Tuesday, January 29, 2013

SBT net grows 31% on higher interest income

State Bank of Travancore (SBT) posted a net profit of Rs 132 crore in the third quarter of the current fiscal.
This represented a 31 per cent jump over the net profit of Rs 101 crore in the corresponding quarter of the previous year.
Speaking to Business Line, P. Nandakumaran, Managing Director, SBT, attributed the good performance to an overall improvement in the operational scheme of things. It also marked reversal of a trend in which the cost of deposits had been weighing down the overall performance. The bank had managed the challenge on this front after NRI deposits, which accounted for 24 per cent, were set free last year. Adequate provisioning has been made not only for non-performing assets (Rs 245 crore this quarter) but also for restructured assets.
“Growth in advances resulting in a higher net interest income also aided in achieving a growth in the net profit,” Nandakumaran said.
The net interest income moved up from Rs 1,325 crore to Rs 1,511 crore, a year-on-year growth of 14.04 per cent.
Net interest margin (NIM) stood at 2.50 per cent (2.63 per cent).
The net operating income rose from Rs 1,799 crore to Rs 1,975 crore, a growth of 9.75 per cent.
The capital to risk weighted assets ratio (CRAR) stood at 11.40 per cent (under Basel II framework) against a regulatory minimum of nine per cent. Gross net performing assets (NPAs) grew to 3.04 per cent from 2.82 per cent while net NPAs stood at 1.83 per cent against 1.64 per cent.
Total business crossed Rs 1.45 lakh-crore mark and stood at Rs 1.46 lakh crore as at the end of December, 2012.

1 comment:

  1. As a former staff of SBT, I can assure you that whatever they say about their so-called profits, are nothing but out and out lies! After all those whopping lootings by the bank's officers and union leaders and the big-wig industrialists, how can they make any profit at all?