"Yes, we are planning to enter the equity broking business. We are also keen on beginning investment banking services. But we are yet to formally move the regulators and the exchanges in this regard," a top official of the Kochi-based lender told PTI here today. However, he did not offer a time-line for the proposed foray, saying it is too early to put a timeframe.
With a balance-sheet of Rs 81,000 crore (as of September 30, up from Rs 75,000 crore as of June quarter), Federal Bank is the fourth largest private lender in the country and the largest in Kerala.
The bank had reported net profit of Rs 146 crore in the first quarter of this fiscal, while it net interest margin stood 3.85 percent. Meanwhile, as part of its 66th foundation day, the bank has decided to open 66 branches across the country, including three in Mumbai next Tuesday, the bank said in a statement.
Apart from branch opening, it has also decided to launch a special deposit scheme, wherein it will offer 50 bps more on a 66-day term deposit at 7.5 percent for the next one month period, beginning October 18, the foundation day.
Similarly, the bank, which is one of the largest gold loan players in the state, is also offering a 2 percent discount on gold purchases during the Diwali week, besides a special gold loan scheme under which it will charge only Rs 1.10 interest per month per Rs 100 of loan against the yellow metal.
The bank's gold loan book stood at Rs 2,500 crore as of Q2, while overall loan book stood at Rs 34,000 crore and had a deposit base of Rs 47,000 crore.
In Q1, the bank had a CAR of 15.05 percent and a net NPA of 0.76 percent over a gross NPA of 3.5 percent. The bank's provision coverage ratio stood at 81 percent in Q1, highly above the mandated 70 percent.
As part of the branch expansion, the bank will be opening 63 branches across Maharashtra, Gujarat, and Rajasthan. With three more branches in Mumbai, the bank's total branch network will touch 100 in the state, out of which 33 will be in the city alone, the bank said.