Special Correspondent

Rs. 95.33 crore net profit in Q2

KOCHI: The Auva-based Federal Bank has clocked a net profit of Rs.95.33 crore during the second quarter, the results of which were announced by its chairman M. Venugopalan here on Friday.

The bank would soon join the one billion dollar club when the capital net worth of the bank crossed the Rs.4,000 crore mark, the chairman said. The Rights Issue, in the ratio of 1:1 (that is one equity share for every share held) is expected to expand the capital base of the bank by another Rs.2,050 crore when the present shareholders (holding nearly 8.5 crore shares) would be entitled to an equal share.

The Rights Issue is priced at Rs.250, the chairman said. The Federal Bank share price is currently hovering around Rs.394, according to reports. Mr. Venugopalan said the capital adequacy ratio of the bank which was 13 per cent at present would go up to 20 per cent post the Rights Issue.

The growth in the net interest income of the bank had accelerated the net profit during the second quarter, the chairman said. He said that there was a deceleration in the NRI deposits during the first six months and it was a seven per cent drop for the bank compared to the same period during the previous fiscal. The NRI remittances fell from Rs.5,125 crore in the first six months of the last fiscal to Rs.4,730 crore during the same period this year. The bank is targeting a business position of Rs.48,000 crore by the end of March 2008, a growth of 19 per cent from the present position.