The Hindu : National : Bank posts record business growth

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Thursday, Apr 24, 2008
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Bank posts record business growth

Special Correspondent

JAIPUR: State Bank of Bikaner and Jaipur recorded a business growth of Rs. 10,181 crore in 2007-08 to cross the Rs. 59,400 crore mark in a year which also found the non-performing assets (NPA) of the bank falling below 1 per cent for the first time. The bank’s total income increased 22.9 per cent to reach Rs. 3,523.68 crore while its net profit registered an increase of 3.01 per cent to reach Rs. 315 crore.

Announcing the financial results of the bank here, Managing Director Arun Shandilya said the Board of Directors who had met in Mumbai on Monday decided on a dividend of 100 per cent (Rs. 100 per share on the face value of Rs. 100), same as in the previous year. The bank, which has increased its authorised capital from Rs. 50 crore to Rs. 500 crore as per the SBI (Subsidiary Banks Laws) Amendment Act, 2007, might come out with a rights/public issue in the near future, he indicated.

The bank has removed the restriction of individual shareholding in excess of 200 shares and is in the process of completing dematerialisation of shares. In a major accomplishment the bank has successfully migrated to Basel-II framework one year ahead of the date stipulated by the Reserve Bank, Mr. Shandilya informed.

Talking about the financial performance, Mr. Shandilya said the bank in the past three years almost doubled its business of the past 40 years. The total deposits of the bank in 2007-08 recorded a growth of 19.8 per cent to reach Rs. 34,108 crore while gross advances registered an increase of 21.9 per cent to touch Rs. 25,319 crore. In the wake of a special drive the bank’s personal segment deposits recorded an all-time high growth of Rs. 2,659 crore in 2007-08. The drive led to the opening of 8.7 lakh new savings deposits accounts.

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