The bank has posted a net profit of Rs 40.26 crore as against Rs 80.33 crore in the last year. Though the interest income has reduced by 19 per cent to Rs 724.22 crore from 897.50 crore in the previous year, other income has increased from Rs 164.44 crore to Rs 229.24 crore signifying that the banks fee-based earnings have grown during the year under review.
Speaking to media persons after the board meeting, Mr Sudhakar Gande, managing director, said that it had consciously brought down the high cost deposits by about 38 per cent from Rs 3,891 crore to Rs 2,414 crore.
Further, the bank has claimed that it has reduced the capital market exposure by 54.80 per cent during the year from Rs 995 crore to Rs 450 crore and it will further bring down the stock market exposure in the current year, Mr Sudhakar said.
The bank has written-off loans and investments to the tune of Rs 285.40 crore and it has created a provision to the tune of Rs 150.56 crore, including the adhoc provision of Rs 20 crore, which is about 35 per cent of the gross NPAs. To support the exercise, the bank has drawn down Rs 201.95 crore from reserves with RBIs approval, Mr Sudhakar said.
Coming to the expansion plans, Mr Sudhakar said that the bank planned to enhance the branch strength from 100 now to 120 and ATM net work from existing 200 to 400 during 2002-03.
Besides, the bank has proposed to re-christen its customer profile by focusing small and medium corporate, which has the potential to grow big in about four to five years. As part of the new strategy, the bank has launched recently a new initiative called Unnati, a comprehensive banking solutions to small and medium enterprises across the country, Mr Sudhakar said.