Date:19/09/2006 URL: http://www.thehindubusinessline.com/2006/09/19/stories/2006091902940600.htm

Back Federal Bank declares 35 pc dividend

Our Bureau

Continues good NRI patronage

The figures
Return on equity had grown to 25.75 per cent almost double that of the previous year.
Capital adequacy level had grown to 13.75 per cent and the net NPAs had plummeted to 0.95 per cent.

Kochi , Sept. 18

The Federal Bank AGM today approved a dividend of 35 per cent for 2005-06, as against 25 per cent for the previous year.

The AGM also re-elected Mr P.H. Ravikumar, Managing Director of NCDEX , and Prof A.M. Salim as directors. Mr Suresh Kumar, CEO of Emirates Financial Services PSC, who was earlier co-opted as Director was today elected to the board.

Addressing the shareholders, Mr M. Venugopalan, Chairman of the Bank, said that return on equity had grown to 25.75 per cent, almost double that of the previous year. Capital adequacy level had grown to 13.75 per cent and the net NPAs had plummeted to 0.95 per cent, one of the lowest in the industry. All these factors had enabled net profit to grow by 150 per cent to Rs 225.21 crore.

fund transfer

The bank continues to enjoy good patronage from NRIs, whose deposits have grown to Rs 4,921 crore. In order to cater to the fund transfer requirements of these clients, the bank has enabled transfer arrangements with 18 exchange houses and eight banks, offering seamless direct remittance facility to Federal Bank branches in India.

With the successful GDR undertaken last year and ploughing back of profits, the net worth of the bank grew by 73 per cent to Rs 1,250 crore. The book value of the shares grew to Rs 146.03 (Rs 110.27). With the amalgamation of Ganesh Bank of Kurundwad, the branch network has grown to 507 along with 340 ATMs. Having obtained the consent from the RBI, the bank proposes to open another 30 branches before December, which would take the total branch network to 537, Mr Venugopalan said.