SBBJ to focus on retail sector

The State Bank of Bikaner & Jaipur (SBBJ), one of the leading banks in Rajasthan, has decided to stress on the retail sector in the current year and the bank has designated 2004-05 as "year of retail".

Addressing the share holders of the bank, AK Purwar, chairman of the State Bank of India, said the bank had targeted 65 per cent of its total credit growth this year in the retail segment.

To boost retail, the bank has entered into tie-ups with manufacturers of cars, tractors, two-wheelers and generator sets for financing their products.

The bank has also entered into an agreement with the state government for financing housing and other loans of their employees under a special package.

Cross-selling of products of SBI Life, SBI Mutual Fund, credit cards are also being addressed aggressively by the bank. This will augment non-interest income of the bank.

Purwar said the bank had improved its performance in almost all the spheres of the banking. The net worth of the bank stood at Rs 1,148.57 crore on March 31, 2004 compared to the last year's Rs 903.45 crore, registering an increase of Rs 245.12 crore.

The bank reported a jump of 48 per cent in its net profit at Rs 301.52 crore in 2003-04, from Rs 203.28 crore in 2002-03. Operating profit of the bank also rose to Rs 681.35 crore, compared to Rs 440.85 crore during 2002-03.

Purwar said SBBJ is one of the few banks complying with the recent RBI guidelines that necessitate a net NPA figure of below 3 per cent, apart from the capital adequacy stipulation of 11 per cent for three years for banks declaring dividend above 25 per cent.

He said the bank had raised its net interest income to Rs 716.44 crore in 2003-04 from Rs 551.37 crore in 2002-03. The forex turnover also increased to Rs 9,027 crore during 2003-04 from the previous year's Rs 6813 crore, registering a growth of 32.50 per cent.

In view of good performance, the bank has decided to pay 100 per cent dividend against 50 per cent paid last year.