1. TOTAL BUSINESS:
The total business of the Bank crossed a Landmark business level of ` 1 00,000 crs reaching a level of ` 1,02,951 crore as on 31.03.2013. The deposits increased by 13.52% to reach a level of `` 56,970 crore. The Advances increased by 13% to reach a level of \`` 45,981 crore. The Credit Deposit ratio stood at 80.7%. Investments increased by 14 % to register a level of ` 16775 crore.
The Operating Profit for the year ended 31.03.2013 stood at ` 1331 crore registering an increase of 26% over the previous year. PBT registered an increase of 52% YoY basis. Treasury Income increased by 76 % YoY basis. Net profit for the year stood at ` 416 crs registering an increase of 13% over FY12.
Higher standard assets provisions, provision for bad debts, higher provisions for restructured advances besides much higher tax provisions compared to last FY resulted in lower than expected net profits. The net profit, as a consequence registered a modest increase of 13% despite Bank posting record operating profit.
During the year, gross NPAs registered an increase from ` 1503 crore as on 31.03.2012 to
` 2081 crore as on 31.03.2013. Increase in NPAs in Corporate segment was most pronounced at
` 1126 crore (approximately). The gross NPA ratio stood at 4.53%, while Net NPA was at 2.69% as on 31.03.2013.
The Bank’s Board at its meeting dated 25.03.2012 had approved payment of interim dividend of 115% for the year 2012-13. The dividend payout ratio is 12.68%.
2. KEY FINANCIALS:
• The Return on Assets is at a level of 0.66% while Return on Equity is 11.05%.
• Net Worth of the Bank increased from ` 3412.72 crores to `3764.77 crore representing a growth of over 10 %.
• The Bank has been BASEL-II compliant since 31st March 2008 and Capital to Risk Weighted Assets (CRAR) under Basel II, is at 11.79% against the regulatory benchmark of 9.00%. Core CRAR is at 8.87%.
• Earning Per Share (EPS) is at ` 89
• Net Interest Margin (NIM) is at 3.22%.
• Cost of Deposits increased to 7.32% from 7.09%, mainly owing to decrease in CASA share from 32% to 31.4% besides rise in interest rates. However the Cost of Deposit remained much below the MOU rate of 7.59 % agreed upon.
• Yield on advances declined from 11.72% to 11.62% due to increase in Gross NPAs and higher provisioning thereon.
3. AGRICULTURE FINANCE:
The direct agricultural advances increased by 17.16% from ` 4404 crores to ` .5179 crores and the overall agricultural advances stood at ` 5752 crores for the year ended 31.3.2013.
4. RETAIL ADVANCES:
The Personal segment advances grew by ` 1081crs to reach a level of `.7459 crs. Housing loan grew by `516 crs in FY13. The growth rate in FY13 in respect of retail segment advances was 99% growth over FY 12
5. TECHNOLOGY:
The Bank installed 51 new ATMs during the year taking the total number of ATMs installed to 853 of which 685 are in the State of Karnataka. Our ATMs are part of 32752 strong ATM network of the State Bank Group. The card base has crossed 29.74 Lacs as on 31st March 2013. Paper less online ATM customer complaints reporting and redressing facility through the Bank’s intranet is available in the Bank facilitating reduction in the time gap between reporting and redressing of customer complaints relating to ATM transactions.
6. BRANCH EXPANSION:
The Bank opened 43 Banking branches, during the year. The total branch network of branches as on 31st March 2012 stood at 780, which includes 641 branches in the State of Karnataka.
7. FINANCIAL INCLUSION :
The Bank has taken up the responsibility of financial inclusion in 3232 villages in the State of Karnataka based on 2001 Census and we have covered all the villages by appointing Business Correspondents for providing minimum banking facilities to rural populace at their door step. Apart from this the Bank is participating in EBT program in Bellary and Chitradurga Districts through the allotted service area villages.
8 CORPORATE SOCIAL RESPONSIBILITY:
The Bank has been actively discharging its Corporate Social Responsibility by participating in various schemes aimed at providing socio economic benefit to the needy and deprived section of the society. Towards this end the Bank donated a total 1558 water purifiers for the benefit of the students at Rural schools. The Bank has also sanctioned an amount of `100 lac to Visvesaraya National Training Facilities for skills for all project at Chikkaballapur, Bangalore.
