State Bank of Travancore (SBT), which is expected to merge with State Bank of India (SBI), has set a target to grow around 25 per cent during the current fiscal. The Kerala-based bank said it would expand aggressively in other southern states and 50 per cent of its staff would be below 30 years by 2015.
Refusing to comment on the merger with SBI, its managing director P Nanda Kumaran said, “Looking at the current industry’s growth, which is 15-18 per cent, I would be happy if we grow at 25 per cent.”.
The total income of the bank improved by 29 per cent to Rs 7,477 crore in 2011-12 from Rs 5,819 crore in the previous year.
Its major growth area is the NRI deposits, which contribute around 25 per cent. The bank was reporting 40 per cent growth in NRI deposits, year on year. “Because of this we don't have pressure on resources and our liquidity position has been good. So, we are in a good position to choose the sector we should go in,” said Kumaran.
The bank does not have any plan to raise capital, since its CAR is at around 12.4 per cent, which is more than the regulator's norm.
The net profit in 2012 declined to Rs 510.46 crore from Rs 727.73 crore in the previous year. It attributed this decline to the economic slowdown, additional provisions for staff, NPA and income tax payment. "NPA is a horror story for all banks and is an area of concern for the us too."
On branch expansion, he said, earlier 90 per cent of bank's focus was in Kerala, but in the last few years it had been growing out of Kerala mainly in Tamil Nadu and Andhra Pradesh.
He also said they would be a pan-India presence bank, but not a pan-India bank. “SBT is not going to be engaged with the population in most parts of India as it would be in south and eastern parts.” This year it would recruit 2,500-3,000 people, said Kumaran.