SBT Q1 profit soars

July 25, 2015 12:00 am | Updated 05:50 am IST - THIRUVANANTHAPURAM:

State Bank of Travancore (SBT) has recorded a 64 per cent growth in its net profit at Rs. 81.32 crore for the quarter ended June 30.

The net profit for the June quarter was boosted by reduction in interest costs, a jump in other income including recoveries in written off accounts and increase in fee income. Compared to the corresponding quarter of the last financial year, the June quarter operating profit also recorded an increase of 65 per cent.

The bank’s gross NPA level stood at a reduced level of Rs. 2,759 crore against Rs. 3,282 crore during the corresponding quarter last year. Consequently, the gross NPA percentage was also down to 4.03 per cent from 4.69 per cent during the corresponding quarter last year. The net NPA level was at 2.47 per cent vis-à-vis 2.93 per cent during the corresponding quarter last year.

The Capital to Risk Weighted Assets Ratio (CRAR) of the Bank as on June 30 stood at 10.47 per cent [under the Basel III framework] as against 10.28 per cent as on the same date last year. The regulatory minimum prescribed by the Reserve Bank of India 9RBI) is 9 per cent. The bank’s deposits stood at Rs 93,892 crore on June 30 as against Rs. 93,806 crore last year.

The gross deposit growth in the retail segment year on year was Rs 8,926 crore, including a growth in current account and savings (CASA) deposit of Rs. 2,238 crore. However, the bank could reduce an amount of Rs. 8,840 crore under high cost bulk and Certificate Deposits (CDs). Non-Resident India (NRI) deposits recorded a growth of Rs. 4,830 crore year on year and reached the level of Rs.31,340 crore.

The bank has been consistently replacing high cost bulk deposits and Certificate of Deposits with retail deposits to cut interest costs. The high cost bulk plus Certificate of Deposits came down sharply from 22 per cent to 12 per cent.

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