The Hindu Business Line : Federal Bank H1 net slips 38 pc

THE net profit of the Aluva-based Federal Bank has fallen by 38 per cent to Rs 48.22 crore (Rs 77.73 crore) during the first half of the current fiscal. The results were adopted by the board, which met in Kochi on Saturday.

The bank has moved Rs 1,805.30 crore of SLR securities from `available for sale' category to `held to maturity' category. The transfer effected at current market values has resulted in a depreciation amounting to Rs 70 crore, which has been debited to the profit and loss account.

"The reduction in net profit in the first half is due to this extraordinary item," a press release from the bank said.

The operating profit decreased by 5.12 per cent, while the operating profit excluding trading gain increased by 33.87 per cent. Total income decreased by 2.53 per cent, while total expenses decreased by 1.32 per cent.

The cost of deposit came down to 5.20 per cent from 6.61 per cent in the corresponding period last year.

The gross NPA of the bank fell to 6.99 per cent at Rs 600.19 crore (Rs 625.69 crore). The net NPA fell to 2.22 per cent at Rs 181.23 crore (Rs 300.86 crore).

The book value per share increased to Rs 320.88, up from Rs 279.57. Business per employee increased to Rs 3.23 crore, up from Rs 2.88 crore. The bank's capital adequacy stands at 11.72 per cent. Total deposits of the bank rose by 10.94 per cent to Rs 12,840 crore, while advances grew by 21.95 per cent to Rs 8,172 crore. The savings bank account held in the bank grew by 37.5 per cent, current account by 24.5 per cent and housing loan portfolio by 64 per cent, the release said.

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