SBM Q1 net profit up 9%

State Bank of Mysore (SBM) has registered 8.96 per cent increase in net profit at Rs 50.90 crore at the end of the first quarter ending June 30, 2006, against Rs 46.71 crore reported in the corresponding period last year.

The rise in net profit is on account of higher net interest income. However, its income from treasury operations slipped during the quarter.

Announcing the first quarter financial results, here on Wednesday, SBM Managing Director Y Vijayanand told reporters that the operating profit during the quarter was 17 per cent lower at Rs 109.06 crore compared with Rs 131.58 crore in Q1 of FY06.

"This was due to lower income from sale and purchase of securities. We expected this to happen as the interest rates were rising and we had to make provisions for transfer of securities to HTM (held to maturity) and marking to market," he said.

Interest on advances registered robust growth of 39 per cent over the corresponding figure in Q1 of FY06. The total income of the bank has also gone up by 13.63 per cent from Rs 415.78 crore during Q1 of FY06 to Rs 472.45 crore during the current fiscal.

Its total business stood at nearly Rs 30,000 crore at the end of the quarter. Its aggregate deposits reached the level of Rs 17,274 crore, registering a growth of 27.08 per cent (Rs 1,095 crore) over March 2006.

Personal segment deposits reached Rs 7,957 crore accounting for 46.06 per cent of the aggregate deposits. Total advances stood at Rs 12,723 crore, a growth of 21.89 per cent (Rs 660 crore) over March 2006, Vijayanand said.

Net non-performing assets during the quarter stood at Rs 71.09 crore (0.57 per cent) as against Rs 95.68 crore (1.06 per cent) as on June 30, 2005.

During the remaining three quarters of the year, the bank aims to open 20 more branches and 46 ATMs across the country. It has set a target of reaching a total business of Rs 35,000 crore during the current financial year.

It also plans to augment its tier-I and tier-II capital during the year either through a rights issue or public issue, the managing director said adding that over the next three years, the bank plans to raise Rs 650 crore. It aims to mobilise Rs 350 crore to augment tier-II capital and the balance under tier-I capital, he added.