State Bank of Travancore (SBT) has a posted a 435.97 per cent rise in net profit to ₹102.80 crore during the second quarter against the corresponding period of the previous year.

This was achieved on the back of a jump in other income, including recoveries in written-off accounts and increase in fee income, as well as reduction in interest costs.

Retail deposits Deposits moved up by five per cent to ₹97,112 crore, said Jeevandas Narayan, Managing Director.

This was powered by the retail segment growth of ₹11,388 crore, he said.

Low-cost CASA deposits witnessed a rise of ₹3,343 crore as on September 30, 2015. The CASA ratio has improved from 28.32 per cent to 30.44 per cent year-on-year.

The bank repaid bulk deposits of ₹6,862 crore resulting in net accretion of ₹4,526 crore in deposits. It has been consistently replacing high-cost and bulk deposits with retail deposits in order to cut interest costs.

Bulk deposits came down sharply from 19.45 per cent to 11.48 per cent, Narayan said.

In this manner, the cost of deposits has come down to 7.05 per cent during the quarter from the year-ago level of 7.41 per cent.

NPAs climb down Operating profit looked up by 36 per cent year-on-year, Narayan said, adding that the bank has achieved consistency in operating profits and managed to contain bad loans.

The net profit is up 26 per cent when looked at sequentially, he said.

For the first half year, ended on September 30, this has gone up by 166 per cent to ₹184 crore.

The bank has managed to bring down gross non-performing assets (NPAs) to ₹2,569 crore during this quarter from ₹3,544 crore of the corresponding quarter a year ago.

Consequently, gross NPAs have been brought down in percentage terms to 3.82 per cent from 5.11 per cent.

Net NPAs came in at 2.27 per cent against the year-ago level of 3.20 per cent.

The capital to risk-weighted assets ratio (CRAR) stood at 10.33 per cent under the Basel III framework against 10.16 per cent.

The regulatory minimum prescribed by the Reserve Bank is nine per cent.

comment COMMENT NOW