Federal Bank clocks Rs 61-cr net

Ajayan

Kochi, May 16: THE Aluva-based private sector bank Federal Bank posted a record net profit of Rs 61.04 crore during the last fiscal, compared to the previous year’s net of Rs 43.39 crore. There was a 38 per cent jump in the gross profit up by Rs 51.55 crore to Rs 187.04 crore. The board, which met here on Wednesday recommended a dividend of 30 per cent, subject to the RBI’s approval. Bank chairman KP Padmakumar said that the total business of the bank, excluding investments, crossed Rs 12,500 crore. Deposits grew by 18.6 per cent to reach Rs 7,665.44 crore. Advances registered a growth of 20.28 per cent at Rs 4,854.13 crore. The bank’s investments grew by 13.86 per cent to Rs 3,035.5 crore. The bank’s income grew by Rs 30 crore to Rs 1,044 crore. Interest expenditure was down to Rs 682 crore from Rs 701 crore. Interests margins had improved to 4.32 per cent.

Mr Padmakumar said that with proper management of assets and liabilities, the bank was able to achieve a substantial improvement in major profitability parameters. The cost of deposits dropped by 85 basis point to 9 per cent. The yield on advances was maintained at 13.49 per cent, this in the backdrop of competitive bidding for lower advance rates. The yield on investments stood at 13 per cent. The total NRI deposits rose by 20 per cent to Rs 3,150 crore. The total cost on NRI deposits had come down considerably. Priority sector advances stood at Rs 1,565.12 crore, constituting 61.88 per cent of the net bank credit against the RBI’s stipulated mark of 40 per cent. He said the bank’s CD ratio stood at 64 per cent, much above the state’s average.

On the recovery of NPA, he said the bank had clocked a commendable performance and recovered Rs 123.02 crore.