Federal Bank's net profit grew by 38.37 per cent to Rs 237.60 crore during the fourth quarter of last fiscal.

The director board has recommended a dividend of Rs 9 an equity share, with a face value of Rs 10.

For the year 2011-12, the bank's net profit grew by 32 per cent to Rs 776.79 crore.

The bank could deliver substantial growth in top line and bottom line despite challenging macro environment, said Mr Shyam Srinivasan, Managing Director and CEO.

The first half of the current year is going to be equally turbulent although he expected the macro challenges to ease in the eventuality of good monsoons and favourable policy steps forward. The bank's total income grew by 33 per cent to Rs 6,090 crore. There was significant growth in interest income during the quarter which grew by 34 per cent to Rs 1,479 crore. This was backed by a good net interest margin which stood at 3.79 per cent.

The total business of the bank grew by 15 per cent to Rs 86,693 crore. The total deposits increased by 13 per cent to Rs 43,014 crore. What was significant was the strident growth in NRI deposits which grew by 35 per cent to Rs 11,184 crore. However, Mr Srinivasan said that NRI deposits are currently high cost deposits.

Aiding the net interest rate margin, retail deposits also grew by 23 per cent to Rs 41,279 crore. Of this, CASA deposits grew by over 17 per cent to Rs 13,401 crore.

Net advances also moved up by 18 per cent to Rs 37,755 crore. This growth was mainly contributed by SME, corporate advances and retail segments, the release said.

The net worth of the bank increased to Rs 5,706 crore at the end of March 2012.

Capital adequacy ratio, computed as per Basel II guidelines stood at a very comfortable level of 16.64 per cent. Tier-I capital of the bank was at 15.86 per cent.

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