Federal Bank Net Profit Rises 32%

Federal Bank posted a 32 per cent rise in the net profit at Rs 61.04 crore for the financial year ended March 31, 2001. While the gross profit rised by 38 per cent to Rs 187.04 crore, the total income grew by Rs 30 crore to Rs 1,044 crore. The board of directors of the bank has recommended a 30 percent dividend subject to Reserve Bank of India (RBI) approval.

Chairman of the bank, K P Padmakumar, said the interest expenditure of the bank could be brought down to Rs 682 crore from Rs 701 crore.

The total business, excluding investments, crossed Rs 12,500 crore mark. Total deposits of the bank, as on March 31, 2001, were Rs 7,665.44 crore and advances registered a growth of 20.28 percent at Rs 4854.13 crore. The non-performing asset level of the bank stood at 10.08 per cent.

 

Padmakumar said the bank will achieve business of Rs 14,100 crore in the current fiscal and aims an operating profit of Rs 265 crore. He added that mobile banking service will also be introduced by June this year. He said the bank has plans to market insurance products of some of the new generation insurance companies and negotiations in this regard were going on.

Padmakumar said the total non-residential Indian deposits of the bank increased by 20 percent to Rs 3,150 crore from Rs 2,644 crore of the previous fiscal year.

The total priority sector advances of the bank increased by Rs 135.37 crore amounting to Rs 1,565.12 crore, constituting 61.88 percent of the net bank credit against the Reserve Bank of India stipulated benchmark of 40 per cent, he said.

The bank had made commendable performance on the recovery of NPAs and recovered Rs 123.02 crore of impaired assets, he said adding the net worth of the bank increased by Rs 53.50 crore registering a growth of 14.78 per cent and stood at Rs 415.47 crore against Rs 361.98 crore of the previous fiscal.

The earning per share rose to Rs 28.11 from Rs 21.36 of the previous year registering a 31.60 per cent growth.