SBT net profit rises 41%

State Bank of Travancore (SBT), the premier bank of Kerala, executed a quantum jump in all performance parameters in 2002-03 as its total business crossed the level of Rs 25,000 crore.

At a press conference after the annual general body meeting here, SBT managing director Amitabha Guha said the net profitability of the bank went up by 41 per cent to touch Rs 171.04 crore in 2002-03.

The bank distributed a dividend of 50 per cent as against 30 per cent the previous year. The earnings per share went up to Rs 342.02 from Rs 241.86, the book value per share to Rs 1,445.60 from Rs 1,220.28 and the net worth of the bank to Rs 723 crore from Rs 610 crore.

Guha said the expense ratio, too, showed an excellent trend in 2002-03. It came down to 44.72 per cent from 50.92 per cent mainly because of the planned containment of expenses, he said. The deposits increased by 18.32 per cent to reach the level of Rs 15,926 crore. The NRE deposits of the bank as at the yearend stood at Rs. 6,858 crore, constituting 43 per cent of the total deposits. Advances grew by 23 per cent to touch Rs 9,171 crore.

The thrust the bank was giving to retail lending pushed up the share of the personal segment advance to 27.91 per cent of the total advances from the previous year''s level of 26.82 per cent. Out of a growth of Rs 1,735 crore in advances, a sum of Rs 805 crore was contributed by personal segment advance.

Guha said lending to the priority sector formed 45.74 per cent of the net credit as against the stipulated benchmark of 40 per cent.

The staff productivity, too, showed a substantial increase in 2002-03. The business per employee increased to Rs 218 lakh from Rs 179 lakh the previous year and the net profit per employee to 1.51 lakh from Rs 1.06 lakh.