State Bank of Travancore
|Type||Public (BSE, NSE:SBT)|
Capital Markets and
|Founded||Trivandrum, 12 September 1945 (as Travancore Bank Ltd)|
|Headquarters||Poojappura, Thiruvananthapuram, India|
|Key people||Managing Director: Shri.P.Nanda Kumaran.|
|Products||Investment Banking, Consumer Banking, Commercial Banking, Retail Banking, Private Banking, Asset Management, Pensions, Mortgages.|
State Bank of Travancore (SBT), is a subsidiary of the State Bank Group and also has private share-holders. It is the premier bank of Kerala, India, where it has 676 branches. Overall, SBT has a network of over 879 branches spread over 16 Indian states.
For the year ended 31 March 2011, P Nandha Kumaran, Managing Director of State Bank of Travancore, reported growth of 21% in operating profit at Rs. 1,176 crore against Rs. 972 crore in the previous year, driven by growth of 21% in Net Interest Income at Rs. 1,696 crore against Rs. 1,400 crore last year.
Total income improved by 18% to Rs. 5,810 crore from Rs. 4,906 crore. Total expenditure, excluding provisions and contingencies, stood at Rs. 4634 crore against Rs. 3,934 crore with interest expenditure accounting for Rs. 3,533 crore.
After taking into account additional provisions for staff, NPA and income tax, the net profit has moved up by 6% to Rs. 728 crore from Rs. 684 crore. Operating Profit for the fourth quarter was higher by 13% at Rs. 315 crore against Rs. 278 crore in the same quarter last year. Net Profit for the quarter improved to Rs. 238 crore from Rs. 217 crore. The directors declared a total dividend of Rs. 18 per share. The bank had already paid an interim dividend of Rs. 8 per share in October 2010. Earnings per share improved to Rs. 146 from Rs. 137 and the book value to Rs.641 from Rs. 532. The net interest margin has improved from 2.82 to 2.87%.
Return on Assets stood at 1.1%, while Return on Equity was at 25%, which continues to be amongst the highest among Public Sector Banks. The Bank’s Board of Directors had earlier approved a Rights Issue of shares to the shareholders for an amount of Rs. 500 crore. The approvals from the RBI and State Bank of India for the issue have been received. The capital augmentation will serve to improve the Capital adequacy ratio of the Bank in 2011-12.
The overall business of the bank registered a growth of 20% at Rs. 1,04,202 crore against Rs. 89,345 crore with Deposits accounting for Rs. 58,158 crore (Rs. 50,883 crore) and Advances Rs. 46,044 crore (Rs. 38,461 crore). Priority sector advances grew by 22 per cent to Rs. 17,353 crore from Rs. 14,260 crore.
The share of Priority sector lending has moved to 44% of the Adjusted Net Bank credit, up a little from the previous year and ahead of the stipulated benchmark of 40%. Agriculture segment was the star performer during the year. The advances under this segment moved up by 70% to Rs. 5,580 crore from Rs. 3,289 crore at the end of previous year.
The percentage of Gross NPAs to Gross Advances stood at 1.8% on 31st March 2011 with the Gross NPA level at Rs. 835 crore. The percentage of Net NPA to Net advances remained just below 1%. The Bank’s Provision Coverage Ratio stood at 69%, and is comfortably ahead of the timelines agreed with RBI to reach 70% coverage ratio by September 2011. The total CRAR position under Basel-II framework as on 31/03/2011 was 13% against a minimum of 9% stipulated by RBI. The Tier-I CRAR as on 31/03/2011 at 9%. The Bank has further expanded its credit deployment in Kerala, particularly in Housing Loans, Car Loans and other Retail Loans. Bank’s CD Ratio in Kerala has improved from 59% in March 2010 to 62% in March 2011.
Financial inclusion 
The Bank is actively pursuing initiatives to improve Financial Inclusion and Financial Literacy. 29 villages in Kerala and 14 villages in Tamil Nadu have been allocated to the bank for financial inclusion. The Bank has set up Customer Service Points and commenced enrollments in 18 villages. Bank has also opened a branch in Perumanna village in Calicut district, which is one of the 29 villages allotted to the bank. The products offered under In financial inclusion, under “SBT-SAHAYA HASTHAM” umbrella consists of an SB Account (Zero balance), A Recurring Deposit account and an Overdraft (General Credit Card) for Maximum of Rs. 10,000/- for the rural poor. The Bank opened 44 new branches during the financial year, taking the total number of branches to 792. The Bank has on hand RBI approval to open 75 more branches, and Internal approvals to open 55 more branches under General permission accorded by Reserve Bank of India. Alternative channel reach was expanded further; 107 new ATMs were installed during this financial year, taking the total ATMs to 833. These ATMs are part of over 25,000 strong State Bank Group ATM Network. 621 (79%) of the Bank’s branches are in the state of Kerala. Bank’s CD Ratio in Kerala has improved from 59% in March 2010 to 62% in March 2011. Rural Self-employment Training Institutes have been started by the Bank in Wayanad, Pathanamthitta, Alappuzha, and Kottayam for providing skill upgradation training to the rural youth with focus on BPL category. The 4 institutes had trained 9847 persons and 95% of the people are women beneficiaries, majority of the trainees are reported to be successful in starting self-employment ventures. Bank has signed MoU with Unique Identification Authority of India (UIDAI) to become registrars for UID Project of the Government of India.
The bank was established in 1945 as the Travancore bank Ltd, at the initiative of C. P. Ramaswami Iyer, then Divan of Travancore. Following violent resentment against the dictatorial rule of Sir. C.P.Ramaswamy Iyer, the bank no longer credits his role. Instead, the Bank now credits the Maharaja of Travancore as the founder, though the Raja had little to do with the founding. Although the Travancore government put up only 25% of the capital, the bank undertook government treasury work and foreign exchange business, apart from its general banking business. Its registered office was at Madras. In 1960, it became a subsidiary of State Bank of India under the SBI Subsidiary Banks Act, 1959, enacted by the Parliament of India.
Between 1959 and 1965, SBT acquired numerous small, private banks in Kerala.
- 1959: SBT acquired the assets and liabilities of Indo-Mercantile Bank, which Sri Popatlal Goverdhan Lalan had helped found in Cochin in 1937.
- 1961: SBT acquired Travancore Forward Bank, Kottayam Orient Bank, and Bank of New India (est. 1944) after the Reserve Bank of India put the banks under moratorium.
- 1963: SBT acquired Vasudeva Vilasom Bank.
- 1964: SBT acquired Cochin Nayar Bank (est. 1929) and Latin Christian Bank after the Reserve Bank of India put the banks under moratorium. It also acquired Champakulam Catholic Bank.
- 1965: SBT acquired Bank of Alwaye (est. 1942), and Chaldean Syrian Bank, which several leading families of Syrian Christian origin had founded in 1918.
See also 
- http://www.indiabondwatch.com/backend/bond/PDF/900/CN000836.pdf Private placement of bonds
- M.A. Ooman. 1976. "Rise and Growth of Banking in Kerala". Social Scientist 5 (3), pp. 24-46.
- Find IFSC Code of STATE BANK OF TRAVANCORE branches in India, or Branch Details by IFSC Code