Bangalore: The net profit of State Bank of Mysore (SBM) rose by 8.96 per cent to Rs. 50.90 crore during the first quarter of the current financial year from Rs. 46.71 crore a year earlier on account of higher net interest income.

But the operating profit of the bank during the April-June quarter declined by 17 per cent to Rs. 109.06 crore from Rs. 131.58 crore a year ago mainly due to a Rs. 30.66-crore drop in income from sale/purchase of securities, SBM managing director Y. Vijayanand told presspersons here on Wednesday.

"This was expected as the interest rates have been constantly rising during the year. But the decline in operating profit due to lower treasury income was compensated by higher volume from our other banking operations," he said.

Mr. Vijayanand reckoned that with the market expecting another rate hike of 25 basis points, the opportunities for banks to sell securities and make money looked bleak for the rest of the year.

Interest on advances grew by 39 per cent during the first quarter from a year ago while total income jumped by 13.63 per cent to Rs. 472.45 crore from Rs. 415.78 crore during the corresponding period last year.

Total deposits of the bank grew by 27.08 per cent to Rs. 17,274 crore during the first quarter while total advances rose by 21.89 per cent to Rs. 12,723 crore from a year earlier.

The bank planned to raise about Rs. 600 crore to Rs. 650 crore to attain a capital adequacy of 12 per cent by 2009, Mr. Vijayanand disclosed.

UB net up 100 per cent

Bangalore-based United Breweries Ltd. is evaluating capacity expansion plans to meet the rising demand for beer as strong volume growth in the northern India markets lifted its net profit for the first quarter by almost 100 per cent to Rs. 27.53 crore from Rs. 13.83 crore a year ago. Gross sales during the April-June quarter was Rs. 276.16 crore as compared to Rs. 218.68 crore during the same quarter in the last fiscal year, the beer unit owned by Vijay Mallya said in a statement here.

UB said regulatory changes in the North had resulted in an explosive demand for beer. "Opening of new outlets and pipeline filling has resulted in a one-off growth of 77 per cent," it said.

KSDL's new products

Bangalore Staff Reporter writes:

Karnataka Soaps and Detergents Ltd. (KSDL) on Wednesday launched three new products at a function organised to celebrate the 115th birth anniversary of B.R. Ambedkar in Bangalore. .

The company said in a press release that product diversification was necessary because the price of sandalwood had reached exorbitant rates.

Sandalwood purchase

The Forest Department had not been able to supply adequate quantity of sandalwoo.

the company was forced to buy at a higher price from Tamil Nadu, it said.

KSDL managing director I.R. Perumal launched the `Grow more sandalwood' scheme under which the company will distribute sandalwood saplings to private and government parties at concessional prices.

The new products are Mysore Sandalwood Oil in 5 ml and 10 ml packs, Mysore Sandal Talcum Powder in 100 gm and 300 gm packs and Mysore Sandal Baby Powder in 50 gm and 100 gm packs.

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