Federal Bank net profit up by 28.25 per cent

Kochi, Oct 23 (UNI) The net profit of the Aluva-based Federal Bank has recorded a growth of 28.25 per cent as it touched Rs 69.46 crore for the second quarter of 2006-07.

The total income for the quarter was Rs 506.32 registering an increase of 28.81 per cent from Rs 393.07 crore in the corresponding period last year.

The financial results were announced here today after a meeting of the Board of Directors approved the fiancial results of the bank for the quarter, according to an official release.

For the half-year ended September 30, the total business of the Bank crossed Rs 31,000 crore, with an increase of Rs 5529.11 crore from the corresponding half year in the previous fiscal.

The Bank aims to garner a total business of Rs 38,000 crore by the end of this fiscal and the future asset growth is to come from SME and retail segments leveraging on its branch network, product range and tie-up arrangements.

The net profit for the half-year was Rs 109.64 crore compared to Rs 102.84 crore last year.

The Bank has also already signed MoU to start a joint venture with IDBI and Fortis for starting a life insurance company to offer a wide range of insurance products to the existing customers.

The deposits increased by Rs 2252.70 crore to Rs 18288.34 crore as on September 30. The advances went up by 34.72 per cent from Rs 9437.85 crore in September 2005 to Rs 12714.26 crore in September 2006, driven mainly by the growth achieved in retail and SME advances.

The Bank earned a total income of Rs 968.84 crore, a growth of 23.80 per cent as against Rs 782.57 crore for the corresponding period in the previous fiscal.

The interest income increased from Rs 683.75 crore to Rs 841.98 crore from the corresponding half-year in 2005-06. The interest income from advances and investments grew by 38.89 per cent and 6.97 per cent respectively supported by strong asset growth.

To expand its footprints in the Gulf countries, the Bank would open representative office in the UAE.

The Bank is also in the process of shifting its entire branches and operations to a Core Banking Solution from Infosys Technologies.

UNI MA JJ 2250