SBI net up 18% in first quarter

State Bank of India (SBI) reported an 18 per cent increase in its net profit for the first quarter of the current fiscal at Rs 1,058.40 crore compared with Rs 900.36 crore during the corresponding year-ago period.

Interest income on treasury operations also decreased by 4.65 per cent, while the average yield on advances declined to 7.82 per cent from 8.57 per cent, a bank release said.

The decline in interest rates adversely impacted the average yield of the bank, which declined to 8.03 per cent against 9.06 per cent in the first quarter of the previous fiscal.

Other income also declined 12.22 per cent on account of a decline in profit on sale of investments, which dipped sharply from Rs 815.37 crore during April-June last year to Rs 149.94 in the first quarter of the current fiscal.

SBI's operating expenses shot up 26.73 per cent, mainly on account of higher deprecations, rent, taxes, repairs and staff costs.

The bank's average level of advances in India, however, increased nearly 14 per cent to Rs 17,666 crore during the first quarter, while average deposits in India (excluding Resurgent India bonds and India Millennium Deposits) rose by almost 20 per cent to Rs 49,240 crore.

Housing advances increased by Rs 987 crore during the first three months of the current fiscal and the total outstanding at the end of June 2004 was Rs 18,054 crore.

Retail advances in personal segment also grew by Rs 1,377 crore and outstanding personal segment advances aggregated Rs 34,533 crore at the end of June 2004.