Indore Bank net profit increases | india | Hindustan Times
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Indore Bank net profit increases

STATE BANK of Indore recorded an increase of Rs 5.93 crore in the net profit of Rs 139.11 crore in 2005-06 over the net profit of the previous year Rs 133.18 crore. This and other details were released by the planning department at a bank?s board of directors meeting held in Mumbai today.

india Updated: Apr 30, 2006 15:04 IST

STATE BANK of Indore recorded an increase of Rs 5.93 crore in the net profit of Rs 139.11 crore in 2005-06 over the net profit of the previous year Rs 133.18 crore. This and other details were released by the planning department at a bank’s board of directors meeting held in Mumbai today.

The bank had been concentrating on growth of income from core operations. During the year, total interest income of the bank had increased by 19 percent from Rs 11,09.83 crore to Rs 1322.69 crore and interest on advances with an increase of Rs 224.52 crore had registered a growth of 36 percent. The bank had made a profit of Rs 78.32 crore from domestic treasury operations.

The overall business level had grown by 24 percent during the year and the total business level had crossed the milestone of Rs 28,000 crore. The bank’s total deposits increased by over 20 percent from Rs 13807.07 crore to Rs 16660.71 crore and gross advances increased from Rs 9,253.45 crore to Rs 12,022.10 crore. The advances to priority sector increased by Rs 1106.78 crore reaching a level of Rs 5189.82 crore forming 43.60 percent of net bank credit, which crossed the benchmark of 40 percent.

The bank’s advances to agriculture increased from Rs 1666.43 crore to Rs 2156.58 crore forming 18.12 percent of net bank credit against a benchmark of 18 percent. The bank continued to aggressively market the Kisan Credit Cards (KCC) and issued 27406 KCCs during the year. The disbursement under the Special Agriculture Credit plan amounting to Rs 814.73 crore forms
119 percent of the plan outlay.

A ‘no frills saving bank account’ established a liability centre in Indore for opening bulk savings bank accounts. Centralised processing centres for housing personal loans and for loans to SMEs were also introduced.

The bank organised 13276 self-help groups of which 7315 were exclusively for women and initiated several steps for the recovery of NPAs.

The ambitious core banking solutions project was completed in the first week of November 2005 before the scheduled date, thereby enabling the bank to offer technology leveraged products and services to its customers. Internet banking facility for retail as well as corporate clients was introduced in identified RTGS facility centres across 315 branches in metro, urban and semi-urban centres.

The bank installed 214 ATMs and all the branches of the bank were networked to more than 5500 State bank group ATMs spread throughout the country. The bank plans to install 86 more networked ATMs taking the total number to 300 by the end of March 2007.

During 2005-06 six new branches were opened including four in the State taking the total number of branches to 440. For the financial year 2006-07 the bank has targeted a deposit growth of Rs 3900 crore and credit expansion of Rs 3250 crore.