The bank in a press statement said that the loss is due to aggressive provisioning for non-performing assets (NPAs).
Significantly, there was no new additions to the list of non-performing assets. Had it not been for the additional provisioning, the net profit would have been Rs 26.67 crore for 2003-04, the press statement read.
Banks operating profit, however, saw a rise to Rs 35.3 crore during the same period, as against Rs 1.7 crore in the preceding fiscal. Net income rose by 10.5 per cent to Rs 122.6 crore (Rs 111 crore). There was an one per cent increase in net interest income to Rs 78.3 crore (Rs 77.5 crore). Meanwhile, other income increased by 32.4 per cent to Rs 44.32 crore (Rs 33.5 crore), primarily because of increased contribution from recently strengthened derivative platform and fixed income business.
These enabled the bank to conservatively increase provisions existing as on March 31, 2003 by Rs 39.75 crore. Net worth of the bank stood at Rs. 429.04 crores (including subordinated debt).
Due to higher mobilisation efforts, deposits increased by 10 per cent to Rs 1,737.1 crore (Rs 1,579 crore), while advances declined by 7.6 per cent to Rs 1,314.9 crore (Rs 1,422 crore).
During the same period, investments grew to Rs 1001.4 crore (Rs 917.9 crore). Banks balance sheet size also increased by 10.06 per cent to Rs 2,995.3 crore (Rs 2721.5 crore).