Federal Bank FY06 net up 150% at Rs 90 cr

Federal Bank has registered a growth of 149.98 per cent in net profit at Rs 225.21 crore in 2005-06 against Rs 90.09 crore in the previous fiscal.

The Alwaye-based bank has posted a net profit of Rs 50.73, up 69.93 per cent for the fourth quarter ended March 2006 and operating profit has registered an increase of 53.88 per cent at Rs 142.71 crore.

M Venugopalan, chairman, said total business had increased to Rs 29,615 crore, up by 23.32 percent from Rs 24,015.47 crore in 2004-05. The board has recommended a dividend of 35 percent for last fiscal.

He also said that total advances had increased to Rs 11,736 crore from Rs 8822.59 crore, registering a growth of 23.32 per cent last financial year.

Net non-performing assets (NPA) level has been slashed to 0.95 per cent from 2.21 per cent, while bank's CRAR has improved to 13.75 per cent from 11.27 per cent in 2004-05.

Earnings per share of the bank has shown a considerable increase at Rs 32.71 from Rs 13.13 for the year ended 31st March 2006.

Federal Bank has earned an operating profit of Rs 452.18 crore, up by 12.93 per cent from Rs 400.40 crore in 2004-05. Total income has increased to Rs 460.04 in Q4 against Rs 347.95 crore during the same period in previous fiscal.

Interest income increased from Rs 291.01 crore to Rs 390.31 crore in Q4. Net interest income grown 54.18 per cent over the previous quarter in FY05. Total deposits has increased by Rs 2685.86 crore to Rs 17,878.74 crore as on March 2006.

Savings bank deposits had shown an increase of 23.37 per cent over last fiscal. Total net worth as on March 31st, 2006, stood at Rs 1,249.99 crore.

Capital adequacy as on March 31, 2006, was Rs 13.75 per cent against the regulatory minimum of 9 per cent.

Last financial year, the bank had added 16 new branches and 66 ATMs increasing total branch network to 472 and 320 ATMs across 23 states in India.

He said that Federal Bank proposed to open 58 new branches and had already obtained permission to open 29 new branches, of which 12 are in Kerala.

Bank has also obtained permission from RBI to open representative office in UAE for aggressive penetration in the NRI segment in the Middle East.

He also said that the entire operations of the bank would be under core banking solution by the end of March 2007.