Special Correspondent

THIRUVANANTHAPURAM: The State Bank of Travancore (SBT) has reported substantial increase in profitability during the first quarter of the year.

Managing Director of the bank A.K. Jagannathan said here on Thursday that the bank posted a net profit of Rs.179.58 crore for the quarter that ended June 30, 2009, showing an increase of 337 per cent over the profit of Rs.41.12 crore that was achieved in the corresponding quarter in the previous year. The operating profit went up by 43.10 per cent to Rs.239.78 crore compared to Rs.167.57 crore in the same period previous year.

The net interest income for the quarter went up by 30 per cent to Rs.332.85 crore from Rs.255.23 crore in the corresponding quarter last year. The Net Interest Margin was 2.86 per cent when compared to 2.53 per cent as on June 2008. The Non-Interest income of the bank during the first quarter went up by 26 per cent over the corresponding quarter last year. The profit from Treasury Operations increased by 277 per cent to Rs.30.83 crore from Rs.8.18 crore in the same period last year.

The Capital to Risk Weighted Assets Ratio (CRAR) of the bank went up to 14.40 per cent (under Basel II framework) as against 12.92 per cent in June 2008. The Gross and Net NPA percentages were contained below the levels a year ago. The deposit base of the bank, on year-on-year basis, increased by 15.90 per cent to Rs.43,660 crore from Rs.37,669 crore.

NRI deposits

The NRI deposits rose by 26.21 per cent to Rs.11,050 crore from Rs.8,755 crore in June 2008. Gross advances rose by 12.32 per cent year-on-year to Rs.32, 889 crore as at the end of June 2009 from Rs.29,280 crore in June 2008.

The flagship Retail Products — housing loans and car loans grew by 18 per cent and 26 per cent (annualised) respectively during the quarter. The bank’s lending to agriculture stood at Rs.2,774 crore.