New Delhi, Nov 22: Notwithstanding the current slowdown in global economy and its impact on India, private sector lender Federal Bank Ltd on Saturday, Nov 22 said it targets to double its business to touch about Rs one lakh crore by 2010-11, with increasing the number of branches to 1,000 across the country and recruiting 1,000 people annually over the next three years.
''We are aiming to double our business to Rs one lakh crore by fiscal 2011...I know it is tough job but we will do it,'' Bank's Managing Director and CEO M Venugopalan told reporters here. However, the Kochi-based bank, which has registered Rs 50 lakh crore business, has reduced its growth target of 25 per cent from 30 per cent.
''We have been growing at an average of 30 per cent for the last three years, but this year it would be difficult to achieve that much...but we aim to grow 25 per cent,'' Mr Venugopalan said.
The Bank has enough capital to fuel its growth for at least next two years, he said.
In January this year, Federal Bank has raised about Rs 2,125 crore through the Rights Issue, which comprised about 8.5 crore shares of Rs 10 each at a premium of Rs 240, and was exercised in the ratio of 1:1.
Aiming at reaching 1,000 branches across the country by 2011, the Bank today announced addition of 73 branches in this fiscal.
''We want to expand our reach...we are adding 73 branches by March next year, against opening 70 branches last fiscal.'' Mr Venugopalan said.
Out of 73 branches, 16 will be opened in Kerala, 12 in Karnataka, ten each in Andhra Pradesh and Maharashtra, seven in Tamil Nadu, five in Gujarat, three each in Punjab, Haryana and Delhi and one each in Chhattisgarh, Jharkhand, Assam and Puducherry.
At a time when companies and banks are going slow on recruiting, Mr Venugopalan said the ''over-grown banks'' are doing so, but his Bank has ''much scope in the country''.
''We will add 1,000 people annually over the next three years,'' he said.
The bank, which presently employs about 7,200 people, had added 700 employees in this year.
Beside technology, Mr Venugopalan said the bank will continue to focus on retail and small and medium enterprises sector to achieve the desired growth.
On industry complaint that the banks are not extending loans to them, he said, ''some may had problems but overall it is not'' and the only thing is that banks are ''more cautious'' and studying the repayment position of the applicant.
On interest rates, he said the Bank is contemplating on reducing the BPLR by 0.5 per cent ''depending on the market condition'' and is expected to make announcement to this effect by next month.