The Telegraph
Since 1st March, 1999
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State Bank profit vaults 21%

Mumbai, Oct. 30: State Bank of India (SBI) has reported a 21 per cent rise in second quarter net profit to Rs 988.74 crore compared with Rs 817.2 crore in the same period previous year.

SBI registered a 70.41 per cent growth in operating profits at Rs 2860.91 crore for the quarter ended September 30, 2003, against Rs 1678.83 crore in the previous year.

According to analysts tracking the segment, the growth was in line with expectations. The bank said the growth in net profit was achieved due to an increased operating profit made during the first half of the year on “considerations of prudence”.

SBI has one-fifth of all the banking business in the country. The half-yearly net profit for the current financial year was at Rs 1889.10 crore against Rs 1580.40 crore in the previous year.

The gross non-performing asset (NPA) ratio of the bank has come down from 9.34 per cent on March 31 to 8.89 per cent on September 30, and the net NPA ratio from 4.50 per cent on March 31 to 2.58 per cent on September 30. The gross NPAs of the bank have declined from Rs 13,506 crore to Rs 13,135.71 crore during this period.

The bank’s net interest income went up 5.92 per cent from Rs 4814.71 crore in the first half of 2002-03 to Rs 5099.71 crore in the first half of 2003-04.

Average resources deployed in treasury operations in the country went up by Rs 23695 crore, recording a growth of Rs 13.05 crore over the corresponding period of last year.

The bank's non-food advances rose from Rs 1,32,396 crore in March to Rs 1,36,279 crore in September.

An improved performance in retail loans saw a growth of Rs 2992 crore in the first half of 2003-04 compared with Rs 2567 crore in the year-ago period.

The retail loans segment surged primarily due to the MOUs signed with Maruti Udyog Limited, Bajaj Auto and TVS Limited.

SBI has also tied up with state governments for providing housing loans to their employees. SBI has approved the opening of eight specialised housing branches to give a boost to home loan finance.

SBI said total deposits (excluding Resurgent India Bonds, India Millennium Deposits and Interbank) stood at Rs 2,56,221 crore on last Friday of September against Rs 2,42,988 crore in March. The cost of deposits also reduced to 5.76 per cent from 6.62 per cent in the first half of last fiscal.

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