PRESS RELEASE

January 28, 2010

FEDERAL BANK 9 Months’ NET PROFIT AT Rs. 347.70 Cr

Federal Bank has announced its unaudited results for the third quarter of FY 2009-10 and for
the nine months ended December 2009, following adoption of the results by the Board of
Directors in its meeting held at Kochi on 28th January, 2010.

WORKING RESULTS AT A GLANCE

(Rs. in Crores)
Q3 Q2 % growth 9 months 9 months % growth
2009 – 10 2009 – 10 2009 – 10 2008 – 09
Interest Income 944.64 901.07
4.8 % 2720.09 2449.64
11.04 %
Other Income 116.48 136.43  14.6 % 400.32 365.23
9.6 %
Total Income 1061.12 1037.50
2.3 % 3120.41 2814.87
10.8 %
Net Interest Income 381.11 329.95
15.5 % 1001.14 994.56
0.7 %
Operating Profit 331.54 303.24
9.3 % 913.06 940.86  2.9 %
Net Profit 110.25 101.07
9.1 % 347.70 386.32  10.0 %

The Operating Profit of the Bank for third quarter is higher by 9.33 % over the Q2 figure of Rs.
303.24 Crore. The net profit for the same period at Rs. 110.25 Cr is also up by 9.1 % as against
Rs. 101.07 Cr reported in Q2 of the current fiscal. The Net Profit of the Bank for the nine
months ended December 2009 was Rs. 347.70 Crore, down by 10 % from the figure of Rs.
386.32 Crore clocked during the corresponding period of the previous year. Total income for the
nine month period increased from Rs. 2814.87 Crore to Rs. 3120.41 Crore showing an increase
of 10.85 % over the corresponding period of the previous fiscal. Total business of the Bank
increased to Rs. 60617 Crore.

The operating profit for the third quarter is at Rs 331.54 Crore showing a decline of 13.75 %
from Rs 384.41 Crore reported for the corresponding period of the previous fiscal mainly
because of the fall in income from sale of securities. Similarly, the net profit for the third quarter
also witnessed a decline, compared to corresponding quarter of the previous year, due to the
increased provisions for income tax and the absence of the benefit of write back of investment
provisions which was available in the corresponding quarter of the last year.

The Net Interest Margin of the Bank for quarter ended December 2009 is at 4.05 % as against
3.70 % in September 2009. The Net NPA, Return on Average Assets (annualized) and Capital
Adequacy Ratio were at 0.56 %, 1.08 % and 17.76 % respectively as on 31.12.2009, compared
to 0.54 %, 1.04 % and 17.91 % as on 30.09.2009

Performance Highlights for the nine months ended 31.12.2009

• Deposits increased by 26.89 % from Rs. 27258.33 Cr to Rs. 34587.27 Cr

• Advances increased by 20.77 % from Rs. 21552.69 Cr to Rs. 26029.60 Cr
• Investments increased by 28.91 % from Rs. 9713.46 Cr to Rs. 12521.48 Cr
• Net NPA at 0.56 %
• Capital Adequacy Ratio at 17.76 %
• Net Interest Margin for nine months (NIM) at 3.69 %
• Return on Average Assets (annualized) at 1.17 %
• Earnings Per Share (annualized) at Rs. 27.11
• Book Value per share at Rs. 273.26

• GROWTH IN BUSINESS

Total business of the Bank reached Rs. 60617 Crore, showing an increase of 24.19 % from the
corresponding period of the previous fiscal. Total deposits increased by 26.89 % to Rs. 34587
Crores by end of December 2009.

Net Advances went up by 20.77 % to Rs. 26030 Cr as on 31st December 2009 from Rs. 21553
Cr as on 31st December 2008. The growth was driven by Corporate, Retail and SME advances.
The retail advances of the Bank grew by 19.12 % on y-o-y basis and reached Rs. 8220 Cr
forming 30 % of the total advances. The advances to priority sector reached Rs. 10647 Cr as
on 31st December 2009 from Rs. 9514 Cr as on 31st December 2008 thereby recording a y-o-y
growth of 11.91 %. Lending to Agriculture sector was at Rs. 2638 Cr.

• NET WORTH & CAPITAL ADEQUACY

The Net Worth of the Bank increased to Rs. 4674 Crores as on 31.12.2009 from Rs. 4263
Crores as on 31.12.2008. The Capital Adequacy (CRAR) of the Bank, computed as per Basel 1
guidelines, stands at 17.76 %, against the regulatory minimum of 9 %. The CRAR computed as
per Basel 2 norms is 18.50 %. The Tier-1 (core CRAR) capital works out to 15.69 %. (17.05 %
under Basel 2)

• ASSET QUALITY

The Bank had a Gross NPA of 2.97 % and Net NPA of 0.56 % as on December 31, 2009, as
against 2.83 % and 0.33 % respectively as at the end of December 2008. The total provisions
held against non-performing advances, expressed as a percentage of gross NPAs amounted to
80.69 % at the end of the third quarter of FY 2009-10. During the third quarter of the current
fiscal, assets from 19 accounts worth Rs. 6.51 Crore was restructured.

FINANCIAL INDICATORS

(Rs. in Crores)
Particulars Q3 Q3 % 9M 9M % growth
FY 2009-10 FY 2008-09 growth FY 2009-10 FY 2008-09
Net Profit 110.25 203.89 - 45.93 % 347.70 386.32 - 10 %
EPS (Annualised) Rs. 25.78 47.68 - 45.93 % 27.11 30.12 - 10 %
Income & Expenses
Interest Income 944.64 876.42 7.8 % 2720.09 2449.64 11.0 %
Other Income 116.48 164.81 - 29.3 % 400.32 365.23 9.6 %
Total Income 1061.12 1041.23 1.9 % 3120.41 2814.87 10.9 %
Total Expenditure 729.58 656.82 11.1 % 2207.35 1874.01 17.8 %
Operating Profit 331.54 384.41 - 13.7 % 913.06 940.86 - 2.9 %
Business Figures As on 31.12.2009 As on 31.12.2008 % Growth
Deposits 34587 27258 26.9 %
SB & Demand Deposits 8953 7468 19.9 %
Term Deposits 25635 19790 29.5 %
Net Advances 26030 21553 20.7 %
Agricultural Credit 2638 2889 -8.7 %
Priority Sector Advances 10647 9514 11.9 %
Retail Advances 8220 6901 19.1 %
Investments 12521 9713 28.9 %
Gross NPA (%) 2.97 2.83
Net NPA (%) 0.56 0.33
Capital
Equity Capital 171.03 171.03
Net Worth 4673.57 4262.70 9.6%
Capital Adequacy Ratio 17.76 19.85
Tier 1 15.69 17.23
Tier 2 2.07 2.62

The total number of branches and ATMs had increased to 669 and 707 respectively, by the end
of the third quarter of the current fiscal. The Bank opened 26 branches and 37 ATMs during the
quarter.

The business per employee and profit per employee as on December 31, 2009 were at Rs. 794
Lacs and Rs. 6.10 Lacs respectively as compared to Rs. 669 Lacs and Rs. 7.11 Lacs
respectively as on December 31, 2008. The Cost to Income ratio increased to 34.85 % as on
December 2009 from 30.81 % in December 2008.

The Earning Per Share (annualised), Book Value per share and Return on average Equity
(RoE) for the 9 months ended December 31, 2009 stood at Rs. 27.11, Rs. 273.26 and 10.30 %
respectively as against Rs. 30.12, Rs. 249.23 and 12.58 % respectively as at December 31,
2008.

RAJU HORMIS
ASST. GENERAL MANAGER
PUBLIC RELATIONS & PUBLICITY DEPT.

A presentation for investors is being placed separately on our Bank's website : www.federalbank.co.in

For further information, please contact :

Mr. P. C. John, Chief General Manager & CFO
Tel : 0484 2623572, e-mail : johnpc@federalbank.co.in