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Our Bureau

Net interest income lower by around 6 pc

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Mumbai Jan. 23 Higher provisioning and lower net interest income have pulled down the net profit of State Bank of India by 4.49 per cent for the quarter ended December 31, 2006.

The country's largest bank reported a profit after tax of Rs 1,065.06 crore for the third quarter against Rs 1,115.19 crore in the year-ago period.

Flat performance

A senior bank official said profit for the third quarter is virtually flat when compared to that of the corresponding period, which included a one-time gain from the income-tax refund and exchange rate gain on India Millennium Deposit. Excluding these, the bank has done fairly well as seen in the rise in operating profit.

The bank's total income has gone up marginally to Rs 11,546.97 crore (Rs 11,398.62 crore) while operating profit rose by 9.8 per cent to Rs 2,854.96 crore (Rs 2,599.65 crore).

Provisions and contingencies for the third quarter increased to Rs 1,166.19 crore against Rs 469.81 crore. Provisions for non-performing assets are put at Rs 410.6 crore. Net NPA has declined to 1.45 per cent in the third quarter from 1.67 per cent.

Net interest income has gone down by around 6 per cent to Rs 3,951.33 crore (Rs 4,219.88 crore) for the quarter.

For the quarter, the net interest margin was marginally down.

For the nine-month period, it stood at 3.29 per cent, which the bank official said was up by 44 basis points.

SBI's scrip closed at Rs 1,173.95, down from the previous close of Rs 1,224.20 on the BSE.

In the nine months ended December 31, 2006 the bank recorded a 14.22 per cent decline in net profit to Rs 3,048.11 crore (Rs 3,553.38 crore). "Excluding the effect of one-time items till nine months FY06, net profit this year is higher," said the statement.

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