The Hindu : Regional public sector banks do well

Online edition of India's National Newspaper
Sunday, Feb 08, 2004

Business

Business

Regional public sector banks do well

By Our Staff Reporter

BANGALORE, FEB. 7. The corporate results of regional public sector banks in the first nine months of this financial year, released last month, showed that major banks performed well.

State Bank of Mysore recorded a net profit of Rs. 138.77 crores in the nine months ended December 31, 2003, up 107 per cent from Rs. 66.89 crores in December 2002. After providing for the voluntary retirement scheme and leave encashment, the operating profit was up 44.22 per cent to Rs. 301.02 crores. Sequentially, the net profit increased by Rs. 13.12 crores.

Aggregate deposits crossed the Rs. 10,000 crore mark in the three months to December 31 last, reaching Rs. 10,103.89 crores, a 15 per cent growth on March 2003 levels. Personal segment deposits accounted for some 55 per cent of the deposits. Total advances were Rs. 6,024.93 crores including retail advances of Rs. 346.49 crores.

Vijaya Bank reported a net profit of Rs. 110 crores for the third quarter of this fiscal, up from Rs. 95.89 crores in the second quarter, despite reduced incomes due to a sequential drop of Rs. 48 crores in fee based income and trading profits to Rs. 111.15 crores in Q3. The bank managed to cut expenditure by some Rs. 20 crores to Rs. 395.72 crores, a release said.

This year, the banks also struck new deals, and extended the scope of old ones, to sell vehicle finance and sell insurance products (cross-sell from SBI in case of SBM). Syndicate bank has sold some 2,600 life policies from Allianz Bajaj and is actively scouting for a non-life tie up. Vijaya Bank, along with Punjab National Bank, would offer various fund management schemes under one roof through a tie up with NYSE traded $128 billion Principal International Inc.

The joint venture, Principal PNB Asset Management Company, would offer "long term'' investment, pension, insurance and mutual fund products at some 5,000 branches of Vijaya Bank and Punjab National Bank.

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