The Hindu Business Line : SBBJ hopes to grow retail lending by 65%

STATE Bank of Bikaner & Jaipur (SBBJ) hopes to post 65 per cent growth in retail lending by the end of the current fiscal. Mr K.R. Srikantan, Managing Director,told newspersons here that till December, the growth was 60 per cent. In 2003-04, the bank achieved 54 per cent growth in retail loans, he said.

The bank's business (excluding food credit) by March 2005, it was estimated, might touch the level of Rs 32,000 crore as compared to Rs 25,000 crore in 2003-04. Till December 2004, the business amounted to Rs 30,000 crore. "Our deposits and advances will increase by about Rs 1,000 crore each to reach Rs 19,500 crore and Rs 12,500 crore respectively," he said. Till December, the corresponding figures were Rs 18,500 crore and Rs 11,500 crore respectively. The growth in total advances, estimated at 26 per cent so far, was likely to be maintained in the remainder of the current year, he said.

SBBJ's capital adequacy ratio, which was 13 per cent last year, now dropped to 10.66 per cent but likely to rise to 13.5 per cent shortly with the infusion of fresh fund of about Rs 200 crore in the form Tier II capital. Right now, the bank's authorised and issued capital was Rs 50 crore, subscribed by the State Bank of India to the tune of 75 per cent and public 25 per cent. "There is no plans to go for yet another round of public issue immediately," Mr Srikantan observed.

SBBJ's average cost of deposit was 4.78 per cent and the average yield on advances 8.51 per cent. The operating profit in the current year was likely to grow by 30 per cent over the last year to touch the estimated level of more than Rs 800 crore. Last year, the net profit amounted to Rs 301 crore. Till December 2004, the net profit was Rs 136.73 crore and operating profit Rs 540.84 crore.

The gross NPA to total advances ratio now was 3.7 per cent likely to drop to around 3.5 per cent by March. Mr Srikantan was in the city to inaugurate the bank's first currency chest in the Salt Lake branch.

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