 565.83 379.43 480.12 416.68 485.
Depreciation -- -- -- --
Depreciation On Revaluation Of Assets -- -- -- --
PBT 565.83 379.43 480.12 416.68 485.
Tax 247.77 141.98 253.02 144.42 170.
Net Profit 318.06 237.45 227.10 272.26 314.
Prior Year Income/Expenses -- -- -- --
Depreciation for Previous Years
-- -- -- --
Written Back/ Provided
Dividend -- -- -- --
Dividend Tax -- -- -- --
Dividend (%) -- -- -- --
Earnings Per Share(Rs) 18.60 13.88 13.28 15.92 18.
Book Value(Rs) -- -- -- --
Equity 171.03 171.03 171.03 171.03 171.
Reserves 4,148.74 -- 4,513.55 --
Face Value(Rs) 10.00 10.00 10.00 10.00 10.

Yearly Results of ------------------- in Rs. Cr. -------------------

Federal Bank

Mar '07 Mar '08 Mar '09 Mar '10 Mar '

Sales Turnover 1,817.35 2,515.44 3,315.38 3,673.23 4,052.

Other Income 286.69 394.99 515.77 530.91 516.
Total Income 2,104.04 2,910.43 3,831.15 4,204.14 4,568.
Total Expenses 620.85 762.85 1,038.22 1,082.19 1,361.
Operating Profit 1,196.50 1,752.59 2,277.16 2,591.04 2,690.
Profit On Sale Of Assets -- -- -- --
Profit On Sale Of Investments -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- --
VRS Adjustment -- -- -- --
Other Extraordinary Income/Expenses -- -- -- --
Total Extraordinary Income/Expenses -- -- -- --
Tax On Extraordinary Items -- -- -- --
Net Extra Ordinary Income/Expenses -- -- -- --
Gross Profit 1,483.19 2,147.58 2,792.93 3,121.95 3,207.
Interest 1,084.96 1,647.43 1,999.92 2,262.40 2,305.
PBDT 398.23 500.15 793.01 859.55 901.
Depreciation -- -- -- --
Depreciation On Revaluation Of Assets -- -- -- --
PBT 398.23 500.15 793.01 859.55 901.
Tax 105.50 132.10 292.52 395.00 314.
Net Profit 292.73 368.05 500.49 464.55 587.
Prior Years Income/Expenses -- -- -- --
Depreciation for Previous Years
-- -- -- --
Written Back/ Provided
Dividend -- -- -- --
Dividend Tax -- -- -- --
Dividend (%) -- -- -- --
Earnings Per Share 34.20 21.52 29.26 27.16 34.
Book Value -- -- -- --
Equity 85.60 171.03 171.03 171.03 171.
Reserves 1,409.97 3,748.30 4,148.74 4,513.55 4,931.
Face Value 10.00 10.00 10.00 10.00 10.