The primary dealer subsidiary of the State Bank of India recorded an overall turnover (including repos) of Rs 23,487 crore, a rise of 19 per cent over the previous year, while the aggregate outright turnover increased by 32 per cent to Rs 17,788 crore.

During the year, the company garnered a 20 per cent share in the underwriting business, SBI Gilts' managing director and chief executive officer, N Gopalakrishnan told newspersons.

In the current year the company would continue to focus on retail clients, mostly providend funds, pension funds, corporates, mutual funds and a few high net worth individuals, that accounted for 15 per cent of turnover in the previous year, he said.

SBI Gilts would use its synergy with the State Bank group to expand its operations outside Mumbai. The companywould use select SBI branches to disseminate information on government securities of certain maturities and offer two-way quotes, he added.

It also proposes to use the National Stock Exchange's clearing corporation (NSCCL) network for the purpose, he said adding that it would earmark a certain portion of securities held in the depository for sale through this network. The current year would be more difficult than last year which witnessed high volatility and pressure on incomes post-Pokharan, Gopalakrishnan said adding that interest rates have bottomed out and any pressure on spreads would be on account of growth in demand for credit and increase in government borrowings.

Last year the company surpassed all its commitments to the Reserve Bank of India (RBI) as a primary dealer with regard to primary and secondary market operations.

The bidding success percentage was 55.9 per cent for treasury bills and 39.48 per cent for government dated securities as against the stipulated minimum of 40 per ent and33.33 per cent, respectively, he said.

In T-bills, the company regitered an outright turnover of 57,02 times the average month-end stock as against the prescribed minimum of six times.

Outright turnover in respect of government dated securities was 21.43 times the average month-end stock as against the required minimum of three times, he added.

Gross income rose by 24 per cent to Rs 84.84 crore during the year compared to Rs 68.60 crore, last year.