Tough Year

March 22, 2007 (LBO) – State-owned National Savings Bank has seen a fall in profits in 2006 and slow deposit growth, through revenues climbed with rising interest rates, its latest results showed. At group level the bank had net assets of 13.1 billion (up 3.8 percent) and 12.9 billion as a stand alone entity, made up of 1.7 billion in share capital and 11.2 billion in reserves.

The bank had paid a billion rupee dividend to the government. NSB group revenue climbed 16 percent to 24 billion rupees (20.7 billion in 2005) while the bank on its own found interest income growing by 15.4 percent to 23.7 billion.

But group net profit after tax fell 9.6 percent to 1,919 million rupees in 2006 from 2,124 million as income tax and financial valued added tax took its toll.

Staff costs also went up 21.8 percent to 1,897 million rupees and retirement benefits rose 26 percent to 838 million.

Meanwhile the bank’s fixed deposits based received a setback, falling to 136.3 billion rupees from 138.8 billion in 2005, though savings deposits rose by a 13.9 percent to 70.6 billion rupees from 61.9 billion.

Total deposits, including margin deposits, grew by only to 4.85 percent to 212 billion ru