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SBT’s encouraging performance

THIRUVANANTHAPURAM: The State Bank of Travancore has earned a net profit of Rs.236.91 crore for the nine months ending December ’07, registering an increase of 27.49 per cent over the previous period (Rs.185.82 crore). The increase is mainly on account of a robust year-on-year growth of 27.17 per cent in non-interest income.

According to its financial results released here on Monday, the Capital to Risk Adjusted Assets Ratio (CRAR) of the bank as on December 2007 improved to 13 per cent from 11.68 per cent as on March ’07, against the regulatory benchmark of 9 per cent.

The total income of the bank registered a growth of 30.95 per cent (year-on-year) to reach Rs.2,811.84 crore from Rs.2,147.22 crore during the three quarters of 2007-08. Interest income went up by 31.40 per cent (year-on-year) to reach Rs.2,522 crore as against Rs.1,919.31 crore and non-interest income touched Rs.289.84 crore (year-on-year) from Rs.227.91 crore during the same period.

Gross NPA percentage of the bank declined to 2.14 per cent of gross advances from 2.47 per cent as on December ’06 and 2.16 per cent from March ’07. The Net NPA percentage declined to 0.97 per cent from 1.26 per cent as on December 31, ’06 and 1.08 per cent as on March 2007. The total business of the bank exceeded Rs.60,000 crore to reach Rs.61, 241 crore as at the end of December 2007 from Rs.53,644 crore as at the end of December 2006. The deposit base of the bank reached the level of Rs.33,160 crore registering a year-to-year growth of 9.58 per cent. Personal deposits accounted for 62.79 per cent of the aggregate deposits.

The total advances of the bank stood at Rs.28,164 crore, registering a year-on-year growth of 20.06 per cent over December 2006. The bank’s priority sector lending grew by 39.34 per cent on a year-to-year basis to reach Rs.12,964 crore. The percentage of priority sector advances of the bank to total advances is 46.03 per cent against the bench mark of 40 per cent.

Due to special focus on retail business, the agricultural and personal segment advances shot up by Rs.914 crore (35.65 per cent annualised) and Rs.1,346 crore (18.86 per cent annualised) respectively on December 2006 levels. Housing loan and vehicle loan together registered a growth of Rs.853 crore over December 2006 levels.

The bank continued to retain its first position in the number and amount of education loans in Kerala. The total amount of education loans sanctioned by the bank in Kerala during the current year was Rs.283 crore covering 11,839 students. The year-on-year growth in education loans was Rs.266 crore with an outstanding level of Rs.993 crore. The bank’s share in education loan was 5.14 per cent as against business share of 1.25 per cent of all scheduled commercial banks.

The bank was identified as official bankers for the first time for conduct of entrance examination for admission to professional colleges in the State. The disbursal in agricultural advances up to December 2007 was Rs.1803 crore. The SME advances improved by Rs.1,001 crore on a year-on-year basis at 31 per cent.

The foreign exchange turnover of the bank registered a growth of 24.70 (annualised) over December 2006 levels.

The bank continued to be very active in the area of lending to the self help groups. With the addition of 6,414 more self-help groups financed during the nine months, the total number of such groups assisted by the bank under micro credit has reached 61,166 in December 2007, with outstanding level of Rs.320.74 crore.

The bank has increased the number of ATMs to 348, all of which are connected to over 7,800 ATM network of the State Bank Group.

The bank has undertaken business process re-engineering to enhance customer satisfaction and to make the business processes more customer friendly. Customer-related processes like loans, deposits, clearing, pension payments etc., are being centralised to ensure specialised and speedy delivery.

The bank has been responding to the changing needs and preferences of customers and has been introducing new products and services through core banking. The bank extended SMS alerts for transactions in SB accounts to domestic segment also.

New savings bank account “SBT Savings Plus” with sweep in/sweep out facility, multi-city cheque facility has been extended to personal segment. With a few to give a further boost to the development of NRI business, the bank proposes to open a Representative Office in Dubai before March. The bank also plans to open a credit counselling centre in Ernakulam shortly for financial education and credit counselling of SME entrepreneurs. ITES like internet banking, RTGS, NEFT are available to bank’s customers at all the 706 branches. The total income of the bank registered a growth of 30.95 per cent

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