ACHIEVEMENT: P. Krishnaraj, Deputy General Manager, SBM, Hubli Zone, (second from right) speaking at a press conference in Hubli on Tuesday.

HUBLI: The State Bank of Mysore, Hubli Zone, which covers 13 districts of north Karnataka and two districts of Goa, has registered a net profit of Rs. 89.57 crore during the financial year 2005-06.

Announcing the financial results of the zone here on Tuesday, P. Krishnaraj, Deputy General Manager, SBM, Hubli Zone, said the net profit of the zone had increased from Rs. 69.88 crore to Rs. 89.57 crore, a growth of 28.18 per cent.

He said operating income of the bank had increased from Rs. 72.07 crore in 2004-05 to Rs. 108.14 crore in 2005-06, a growth of 50.04 per cent.

Non-interest income had increased from Rs. 32.07 crore to Rs. 38.63 crore. This was mainly owing to recovery from stressed assets and contributions from government businesses and cross-selling, he said.

In the deposits section, the zone had registered a growth of 12.2 per cent, he said. The deposits now stood at Rs. 2,040.39 crore compared to the Rs. 1,818.49 crore in 2004-05.

The advances of the zone had increased from Rs. 1,470.54 crore to Rs. 1,795.61 crore, registering a growth of 22.11 per cent, he added.

Mr. Krishnaraj said the zone had witnessed an impressive performance in the education segment, which had increased from Rs. 15.02 crore to Rs. 25.68 crore.

The zone's advances to small-scale industries sector had increased from Rs. 85.58 crore to Rs. 104.27 crore. Agriculture loans had increased from Rs. 494.38 crore to Rs. 681.80 crore in 2005-06, he said.

To a question, Mr. Krishnaraj said the gross non-performing asset (NPA) level of the zone was 3.67 per cent.

The NPA level had been brought down from Rs. 67.45 crore to Rs. 64.62 crore, he added. This was possible owing to the efficient management of stressed assets and One Time Settlement, he said.

More branches

To another question, he said the zone had plans to open at least five branches in the current financial year. It had plans to increase its deposits by Rs. 375 crore and advances by Rs. 450 crore, he added.

Regarding the sale of stamp papers in the bank's branches, Mr. Krishnaraj said all ten branches in Hubli and Dharwad would begin selling stamp papers shortly.

Printer friendly page  
Send this article to Friends by E-Mail