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Saturday, May 22, 2004

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Corporate Results - Private Banks

Federal Bank net up 30 pc; to pay 70 pc

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Kochi May 21

THE net profit of the Aluva-based Federal Bank has grown by 30 per cent to Rs 136 crore (Rs 105 crore) for the year 2003-04.

The financial results, which were adopted by the Board of Directors on Friday at Kochi, noted that the gross profit had grown by 24 per cent to Rs 436.74 crore. The total deposits bank grew by 23 per cent to Rs 13,476 crore, even as the advances grew by 24 per cent to Rs 7,700 crore.

Addressing a press conference, Mr K.P. Padmakumar, Chairman of the bank, said: "The total business volumes has grown by 23 per cent and the bank has been able to record a business volume of Rs 21,177 crore — breaching the Rs 20,000 crore mark for the first time."

While the bank's total income grew by 10.7 per cent to touch Rs 1,489.92 crore (Rs 1,345.89 crore), the growth in total expenditure could be checked to 5.9 per cent at Rs 1,053.18 crore. The bank's cost of deposits decreased from 7.63 per cent to 6.24 per cent.

The bank could reduce the net non-performing assets from Rs 307.81 crore to Rs 222.75 crore, thus taking the net NPA percentage from 4.95 per cent to 2.89 per cent. The net worth has grown to Rs 648.84 crore.

The book value per share has increased from Rs 243.77 to Rs 298.24. Earnings per share also increased from Rs 48.36 to Rs 62.65 during the year. The return on average assets breached the one per cent mark and was 1.03 per cent.

Business per employee has grown to Rs 3.27 crore from Rs 2.70 crore, while the income per employee has grown to Rs 2.14 lakh from Rs 1.69 lakh. The capital adequacy ratio has grown to a comfortable 11.48 per cent against the RBI mandated level of nine per cent.

The bank has targeted a 22 per cent growth in deposits to Rs 16,381 crore for the current fiscal, while the advances is also expected to grow by 22 per cent to Rs 9,414 crore, Mr Padmakumar said.

The target for gross profit is Rs 500 crore, while the net profit is expected to breach the Rs 200 crore level.

In view of the secular southward movement of interest rates, the bank has reduced its expected trading income to less than half of what was attained last year. The future sources of income would be from avenues like interest rate swaps, Mr Padmakumar said.

The Board of Directors approved of a 70 per cent dividend, subject to the approval of the RBI.

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