Federal Bank's net profit up by 19.9 per cent in Q2

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Kochi, Oct 18 (UNI) Notwithstanding the economic slowdown, Federal Bank had clocked a 19.9 per cent increase in net profit and 71.5 per cent growth in operating profit for the second quarter ended September 2008.

The net profit stood at Rs 114.28 crore from Rs 95.33 crore and the operating profit was Rs 302.93 crore from Rs 176.62 crore in the same period last year.

The total income increased by 38.1 per cent from Rs 675.06 crore to Rs 932.31 crore and the total interest income rose by 39.3 per cent from Rs 594.37 crore to Rs 828.10 crore.

For the last six months (Q1+Q2), the total business reached was Rs 47,757 crore, an increase of 18.38 per cent from the corresponding period of the previous fiscal.

Announcing the quarterly results here today, Bank Chairman M Venugopalan said during the fiscal, the bank resorted to prudent growth in balance sheet, focussing on the growth of retail small value deposits and discouraging the build-up of high cost whole sale deposits.

For the same period, the Bank earned a total income of Rs 1,773.64 crore, registering a growth of 32.85 per cent as against Rs 1,334.76 crore for the correspoding period in the previous fiscal.

Mr Venugoplan said the impressive grwoth in the total income was due to the increase in income from advances and investments, and non-interest income.

The income from advances and investments grew by 44.1 per cent and 24.44 per cent respectively supported by strong asset growth, he said.

The net interest income for the period showed a growth of 55.88 per cent over the corresponding period of the previous fiscal.

He said the total number of branches and ATMs had increased to 607 and 568 respectively. The bank would continue to open more branches to increase its national presence, he added.

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