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Our Bureau

40% dividend proposed

Kochi, May 18 The net profit of the Aluva-based Federal Bank has increased by 29.98 per cent for the year ended March 31 at Rs 292.73 crore against Rs 225.21 crore in the corresponding previous fiscal.

Announcing the financial results of the bank at a press meet here on Friday, the Chairman, Mr M. Venugopalan, said the total business of the bank reached Rs 36,483.54 crore, with an increase of Rs 6,868.33 crore over the previous fiscal. The deposits grew by Rs 3,705.70 crore to Rs 21,584.44 crore. The advances went up Rs 3,162.63 crore to Rs 14,899.10 crore (Rs 11,736.47 crore) driven mainly by the growth in retail and SME advances, he said.

According to the Chairman, the board of directors has recommended a dividend of 40 per cent against 35 per cent last year. The earnings per share increased to Rs 34.20 from Rs 32.71.

He said the bank is targeting a business position of Rs 48,000 crore by the end of March 2008, a growth of 32 per cent. The SME and retail segments are to support its credit growth for 2007-08. The bank will effectively ride on its technology-enabled value-added products and services to increase its customer base.

The bank earned a total income of Rs 2,104.04 crore, a growth of 27.25 per cent from Rs 1,653.48 crore in the last fiscal. The non-interest income could report a growth of 32.15 per cent to Rs 286.69 crore, mainly from the fee and commission from remittance business, distribution business, cash management business, depository business and so on.The net and gross non-performing advances as percentage to advances were at 2.95 per cent and 0.44 per cent, respectively, against 4.62 per cent and 0.95 per cent. The operating profit for the fiscal went up to Rs 612.98 crore (Rs 452.18 crore).

Future plans

On future plans, the Chairman said the bank is to open its representative office in the UAE and this will help in establishing its permanent presence in West Asia .

Besides, there are also plans to open a subsidiary at the Dubai International Finance Centre, where the bank can do wholesale banking business in the region. It is also planning an innovative product through Reverse Mortgage Scheme to help senior citizens.

More Stories on : Financial Performance | Private Banks

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