|
|
Jan-Mar
2007(Rscr) |
Jan-Mar
2008(Rscr) |
Growth
(%) |
|
Net interest income |
4,546.70 |
4,800.60 |
5.58 |
|
Non-interest income |
2667.72 |
2,817.22 |
5.60 |
|
Operating profit |
3968.41 |
4,372.38 |
10.18 |
|
Net profit |
1,493.19 |
1,883.23 |
26.12 |
| |
| Provisions for standard assets dropped 16.79 per cent to Rs 248.95 crore, while investment depreciation was 35 per cent lower at Rs 216.78 crore. Loan loss provision, however, went up nearly 46 per cent to Rs 1,067 crore.
|
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| A large number of nationalised banks had seen their profits drop due to a fall in net interest income as they grappled with high-cost deposits. SBI, however, managed to see a rise in net interest income, though it was only 5.58 per cent. The bank's net interest margin was estimated at 3.07 per cent in 2007-08 compared to 3.09 per cent in the previous year.
|
| |
| Unlike a host of large banks, SBI saw a healthy rise in advances, which went up 23.4 per cent to 4,22,181 crore during 2007-08, with the retail segment seeing a steep increase.
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| For instance, home loan flows rose 18.7 per cent and auto loans went up 29.9 per cent. The yield on advances went up to 9.90 per cent in 2007-08 from 8.67 per cent in the previous financial year.
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| |
| Deposit too grew 23.4 per cent to Rs 4,35,521 crore at the end of March 2008, with current and savings accounts (CASA) maintaining their share at 43 per cent. In a statement, the bank said its share in the deposits market moved up from 14.8 per cent at the end of March 2007 to 15.4 per cent at the end of March 2008.
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| The board has recommended a dividend of Rs 21.50 per share for 2007-08, the SBI informed the Bombay Stock Exchange.
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| SBI's net non-performing assets (NPA) rose to 1.78 per cent in 2007-08 from 1.56 last year with a bulk of it on account of farm loans. The bank said that gross NPAs rose by Rs 2,800 crore. Of this Rs 1,000 crore was during the fourth quarter due to defaults after reports of the government's plans for a farm debt waiver started towards the end of December.
|
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| Another Rs 400 crore was added due to problems with two shipping companies and one steel firm but the bank termed them as temporary blips. Besides, it said, the industrial slowdown and poor exports affected small and medium companies.
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| "We expect to see the release of Rs 1,500-2,000 crore from NPA-related provisions after the government starts paying for the farm loan waiver," SBI chairman O P Bhatt said.
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| No rise in benchmark rate: Bhatt
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| State Bank of India ruled out the possibility of increasing the benchmark prime lending rate (PLR) in the short term. "There is enough liquidity in the market and credit growth is slow. There is hardly any chance of an upward revision of PLR," SBI Managing Director O P Bhatt told reporters. |
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