The Hindu Business Line : Federal Bank net up 150 pc at Rs 225.21 cr

The net profit of Federal Bank grew by 149.98 per cent to Rs 225.21 crore (Rs 90.09 crore) during 2005-06. Supported by strong asset growth and prudent management of balance sheet, interest income from advances grew by 18.54 per cent, while that from investments grew by 20.90 per cent, Mr M. Venugopalan, Chairman of the bank, said.

While the net interest margin of the bank is up at 3.19 per cent, the interest income has grown by 19.42 per cent. Shifting away from trading gains, the non-interest income grew by 24.77 per cent to Rs 183.87 crore, mainly from the fee and commission income, remittance business, cash and depository management services.

Total biz

Growing by Rs 5,599 crore, the total business of the bank touched Rs 29,615 crore. Savings bank deposits increased by 23 per cent and the share of savings and current account deposits improved by 3 per cent, which have helped the bank in cutting down the cost of deposits. Driven mainly by growth in retail, SME and housing loan segments, advances went up by 33 per cent to Rs 11,736 crore.

For the fourth quarter ending March 2006, the net profit of the bank was up 70 per cent at Rs 50.73 crore. The operating profit for the quarter was Rs 142.71 crore and the bank has made a provision of Rs 43.10 crore towards general provision on standard assets.

At the end of March, the net worth of the bank grew to Rs 1250 crore, partly by the infusion of fresh capital through a GDR issue. The capital adequacy of the bank was 13.75 per cent. The net NPA fell to 0.95 per cent (2.21 per cent), while gross NPA declined to 4.62 per cent (7.29 per cent).

Earnings per share increased to Rs 32.71 (Rs 13.13), while the book value per share was up at Rs 146 (Rs 110). While the return on net worth stood at 25.75 per cent, the return on total assets improved to 1.28 per cent.

More Stories on : Financial Performance | Private Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Agri loans: SBI for central processing

Forex reserves up by $1.3 b

NCR Corp woos banks with intelligent transaction system

SBI net rises marginally in 2005-06 at Rs 4,407 cr

Federal Bank net up 150 pc at Rs 225.21 cr

Centurion Bank of Punjab Q4 net rises 12 pc

Pvt players pitch for AI insurance contract

Public sector banks' performance lacks lustre

SBI to shore up resource base

Canara Bank to open more branches in Kerala

SBI proposes to unlock holdings in 7 subsidiaries

Citibank, Barclays invest in IOB bonds

SBM hikes deposit rates

Insurers allowed to invest in hybrid instruments of banks

New ED for Bank of India