For the half-year ended September 2002, the bank posted a rise of 43 per cent in net profit to Rs 371.58 crore on interest earnings of Rs 2925.10 crore, which is 11 per cent growth over that of the same period last year.
Said Mr Krishnamurthy: Cost of deposits have come down to 5.51 per cent by September 2002 from 5.95 per cent end of September 2001. The cost of funds was also down to 5.33 per cent from 5.88 per cent. Simultaneously, the spread has also come down along with them to 2.74 per cent from 2.83 per cent. There is nothing to be concerned about lower spreads, we are confident that we can make up this thing on higher volumes.
The bank has witnessed a higher profit before tax (PBT) from foreign operations during the first half by posting 77.50 crore against the PBT of Rs 89.62 crore for the year ended March 2002. The bank has 19 branches or offices outside India. On Ketan Parekhs dues, Mr Krishnamurthy said that Rs 30 crore had been recovered already and the bank was not ready to offer any concessions on the dues from the capital market broker, the payorders worth Rs 137 crore issued by whom through Madhavpura Mercantile Co-operative Bank could not be realised by the bank in March 2001. The banks level of NPAs are still at a higher rate with 8.94 per cent as on September 30, 2002. However, in actuals the gross NPAs in September 2001, March 2002 and September 2002 were at Rs 2255 crore, Rs 2,304 crore and Rs 2,349 crore respectively.