Sharad Sharma, Managing Director of State Bank of Mysore, said here on Friday that the bank was planning a rights issue in the second-half of the current fiscal.
Though there were no immediate pressures, given a comfortable capital adequacy ratio, the bank was considering it keeping the requirements for future business growth plus and Basel-III norms.
Announcing the fourth quarter results at a press conference here, he said the bank would soon make an application to the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) for the rights issue. He, however, declined to put a number when asked about funds requirement of the bank.
During the fourth quarter, the net profit rose to Rs.106.81 crore from Rs.76.19 crore during the corresponding quarter of 2012-13. Total income was higher at Rs.1,824.69 crore against Rs.1,721.48 crore. Senior officials of the bank said this was due to a reduction in cost of deposits, higher yields on advances and a drop in non-performing assets. Net interest margin was 3.02 per cent.
The bank, however, saw its net profit drop to Rs.274.25 crore in 2013-14 from Rs.416.10 crore as there was an increase in provisioning and operating expenses. The bank, which completed 100 years in October last year, added 164 branches during the fiscal taking the total to 944.
As regards targets for the current fiscal, he said the bank was eyeing Rs.70,000 crore deposits as against Rs.61,000 crore in the last fiscal and advances of Rs.58,000 crore (Rs.51,000 crore).