SBI Q3 net up 19.56% on higher interest income

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Our Bureau

Mumbai, Jan. 28

BOOSTED by higher net interest income and lower cost of deposits, State Bank of India has recorded a 19.56-per cent growth in net profit in the third quarter at Rs 1,099.35 crore, against Rs 919.44 crore in the corresponding period the previous year.

During the quarter, the bank recorded a 31.99-per cent increase in net-interest income to Rs 3,660.08 crore (Rs 2,773.01 crore).

"The interest earned on advances has improved in the third quarter by 21.04 per cent over the corresponding period the previous year. Interest expenses on deposits has declined by 11.29 per cent as on the quarter ended December 31, 2004, over the corresponding period the previous year. These factors have aided the bank's profits," said an SBI official.

SBI reported a dip in its profit before tax (PBT) in its third quarter banking operations to Rs 625.79 crore from Rs 842.32 crore in the year-ago period, while it showed an increase in PBT for its treasury operations to Rs 663.13 crore (Rs 338.62 crore).

"We had a lot of long-dated papers which we sold and booked profits on. In fact, the average duration of our government securities portfolio was over four years, which has been brought down to 3.92 years at end December 2004," said the official.

At end-December 2004, total advances of the bank grew to Rs 19,55,65 crore (Rs 15,16,29 crore). The average yield on advances declined to 7.75 per cent (8.32 per cent).

During April-December 2004, retail advances in the personal segment grew by Rs 10,431 crore. The outstanding personal segment advances aggregate Rs 43,581 crore. Housing advances grew by Rs 6,235 crore.

Retail advances constituted 25.17 per cent of the bank's gross domestic advances as on the last Friday of December 2004, against 22.07 per cent on the last Friday of December 2003. Housing loans constituted 53.50 per cent of the bank's retail advances as on December 2004. Agricultural advances grew to Rs 17,830 crore (Rs 13,665 crore), according to an SBI press release.

Total deposits grew to Rs 35,06,30 crore at end-December 2004 (Rs 30,23,44 crore). Domestic deposits excluding IMDs recorded a 16.84-per cent growth, compared to a growth of 14.37 per cent in the corresponding period the previous year. Cost of deposits of the bank declined to 4.74 per cent from 5.65 per cent. Gross NPAs of the bank were at Rs 12,794.99 (Rs 13,846.37 crore), while net-NPAs were at Rs 4,812.65 crore (Rs 4,075.97 crore). Provisions and contingencies were at Rs 1,710.54 crore (Rs 707.97 crore), of which provisioning for non-performing assets were at Rs 791.56 crore (Rs 400 crore).

Capital adequacy ratio of the bank was at 12.66 per cent (14.74 per cent).

Net profit of the bank for the nine-month period ended December 31 was Rs 3,239.64 crore (Rs 2,808.54 crore).

(This article was published in the Business Line print edition dated January 29, 2005)
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