SBM yearly net up 12.3% at Rs500.62 crore

State Bank of Mysore (SBM) today reported a 12.3% rise in net profit for the year ending March 31, 2011 at Rs500.62 crore compared to the previous fiscal.
  
The lower year-on-year growth is caused by the necessity to make higher provisions towards non-performing assets (NPA), SBM's managing director Dilip Mavinkurve told reporters here.
  
The percentage of gross NPA to gross advances rose to 2.51% as of last month-end as against 2% a year ago, he said, adding, about Rs280 crore in regard to agriculture debt waiver and relief scheme and coffee relief package turned NPA during the course of last fiscal.
   
Net interest income for the year rose 32.3% from Rs1,236 crore to Rs1,636 crore, while net interest margin went up to 3.71% from 3.19% a year ago. Cost of deposits declined to 5.56% from 6.01%, mainly owning to increase in CASA (current account, savings account) share from 31.06% to 33.97%.
 
"The bank proposes to reach a business level of over Rs96,000 crore in the year 2011-12 aiming a growth rate of 23%, from the present level of Rs77,667 crore," Mavinkurve said.
  
The bank has drawn up plans to open 90 new branches and install 156 additional ATMs in the current fiscal, and it's also in the process of adding more than 1,000 personnel to support its expansion plans.