SBT net profit drops 50% in FY14, business crosses Rs 1,60,000 cr

The net profit for the fourth quarter is Rs 48.58 cr, as against Rs 165.98 cr of the corresponding period last year

Kerala-based State Bank of Travancore (SBT) posted an operating profit of Rs 1,369.69 crore in 2013-14 (FY14), as against Rs 1,351.01 crore in the corresponding period the previous financial year. However, the bank recorded a 50 per cent drop in net profit at Rs 304.34 crore, compared with Rs 615.04 crore in the same period the previous year.

The net profit for the fourth quarter is Rs 48.58 crore, as against Rs 165.98 crore of the corresponding period last year. The bank has announced an interim dividend of Rs 2.50 a share for a face value of Rs 10.

The overall business turnover stood at Rs 160,119 crore during FY14, as against Rs 152,108 crore during the previous year.

Of this, deposits accounted for Rs 89,337 crore and advances at Rs 70,782 crore, compared to Rs 84,624 crore and Rs 67,484 crore, respectively in the same period the previous year.

SBT recorded a growth of 29 per cent in non-resident Indian (NRI) deposits during FY14, taking the total NRI deposits to Rs 24,963 crore from Rs 19,312 crore in March 2013.

The bank earned a total income of Rs 10,558.49 crore for the year ended March 31, as against Rs 9,287.86 crore posted during the previous year, recording a year-on-year growth of 13.68 per cent. Net interest income grew 11.98 per cent to Rs 2,383.15 crore during the year, compared to Rs 2,128.20 crore of the previous year.

Other income grew 30.46 per cent to touch Rs 851.95 crore, as against Rs 653.02 crore. The net interest margin stood at 2.43 per cent at the end of FY14. Return on equity was at 6.73 per cent, whereas return on assets was 0.29 per cent. Earnings per share was Rs 60.87.

Capital adequacy ratio (CAR) under Basel-III norms was 10.79 per cent, against a minimum of nine per cent stipulated by the Reserve Bank of India. The tier-I CAR is 8.46 per cent, against a stipulation of seven per cent.

The percentage of gross non-performing assets (NPAs) to gross advances stood at 4.35 per cent, with the gross NPA level at Rs 3,077 crore. The percentage of net NPAs to net advances stood at 2.78 per cent.

SBT added 104 branches during FY14, taking the total number of branches to 1,117 of which 820 are in Kerala. The bank has plans to open 115 branches to take its network to 1,230 during the current financial year.

Alternate channel reach was also expanded; by installing 387 ATMs. At present, the bank has 1,352 ATMs of which 1,064 are situated in Kerala. SBT has also opened kiosk banking outlets in 365 sub-service areas.