The Board of Directors of State Bank of Mysore approved the financial results for the year ended 31st March, 2008 at its meeting held in Mumbai on 23rd April 2008. The highlights of the performance and working results are as under.

• NET PROFIT:
  The “Net Profit” of the Bank registered a growth of 28% to reach a level of Rs 318.86 Crores mainly backed by an increase of 20.35% in operating profit and lower provisions towards bad debts.
  
  The Bank’s Board has proposed/declared a dividend of 100% for the year 2007-08.

• OPERATING PROFIT:
  The Operating Profit increased to Rs.567.52 Crores as on 31st March 2008 from Rs. 471.58 Crores as on 31st March, 2007. The increase in Operating Profit is on account of growth of 11.52% in net interest income and an increase of 20.53% in other income. The Income from Sale and Purchase of Securities increased by over 105% to Rs.79.91 Crores. Interest on Advances and Investments grew by 50% and 23.72% respectively, year on year. Staff Expenses were contained at 6.29%, while other Operating Expenses increased by 14.18%, year on year.

• KEY FINANCIALS:
  The Return on Assets was at 1.08%.
  
  Return on Equity increased from 21.84% to 23.76%.
  
  Net Worth of the Bank increased to Rs. 1341.09 Crores from Rs. 1121.56 Crores representing a growth of 19.57%.
  
  The Bank’s Capital Adequacy Ratio (CAR) which was at 11.47% as on 31st March, 2007 increased to 12.34% against the regulatory benchmark of 9%. The Bank has complied with BASEL – II norms for Capital Adequacy as on 31st March 2008. Capital to Risk Weighted Assets Ratio (CRAR) as per BASEL – II Norms was at 11.73%. Core CRAR was at 6.54%.
  
  Earnings Per Share (EPS) increased to Rs.886/- from Rs.692/- in March, 2007.
  
  The Book Value of a share has increased to Rs.3725/- from Rs.3115/- in March 2007.
  
  “ Business per Employee” has risen from Rs.398 Lacs in March, 2007 to Rs.502 Lacs in March, 2008.

• DEPOSITS:
  Aggregate deposits increased from Rs.21,395 Crores in March, 2007 to Rs.26781 Crores in March, 2008 registering a growth of 25.17% (Rs.5386 Crores).

• ADVANCES:
  The advances of the Bank increased from Rs.16,772 Crores in March 2007 to Rs.21,315 Crores in March, 2008, registering a growth of Rs.4,543 Crores (27.10%) during the year.

• TOTAL BUSINESS:
  The Total Business of the Bank increased by Rs.9,983 Crores to reach a level of 48,096 Crores.

• CREDIT DEPOSIT RATIO:
  The Credit Deposit ratio stood at 79.59% as against 78.39% in March, 2007.

• PRIORITY SECTOR ADVANCES:
  Priority sector advances increased by Rs.897 Crores to reach a level of Rs.6,960 Crores constituting 43% of Adjusted Net Bank Credit.
  The Priority Sector Advances form 43.35% of the Adjusted Net Bank Credit (ANBC), thereby the Bank has surpassed the bench-mark ratio of 40% to ANBC.
  
  Impressive performance was achieved in Agricultural Segment which stood at Rs.2,911 Crores (growth of 30.60%)
  Small Business Segment which stood at Rs.709 Crores (growth of 45%) from Rs.489 Crores.
  
  The Bank’s advances to SME sector have registered an increase of Rs.456 Crores to reach a level of Rs.2261 Crores as on 31st March 2008 from Rs.1805 Crores in March 2007(at 3%). The growth is 25 % as against the Government of India guideline of Year On Year growth of 20%.
  
  Loans to Housing Sector increased from Rs.1,716 Crores to Rs.1,992 Crores (growth of 16.09%) as at the end of March’08.
  Educational Loans also witnessed increase of Rs.89 Crores (at 48%) from Rs.185 Crores to Rs.274 Crores.
  
  
• AGRICULTURE FINANCE:
  Agricultural advances continued to receive high priority and have recorded a growth of 30.60% to reach Rs.2,911 Crores from Rs.2,229 Crores.
  
  The Bank has achieved the benchmark ratio of 18% to Adjusted Net Bank Credit (ANBC) under Agricultural Advances.
  
  In Karnataka, Bank’s advances to agriculture sector stood at Rs.2,380 Crores and constituted 24% of the total advances of the bank in the State.
  
  Under the Special Agricultural Credit Plan (SACP), the bank disbursed Rs.2,243 Crores during 2007-08 as against Rs.1, 660 Crores disbursed in the previous year, achieving a growth of 35% against the stipulated target of 24%.
  
  
• FINANCING OF SELF HELP GROUPS:
  12,447 groups were covered during the year with a credit assistance of Rs.108.89 Crores during the year, with a cumulative coverage of 35,025 groups and credit assistance of Rs.278.29 Crores.
  This represents a growth of 35.54 % in numbers and 39.13 % in terms of the amount disbursed.
  
  The Bank has been adjudged as the Second Best Bank in SHG Credit Linkage for the year 2006-07 by NABARD.

• INVESTMENTS:
  The investments of the Bank in Securities, Debt and Equity stood at Rs.8,469.71 Crores.
  With prudent management of the Investments portfolio, the Yield there on stood at 8% as on 31st March 2008.

• FOREIGN EXCHANGE BUSINESS:
  The Foreign Exchange turnover of the Bank stood at Rs.33,696 Crores recording an increase of Rs.10,402 Crores (44.65%) over the last year.
  Export Credit stood at Rs.1,015.95 Crores as against Rs.1026.95 Crores of the previous year.

• NPA MANAGEMENT:
  Gross NPA was reduced from Rs. 384 Crores as on March, 2007 to Rs.359 Crores as on March, 2008.
  Gross NPA ratio declined from 2.29% in March, 2007 to 1.68% in March, 2008. Net NPA ratio declined from 0.45% to 0.42% in the same period.

• TECHNOLOGY:
  Value added services such as e –payment of direct & indirect taxes and transfer of funds through Real Time Gross Settlement, National Electronic Funds Transfer extended at all branches.

• ATMs:
  Bank’s 319 ATM’s are networked with the State Bank Groups’ over 8400 ATMs allowing easy access to anywhere anytime banking.

• SERVICES:
  Payment of Electricity Bills/Telephone Bills/Credit Card payment bills etc., are now enabled in internet banking and through ATM’s of the Bank.
  On Line Trading facilities for making investments in Capital Market, D-Mat and Depository facilities have been launched during the year.
  
  
• REGIONAL RURAL BANKS:
  The Cauvery Kalpatharu Grameena Bank, sponsored by our Bank, has its Head Office at Mysore, and is covering Tumkur, Mysore, Hassan, Chamarajanagar, Bangalore Urban and Bangalore Rural Districts, having a network of 203 branches. The total deposits and advances of the Regional Rural Bank, as on 31st March 2008, stood at Rs. 1,240 Crores and Rs. 1,010 Crores respectively. The Regional Rural Bank has been earning profit. The Bank has computerized all its 203 branches.
  
  
• FUTURE PLANS:
  The Bank proposes to reach a business level of over Rs.60,000 Crores during the year 2008-09. Towards this end, the Bank has set a business target of Rs.7,000 Crores in Deposits and Rs.5,500 Crores in advances during the year 2008-09, at a growth rate of 26%.
  
  The Bank has obtained RBI’s approval to open 30 (thirty) new Branches to support the envisaged growth.
  
  The Bank would be setting up around 20 (twenty) Specialised Central Processing Centres under BPR initiatives.
  
  The Bank proposes to install 65 (sixty five) Automated Teller Machines (ATMs) of which 43 (forty three) are Off-site and 22 (twenty two) are On-site.

  Smart Cards: To promote Branch-less Banking, Smart Cards are being introduced which will facilitate customers to transact banking business in remote places under the Business Correspondent Model. The Smart Card scheme is being introduced in Tumkur District on a pilot basis.

  To emerge as the Bank of 1st Choice in Karnataka and to attract the young and new customers and at the same time retain the existing customers, new IT enabled services and products are being introduced to suit the needs of each category of customers.

  Bank is aiming to achieve a higher mindshare of the customers to emerge as ‘Most Preferred Bank in the State.

  BANGALORE 24th April 2008		P.P.PATTANAYAK MANAGING DIRECTOR

State Bank of Mysore
H .O.: K.G.Road, Bangalore - 560009, INDIA
Phone: 91 80 22353901 to 22353909 ; 22353473.
Fax: 91 80 22384480