SBM net up 28%, declares 100 %

Bangalore, Apr 24 (UNI) The State Bank of Mysore (SBM) registered a net profit of Rs 318.86 crore for 2007-08, clocking a growth of 28 per from the corresponding previous year and declared a dividend of 100 per cent.

Announcing the financial results here today, SBM Managing Director P P Pattanayak said during the year, the bank's operating profit increased to Rs 567.52 crore as against Rs 471.58 crore in the previous year.

SBM was able to register a net profit of Rs 318.86 crore on a total business of Rs 48,096 crore in 2008. The advances increased to Rs 21,315 crore as against Rs 16,722 crore in 2007.

Expressing satisfaction over the bank's financial performance, Mr Pattanayak said it was achieved despite several constraints, including global inflation, credit crunch in financial markets, sub prime crisis in the US and volatile equity markets.

Highlighting the key financial performance of the bank, Mr Pattanayak said the bank's capital adequacy ratio which was 11.47 per cent as on March 31, 2007 moved up to 12.34 per cent against the regulatory benchmark of 9 per cent.

The net worth increased to Rs 1,341.09 crore from Rs 1,121.56 crore representing a growth of 19.57 per cent.

The bank's aggregate deposits increased to Rs 26,781 crore in 2008 from Rs 21,395 crore registering a growth of 25.17 per cent.

Net income from interest earning grew 11.7 per cent and while non- interest income showed a growth of 20.5 per cent.

The bank also managed to reduce the NPA to Rs 359 crore as against Rs 384 crore in 2007.

Replying to questions Mr Pattanayak said the total quantum of farmers loan accounts with the bank attracting the Union Government's loan waiver scheme accounted to Rs 488.41 crore.

The investment of the bank in securities, debt and equity stood at Rs 8,469.71 crores earning a healthy return of eight per cent return.

He also said priority sector advances increased by Rs 897 crore to reach Rs 6,960 crore constituting 43 per cent of Adjusted Net Bank Credit (ANBC) thereby surpassing the benchmark ratio of 40 per cent to ANBC.

Advances to agriculture sector during the fiscal stood at Rs 2,911 crore with a growth of 30.60 per cent and advances to SME sector registered an increase of Rs 456 crore to reach a level of Rs 2,261 crore.

Loans to housing sector increased to Rs 1,992 crore from Rs 1,716 crore.

The Board of Directors decided to pay a dividend of 100 per cent for the year.

''The bank has been paying dividend to its shareholders right from its inception without any break,'' he said.

Mr Pattanayak said there was a proposal before the board to go for stock split and a final decision was yet to be taken on the issue. ''At present there is no any proposal before the bank to go for rising funds from public,'' he added.

Mr Pattanayak also said the bank which had 654 branches spread over 15 states also got permission to open 30 new branches with 23 of them to come up in Karantaka.

The bank also has plans to open 13 branches in those districts which were declared as 'Under-banked districts' and three in minority concentrated districts.

The bank also proposed to reach a business level of over Rs 60,000 crore during next fiscal year.

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