Federal Bank aims 20 per cent growth in FY20

Kochi-based private lender Federal Bank is targeting a growth of 20 per cent in the 2019-20 fiscal, a top official said on Wednesday.

The bank did an overall business of Rs 2.43 lakh crore in the last financial year, MD and CEO Shyam Srinivasan said.

Srinivasan told reporters here that the lender has a comfortable capital adequacy ratio at more than 14 per cent (Tier I) and good credit quality.

"These two aspects are the core strength of Federal Bank, which would help it gain market share and grow faster," he said.

The present market share stood at a trifle over one per cent, he said.

Srinivasan said the quality of its assets was among the top quartile in the sector, with gross NPA and net NPA at 2.92 per cent and 1.48 per cent, respectively.

"Most of our assets are 'AAA' and 'AA' rated, and we are quite cautious. We stay away from relatively risky assets," he said.

On capital raising, Srinivasan said there was no immediate requirement for the next six to eight quarters. "However, since the business is dynamic, we will evaluate the next financial year," the senior official said.

Talking about branch expansion, he said, "We are now exploring the opportunities of opening new branches in select geographies. We plan to open 40 branches each year.