Financial Daily from THE HINDU group of publications
Sunday, Oct 31, 2004
Financial Daily from THE HINDU group of publications Sunday, Oct 31, 2004 |
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Public Sector Banks Corporate Results - Public Sector Banks Money & Banking - Financial Performance SBI Q2 net rises 9.42 pc on growth in advances Our Bureau
Mumbai , Oct. 30 A SIGNIFICANT growth in advances coupled with lower provisioning helped State Bank of India report a 9.42 per cent rise in net profit at Rs 1,081.89 crore for the second quarter ended September 30, 2004, as against Rs 988.78 crore in the year ago period. Its advances grew by 24 per cent to Rs 1,81,093 crore (Rs 1,45,859 crore). Provisions and contingencies were lower at Rs 757.39 crore (Rs 1,511.58 crore). Provision for depreciation on investments was at Rs 344.03 crore. Mr A.K. Purwar, Chairman, SBI, ascribed the growth in profits to the increase in advances. "The profits have been good, as we have done good business in trade, agriculture and retail." The margins are high in the retail sector, he said. ``While 24 per cent growth in advances seems unsustainable, we are revising growth estimate for credit to 18.5-19 per cent from earlier 16.5 per cent for the second half of the financial year'', Mr Purwar told presspersons. Although the average yield on advances declined to 7.78 per cent from 8.43 per cent in the first half of the financial year due to falling interest rates, the interest income increased by 9.39 per cent due to volume growth in advances. Total income of the bank was lower at Rs 9,737.43 crore (Rs 10,269.01 crore). The share of interest income in the total income increased to Rs 8,084.84 crore from Rs 7,613.94 crore but other income declined to Rs 1,652.59 crore from Rs 2,855.07 crore. (The other income in the year ago period included Rs 1,010.32-crore premium on sale of Government securities under the Government's debt buy-back scheme.) Profit from sale of investments dropped sharply to Rs 815.37 crore from Rs 1,512.87 crore. Total expenditure was at Rs 7,132.50 crore (Rs 7,408.10 crore). This comprised interest expended at Rs 4,705.03 crore (Rs 5,198.91 crore) and operating expenses at Rs 2,427.47 crore (Rs 2,209.16 crore). During the half year ended September 30, 2004, SBI posted a net profit of Rs 2,140.29 crore (Rs 1,889.10 crore). Gross NPAs of the bank were at Rs 12,585.62 crore (Rs 13,135.71 crore). Net NPAs were at Rs 5,154.86 crore (Rs 3,542.04 crore).
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