Indore Bank registers 19 pc growth | india | Hindustan Times
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Indore Bank registers 19 pc growth

STATE BANK of Indore has registered operating profit of Rs 420 crore in 2005-06 against Rs 352 crore in the previous fiscal, a growth of 19 per cent. The Bank recorded business of Rs 28,000 crore during 2005-06. Similarly the net profit of the Bank grew from Rs 133 crore to Rs 139 crore during the same period.

india Updated: May 16, 2006 23:53 IST

STATE BANK of Indore has registered operating profit of Rs  420 crore in 2005-06 against Rs 352 crore in the previous fiscal, a growth of 19 per cent. The Bank recorded business of Rs 28,000 crore during 2005-06. Similarly the net profit of the Bank grew from Rs 133 crore to Rs 139 crore during the same period.

Announcing this at the 45th annual general meeting at Anand Mohan Mathur auditorium here today, the Bank group Chairman A K Purwar said that the Indian economy has been successfully meeting the domestic and international challenges and has been growing year on year.

The GDP grew by more than 8 per cent despite irregular monsoon, an unstable agricultural sector and decline in power generation. Substantial growth in the manufacturing sector for the second year running is a good indication for the economy. The year 2006-07 is also expected to be good for the Indian economy.

Purwar said that service and manufacturing sectors are expected to grow by 9 and 8 per cent respectively during the current fiscal, which will result in the GDP growing by 7.5 to 8 per cent. Similarly, the exports are expected to grow by about 25 per cent, bank deposits by 15 per cent and advances by 20 per cent this year.

Referring to the performance of the State Bank of Indore, Purwar said that the price of Bank’s share of Rs 100 face value improved from Rs 4,783 to Rs 5,506 and earnings per share have grown from Rs 761 to Rs 795. The board of directors of the bank has increased the dividend for the year ended on 31st March 2006 from 100 per cent to 125 per cent.

Purwar said that the capital adequacy ratio of the bank is 11.40 per cent, which is way above the required nine per cent. During the year the Bank disbursed new advances to the tune of Rs 815 crore under the agricultural credit scheme, which is 19 per cent more than target fixed for the year. The bank also issued 27,406 new ‘Kisan’ credit cards and created 13,276 self-help groups. Out of these 2,693 self-help groups were given financial help to the tune of Rs 24 crore.

The bank took preventive as well as curative steps to manage the non-performing assets (NPAs) and for the first time sold portfolio of 11 impaired assets to ARCIL (Asset Reconstruction Company India Limited) for Rs 2.20 crore. The Bank also organised recovery camps and earned Rs 4.35 crore by disposing 956 cases. The bank also exploited the ‘Bank Adalat’ forum for settling 3,296 cases for Rs 16 crore.

As a result the ratio of gross NPAs to gross advances declined from 3.28 per cent to 3.20 per cent. However, due to lower floating provisions for NPAs the ratio of net NPAs to net advances has gone up from 1 per cent to 1.83 per cent.

Post core banking solutions, the bank has also covered all its branches and offices through wired area network using leased circuits, ISDN links and VSAT. The bank has provided internet banking to retail as well corporate customers. Alternate delivery channels like more ATMs, multi city cheques, RTGS, ECS, etc are being provided for real time fund remittance and for providing anytime/ anywhere banking facilities.

Purwar, who was addressing the AGM for the last time before laying down office, however cautioned that the Bank has to keep pace with the new technologies in the era of globalisation, otherwise it would become history.

He said that instead of becoming history the bank aims at creating history. The bank has connected most of its branches through core banking and the remaining branches will be connected to the core banking network. The associate banks of the bank have also connected all their branches through core banking, he added. Also present on the occasion were State Bank of Indore Managing Director C Narasimhan and other senior officials.