SBI Q3 profit up 51%

NPA provisioning for the first nine months of 1999-2000 was Rs 850 crore as against Rs 556 crore for the corresponding period of 1998-99, while provision for salary arrears was Rs219.87 crore against no provision last year.

SBI’s net interest income increased by 12.15 per cent to Rs 4,670.94 crore during the nine-month period from Rs 4,164.78 crore in the corresponding period of 1998-99. SBI said the growth in operating profit has been achieved despite a charge of Rs 94.47 crore towards shortfall in the net asset value of Magnum Triple scheme of its MF arm and a decline in the net interest margin caused mainly by the reduction in prime lending rate by one per cent with effect from March 1, 1999.

SBI chairman G G Vaidya said he expected the full year profits to easily exceed the Rs 1500-1600 crore target for the financial year 1999-2000 (April-March). "I expect the profit target to be exceeded and could be around Rs 1700 crore for 1999-2000. This will be possible because of better fund management by the bank," Vaidya said. Vaidya said spreads of the bank continued to be under pressure despite a growth in advances.

Grasim net zooms 104% to Rs 51 cr

MUMBAI: Aditya Birlagroup flagship Grasim Industries has announced a 104 per cent rise in its net profit to Rs 50.93 crore for the third quarter ended December 31, 1999, against Rs 24.8 crore posted in the corresponding period the last fiscal. During the 3-month period, sales turnover rose by 13 per cent to Rs 1,058.59 crore, against Rs 936.35 crore last year, while other income fell from Rs 18.77 crore to Rs 17.38 crore.

"Apart from cement, all our other businesses have done reasonably well. Realisation from the cement business came under pressure due to depressed prices in the eastern and southern markets," Grasim’s president and chief financial officer DD Rathi said. Net profit for the nine-month period rose to Rs 184.74 crore, from Rs 120.18 crore. During the period, net sales increased from Rs 2,743.09 crore to Rs 3,176.36 crore. The sharp rise in the net profit, however, failed to prop up prices of the Grasim stock, which closed lower at Rs 390.