A recent press report said that the Kerala – based Federal Bank has reported a net profit of Rs. 191.6 crore for the second quarter ended September, 2011 which has risen 36 per cent against the net profit of the corresponding period last year.
The bank said that in spite of the challenging economic condition the bank has delivered considerable growth. The income from interest contributed to about 40 per cent to Rs. 1,368 crore and this bank has become the most profitable bank among the public and private banks in Kerala.
Though the other income of the bank went down by about 19 per cent to Rs. 117 crore the growth of the bank was supported by the income from the interest. The net interest margin which was 3.77 per cent helped in the growth of the bank this quarter. The bank’s deposits such as CASA and NRE for which low rates are paid by the bank have risen by 15 per cent to Rs.14, 794 crore.
The advances lent to the small and medium enterprises (SMEs) and retail sectors increased by 29 and 28 per cent respectively which also contributed mainly to the growth of the bank.
The bank effectively brought down the gross nonperforming assets (NPAs) to 3.61 per cent and the net NPAs stood at 0.58 per cent during the second quarter.
Federal Bank Limited is a major Indian commercial bank in the private sector, headquartered at Aluva, Kerala. The name Federal Bank Limited was officially announced in the year 1947 with its headquarters nestled on the banks on the river Periyar. Since then there has been no looking back and the bank has become one of the strongest and most stable banks in the country. The bank offers home loan, personal loan, mortgage loan, car loans, Aashray Scheme, Equity Subscription, Prathyasha Loan, Ashwas Gold Loan etc.