RECORD PROFIT: Federal Bank Chairman M. Venugopalan addressing shareholders at the 75th annual general meeting in Kochi on Monday.

KOCHI: The annual general meeting (AGM) of Federal Bank held at Aluva on Monday has declared a dividend of 35 per cent, as against 25 per cent paid last year.

Addressing shareholders, bank chairman M. Venugopalan said total business of the bank grew by 23.3 per cent to touch Rs. 29,615 crore during 2005-06. At the end of March 2006, the bank had total deposits of Rs. 17, 879 crore and total advances of Rs.11, 736 crore.

Advances to retail, small and medium segments constituted 64.4 per cent of the bank's credit portfolio. Advances to priority sector reached Rs. 4,483 crore and accounted for 41.95 per cent of the total advances, he said.

Lending to agriculture sector recorded a growth of 123 per cent during the fiscal and reached Rs. 1,527 crore as on March 2006. The balance sheet size grew by 22.7 per cent from Rs.16, 821 crore and reached Rs. 20, 643 crore.

The bank could post a record net profit of Rs. 225.21 crore. Return on equity stood at Rs. 25.75, almost double of that of the previous year. The capital adequacy ratio of the bank as on March 31, this year stood at 13.75 per cent, much above the mandatory requirement. The bank continues to enjoy good patronage from NRIs. As on March 2006, NRI deposits of the bank stood at Rs.4921 crore.

The meeting, presided over by Mr. Venugopalan, adopted the audited financial results of the bank for the financial year 2005-06 along with the directors' report. The AGM re-elected Prof. A. M. Salim, a management expert and P. H. Ravikumar, banker and present managing director and CEO of the National Commodities and Derivatives Exchange Ltd as directors of the bank.

The meeting also elected Suresh Kumar as a director of the bank, who was earlier co-opted as director by the board. Mr. Suresh Kumar is currently the CEO of Emirates Financial Services PSC.

© Copyright 2000 - 2009 The Hindu