Business

Federal Bank net profit up 25%

KOCHI: The Aluva-based Federal Bank has registered a net profit of Rs.368.05 crore for 2007-08, an increase of 25.73 per cent on a year-on-year basis.

Briefing reporters after the directors board meeting here on Friday, Federal Bank chairman M. Venugopalan said though NRI deposits had come down by about seven per cent, the Bank was able to maintain its edge in all sectors of banking during the year. He said the Bank would pursue opportunities for investment in joint ventures/associates/ subsidiaries to expanding its para-banking activities.

It had already forayed into the insurance sector and mutual fund industry in a big manner and was looking for a tie-up with a broking firm to enter into online trading business. Portfolio management services and wealth management business were also on the anvil.

The directors board meet announced dividend of 40 per cent to the shareholders. The bank will pursue aggressive business growth opportunities and is looking for a total business of Rs.1 lakh crore by 2011, the chairman said. To supplement organic growth, the bank will pursue aggressive branch expansion policy . Leveraging on core banking solution, the bank will fine-tune its CRM initiatives to enhance customer convenience and will release a number of products to meet the requirements of different customer segments, he said. .

Federal Bank achieved total business of Rs.44,819 crore during the last financial year and has exhibited consistent growth in profitability and in net interest income.

The operating profit increased by 29.55 % to reach Rs.794.12 crores and the total income for the fiscal increased to Rs.2910.43 crore, he said.

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