SBI profit up 37 pc on rise in loans,interest incomehttps://indianexpress.com/article/news-archive/web/sbi-profit-up-37-pc-on-rise-in-loans-interest-income/

SBI profit up 37 pc on rise in loans,interest income

State Bank of India,the country’s largest commercial bank,has reported a net profit Rs 2,478 crore for the third quarter...

State Bank of India (SBI),the country’s largest commercial bank,has reported a net profit Rs 2,478 crore for the third quarter ended December 2008,up by 37.03 per cent from Rs 1,809 crore in the same quarter of the previous year. Excluding an additional provision of Rs 750 crore due to steeply falling yields on government securities,the rise in net profit would have been 76 per cent.

On a consolidated basis (including subsidiaries),the bank’s net profit rose 52 per cent in the third quarter at Rs 3,713.66 crore against Rs 2,442.32 crore in the year-ago period. The bank has posted a robust growth in its corporate,SME and retail advances,along with a sharp jump in net interest income. Deposits during December 2008 grew by Rs 73,203 crore (compared to Rs 26,018 crore last year) to Rs 6,92,921 crore,a 36 per cent growth from Rs 5,10,132 crore in December 2007. “SBI’s market share in domestic deposits has increased by over 200 bps to 17.51 per cent in December 2008 from 15.47 per cent in December 2007,” the bank said.

During the quarter,SBI’s total advances grew by Rs 1,14,265 crore,up 28.85 per cent from Rs 3,96,014 crore in the same period last year,boosted by a 47 per cent jump in large corporate loans and a 28 per cent rise in SME advances,SBI said. Its gross NPA ratio has declined from 2.82 per cent in December 2007 to 2.61 per cent in December 2008.

SBI’s net interest income leapt by 35 per cent in the third quarter to Rs 5,758 crore from Rs 4,256 crore in the same quarter last year. The bank’s net interest margin,the difference between interest earned and interest expended,increased to 3.15 per cent from 3.01 per cent in the same period in 2007-08.

STRONG GROWTH

• Q3 stand-alone net profit rises by 37 pc

• Consolidated net profit up by 52 pc

• Deposits rise a whopping 36 pc

• Advances too increase by 29 pc

• Net interest income up by 35pc