The Hindu Business Line : Federal Bank net rises 37 pc in nine months

THE Aluva-based Federal Bank has recorded a growth of 37 per cent in net profit to Rs 113.30 crore (Rs 82.46 crore) during the first nine months of the current fiscal. The bank had been on a high growth trajectory since 2000.

The financial results of the bank , which were accepted by the board of directors,reveal that the bank continues to make steady improvements , a press release issued here has said.

The bank has been successful in containing costs and increasing income, thus ensuring operating profits grew by 27.12 per cent to Rs 334 crore (Rs 263 crore). Its total income grew 9.61 per cent to Rs 1,102 crore (Rs 1,006 crore), while the growth in expenditure was contained at 3.41 per cent to Rs 768 crore (Rs 743 crore).

The total business of the bank grew to Rs 19,132 crore, registering a year-to-year growth of 22.89 per cent. Deposits grew 23.10 per cent to Rs 12,154 crore, while advances registered a growth of 22.53 per cent to Rs 6,978 crore.

The bank could also make significant strides in reduction of NPAs. Its net NPA fell to Rs 277 crore from Rs 346 crore of last December. Even after the stricter 90 days prudential norms, the bank could contain its net NPA to 3.97 per cent.

Cost of deposits has fallen to 6.45 per cent from 7.96 per cent last year. Income from advances has grown to Rs 539 crore (Rs 497 crore). The networth now stands at Rs 643 crore. Its book value per share has increased to Rs 296 (Rs 244). Earnings per share also rose to Rs 69.55 from Rs 48.36. The return on average assets improved from 0.98 per cent to 1.18 per cent.

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