Federal Bank May Go In For Another Public Issue In 04-05

Kolkata, Sept 24: | Updated: Sep 25 2003, 05:30am hrs
Federal Bank chairman KP Padmakumar on Wednesday said they might go for another round of public issue in 2004-05 to go for fresh expansion and improve capital adequacy ratio (CAR) even as it was gunning for a net profit of Rs 150 crore during the current financial year.

We dont foresee any need to go for another round of tier-I capital immediately, but in 2004-05 we may go for another public issue when we look at expansion, he told PTI here.

The chairman, who was in the city to meet branch managers of eastern region, said, their existing CAR was quite comfortable at 11.67 which together with profit was sufficient to meet ongoing expansion programmes. But to go for another round of expansion, we may have to look for tier - I capital.

He said the bank was doing very good right now despite little improvement in credit offtake and net profit during the first quarter of current financial year stood at Rs 34 crore with net non-performing asset (NPA) of 4.47 per cent or Rs 282 crore.

We are looking for a net profit of Rs 150 crore during the entire fiscal and bring down NPA to below four per cent, Mr Padmakumar said, adding, we are already adhering to Bassel norms for treatment of NPAs on the basis of 90 days records.

About advances and deposits, he said, they were looking at a total business of Rs 20,000 crore by end of March, 2004 with advances at Rs 7,000 crore and deposits at Rs 13,000 crore.

About performance so far during the second quarter of the fiscal, Mr Padmakumar said, we are on course. Credit offtake is not there, but we witnessed substantial corporate lending in last five months.

On the technology front, he said the banks 340 of about 425 branches were now equipped with anywhere banking facility and by December all their branches would have the facility.

He said a major part of their initiative for technological upgradation had been completed and they were now taking steps to develop management.

About expansion of ATMs, he said already the bank had 152 ATMs and another 150 would be installed by December to take the total to 300.

PTI