Fed Bank Holds Elections Amidst High Drama

Kochi, Aug 29: | Updated: Aug 30 2002, 05:30am hrs
It was a high drama at the 71st annual general meeting (AGM) of Federal Bank on Thursday.

The election of two members on the board of directors saw the interference of the court which later vacated a stay and elections were held late in the evening. However, the results were withheld till final disposal of a petition filed by a shareholder, challenging the holding of elections.

For the two posts four candidates, two outgoing members Mr S Santhanakrishnan and Mr MS Parthasarathy and former MP and Congress leader PC Chacko and Mr Nooruddin Mather, had filed nominations.

A shareholder moved a petition in the munsiff court at Alappuzha stating that he was not informed about the election and did not get the AGM notice and succeeded in getting the elections stayed. However, the bank produced documents to prove that the notice was sent under certificate of posting and that advertisements had been put in several newspapers announcing the AGM.

In such circumstances, the court vacated the stay and allowed elections to be held on condition that the results were not announced till the petition was finally disposed.

Mr Chacko did not attend the meeting and is learnt to be out of station. Meanwhile, the bank has declared a dividend of 35 per cent for 2001-2002. Bank chairman K Padmakumar said the necessary approval in this regard had already been received from the Reserve Bank of India.

The bank has reported a net profit of Rs 82.01 crore and an operating profit of Rs 305.40 crore.

The bank's balance sheet size rose by Rs 1,325 crore to touch Rs 10,145 crore from Rs 8,820 crore the year before.

The bank's total business, excluding investment reached Rs 14,055 crore (Rs 12,519 crore). Its capital adequacy ratio stood at 10.63 per cent, Mr Padmakumar added.