The Hindu Business Line : SBI 4th quarter net rises 26%

Reason to smile: Mr O.P. Bhatt, Chairman, State Bank of India, flanked by Mr S.K. Bhattacharyya (left), Managing Director, and Mr C. Narasimhan, Deputy Managing Director, at a press conference in Kolkata on Friday. —

Our Bureau

Kolkata, May 2 State Bank of India posted 48.18 per cent growth in net profit at Rs 6,729 crore in 2007-08 (Rs 4,541 crore in 2006-07) and 31.07 per cent in operating profit at Rs 13,107 crore (Rs 10,000 crore). The net profit in the fourth quarter amounted to Rs 1,883 crore (Rs 1,493 crore) or a growth of 26.12 per cent and operating profit to Rs 4,373 crore (Rs 3,969 crore), posting a growth of 10.18 per cent.

The board of directors at a meeting here on Friday recommended a dividend of 215 per cent (Rs 21.5 per share) compared with 140 per cent (Rs 14 per share) in the previous year.

The stock firmed up 2.6 per cent on the BSE to Rs 1,822.15 – its best close in more than one and a half months.

Announcing the results here, the SBI Chairman, Mr O.P. Bhatt, said the bank had booked no loss on account of exposure of derivatives in the Indian market. But for overseas exposure, the bank had taken a hit of $20 million, he added.

SBI had made a provision of $10 million in this regard, he said.

During the fourth quarter, the total interest income at Rs 13,577 crore (Rs 10,518 crore) showed a growth of 29.07 per cent and non-interest income at Rs 2,817 crore (Rs 2,668 crore) a growth of 5.6 per cent. The net interest income at Rs 4,801 crore (Rs 4,547 crore) showed a growth of 5.58 per cent.

The corresponding figures for the whole year (2007-08): total interest income was at Rs 48,950 crore (Rs 37,242 crore), a growth of 31.44 per cent, non-interest income at Rs 8,695 crore (Rs 6,765 crore) posting a growth of 28.53 per cent while net interest income stood at Rs 17,021 crore (Rs 15,058 crore), a growth of 13.04 per cent.

Provisions

The provisions during the year amounted to Rs 2,668 crore (Rs 2,410 crore), a growth of 10.71 per cent. This was due to loan loss provision in line with business growth and includes Rs 168 crore mark-to-market loss on securities issued to the Union Government in connection with rights issue.

Total business growth during the year under review amounted to Rs 1,81,000 crore. The deposit growth was Rs 1,01,885 crore, a 23.4 per cent growth to touch Rs 5,37,406 crore and advances were up by Rs 79,949 crore or a growth of 23.4 per cent to touch to Rs 4,22,181 crore.

The market share in deposits increased from 14.8 per cent to 15.4 per cent, driven by low-cost deposits where market share increased from 13.9 per cent to 17.4 per cent. Mid-corporate advances grew by 24.4 per cent, SME advances by 26.3 per cent, agriculture advances by 24.6 per cent, home loans by 18.7 per cent and international advances on year-to-year basis by 50.4 per cent.

Income from investments increased by 7.9 per cent but the dividend income declined by Rs 401 crore. Other income increased by 28.5 per cent to Rs 8,695 crore and the core fee income increased by Rs 1,100 crore.

The total NPAs amounted to Rs 12,837 crore. The gross NPA ratio was 3.04 per cent (2.92 per cent) and net NPA ratio 1.78 per cent (1.56 per cent).

Associate banks’ net profit at Rs 2,277 crore showed a growth of 12.1 per cent. SBI Life grew new business premium by 108 per cent of which Rs 1,450 crore was through the SBI bankassurance channel. SBI MF posted a growth of 58 per cent, net profit amounting to Rs 69.7 crore. SBI Caps increased profit by nearly 100 per cent to Rs 142 crore. Post acquisition of Global Trade Finance, the SBI Group has more than 70 per cent share in factoring and net profit from the business in excess of Rs 100 crore.

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SBI rides high: Q4 net profit jumps 75% to Rs 1,493 cr

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