The Hindu Business Line : Strong retail growth lifts SBT net up 18%

Thiruvananthapuram, April 24 State Bank of Travancore (SBT) has recorded a growth of 18.34 per cent in net profit during the financial year ended March 31.The net profit for the year stood at Rs 386.11 crore as against Rs 326.28 crore in the previous year. The board of directors has declared a dividend of 100 per cent for the third year in succession.

Mr M. Ramaswamy, Managing Director (in-charge), told newspersons here on Wednesday that the total income of the bank rose by 26.81 per cent from Rs 3,054.16 crore in 2006-08 to Rs 3,872.86 crore. The interest income was at Rs 3,434.11 crore and the non-interest income at Rs 438.75 crore.

The earnings per share stood at Rs 772.22 (Rs 652.56) and the book value per share reached the level of Rs 3,436.22 from Rs 3,198.87 in 2006-07. The gross NPAs were brought down from 2.16 per cent to 2.01 per cent, while the net NPAs declined to 0.95 per cent from 1.08 per cent.

The total business increased by Rs 7,876.61 crore to Rs 63,490.51 crore during the year. The total deposits went up by Rs 4,369.88 crore to Rs 35,353.89 crore and the total advances by Rs 3,506.73 crore to Rs 28,136.62 crore.

Retail lending

Mr Ramaswamy said that retail lending continued to be a major component, recording a growth of Rs 2,563.43 crore to Rs 15,740.39 crore from Rs 13,176.96 crore in the previous year. As at the end of the year, the share of retail lending in total advances stood at 56 per cent.

The credit-deposit ratio of the bank increased marginally from 79.49 per cent to 79.59 per cent. The C-D ratio for Kerala improved from 66.17 per cent to 68.90 per cent.

Basel migration

SBT has migrated to the Reserve Bank’s new capital adequacy framework under Basle-II from March 2008, one year ahead of the RBI deadline of March 2009. The CAR stood at 13.53 per cent as against the benchmark of nine per cent. The bank has signed memoranda of understanding with four credit rating agencies.

The bank has finalised the opening of a representative office in Dubai to offer personalised services to non-resident Indians in the UAE.

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