Federal Bank looks at 20% business growth in 2019-20
Private sector Federal Bank is looking at a 20 per cent growth in business in the current fiscal, an official said on Wednesday.
"We are pursuing a 20 per cent year-on-year growth in business, including deposits and credit, in 2019-20," Federal Bank MD and CEO Shyam Srinivasan said. 
The lender had posted a net profit of Rs 1,243.89 crore in the last financial year while its gross non-performing assets (NPAs or bad loans) as a percentage of total loans stood at 2.92 per cent and net NPAs were at 1.48 per cent by the end of 2018-19, he told reporters here after the shifting of the bank's Kolkata Zonal Office to a new location in the Park Street area.
"The bank's focus is across all the portfolios - corporate, retail and commercial. As we look at the March 2019 book, our wholesale banking, which is all credit above Rs 5 crore, is 53 per cent and all below that is 47 per cent. 
"Directionally, we want to get it 50-50 over the next two years," he added.
According to the CEO, the lender is "positive about its growth" in several segments like sea food, textiles and others within the manufacturing sector.
The Kerala-headquartered lender has about 76 per cent of its credit book outside the southern state, the said.
The lender has over one per cent share in India's banking market, including deposits and credit, he said, adding that the lender has the potential to grow with low market share and can grow its share to 2 per cent "very fast" as the overall market is "fragmented".
The bank has 1,250 branches across India, of which 590 are in Kerala, and has its representative Offices at Abu Dhabi and Dubai.
The bank has an IFSC Banking Unit in the Gujarat International Finance Tec-City (GIFT City) besides licences for representative offices in a few more Middle East countries, he said.
"All our branches are profitable and we have not added any new physical branch in the last four and a half years. In the current fiscal and in the next financial year, we are looking at adding new branches in select geographies...say about 40 branches a year," he added.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Consumer Forum Recommends RBI Conduct Forensic Audit of Fullerton Credit For Charging 47% Interest p.a, compounded monthly
    The State Commission for Consumer Redressal, Chandigarh, has suggested that RBI conduct a forensic audit of Fullerton Credit Company, a non-banking finance company (NBFC), providing finance to households and small and medium enterprises. This extraordinary suggestion was made following the remarkable case of Jasmer Singh, 54, Mohali, Chandigarh, who was stuck with a loan of Rs62,392 taken on 14th October 2011 from Fullerton India Credit at an extortionate rate of 47% per annum compounded monthly. 
    In a measure to provide relief, the forum has ordered Fullerton Company to repay Rs3000 and Rs3500 charged towards Fullerton India Privilege Program Membership Fee and Sampoorna Suraksha Premium and interest charged at 47%. Further, it has also ordered Fullerton to issue ‘No due Certification’ and provide Rs70,000 as compensation and Rs22,000 as litigation cost. Fullterton was also asked to deposit Rs2 lakh at Postgraduate Institute of Medical Education and Research(PGIMER), Chandigarh in the Poor Patient Welfare Fund (PPWF) and to deposit Rs 2 lakh in the “Consumer Legal Aid Account”.
    Initially, Singh had approached the district consumer forum on 13th Feb 2018 to complain that while he had taken a loan of Rs62,392 from Fullerton Credit and had repaid, the company continued to withdraw amounts from his account. Singh approached the company to issue ‘No Objection’ certificate to refund the excess amount deducted. Fullerton refused. On not receiving any relief from the district forum, moved to the state forum. 
    He apprised the state forum that the district forum did not act on his complaint despite presenting all the relevant documents and loan agreement. The documents submitted by him supported his argument, as they revealed Singh repaying a total amount of Rs128,520 for a loan of Rs62,392, almost double that of the principal.
    The company is still claiming Rs22,143.29 to be outstanding amount.
    Fullerton argued that out of 48 EMIss, only 40 were paid by Singh and eight amounting to Rs27,704 were still pending.
    The state forum decided that the interest charged by Fullerton Company was too high and Singh, as a result of this, is in poor financial condition. 
    The forum has sought RBI’s aid to curb such practices of looting retail loan seekers by charging exorbitant interest rates. As NBFCs fall within the purview of RBI’s supervision, it is high time that it steps in to ensure that companies like Fullerton are penalised for charging sky-high interest rates. 

    A Fullerton spokesperson said "Ever since it was brought to our notice we have been working closely with the customer to address his concern and resolve it at the earliest."
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    Subhash Chand Garg

    1 year ago

    Ha!Ha!The so called efficient private sector financial institutions. More generous than old age sahukars


    H A Rupani

    In Reply to Subhash Chand Garg 1 year ago

    Even those individual moneylender s have to take Moneylender s licence to do moneylending business and one cannot escape from their high interest rates as nothing is in writing . And they manage to do moneylending without any legal complications. Forget majority moneylender s doing business of readymade garment s etc. without licence s.

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