The Board of Directors of State Bank of Mysore approved the financial results for the year ended 31st March, 2009 at its meeting held in Mumbai on 21st April 2009. The highlights of the performance and working results are as under.

• NET PROFIT;
  The “Net Profit” of the Bank increased to Rs.336.91 crores from Rs.318.86 crores in the previous year.
  The Bank’s Board has declared a dividend of 100% for the year 2008-09.
  
• OPERATING PROFIT:
  The Operating Profit increased to Rs.653.52 Crores as on 31st March 2009 from Rs. 567.52 Crores as on 31st March, 2008.
  The increase in Operating Profit is on account of growth of around 10% in net interest income and an increase of 13.79% in other income.
  Interest on Advances grew, year on year, by 32.74% on the back of growth of 21.40% in the loan portfolio.
  Interest on investments increased, year on year, by 21.59%. The Income from Sale and Purchase of Securities increased to Rs.121.22 crores recording a growth of over 51%.
  The growth in Staff Expenses was contained at 13.92%, while other Operating Expenses increased by 0.43%, year on year.
  
• KEY FINANCIALS:
  The Return on Assets was at 0.91% and Return on Equity was at 20.16%.
  Net Worth of the Bank increased to Rs.1619.44 Crores from Rs. 1341.09 Crores representing a growth of 20.75%.
  The Bank has been BASEL – II compliant since 31st March 2008 and Capital to Risk weighted assets (CRAR) under Basel II, which was at 11.73% as on 31st March 2008 increased to 13.38% against the regulatory benchmark of 9%.
  Core CRAR was at 7.37%.
  The Bank’s Share, which hitherto was at a face value of Rs.100, stands split to Rs.10 with effect from 22nd January 2009. Consequently the Earnings Per Share (EPS) stands at Rs.94/- ( EPS on Rs.100 share was at Rs.886/- in March, 2008).
  The Book Value of a share stood at Rs.449/- (Rs.3725/- in March 2008 for a share of Rs.100 face value).
  “ Business per Employee” has risen from Rs.502 Lacs in March, 2008 to Rs.608 Lacs in March, 2009.
  

• DEPOSITS:
  Aggregate Deposits increased from Rs.26781 Crores in March, 2008 to Rs.32388 Crores in March, 2009 registering a growth of 20.94% (Rs.5607 Crores).

• ADVANCES:
  The total advances of the Bank reached Rs.25880 Crores in March 2009, registering a growth of 21.42% for the year.

• CREDIT DEPOSIT RATIO:
  The Credit Deposit ratio stood at 79.91% as at March 31st, 2009.

• PRIORITY SECTOR ADVANCES:
  Priority sector advances constituted 40.76% of Adjusted Net Bank Credit as at 31st March 2009 and the Bank has surpassed the bench-mark of 40%.
  The loans to Agricultural Segment had a satisfactory growth of 31.88%.
  Small Business Segment achieved a big growth of 35.16%.
  The Bank has achieved the Government of India (GOI) stipulated target of doubling SME credit as on 31.03.2005 well ahead of the deadline of March 2010 fixed by GOI.
  Loans to Housing Sector moderated due to economic downturn.
  Educational Loans however witnessed an increase of 42.70%.
  
  
• AGRICULTURE FINANCE:
  Agricultural advances continued to receive high priority and have recorded a growth of 31.88% to reach Rs.3839 Crores. The Bank has achieved the stipulated bench mark of 18%.
  Bank’s advances to agriculture in Karnataka stood at Rs.3026 Crores and constituted 25.50% of the total advances of the bank in the State.
  The Agriculture Debt Waiver and Debt Relief Scheme 2008 of Government of India has been implemented by the Bank. 1,09,957 beneficiaries were extended the benefit under the scheme to the tune of Rs.353 Crores.
  
  
• SPECIAL PACKAGE FOR HOUSING LOANS:
  In order to give a boost to the economy and support the flagging construction sector, Government of India announced several fiscal measures and the Indian Banks’ Association formulated a special package for small housing loans. The Bank in response introduced a Special Home Loan Scheme offering the following concessions/incentives for new Homes;
  • Rate of Interest at 8.5% for loans up to Rs.5 Lacs and Rs.9.25% for loans of Rs.5 Lacs to Rs.20 Lacs.
  • Free insurance cover on borrower’s life for the loan outstanding.
  • No processing fees and pre-payment charges/penalty.
  
  
• SPECIAL PACKAGE FOR MSME SECTOR:
  In response to the Stimulus package initiatives of Government of India, the Bank extended the following concessions/relaxations to MSE units.
  • Reduction in the rate of Interest on working capital limits
  • Sanction of Ad-hoc limits
  • Relaxation in cash margins on Letters of Credits/Guarantees
  • Restructuring of loans
  

• BOOKING OF NANO CAR:
  The Bank has entered into tie-up arrangement with Tata Motors for financing the new NANO car. The Bank is financing 100% for booking of cars.

• FINANCING OF SELF HELP GROUPS
  43561 groups were covered during the year with a credit assistance of Rs.281 Crores during the year, with a cumulative coverage of 78580 groups and credit assistance of Rs.559 Crores. This represents a growth of 124 % in numbers and 101 % in terms of the amount disbursed.
  The Bank has been secured “second Best Bank” award in the State of Karnataka instituted by NABARD under the Commercial Banks Category for the year 2007- 08.
  

• FOREIGN EXCHANGE BUSINESS:
  The Foreign Exchange profit for the year is at Rs.44.39 crores.
  Export Credit was impacted due to the global scenario and showed only marginal growth over the previous year.
  

• NPA MANAGEMENT
  Despite slowing down of the economy, which affected almost all the segments of business, NPAs have been controlled and is at Rs.368 crores from Rs.359 crores as at March ’08.
  While the Gross NPA ratio declined from 1.68% in March, 2008 to1.42% in March, 2009, the Net NPA ratio stands at 0.50%.
  

• TECHNOLOGY
  Value added services such as e –payment of direct & indirect taxes and transfer of funds through Real Time Gross Settlement, National Electronic Funds Transfer extended at all branches.
  
  
• ATMs:
  The Bank has installed 62 ATMs during the year. Bank’s 381 ATM’s are networked with the State Bank Groups’ over 11400 ATMs allowing easy access to anywhere anytime banking.
  Payment of Electricity Bills/Telephone Bills/Credit Card payment bills etc., are enabled in internet banking and through ATM’s of the Bank.
  On Line Trading facilities for making investments in Capital Market, D-Mat and Depository facilities are made available in designated branches.
  
• BRANCH EXPANSION
  The Bank opened 20 (twenty) General Banking Branches, 9 (nine) Centralised Processing Centres, 1 (one Zonal Office) and 2 (two) Regional Offices during the year. The total branch network of branches as on March 2009 stood at 674
  
• REGIONAL RURAL BANKS
  The Cauvery Kalpatharu Grameena Bank, sponsored by our Bank, has its Head Office at Mysore, and is covering Tumkur, Mysore, Hassan, Chamarajanagar, Bangalore Urban and Bangalore Rural Districts, having a network of 210 branches. The total deposits and advances of the Regional Rural Bank, as on 31st March 2009, stood at Rs.1466 Crores and Rs. 1144 Crores respectively. The Regional Rural Bank has been earning profit. The Bank has computerized all its branches.
  
  
• FUTURE PLANS:
  
  The Bank proposes to reach a business level of over Rs.75,000 Crores during the year 2009-10 at a growth rate of around 30%.
  The Bank proposes to open 43 (forty three) new Branches and 2 (two) Specialised Branches to support the envisaged growth.
  The Bank would be setting up 3 (three) Specialised Central Processing Centres under BPR initiatives. The Bank plans to install 450 Automated Teller Machines (ATMs).
  Smart Cards: To promote Branch-less Banking, Smart Cards have been put in place facilitating customers to transact banking business in remote places under the Business Correspondent Model. The Smart Card scheme has been introduced in Tumkur District on a pilot basis.
  
• MOBILE BANKING:
  The Bank proposes to start mobile banking services after obtaining approval of the RBI.
  It is our aim to emerge as the Bank of 1st Choice in Karnataka; to attract young and new customers and at the same time retain the existing customers. New IT enabled services and products are being introduced to suit the needs of all customers.
  

• BANGALORE 24th April 2009		DILIP MAVINKURVE MANAGING DIRECTOR

State Bank of Mysore
H .O.: K.G.Road, Bangalore - 560009, INDIA
Phone: 91 80 22353901 to 22353909 ; 22353473.
Fax: 91 80 22384480