JAIPUR: The latest half-yearly results show an increase of 37 per cent in the net interest income of the State Bank of Bikaner and Jaipur (SBBJ) to Rs.800.59 crore from that in the corresponding period in the previous year. The operating profit went up by 17 per cent for the half-year ended September 30 to Rs. 487.74 crore from Rs. 418.30 crore, recorded last year. However, the net profit slid to a slightly lower position at Rs. 230.66 crore as against Rs. 237.43 crore the previous year. The decline is attributed to escalation in staff expenses and increased provisions.
The Board of Directors of the Bank which met here also granted in-principle approval for a rights issue to raise Rs. 800 crore to augment Tier I capital. The issue is expected to be completed in the current financial year.
The bank's total business as on September 30 was Rs. 85,655 crore. Out of this, deposits accounted for Rs. 48,948 crore and advances Rs.36,707 crore. Income from cross-selling increased to Rs.10.67 crore during the half-year from Rs.6.92 crore achieved during the corresponding period last year.
At the end of September 2010, the capital adequacy ratio of the bank stood at 12.29 per cent (as per Basel II) norms, against the RBI benchmark of 9 per cent. The year 2010-11 has been declared by the bank as the ‘Year for Regaining Market Share.' The bank has identified 50 centres for opening new branches.
Base rate unchanged
SBBJ has kept its base rate unchanged at 7.75 per cent while reviewing it for the current quarter to maintain “competitive interest rates on loans and advances”. To mobilise retail deposits the bank has introduced two new deposits products, “SBBJ Khushi” and “SBBJ Anand,” wherein deposits for 555 days and 1000 days have been offered to retail customers during the festive season.
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