SBI profit rises marginally

State Bank of India, India8217;s largest commercial bank, posted a marginal rise in quartersly net profit on Saturday, falling below analysts8217; estimates as it paid out more to attract deposits and staff costs climbed.

It posted a 1.44 per cent rise in net profit for the quarter ended December 2005 at Rs 1,115.19 crore as compared to Rs 1099.35 crore for the same quarter last fiscal. Total income grew to Rs 11,398.62 crore for the third quarter this fiscal from Rs 10,267.07 crore in the year-ago period, up 11.02 per cent.

Buoyed by loan demand, SBI8217;s net interest income rose 19 per cent to Rs 956 crore from Rs 803 crore a year earlier. But staff costs, including Rs 313 crore paid in arrears for the fiscal year ending March 2005, rose 49 per cent to Rs 2,524 crore in the quarter.