One of the five associate banks of State Bank of India, the south based State Bank of Travancore, has recorded a 31 percent hike in net profits, with the net profits currently standing at Rs. 132 crore. Last year during the same period, the bank had reported net profits at Rs. 101 crore.
Expressing his satisfaction on the bank's good performance, the Managing Director of SBT, Mr. P. Nandakumaran said that the enhancement in the bank's performance can be credited to the improvement in the general operations of the bank. It is also indicating a reverse movement in the rising cost of deposits which was bringing down its overall performance.
Reportedly, previous year the bank had managed to handle the challenge posed by NRI fixed deposits.
On the release of SBT's financials, Nandakumaran said, "Growth in advances resulting in a higher net interest income also aided in achieving a growth in the net profit."
The net interest income rose to Rs. 1511 crore, from Rs. 1325 crore, reporting a year-on-year increase in net interest income by 14.04 percent. Its net interest margin currently stands at Rs.2.50 percent, as compared to 2.63 percent recorded previous year.