SME Times - State Bank of Mysore Net Up 32 Percent in 2010, State Bank of Mysore Net Profit Up 32 Percent, State Bank of Mysore Net Profit in 2010

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SME Times News Bureau | 22 Apr, 2010
The State Bank of Mysore (SBM), an associate bank of the State Bank of India (SBI) in Karnataka, posted net profit of Rs.446 crore for fiscal 2009-10, registering 32 percent growth year-on-year (YoY), a top bank official said on Wednesday.

"The net profit for the fiscal was bolstered by a whopping 148 percent growth in the fourth quarter (Jan-March) with Rs.124 crore as against Rs.50 crore in the same quarter in the previous fiscal (2008-09)," SBM managing director Dilip Marinkurve told reporters in Bangalore.

Similarly, the bank's operating profit for the fiscal under review shot up 43 percent YoY to Rs.937 crore on account of 48 percent YoY growth in net interest income to Rs.1,237 crore from Rs.398 crore year ago.

Net interest margin improved to 3.19 percent from 2.47 percent year ago.

"As interest income grew 9.6 percent YoY, we were able to reduce interest expense by 3.6 percent by retiring high cost bulk deposits and borrowings and by increasing low-cost current and savings deposits during the fiscal under review," Marinkurve said.

Net worth increased by 24 percent YoY to Rs.2,022 crore from Rs.1,619 crore.

Aggregate deposits increased to Rs.38,440 crore, registering a growth of 19 percent YoY, while total advances grew 15 percent to Rs.29,874 crore.

"In the absence of strong demand for credit from the corporate sector, we focused on personal segment advances for its asset growth to lend Rs.760 crore more than in the previous fiscal (FY 2009), registering 19 percent YoY. Rs.400 crore were advanced towards vehicle loans and Rs.100 crore towards housing loans," Marinkurve noted.

The bank's gross and net non-performing assets (NPAs), however, increased substantially to Rs.595 crore from Rs.368 crore and to Rs.300 crore from Rs.129 crore respectively.