Federal Bank.docx

Federal Bank is a private sector bank in India. The head office of this prestigious bank is located at Aluva, Kerala. By 2008, the Federal Bank India had successfully introduced 671 branches and 681 ATMs across the nation. In the month of March of 2008 alone, the bank had opened 26 branches across 11 Indian States. Federal Bank India is well recognized for facilitating even the smaller branches consisting of rural and partially-urbanized areas with technology enabled services.

Background of Federal Bank India Previously known as Travancore Federal Bank Limited, the Federal Bank Limited in its entire span of customer services has seen both ups and downs. The bank started with an auction-chitty business along with other banking transactions related to agriculture and industry. In the year 1945, the paid-up capital of the bank touched Rs.71000 and a new Board of Directors was constituted. During this period, the bank also incorporated new Articles of Association. The same year its branch was opened at Aluva. Subsequently, Federal Bank came with its branches in Angamally (1946) and Perumbavoor (1947). However, it came with a massive expansion plan in the years 1975 and 1976 by opening 53 and 42 branches respectively. From that time onwards till today, the bank has continued to incorporate the effective changes to ensure smooth banking experience for its customers.

Federal Bank Informational Data Name of Bank

Federal Bank

No. of Offices

611

No. of Employees

7570

Business per Employee (in ` Lakh)

750.00

Profit per Employee (in ` Lakh)

6.90

Interest Income (in ` Crore)

3315

Other Income (in ` Crore)

516

Interest Expended (in ` Crore)

2000

Operating Expenses (in ` Crore)

571

Return on Assets

1.48 1

CRAR

20.22

Net NPA Ratio

0.30

Federal Bank IFSC Code The IFSC code is a unique code which the bank assigns to its various branches. Every branch has a different code which facilitates in distinguishing it from the other branches. As for instance, the code for Mankol branch, Ahmedabad is FDRL0002182 whereas the IFSC code for Sanand branch is FDRL0001846.

Products and Services of Federal Bank India Federal Bank India extends a wide range of products and services to its customers to ensure them maximum benefits and a happy banking experience. The range is inclusive of:                

Depository Services Debit Cards General Insurance Products in association with United India Insurance Export Credit Insurance Products in association with ECGC Express Remittance Facility from Abroad - FEDFAST Cash -On- Line Express Cash Remittance Life Insurance Products in association with IDBI Fortis Lock Box Service for US-based NRIs Cash Management Services Merchant Banking Services E-shopping Payment gateway BSNL Bill Payment Easy Pay- On-line fee payment system Online LIC Insurance Payment Online Kiosks for customers Online Railway Reservation System

Pioneering Services by Federal Bank India In its attempt to serve customers with the best and to provide them an easy means of banking, Federal Bank in India has come up with many first of its kind services and products that redefined the entire banking scenario of India. These are: 

Launched Internet Banking Service via FedNet among all the traditional banks in India 2

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Made its branches automated Inter-connected all its branches Started Electronic Telephone Bill Payment Introduced e-shopping payment gateway Offered Mobile Alerts and Mobile Banking service Devised a way for Express Remittance Facility from Abroad Provided RTGS facility in all its branches

Federal Bank Loans Federal Bank offers various products and services that are customer friendly and modern technology assisted. Some of the Federal Bank Loans, which are offered to the customers, are the following:                      

Housing Loans Personal Car Loan Personal Loan Agri mobile Loan Kissan Credit cards Demat Loan Federal Vidya Loan Loan against Rent receivable Instant Relief Loan Mortgage Loans Consumer Loan Federal Bonvoyage Loan Home Overdraft Scheme Vanijya Loan Gold Loans Warehouse Loan Equity Subscription or IPO Finance Jeevan Suraksha Loan for Medical Practitioners Subha Yatra Loan Fair Practices Code Federal Easy Cash Federal Special Vidya Loan House Plot Purchase

1. Personal Car Loans The car loans by the Federal Bank are given for the purchase of both new and used vehicles for personal use. The loans are offered to individuals, educational institutions, trusts and others. 3

Financial assistance accounting for around 90% of the vehicle's price is given as the loan amount. The upper loan ceiling is ` 50 lacs for the individual borrowers.

2. Education Loans The educational loan scheme by the Federal Bank is also known by the name of Federal Vidya Loan. It is offered to the students who want to pursue higher studies in India or abroad. Students of Indian nationality, both residents and non-residents are only eligible for getting this loan. Financial assistance, up to a maximum of ` 25 lacs is offered to the loan seekers, under this scheme.

3. Personal Loans Federal Bank offers personal loans for all personal purposes. Individual residents and non residents are eligible for getting this financial assistance. A maximum of ` 2 lacs is offered to the customers as loan amount, under this scheme. It is given for a period of up to 60 months.

4. Federal Bank Home Loan Federal Bank has designed its home loan options to provide loan to its customers who aim to buy a new house or flat, who wish to renovate an already constructed house or flat, who want to purchase a land along with a house and also those who wish to purchase a land to construct a house.

Basic Requirements for Federal Bank Home Loan The applicants for the home loan in Federal Bank should preferably be below fifty-five years of age. Non-residents applying for Federal Bank Home Loan must be fifty-five or below that during the maturity period of the loan. An authenticated proof of income should be produced while applying for the loan. Federal Bank offers loan up to 85% of the project cost which includes the expenses included in stamp duty, registration and the like. Other areas such as compound wall, landscaping, water tank, etc. are also included in the project cost. A maximum of ` 3 crores are offered as housing loan by the bank. The maximum duration allotted for the repayment of the loan is twenty years for the residents and fifteen years for the non-residents. The housing property should be kept as a security against the home loan by the borrower. The interest rate charged on the home loan varies according to the market conditions. The already existent home loan borrowers are also entitled to the following home plus loaning options offered by Federal Bank:   

Up to ` 2 lacs as personal loan Up to ` 50 lacs as car loan or bike loan 15% of the total home loan for furnishing and beautification works

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50% of the housing loan as privilege personal loan subjected to the group with higher income Up to ` 25 lacs as education loan (Vidya loan)

Benefits of Federal Bank Home Loans  

Federal Bank offers housing loans at low interest rates The procedure for application is simple

Federal Bank Types of Credit Cards Federal Bank offers a wide variety of globally accepted Credit Cards that meet the requirements of its consumers. These cards are co-partnered with State Bank of India. These cards satisfy multiple needs of the consumers at a very competitive rate of interest. The different types of credit cards offered by Federal Bank are as follows: 

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Federal Bank SBI- VISA Gold ‘N More- This card offers reward points on all the purchases made by the consumer that are redeemable at several dining as well as grocery spends. This card also provides a facility of fuel surcharge waiver and several other offers. Federal Bank SBI VISA Platinum- This card offers reward points on the purchases made by the consumer that can be redeemed at several dining outlets as well as departmental and global spends. It also offers fuel surcharge waiver facility, free air ticket, Different special gift vouchers and free access to many airport lounges.

Credit Card Statement Federal Bank sends a consolidated statement to its users monthly.

Savings Account Federal Bank offers a wide range of Savings Account that cater to all the needs of the consumers related to their savings. The different types of Savings Account schemes are as follows:   

Freedom SB FedBook Selfie Young Champ 5

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Fed Excel SB Plus Mahilamitra Yuvamitra Fed Smart Basic Savings Bank Deposit Account (BSBDA) Federal Institutional Savings Account (FISA)

All the above Savings Accounts schemes offered by the Federal Bank earn 4% p.a. interest rate which is calculated on a daily basis.

Fixed Deposit Interest Rates The fixed deposit accounts which are available with the bank are eligible to earn interest at a higher rate which depends on the time for which money is held in the fixed deposit account. The rates as per their time factor are segregated below:

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Short-term Fixed Deposit Rates- The rate of interest offered by the Federal Bank for short term holdings ranges from 3% p.a. to the highest of 7% p.a. Medium and Long-term Fixed Deposit Rates- For medium as well as long-term holdings, the interest rate ranges from 7.25% to 7.5% p.a. Senior Citizen Fixed Deposit Rates- For senior citizens, all applicable interest rates are increased by 0.5% irrespective of tenure.

Federal Bank NRI Banking NRIs are also allowed to open and operate multiple types of accounts with the Federal Bank which are mentioned below:

NRE Savings Account- NRE Savings accounts are of various types. They are:

1. 2. 3. 4. 5. 6. 7. 8.

FedSelect FedSelect Plus Fed NRI Power Fed NRI Premium Fed NRI Privilege Fed NRI Eve NR Young Champ Fed NRI Care

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NRO Savings Account- The different schemes under this account are as follows:

1. Fed NRO Power 2. Fed NRO Premium 3. Fed NRO Privilege  

NRE Current Account NRO Current Account

Deposits- The various deposit schemes tailor-made for the NRIs under this account are:

1. 2. 3. 4. 5.

NRI Fixed Deposits Millionaire Savings Fund FCNR Deposits Federal Rupee Plus Fed Flexi Smart SaverRD

Federal Bank Internet Banking The bank has launched a special facility called the FedNet in order to make the online banking process much easier and safe. The features are:       

Quick Money Transfer Safe payment of bills Banking available 24/7 Banking at the comfort of the home Tax statements can be viewed TDS details can be seen Depository accounts can be managed.

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