Federal Bank to touch 40-branch mark in K'taka

Federal Bank will open three more branches in Karnataka on March 26. With this the number of its branches in the state will touch 40. The bank will also be touching the 600-branch mark by opening 26 branches in all, by opening the branches across 11 states the same day.

The bank had not been able to expand as fast as they would have liked to since they faced difficulties while trying to meet their obligations on the priority sector focus. The bank has also had to face some difficulties in finding the manpower while trying to expand their network in Karnataka.

Federal Bank had seen a business of around Rs 42,400 crore with deposits of over Rs 24,500 crore and advances of over Rs 17,900 crore.

Over the last one year, the bank has been very aggressive, going by its standards. It has increased its retail push, for automobile and housing loans.

The bank has been able to implement CBS at all its branches. From March 1, the bank has started offering life insurance products at its branches through its life insurance JV "" IDBI Fortis Life Insurance Company. The JV was signed in July, 2006 between Federal Bank, IDBI and Fortis Insurance International, a European banking and insurance conglomerate.

The bank, in January, had raised over Rs 2,100 crore through a rights issue. The capital infusion has helped enhance the total net worth of the bank to around Rs 4,000 crore, said C P John, additional general manager, Federal Bank.