'We aim to be a zero-NPA bank'

CAPTAINSPEAK

S K Singh, who joined State Bank of Saurashtra (SBS) as chief general manager (CGM) in October 2001, was last week appointed managing director of the 'Navratna' bank.

The Bhavnagar-headquartered bank has achieved 100 per cent computerisation. Singh spoke about his plans to make the SBS a zero-NPA bank.

State Bank of Saurashtra has witnessed a surge in profits in the recent past. What targets have you set for the year?

SBS aims to achieve a net profit of Rs 160 crore by the end of the current fiscal and at least Rs 200 crore by the end of the next fiscal. The bank registered a 164.25 per cent jump in net profit at Rs 126.60 crore for the third quarter ended December 31, 2003, compared with Rs 47.91 crore for the same period last year.

There has also been a drastic reduction in net NPAs. What targets have you set in this regard?

The bank's performance in NPA reduction has been satisfactory. We have reduced our net NPAs from 3.53 per cent of the net advances in March 2003 to 1.42 per cent in December 2003. As of January 2004, the net NPAs stood at 0.97 per cent of net advances.

We aim to become a zero-NPA bank by the turn of the present fiscal. We still have a little more than 20 days to go before the fiscal ends and it will be heartening to end the year with a zero net NPAs.

In absolute terms, net NPAs have been brought down from Rs 163.96 crore in March 2003 to 67.21 crore in December 2003.

SBS has achieved 100 per cent computerisation, from 58 per cent in September 2003. It appears that the bank has laid emphasis on this aspect.

Yes, SBS will spend a whopping Rs 50 crore on computerisation and technology upgradation in this fiscal. A major portion has been spent on branch computerisation and ATM installation. This is a significant achievement because our efficiency will increase manifold. The investment will come in handy when more complex technology upgradations are taken up.

What are your plans for branch expansion?

As of today, the bank has 414 branches across the country, including 30 specialised branches to provide services to a specific group of customers. These branches include two industrial finance branches, one overseas branch, one commercial branch to cater to high-value customers and corporates, and four specialised personal banking branches offering a range of financial services.

One more branch will be inaugurated at Secunderabad before the fiscal ends. In the next fiscal, we plan to open 15 more branches, 12 of which will be in Gujarat.

What other plans have been chalked out for the near future?

We intend to ensure that SBS is a truly world class bank, with the best facilities for customers, while bringing in optimum efficiency. We will continue to invest in technology upgradation, branch expansion and computerisation. It will be an added bonus to be a zero-NPA bank. The bank has used the Securitisation Act effectively to reduce NPAs and will continue to do so.