Federal Bank net up 28% at Rs 69 cr

Kerala-based Federal Bank today reported an impressive 28.25 per cent rise in net profit for the quarter ended September 30 at Rs 69.46, compared with Rs 54.16 crore a year ago.

The bank's total interest income rose 28.90 per cent to Rs 433.71 crore in the September quarter from Rs 336.46 crore a year earlier, as its net interest income grew to Rs 167.47 crore from Rs 133.97 crore.

Federal Bank's total income increased by an identical 28.81 per cent to Rs 506.32 crore from Rs 393.07 crore last year. Its operating profit jumped 36.60 per cent to Rs 139.01 crore in the second quarter from Rs 101.76 crore a year earlier.

A press release issued by the bank said it made a provision of Rs 20.96 crore for the recently announced VRS (voluntary retirement scheme), though this could have been spread over a five-year period as per the Income-Tax Act.

The bank made a total of Rs 60.36 crore as non-mandatory provisions including Rs 24.10 crore for contingency requirement during the second quarter.

Federal Bank's total deposits grew a decent 14.50 per cent to Rs 18,288.34 crore and advances shot up 34.72 per cent to Rs 12,714 crore at the end of September 30.

On September 30, net NPAs (non-performing assets) of the bank were down to 0.67 per cent from 1.60 per cent a year earlier. Its CRAR (capital to risks-weighted assets ratio) improved to 12.80 per cent from 11.37 per cent.

Federal Bank has already obtained permission to open 28 branches, of which seven will be in Kerala. This will take the total number of its branches to 537 spread across 24 states.

Through the amalgamation with Ganesh Bank of Kurundwad, Federal Bank has got 32 more branches "� 24 in Maharashtra and eight in Karnataka.

The bank's EPS and book value per share on September 30 this year stood at Rs 25.62 and Rs 158.83, respectively, against Rs 31.35 and Rs 125.94 on September 30, 2005.