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SBI net rises 16.8 pc in Q3

Our Bureau

Mumbai , Jan. 30

LOWER cost of funds and diversification of loan portfolios have enabled State Bank of India to report a 16.8 per cent growth in net profit at Rs 919.44 crore for the third quarter ended December 31, 2003, as compared to a net profit of Rs 787.05 crore in the corresponding period of the previous year.

Total income for the period was Rs 8,559.34 crore (Rs 9,066.92 crore). This is inclusive of interest earned at Rs 7,437.43 crore (Rs 7,705.48 crore) and other income at Rs 1,361.44 crore.

Treasury income of the bank has gone down to Rs 4,692.89 crore (Rs 5,195.65 crore).

Total expenditure of the bank was lower at Rs 6,759.0 crore (Rs 7,194.31 crore), this is inclusive of interest expended at Rs 4,664.44 crore (Rs 5,309.99 crore) and operating expenses at Rs 2,094.61 crore (Rs 1,884.32 crore).

Announcing the results, Mr A.K. Purwar, Chairman and Managing Director, State Bank of India, said going forward the bank's thrust would be towards retail advances.

For the nine-months ended December 31, 2003, the bank posted a net profit of Rs 2,808.54 crore, as against a net profit of Rs 2,367.45 crore in the corresponding period, the previous year.

During this period, net interest income of the bank went up by 9.19 per cent to Rs 7,872.72 crore (Rs 7,210.20 crore).

Average level of advances of the bank were at Rs 13,01,01 crore (Rs 11,89,84 crore).

Average deposits in the country rose by 11.95 per cent. Incremental deposits growth was at Rs 7,000 crore. Total provisions made for the nine-month period ended December 31, 2003, amounted to Rs 4,379.60 crore (Rs 2,899.95 crore). Provisions for NPAs were at Rs 2,660.32 crore and for investment depreciation at Rs 222.57 crore.

Gross NPAs of the bank amounted to Rs 1,38,46 crore (Rs 1,58,56 crore), while net NPAs were at Rs 4,076 crore (Rs 5,994 crore). Restructured loans amounted to Rs 200 crore and loans restructured through the corporate debt restructuring mechanism were at Rs 3,830 crore.

Under the Sarfesi Act 2002, the bank has issued 11,892 notices involving Rs 4,862 crore and has made recoveries to the tune of Rs 105.48 crore as on end December 2003.

Retail credit grew by Rs 5,552 crore during the nine-month period, December 31, 2003, as compared with a growth of Rs 4,468 crore in the corresponding period, the previous year.

Speaking at a press conference held here on Friday, Mr Purwar said, "There is a lot of emerging demand for credit from the infrastructure sector and especially from the power sector. In fact, several proposals from the power sector are currently under consideration with us."

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