SBT posts marginal increase in net profit for 2015-16

KOCHI: State bank of Travancore (SBT) has posted marginal increase in net profit for the year 2015-16. The net profit rose by about one per cent to Rs 337.73 crore from a year earlier.

The bank has declared a dividend of Rs 5 per share for the year. The 92% increase in provisions during the year has impacted the profitability of the bank.

The operating profit of the bank grew 31% to Rs 1798 crore driven by a hike in net interest income and fee income. `` The bank has been consistently replacing high cost deposits and bulk deposits with retail deposits to cut interest costs,’’ said SBT MD Jeevandas Narayan.

The bank crossed the milestone of Rs 1 lakh crore in deposits which reached 101,119 crore, showing 11 % increase over previous year. However, the bank’s total advances fell 4% to Rs 67004 crore.

The gross and the net NPAs of the bank have increased. While the gross NPA moved up to 4.78% from 3.37%, the net NPA stood at 2.77% as against 2.04%.