[STC-Salt Lake] State Bank Profit up by 19% to Rs 3,681 Crores

  • From: "Anup Sen, STC, Salt Lake City, Kolkata" <anupsen@xxxxxxx>
  • To: E-Group STC Salt Lake City Kolkata <banknews@xxxxxxxxxxxxx>
  • Date: Fri, 28 May 2004 15:59:12 +0530

From : E-Group, STC, Salt Lake, Kolkata
 

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Title: State Bank of India, Staff Training Centre, Salt Lake, Kolkata. : : stcsaltlake@xxxxxxxx : :

 

 

State Bank Profit up by 19% to Rs 3,681 Crores

 

 

 

Kolkata [May28, 2004] : The Operating Profit of the Bank for 2003-04  stood at Rs  9,553.46 cr. as compared to Rs. 7,775.40 cr. in  2002-03,   recording a growth  of  22.87%. The Bank has posted a Net Profit of Rs  3,681.00  cr.  for 2003-04 as compared to Rs.3,105.00 cr in 2002-03, registering a growth of  18.55%.   

 

The growth in profit in 2003-04 has been achieved due to  increase in both Net Interest Income as well as Profit on sale of Investments. In 2003-04 the Bank registered a substantial  growth in the Profit on sale of Investments which increased to Rs  3,073.46 cr as against Rs.1,694.60 cr in 2002-03. 

 

Highlights

 

v        Net Interest Income was Rs. 11,186.32 cr.  as  against Rs. 9,977.54 cr in the  previous year, ie., a growth of  12.12%.  This was due to   growth in  both interest income on  resources deployed in treasury operations  as well as on advances.

v        Average level of Advances in India was higher by 10.14% and average level of  resources deployed in Treasury Operations in India was higher by  10.79% . 

v        Cost of deposits (excluding Resurgent India Bonds/ India Millennium Deposits) witnessed a reduction from 6.43% in  2002-03 to 5.48%   in 2003-04.

v        Net Interest Margin was higher  at 3.04%  compared to 2.95% in the previous year.

v        Non-interest  income  grew by  32.62%, from Rs 5,740.26  cr in 2002-03 to Rs 7,612.45  cr in 2003-04. 

v        Operating Expenses  have registered an  increase  of  16.40%.  Staff cost has increased by   13.34% mainly due to additional contribution to pension fund and provision for leave encashment liability for current year as per AS15.

v        Major amounts of provisions were as under:

Ø      Rs 3,702.75 cr. towards non-performing assets (as against Rs. 2,592.93 cr in 2002-03) which include floating provision of Rs 990.00 crores over and above the RBI norms  for NPAs. 

Ø      Rs.1243.86 cr towards Income Tax, adjusted for deferred tax. (as against Rs. 2,162.14 cr in 2002-03).

Ø      Rs 49.12 cr towards Standard Assets (as against Rs. 6,9.22 cr in 2002-03).  Including this amount, the total provision held on  Standard Assets  amounts to Rs 377.03 cr.

Ø      Rs. 495.58 cr towards provision for depreciation on investments in India, including amortisation of premium on ?Held to Maturity? category. (as against 392.98 cr. in 2002-03)

Key  Performance  Indicators

 

Indicators

2003-04

2002-03

 

Return on Average Assets  (%)

0.94%

 

0.86%

Return on Equity (%)

18.19%

18.05%

 

Expenses  to Income (%)

(Operating Expenses to Total Net Income)

49.18%

 

50.53%

 

Earnings Per Share  (Rs.)

69.94

 

59.00

Capital  Adequacy  Ratio  (%)

 

13.53%

13.50%

               Tier I

 

8.34%

8.81%

               Tier II

 

5.19%

4.69%

Net NPAs to Net Advances

3.48%

 

4.50%

 

 

 

Growth in Deposits:

 

The domestic deposits of the Bank (excluding India Millennium Deposits) increased by 16.03%. The Personal segment deposits recorded a growth of 10.77% and formed 49.95-% of the aggregate deposits of the Bank.

 

 

Deployment of Credit:

 

ü      The domestic loan portfolio of the Bank increased by 13.58% in 2003-04

 

ü      Personal Segment (Retail) loans recorded a growth of 36% in 2003-04 

 

ü      In the thrust area of housing loans, there was a growth of Rs.4, 893 cr in the year 2003-04 (as on the last Friday of March 2004) compared to a growth of Rs.3, 973 cr (as on last Friday of March 2003) in 2002-03. Housing Loans as a percentage to Retail Loans improved to 51.47% as of March 2004 from 49.98% as of March 2003. Share of Housing Loans in the total non-food advances improved to 10.96% as of March 2004 from 9.20% as of March 2003.

 

ü      Number of cars financed by the Bank under the tie-up programme with Maruti Udyog Ltd. grew by 117% from 16,929 as on March 2003 to 36,786 as on March 2004.  

 

 

Development Banking:

 

The Bank continues to be deeply involved in development banking through its vast rural and semi-urban branch network, specialised branches for agriculture and small scale industries and new innovative products.

 

ü      For the Services and SSI sector, Bank has introduced several new products. 

 

ü      For Rural Housing, Bank has introduced Gram Niwas & Sahyog Niwas Schemes. 

 

ü      The Bank has issued 6.09 lac Kisan Credit Cards during 2003-04 with aggregate credit limit of Rs. 1,598.13 Cr. During the year 2003-04, the Bank crossed the 20-lac mark in issuance of Kisan Credit Cards.   The Bank has also introduced Kisan Gold Credit Card for high net worth farmers.    

 

 

NPA Management:

 

ü      The Gross NPA ratio has come down from 9.33% as on 31st March ?03 to 7.75% as on 31st March ?04, and the Net NPA ratio, from 4.50% as on 31st March ?03 to 3.48% as on 31st March ?04.  

 

ü      Under the SARFAESI Act 2002, notices have been issued in 12,553 cases involving an amount of Rs. 5,114 cr, effecting a recovery of Rs. 130 crores till March 2004.

 

ü      76 Assets involving Dues of Rs. 570.35 Cr (Principal Amount) have been sold to ARCIL during 2003-04 at an offer price of Rs. 162.33 Cr.

 

 

Technology:

 

State Bank of India has made rapid strides in adopting technology as a key enabler for achieving efficiency of its business operations.

 

ü      The State Bank Group, which has 13,635 branches, has computerised all the branches during the year 2003-04.

ü       

ü      The State Bank Group has at present over 3,900 networked ATMs comprising of over 2,800 ATMs of SBI and
1,100 of the Associate Banks covering 1,296 centers. It constitutes the single largest ATM network in the country.

 

ü      The Bank has an ATM Card base of more than 5 million

 

ü      SBI has entered into sharing of ATM network with Indian Bank, UTI Bank and HDFC Bank for larger coverage and increasing non-interest income.

 

ü      Internet Banking for retail customers has been rolled out to 1,100 branches covering over 300 centres, facilitating easier access to Bank?s services.  This facility is being used by more than 2,50,000 customers.

  

ü      The Bank is rapidly moving towards a centralized database with a state-of-the-art Core Banking Solution.  The Core Banking Solution will enable on-line, real-time transaction processing and provide on-line interface to a multitude of technology driven delivery channels.

 

Business Process Reengineering:

 

ü      The Bank is undertaking a Business Process Reengineering Project and has engaged Mckinsey & Co, as advisor for the project. The objective of this exercise is to strengthen Bank?s ability to acquire new customers, build lasting relationships with existing customers and to increase customer satisfaction through world-class service.

 

 

Capital Adequacy Ratio:

 

ü      The Bank has a comfortable Capital Adequacy Ratio of 13.53% as of March, 2004 as compared to 13.50% in March 2004.

 

 

Cross Selling within SBI Group:

ü      Cross selling of products from SBI Life Insurance Co. Ltd. and SBI Funds Management Pvt. Ltd has commenced in right earnest through our Branch Network in the entire Group.

ü      Over 2,600 Branches are now engaged in insurance selling distributing a range of life insurance products like Mortgage Redemption Insurance, Endowment, Pension and Term Insurance.

ü      During the financial year 2003-04, our Bank branches have covered over 1,28,700 lives and collected premium of Rs. 82 Crs.

ü      The Bank has recently tied up with New India Assurance Co. Ltd. for distributing their non-life products through our Branch network.

 

STATE BANK GROUP:

ü      Group assets have increased from Rs. 4,97,756 cr as on 31st March 2003 to Rs 5,50,749 cr as on 31st March 2004

ü      Group net profit for the year 2003-04 stood at Rs. 5,531 cr as against the figure of Rs. 4,199 cr in  FY 2002-03. Thus the SBI Group has crossed the Net Profit of US $ 1 Billion mark.

ü      Group Operating Profit for the same period stood at Rs 14,568 cr as against the operating profit of Rs 11,316 cr in FY 2002-03

 

 

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  • » [STC-Salt Lake] State Bank Profit up by 19% to Rs 3,681 Crores