Federal Bank net up by 29.98 per cent

Kochi, May 18: The Federal Bank has reported a 29.98 per cent increase in net profit for 2006-07 to Rs 292.73 crore and declared a dividend of 40 per cent.

Announcing the financial results for the year ending March 31, 2007, Bank Chairman M Venugopalan said the net profit had gone up from Rs 225.21 crore in the previous financial year.

The operating profit for the fiscal increased to Rs 612.98 crore as against Rs 452.18 crore, an increase of 35.86 per cent over the previous fiscal.

Declaring a dividend of 40 per cent this year, Mr Venugopalan said the bank earned a total income of Rs 2,104.04 crore compared to Rs 1653.48 crore in 2005-06 showing a growth of 27.75 per cent.

The interest income from advances and investments grew by 39.60 per cent and 5.31 per cent respectively supported by strong asset growth and prudent management of the balance sheet.

The overall growth in other income was impressive with the non-interest income jumping by 32.15 per cent to Rs 286.69 crore, mainly from fee and commission, income from remittance, distribution, cash management and depository business and recovery of written-off accounts.

Projecting a business position of Rs 48,000 crore in 2007-08 and Rs one lakh crore in 2010-11, Mr Venugopalan said the total business touched Rs 36,483.54 crore, an increase of Rs 6,868.33 crore over the previous fiscal.

The total net worth stood at Rs 1,502.21 crore and the capital adequacy was 13.43 per cent as against the regulatory nine per cent, the Chairman said.

The bank had added 32 new branches and 80 ATMs apart from the 32 branches of erstwhile Ganesh Bank, increasing the bank's presence through 536 branches and 400 ATMs in all important centres across the country.

He said the bank would be opening 60 branches and 100 ATMs, and a representative office in the UAE this fiscal.

The chairman said the bank would also launch 'reverse mortgage' product to provide financial security for the aged-people.

UNI