The Hindu Business Line : State Bank of Mysore posts 17 pc rise in annual net

Mr Y Vijayanand (right), Managing Director, State Bank of Mysore, and Mr R Gopalan, CGM, at a press conference in Bangalore on Wednesday. -- G. R. N. Somashekar

Bangalore , May 11

THE State Bank of Mysore (SBM) has reported a 17-per cent increase in net profit for the financial year ended 2004-05 to Rs 206.26 crore from the previous year's Rs 176.38 crore.

Speaking to reporters here on Wednesday, its Managing Director, Mr Y. Vijayanand, said that the bank's board had recommended a dividend of 75 per cent for the year. The dividend would mean a payout of Rs 27 crore for the year, he added.

SBM for the last financial year reported an operating profit of Rs 451.66 crore, up from Rs 424.92 The growth was powered by a big increase in credit offtake, he said.

Besides, the bank, he said was unaffected by the fall in asset yields, since the spreads remained constant due to the fall in cost of working funds.

As a result the gross income of the bank rose to Rs 1,553.79 crore over the previous year's Rs 1,397.47 crore. Interest income during the period rose to Rs 1,167.77 crore from Rs 1,057.05 crore. Interest earnings on advances offset the drop in treasury income. Interest on advances rose to Rs 656.25 crore from Rs 557.92 crore.

What also helped the bank to increase its income was its non-fund based earnings. Other income, which included fee-based incomes, was Rs 386.01 crore from Rs 340.42 crore.

SBM's gross expenditure for the last financial year was Rs 1,102.12 crore, up from the previous year's Rs 972.54 crore. The increase was driven by the provision for wage increases, Mr Vijayanand said.

Mr Vijayanand said that the bank for the current year targeted a business growth of Rs 5,200 crore for the current year.

This year, the bank hoped to sustain the credit expansion tempo. For meeting the credit growth, the bank would raise another Rs 175 crore by way of Tier two capital, he added.

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