Sbi Net Profits Up 25.57% In Q1

The State Bank of India (SBI) has reported a 25.57 per cent rise in net profit at Rs 579.78 crore in the first quarter ended June 30, 2001, as compared to Rs 461.70 crore earned in the corresponding quarter of the previous year.

SBI's interest income increased 20.56 per cent to Rs 7,141.42 crore during April-June 2001-02 (Rs 5,923.05 crore in the April-June quarter of 2000-01) while other income increased by 23.18 per cent to Rs 990.47 crore as against Rs 804.08 crore.

Thus, total income increased by 20.88 per cent to Rs 8,131.89 crore in the first quarter of 2001-02 over Rs 6,727.13 crore in the corresponding period of last year.

 

The net interest income (spread) of the bank has grown by 14.59 per cent to Rs 2,145.80 crore in the first quarter of 2001-02 as against Rs 1,872.65 crore achieved in the same period last year.

SBI has attributed this growth to a substantial rise in interest income, both on advances as well as on resources deployed in treasury operations.

SBI chairman Janki Ballabh said the bank expected to maintain the same rate of growth (25 per cent) throughout the current financial year on the back of improved credit offtake.

The interest expended increased by 23.33 per cent in the first quarter of 2001-02 to Rs 4,995.62 crore (Rs 4,050.40 crore in April-June 2000-01) and operating expenses increased a marginal 5.23 per cent to Rs 1,673.27 crore during the same period. The total expenditure was up 18.23 per cent to Rs 6,668.89 crore (Rs 5,640.37 crore).

The bank has reported a 34.62 per cent rise in operating profit to Rs 1,463 crore in the first three months of 2001-02 against Rs 1086.76 crore achieved in the same period last year.

The total provisions made for this quarter amounted to Rs 883.22 crore (Rs 625.06 crore), mainly due to increased provisioning for NPAs at Rs 450 crore (Rs 350 crore).

In a statement, the bank said "increased provisioning is envisaged as a proactive step towards building up provisions required for transition to 90 days payment delinquency norm in the financial year 2003-04".

Ballabh pointed out that SBI had set a target of bringing down the net NPA level to 5 per cent by the end of the current financial year. The net NPA was already below 6 per cent in the reporting quarter, he added.

The other provisions and contingencies stood at Rs 462.69 crore (Rs 423.87 crore) while provisioning for taxes has doubled to Rs 420.53 crore (Rs 201.19 crore).

The deposits of the bank (excluding Resurgent India Bonds/ India Millennium Deposits) as on the last Friday of June 2001 registered an increase of 14.34 per cent at Rs 2,05,626 crore as against Rs 1,79,839 crore on the last Friday of June 2000.

The advances as on the last Friday of June 2001 were higher by 7.83 per cent at Rs 1,09,377 crore as against Rs 1,01,429 crore on the last Friday of June 2000.

The average level of advances in India in the reporting quarter was higher by Rs 10,921 crore ( by 11.68 per cent) compared to that in the first quarter of the previous year. The average yield on advances declined marginally to 10.17 per cent from 10.19 per cent.

The average resources deployed in treasury operations in India went up by Rs 39,989 crore, recording a growth of 34.79 per cent over Q1 of 2000-01.

The average yield was lower at 10.06 per cent as compared to 10.17 per cent in the first quarter of 2000-01 due to declining interest rates.

The average deposits increased by Rs 27,350 crore (16.14 per cent year-on-year growth) while the cost of deposits saw a reduction from 7.52 per cent in the first quarter of 2000-01 to 7.13 per cent in the same period of 2001-02.