State Bank of Mysore yearly net up 12.3 % at Rs 500.62 cr

Bangalore: State Bank of Mysore reported 12.3 per cent rise in net profit for the year ending March 31, 2011 at Rs 500.62 crore compared to the previous fiscal.

The lower year-on-year growth is caused by the necessity to make higher provisions towards non-performing assets (NPA), SBM's Managing Director Dilip Mavinkurve told reporters.

The percentage of gross NPA to gross advances rose to 2.51 per cent as of last month-end as against two per cent a year ago, he said, adding, about Rs 280 crore in regard to agriculture debt waiver and relief scheme and coffee relief package turned NPA during the course of last fiscal.

Net interest income for the year rose 32.3 per cent from Rs 1,236 crore to Rs 1,636 crore, while net interest margin went up to 3.71 per cent from 3.19 per cent a year ago. Cost of deposits declined to 5.56 per cent from 6.01 per cent, mainly owning to increase in CASA (current account, savings account) share from 31.06 per cent to 33.97 per cent.

"The bank proposes to reach a business level of over Rs 96,000 crore in the year 2011-12 aiming a growth rate of 23 per cent, from the present level of Rs 77,667 crore", Mavinkurve said.

The bank has drawn up plans to open 90 new branches and install 156 additional ATMs in the current fiscal, and it's also in the process of adding more than 1,000 personnel to support its expansion plans.

Source: Financial Express