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Federal Bank to raise Rs2,050 cr via rights issue

Federal Bank to raise Rs2,050 cr via rights issue
PTI
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First Published: Fri, Oct 26 2007. 04 44 PM IST
Updated: Fri, Oct 26 2007. 04 44 PM IST
Kochi: Kerala-based Federal Bank said on 26 October it will enter the market with a rights issue and raise Rs2,050 crore to fund expansion plans.
“The bank’s capital net worth will be Rs4,000 crore after the rights issue, Federal Bank chairman and CEO, M Venugopalan, told reporters here.
At present, the private sector bank has 8.5 crore shares, which would increase to 17 crore shares by December, he said, adding the rights issue will be in the ratio of 1:1.
Currently, the market price of a share is Rs394 but the bank would allot shares to the existing shareholders at Rs250 each, he said.
He said the bank would utilize the amount raised to finance its growth and expansion plans, but refused to divulge further details.
The NRI deposits have reduced by 7% during the current half year, he said attributing the fall to rupee appreciation.
The bank’s deposits has slipped to Rs4,713 crore from Rs5,125 crore during the period, Venugopalan added.
The operating profit was up 44.44% to Rs365.05 crore during the six months from Rs252.74 crore during the same period last year. The net profit rose 48% to Rs162.27 crore from Rs109.64 crore.
The total income rose 37.77% from Rs968.84 crore to Rs1,334.76 crore. Total interest income went up 37.46% from Rs841.98 crore to Rs1,157.37 crore.
The bank’s advances moved up 27.45% from Rs12,714 crore to Rs16,204 crore. Deposits grew 31.84% from Rs18,288 crore to Rs24,111 crore. The Net NPA was 0.43% while the capital adequacy ratio stood at 13.08.
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First Published: Fri, Oct 26 2007. 04 44 PM IST