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Mr A.K. Jagannathan

Our Bureau

Thiruvananthapuram, Oct. 21

State Bank of Travancore registered a 94.96 per cent growth in higher net profit of Rs 302.08 crore for the half-year ended September 30.

The Managing Director, Mr A.K. Jagannathan, attributed the performance mainly to increase in net interest income, higher profit from treasury operations and write-back of excess provision on investments.

The higher net profit is despite the higher provisions for wage revision to employees from 13.25 per cent to 17.5 per cent with retrospective effect from November 1, 2007.

Repricing of deposits has helped bring down their costs by 6.22 per cent.

The current account and savings bank deposits (CASA) went up 180 bps year-on-year and stood at 31.86 per cent. The net interest margin stood at 2.73 per cent, a tad below the previous year, but which was in line with the industry average, a bank official said.

The total business increased 16.58 per cent year-on-year to cross the milestone of Rs 80,000 crore and stood at Rs 80,459 crore.

Growth in NRI deposits was muted (Rs 96 crore), but personal domestic deposits surged 29 per cent.

Gross NPAs have been brought down from 2.07 per cent last year to 1.83 per cent. Net NPAs stood at 0.86 per cent latest (1.20 per cent). Capital adequacy ratio improved to 13.83 (13.06).

In Kerala, the major area of bank’s operation, SBT’s market share in respect of number of no-frill account is 42.43 per cent (against 13.73 per cent share of branch network).

Applications for SBT housing and education loans can now be furnished online. The bank accounts for about 35 per cent of the total education loans sanctioned in the State of Kerala.

During the half-year, SBT opened six new branches taking the total number of branches to 731. It has applied to RBI for authorisation to open 70 more branches in the next year.

As for ATMs, 104 new machines were installed during the half-year. On September 12, 2009, the 64th anniversary of the foundation day, the bank opened 64 ATMs taking the total number to 564. It proposes to open about

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