• FINANCIAL PERFORMANCE

  For the Year 2006-07, the Bank has earned a net Profit of Rs. 249.23 crores as compared to Rs. 216.72 crores in 2005-06, registering a growth of 15.0 per cent.
  
  The Operating Profit for the year was Rs. 471.58 crores as compared to Rs. 437.86 crores in the previous year.
  
  The Board has declared a Dividend of 100 per cent for the Year 2006-07.
  
  The total income has posted a Year on Year growth of 26.41 per cent due mainly to a growth of 34.08 per cent in interest income as compared to last year.
  
  The Net Interest Income improved from Rs. 611.67 crores in 2005-06 to Rs. 712.88 crores in 2006-07. A Year on Year growth of 16.55 per cent.
  
  Non Interest Income earnings during the Year were at Rs. 320.92 crores. The ratio of Non-Interest Income to total Income stood at 15.09 per cent. Efforts are on to improve the ratio further by increasing the focus on cross selling of Life Insurance, General Insurance, Mutual Funds and SBI Cards products.
  
  Return on Assets has been maintained at a healthy 1.10 per cent.
  
  Return on Equity also continues to be at as healthy 21.84 per cent.
  
  Earnings per Share improved to Rs. 692 from Rs. 602 in March 2006.
  
  The Net Worth of the Bank has increased to Rs. 1,121.56 crores from Rs. 927.35 crores as on March 2006.
  
  Capital adequacy ratio has been maintained at a healthy 11.47 per cent as against the statutory minimum of 9 per cent.

• BUSINESS PERFORMANCE

  The Bank’s total business has doubled in the last three years. The total business has grown by 118 percent from Rs. 17,492.70 crores as at March 2004 to Rs. 38,167.43 crores as at March 2007.
  
  The Bank has recorded impressive growth in deposits and advances much above the growth rate achieved by the All Scheduled Commercial Banks (ASCB)
  
  Aggregate deposits of the Bank have grown by 32.25 per cent from Rs. 16,178.53 crores as at March 2006 to Rs. 21,395.49 crores as at March 2007. The growth compares well with the 23.01 per cent growth recorded by ASCB. Consequently, the market share has improved by five basis points to 0.82 per cent.
  
  The Bank’s credit portfolio grew by an impressive 39.03 per cent as compared to ASCB growth of 27.61 per cent. Total advances increased by Rs.4,708.79 crores from Rs. 12,063.15 crores in March 2006 to Rs. 16,771.94 crores as at the end of March 2007. The Market share has improved by six basis points to 0.87 per cent.
  
  Aided by the robust growth in advances, the Credit Deposit Ratio improved from 74.56 per cent as at March 2006 to 78.39 per cent as of March 2007.
  
  Personal Segment advances registered a growth of 32.94 per cent from Rs. 2,327.10 crores as at March 2006 to Rs.3,093.56 crores as at the end of March 2007.
  
  Housing Loan portfolio recorded a growth of 38.58 per cent.
  
  The Bank accorded priority to ensure speedy sanction and disbursal of Educational Loans to all the deserving students. Educational Loans increased by 49.71 per cent from a level of Rs.123.67 crores as at the end of March 2006 to Rs. 185.15 crores as at the end of March 2007.
  
  The Bank’s advances to priority Sector increased from Rs. 4,493.08 crores as at the end of March 2006 to Rs. 5,810.10 crores, registering a growth of 29.31 per cent.
  
  Advances to Agricultural sector grew by 35.00 per cent from Rs. 1,657.58 crores at the end of March 2006 to Rs. 2,229.37 crores as at the end of March 2007.
  
  Under the Special agricultural Credit Plan, the Bank disbursed RS 1,660 crores during 2006-07 as against Rs. 1274 crores disbursed during 2005-06.

• MICRO FINANCE

  FINANCING SELF HELP GROUPS

  The Bank has achieved significant progress in providing credit linkage to Self Help Groups and has covered 11563 Self Help Groups with an outlay of Rs. 83.98 crores during 2006-07. The cumulative credit assistance to Self Help Groups as at the end of March 2007 was Rs. 169.40 crores covering 22576 groups.
  
  The Bank’s advances to Women as at the end of March 2007 stood at Rs. 818.56 crores covering 104,395 beneficiaries, well above the bench mark of 5 per cent of the Net Bank Credit.
  
  The Bank has Lead Bank responsibilities in Tumkur, Mysore and Chamarajanagar Districts. The Bank has launched Annual Credit Plans in all these three districts for the year 2007-08.
  
  The Bank has also successfully completed 100% coverage of all the families under Financial Inclusion in Chamarajanagar district – the district allotted to the Bank.

• INVESTMENT PORTFOLIO

  Total investments of the Bank increased from Rs. 5,733.32 crores as at the end of March 2006 to Rs. 7,034.08 crores as at the end of March 2007, recording a growth of 22.69 per cent.

• ASSET QUALITY

  The Bank has been paying constant attention to the improvement of the quality of assets. As a result, there has been a significant improvement in the asset quality.
  
  While the Gross NPA Ratio declined from 3.30 per cent as at the end of March 2006 to 2.29 per cent as at the end of March 2007, Net NPA Ratio declined from 0.74 per cent as at March 2006 to 0.45 per cent as at March 2007.
  
  Provision coverage of NPAs also improved from 77.61 per cent as at the end of March 2006 to 79.84 per cent as at the end of March 2007.

• FOREX BUSINESS

  Forex turnover increased from Rs. 18,854 crores in 2005-06 to Rs. 23,293 crores in 2006-07.

• BRANCH NETWORK

  The Bank has a branch network of 644 branches spread over 15 states. All the branches have been networked. The Bank has installed 256 ATMs (as on 12.05.2007) which are part of the State Bank Group ATM Network thus enabling access to more than 6400 ATMs across the country to our more than 5.86 lakh Card Holders.

• STAFF PRODUCTIVITY

  Aided by robust growth in business, Business Per Employee, a measure of staff productivity, has improved significantly from Rs. 256.06 lakhs in March 2006 to Rs. 397.41 lakhs in March 2007.

• NEW PRODUCTS AND SERVICES

  Internet Banking Facility for both Corporate and retail customers is now available at all the braches of the Bank. E-Payment facility is made available for payment of Service Tax and Central Excise payments. Other Value added facilities have been made available to the Bank’s customers for payment of utility bills like Telephone, mobile, SBI Cards etc.
  
  The Bank has introduced a new product “CORE POWER” on CBS platform which enables the customers of the Bank to operate their accounts at any of the Bank’s branches.
  
  The Bank has recently launched a hassle free facility for payment of BESCOM bills through its ATMs. While the facility is currently available in Bangalore, it is proposed to extend the facility to Bangalore Rural, Kolar, Tumkur, Chitradurga and Davanagere districts shortly.

• FUTURE PLANS

  During the current year, priority will be accorded for rebalancing the credit portfolio to give more focus to growth sectors such as Small and Medium Enterprises, Agriculture, Microfinance, Housing Loans to poor including Indira Aawaas Yojna and Educational Loans and, for restricting growth in the Sensitive Sectors.
  
  On Line trading facilities for making investments in Capital Market by customers, D-Mat and Depository facilities will be launched soon.
  

• BANGALORE 28.04.2007		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