The Hindu Business Line : Federal Bank to open 26 branches today

Mumbai, March 25 Federal Bank will inaugurate 26 branches across 11 States on Wednesday. This will take its total bank branch network to 602. Mr Thomas Joseph, General Manager, Federal Bank, said that the bank planned to add another 100 branches next year.

“We hope to increase our presence in North India. Currently, around 374 branches are in Kerala while around 228 branches are spread over the rest of the country,” he said.

Credit growth

Federal Bank’s credit growth this fiscal is around 24 per cent, which is slightly below target. “Our focus is mainly on retail lending, especially housing loans,” Mr Joseph said.

The growth in deposits has been on course at 26 per cent. There has, however, been a slowdown in non-resident Indian deposits as interest rates have seen a significant fall.

“The interest rate on NRI deposits is as low as 3 per cent. NRIs are now looking at other investment avenues like real estate,” said Mr Joseph.

The bank continues to explore the option of growth through the inorganic route. “Our capital adequacy ratio is 20 per cent. We are open to acquisitions,” he said.

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