Mumbai, July 24: State Bank of India (SBI) today met expectations when it reported a 20 per cent growth in its first-quarter net profit at Rs 913.50 crore against Rs 763.20 crore in the corresponding period of the previous year.
The heart-warming performance, helped in large part by gains from treasury operations, saw the net interest income increase 12.15 per cent from Rs 2415.67 crore in the first quarter of the last financial year to Rs 2709.18 crore. This was largely the result of substantial increase in interest income arising from treasury operations.
Other income also played a significant role in sprucing up the scorecard, rising 69 per cent to Rs 1748.35 crore from Rs 1034.50 crore in the corresponding period last year. A large part of the increase came from profits made on the sale of investments.
Retail advances in the personal loan segment grew Rs 1185 crore. Outstanding personal loans stood at Rs 25,553 crore at the end of June 2003. Housing finance grew Rs 783 crore to Rs 12934 crore in the three-month period.
First-quarter rise in retail advances was 4.86 per cent over March 2003, constituting 20 per cent of the bank’s gross domestic advances as on last Friday of June.
However, provisions made to hedge against troubled loans more than doubled to Rs 800 crore from Rs 450 crore made in the same quarter of last financial year.
While provision for taxes stood at Rs 852.18 crore (Rs 474.95 crore) a write-back of provision to the extent of Rs 86.74 crore has been made in the balance-sheet, an increase from the Rs 67.49 crore that was made last year.
Investors elated at the numbers sent the bank’s share to a day’s high of Rs 408 after opening at Rs 401.50. It closed at Rs 406.30 in a 2.11 per cent gain over its previous finish.
Operating profit was up 51 per cent at Rs 2582.24 crore compared with Rs 1715.96 crore. This was achieved through an increase in net interest income and other income, and by containing operating expenses.
The capital adequacy ratio stood at 13.77 per cent in June, up from 13.19 per cent in the first quarter of 2002-03.
SBI said average resources deployed in treasury operations went up Rs 28154 crore, a growth of 16 per cent. However, the average yield slipped to 9.07 per cent from 9.75 per cent, due to a decline in interest rates.
Deposits measured on the last Friday of June were up 11.47 per cent at Rs 2,30,100 crore while gross advances stood at Rs 1,29,060 crore, a rise of 10.50 per cent.
Tata Chem net
Tata Chemicals Ltd has posted a 42.69 per cent increase in net profit at Rs 48.53 crore in the first quarter ended June 30 compared with Rs 34.01 crore posted during the same period of the previous fiscal.
However, the company’s income from operations (net of excise) fell by 6 per cent to Rs 307.90 crore during the quarter under review compared with Rs 326.64 crore posted a year ago.