State Bank of Mysore Capital Adequacy ( March,2016) increases 101bps (y-o-y)

Mumbai : The Board of Directors of State Bank of Mysore approved the financial results for the year ended 31st March 2016 at its meeting held in Mumbai on 26rd April 2015. Bank has recorded impressive performance on many fronts viz. CRAR, Increase in Fee based income, CASA Ratio, besides expanding its retail business base, as reflected in the following parameters:-

** CRAR up 101 bps y-o-y
** Non Interest Income up 24%
** CASA @34.6% (up 90 bps)
** Retail Advances share upped to 50% of Loan Book(home loan growth -20%)

1. Profitability Metrics:
The Bank posted ` 358 crs profit for the year ended FY16 vis-a-vis ` 409 crs in the previous year, a 12% y-o-y decline mainly attributed to compliance with AQR guidelines, necessitating substantially higher provision, consequently impacting profitability.

However buoyed by 24% increase in fee-based income and control over other expenditure, suggesting better compliance and supervision, Bank managed to post decent profit in a difficult environment.

2.Business / Balance Sheet Metrics
The total business of the Bank reached a business level of ` 1.25 lacs crs. Retail deposits evidenced an annual growth of 15% during the year. Retail sector advances increased by 16%, with home loan growth evidencing a 5 years’ CAGR of 23%. However, in view of the tepid economic scenario, the growth in corporate advances was muted.

The Credit Deposit ratio stood at 79.8% as against the ASCB level of 77.5%. Net profit for the year stood at `358 crs. (PY-` 409 crs.) The Bank’s Board at its meeting dated 26.04.2015 has approved payment of final dividend of 60% for FY 2015-16, same as declared last year. The dividend payout ratio is 8.05%.

3. Asset Quality:
Due to compliance with AQR guidelines, resulting in additional slippages to the tune of ` 1,272 crs, Gross NPA increased to ` 3,636 crs (6.56%) from ` 2,100 cr (4%) in Mar'15. Consequently Net NPA also increased to ` 2,257 crs (4.18%) from ` 1,122 crs (2.16%) in Mar'15. However the ratio of Gross NPA +Restructured Advances to Gross Advances declined from 10.73% to 9.68% with Net NPA +Restructured Advances ratio standing at 7.19%.

Provision Coverage Ratio of the Bank stands at 59%

4. Capital Adequacy:
The Bank has been BASEL-III compliant and Capital to Risk Weighted Assets (CRAR) under Basel III is at 12.43%, against the regulatory benchmark of 9.00%. The overall CRAR increased by 101 bps during the year. CET-1 is at 9.01%. Net Worth of the Bank increased from ` 4,346 crs to ` 4,657 crs representing a growth of over 7.2 %.

5. Retail Sector:
** Total Agricultural advances, reckoned for Priority Sector Advance increased by 14.8% from ` 10,643 crs to ` 12,216 crs during the year. Fresh agricultural advances to the tune of ` 3,040 crs were sanctioned to 1.82 lakh farmers during FY 15-16.

** Micro and Small Enterprises (MSE): The Bank’s advance to Micro and Small Enterprises for FY15-16 at ` 5,873 crs against ` 5,000 crs for FY14-15, reflecting y-o-y growth of 17%. The Bank has been pro- active in dispensing credit under Prime Minister Mudra Yojana (PMMY) and as against the target of ` 415 crores, our Bank has disbursed ` 813 crs. (196 % of the target) covering 37,680 beneficiaries. On account of the good performance in MUDRA loan disbursement, our Bank has been conferred the "Best Bank Award under MUDRA Yojna for Emerging Bank- Runner Up" by CIMMSE, New Delhi.

** The Personal segment advances grew by ` 1,675 to reach a level of ` 12,175 crs. Housing loan grew by ` 1,078 crs in FY16 which at ` 6,450 cr constitutes 53% of Personal segment advances. The growth rate in FY16 in respect of retail segment advances was 16% growth over FY15 with 5 years’ CAGR @ 23%

6. Priority Sector Lending and Social Banking:
Total Priority Sector Lending of our Bank stood at ` 22,388 crs as at March, 2016, as against ` 19,401 crs during previous year, thereby registering a y-o-y growth of 15.4%. This works out to 40% of the Adjusted Net Bank Credit (ANBC of ` 55,796 crs), thus meeting RBI’s benchmark

7. Technology:
The Bank installed 82 new ATMs during the year, taking the total number of ATMs installed to 1,416, of which 1,224 are in the State of Karnataka. Our ATMs are part of 56,000 strong ATM network of the State Bank Group. The card base has crossed 54 lacs as on 31st March 2015. The Bank has also installed 5,021 POS machines, besides 400 Green Channel Machines, mobile POS, SSKs and e-lobby, which enabled us to migrate 49% of business through ADC.

8. Financial Inclusion :
Bank has drawn up a Comprehensive Financial Inclusion Plan for 2013-16 covering 745 Sub-Service Areas (SSAs), spread over 3,740 villages for providing banking outlets. Of the allotted 745 SSA’s, the Bank has already covered 216 SSA’s by Brick & Mortar branches and 529 SSA’s through Business Correspondent Agents.

Pradhan Mantri Jan-Dhan Yojana: The Bank has opened 9.38 lacs BSBD accounts under PMJDY up to Mar’16, with balances aggregating of ` 82 crs. The total number of accounts opened since the inception of FI programme stood at 16.22 lacs ,with balances of ` 130 crs. The Bank has successfully seeded 59% Aadhaar numbers in PMJDY accounts besides issuing 8,67,919 Rupay Cards to the PMJDY account holders.The zero-balance PMJDY accounts have reduced to 27%, below the national average of 28%.

9) Corporate Social Responsibility:
Bank has actively participated in the Swachchh Bharat Abhiyaan and donated ` 26.10 lac for constructing Green Toilet to rural schools besides contribution of ` 10 lacs for rejunevation and development of lakes situated in Mysuru.