Financial Daily from THE HINDU group of publications
Tuesday, May 17, 2005

Port Info

Group Sites

Money & Banking - Private Banks

Federal Bank to beef up presence outside Kerala

L.N. Revathy

Mr M. Venugopalan

Palakkad , May 16

THE Alluva-based Federal Bank Ltd is hoping to increase its presence in the other States excluding Kerala.

"We are a national bank with more focus on Kerala. Now, we are planning to slowly strengthen our presence in Tamil Nadu, Karnataka and Maharashtra. We may not be able to open branches everywhere. We are only looking for business-driven growth," its Chairman and CEO, Mr M. Venugopalan, told Business Line.

He made this observation within a fortnight of taking charge as Chairman of the bank. The present assignment, he perceives, would be more challenging than his earlier one as Chairman of Bank of India.

He was in Palakkad in connection with the shifting of a branch.

When asked if the bank was looking for an alliance to increase its presence in other States, Mr Venugopalan did not rule out the idea, but stated that alliances invariably did not work well.

Stating that smaller size was a better bet for takeover in a competitive environment, he emphasised the need for growing business volumes, retaining profitability and offering better customer service. "This way, you can keep the take-over proposition `a little way,' may be 2009 or some time later."

To a query on the growth strategy, Mr Venugopalan said Federal Bank would look at organic growth. The bank, he conceded, would look at taking over some smaller bank to grow in size, but had not identified one till now. "Not necessarily in Kerala, we are looking at options outside the State," he said, and added that Federal Bank would soon increase its capital as well for growth. "Our capital at the moment is enough and the Basel norms may not affect us much. However, we cannot wait long."

According to him, marketing the bank's product and strengthening its brand image would be an exercise that would be taken up aggressively. "In the present form, we can exist, but cannot grow," he added.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
The changing face of banking

Stress testing and Basel accord
Rupee weakens; bond prices fall
HDFC Standard Life posts 132 pc rise in new business premium
SBI Life premium income grows 166 pc
Govt revises design of non-judicial stamp paper
Federal Bank to beef up presence outside Kerala
PSBs suffer 9% dip in profits, see rise in lending
Floating Rate Bond rates
SBI, HDFC dilute stake in CIBIL
To lower depreciation risk on Treasury operations — Banks switch over to T-bills
`Banks must assess their competence before going global'

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line