The Hindu Business Line : Federal Bank H1 net profit rises 30%

The total business of the bank during the period reached Rs 59,218 crore. The operating profit increased by 4 per cent from Rs 556 crore to Rs 581 crore. While provisions and contingencies decreased from Rs 329 crore to Rs 202 crore, tax expenses increased from Rs 45 crore to Rs 142 crore.

As per the un-audited financial results, the total deposits increased by 26 per cent to Rs 33,439 crore and net advances went up by 21 per cent to Rs 25,779 crore. The growth was contributed by retail, SME (small and medium enterprises) and corporate advances. Retail advances grew 15 per cent forming 29 per cent of the gross advances. The advance to priority sector was at Rs 9,983 crore, accounting for 45 per cent of net bank credit.

Total income

The bank earned a total income of Rs 2,059.29 crore, registering a growth of 16 per cent. The growth in total income was supported by growth in income from advances, income from investments and non-interest income. Interest income grew by 13 per cent to Rs 1,775.45 crore, while non-interest income grew by 42 per cent to Rs 284 crore.

The net worth of the bank increased to Rs 4,536 crore and the CRAR, computed according to Basel 1 guidelines, stands at 17.91 per cent against the regulatory minimum of 9 per cent.

The CRAR as per Basle 2 guidelines works out to 18.47 per cent. The Tier-1 capital is at 15.75 per cent as per Basle 1 and 16.98 per cent as per Basle 2. Bank holds Rs 189.72 crore in Investment Fluctuation Reserve.

The bank had a gross NPA of 2.99 per cent and net NPA of 0.54 per cent as against 2.62 per cent and 0.40 per cent respectively as at the end of September 2008. The net interest margin is 3.51 per cent as against 4.10 per cent in September 2008. The net NPA, Return on Average Assets and Capital Adequacy Ratio were at 0.54 per cent, 1.24 per cent and 17.91 per cent respectively for the 6 months, compared with 0.40 per cent, 1.12 per cent and 20.81 per cent as on September 30, 2008.

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