Federal bank net up Rs 136 crore

Our Banking Bureau
22 May 2004

Kochi: Federal Bank, one of the leading privet sector banks of the country, has registered 30 per cent growth in its net profit at Rs136 crore for the year 2003-04 against Rs105 crore during the previous financial year. Gross profit have grown by 24 per cent to Rs436.74 crore. The total deposits bank grew by 23 per cent to Rs13,476 crore, even as the advances grew by 24 per cent to Rs7,700 crore.

"The total business volumes has grown by 23 per cent and the bank has been able to record a business volume of Rs21,177 crore breaching the Rs20,000 crore mark for the first time," K P Padmakumar, chairman, Federal Bank, said at a press conference here.

The bank has targeted a 22 per cent growth in deposits to Rs16,381 crore for the current fiscal, while the advances is also expected to grow by 22 per cent to Rs9,414 crore, he said.The target for gross profit is Rs500 crore, while the net profit is expected to breach the Rs200 crore level.

Total income grew by 10.7 per cent to touch Rs1,489.92 crore from Rs1,345.89 crore, the increase in total expense 5.9 per cent at Rs1,053.18 crore. The bank''s cost of deposits decreased from 7.63 per cent to 6.24 per cent.

Non-performing assets were brought down from Rs307.81 crore to Rs 222.75 crore, bringing it down from 4.95 per cent to 2.89 per cent. The Bank''s net worth has grown to Rs648.84 crore and the book value per share increased from Rs243.77 to Rs298.24. Earnings per share also increased from Rs48.36 to Rs62.65 during the year. The return on average assets breached the one per cent mark and was 1.03 per cent.

Business per employee has grown to Rs3.27 crore from Rs2.70 crore, while the income per employee has grown to Rs2.14 lakh from Rs1.69 lakh. The capital adequacy ratio has grown to a comfortable 11.48 per cent against the RBI mandated level of nine per cent.