In a statement, SIB chairman A Sethumadhavan said despite difficult times this year owing to poor credit offtake, a steep fall in margins and overall slackness in the economy, the bank succeeded in registering a growth in its net profit to Rs 29.12 crore from Rs 24.21 crore during the first half of the last fiscal.
The operating profit was Rs 77.01 crore compared to Rs 70.3 crore last year. The net profit was arrived at after making pro rata provision for NPAs under the new 90 days loan impairment norms.
The overall profitability of operations on a year-to-year basis showed a modest increase with a growth in non-interest income from Rs 47.73 crore to Rs 61.67 crore. The ratio of operating profit to average working funds declined from 2.63 per cent to 2.35 per cent and net interest margin to 2.48 per cent from 3.11 per cent.
While the average cost of deposits fell to 7.96 per cent from 8.26 per cent, the yield on advances also declined to 11.01 per cent from 12.29 per cent.
The bank also succeeded in restricting the slippage in the average yield on investments in Government Securities (G-Sec) from 11.34 per cent to 10.55 per cent. The overall return on securities transactions was 13.62 per cent compared to 13.8 per cent the previous year. The per employee business increased to Rs 2.5 crore from Rs two crore and the EPS from Rs 13.53 to Rs 16.27.
On the business front, the overall year-to-year business showed a reasonable growth of 14.64 per cent. Deposits increased from Rs 5,260 crore to Rs 6,099 crore and advances from Rs 2,778 crore to Rs 3,155 crore and investment from Rs 2,228 crore to Rs 2,663 crore.
Regarding technological upgradation, 63 key branches have been linked to the banks centralised data centre in Kochi and anywhere banking facility had been extended to all these branches. The bank is marketing ICICI Prudential products.
The bank has 384 branches and 49 extension counters and has proposed to add eight more branches in the current year with five in Kerala and one each in Mumbai, Bangalore and Vijayawada.