As part of its diversification drive, Private lender Federal Bank is planning to enter into wealth management and credit card business in 2015-16. For credit card business, the company is looking for an alliance or acquisition. With the diversification of the business, the bank would be able to enhance its revenue stream and earn more fee-based business.
The bank is also making efforts to reduce its non-performing assets or bad loans. Federal Bank's gross NPA came down to 2.83% at the end of the third quarter from 3.85% at the end of December 2012. During this period, its net NPA dropped to 0.86% from 0.92%.
