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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (6645)	9/9/1999 11:34:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

CompanyWatch- Federal Bank (To build retail assets base) StockWatch Closing price 9/9/99 NSE:Rs 40.05 BSE:Rs 39.50 P/E: 1.74 Book Value:Rs 172.33 federal-bank.com Our Bureau (BusinessLine) KOCHI, Sept. 9 FEDERAL Bank is all set to consolidate its balance sheet during the current year. The bank has also decided to pay a dividend of 10 per cent subject to the approval of the Reserve Bank of India. Addressing the 68th annual general meeting near here at Aluva, the Chairman, Mr. K.P. Padmakumar, said the bank has embarked on a comprehensive agenda of future initiatives. The major initiatives revolve around building a strong retail asset base and recovery of impaired assets. The bank expects a growth of Rs. 200 crores in its retail asset base during this year. The bank recently launched 16 retail loan products tailor-made for the fixed-income group and middle-class business group, he said. The recovery target set for the year is Rs. 86 crores. The bank has set up an asset recovery department at its corporate office in Aluva as well as strengthened asset recovery cells at the regional offices. The bank has also identified growth of ``other income' as a thrust area, adequate enough to offset the operating expenses. Major initiatives have also been put in place to enhance non-fund based business and remittance business. A review of the bank's performance last year reveals that total business of the bank grew by Rs. 665 crores ($148.00), reaching Rs. 11,010 crores ($2.5 billion). The deposits base grew by Rs. 358 crores ($80 million) to touch Rs. 6,783 crores ($1.5 billion) and advances grew by Rs. 307 crores ($68 mil) to Rs. 4,228 crores ($939 million). The deposits recorded an average growth of 36 per cent while the advances grew by 34 per cent. The credit-deposit ratio had grown to 62.34 per cent as on March 31, 1999.