Federal Bank declares 40 per cent dividend

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Kochi, May 23: Federal Bank today announced a dividend of 40 per cent for 2007-08 with the bank achieving an increase of 25.73 per cent in net profit to Rs 368.05 crore.

Addressing a press conference here after a meeting of the board of directors, bank Chairman M Venugopalan said the operating profit had gone up by 29.55 per cent to Rs 794.12 crore from the previous fiscal.

The total business of the bank increased to Rs 44,819 crore from Rs 36,483 crore. The net interest income increased by 21.15 per cent to Rs 868.01 crore. The total income increased by 38.33 per cent to Rs 2,910 crore from Rs 2,104.04 crore in the previous fiscal, he said.

Admitting that there was a slowdown in the growth this year, Mr Venugopalan said this was mainly due to rising inflation and oil prices. However, he was hopeful of the situation improving after six months. The bank was targeting a growth of 25 per cent this year, he said.

The rise in the value of the rupee had led to a seven per cent drop in NRI remittances. However, with the rupee depreciating now, the remittances were expected to go up, he said.

In a major initiative this year, the bank would faciliate on-line trading of shares by its customers. Talks were on with two or three brokerage firms and a partner would be decided soon, he said.

UNI

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