The Hindu : Business : SBI net rises to Rs. 1,223 cr. in Q1

Online edition of India's National Newspaper
Friday, Jul 29, 2005

Business

Business

SBI net rises to Rs. 1,223 cr. in Q1

Corporate Reporter

Continues to do well in retail advances and housing finance

CHENNAI: State Bank of India has posted a net profit of Rs. 1,222.83 crore for the first quarter ended June 30, 2005, recording a rise of 15.54 per cent compared to Rs. 1,058.40 crore in the year-ago period. The operating profit for the quarter rose by 66 per cent to Rs. 3,439.48 crore from Rs. 2,071.40 crore. The increase in net interest income coupled with a marginal decline in operating expenses led to the higher operating profit.

Net interest income of the bank went up by 44 per cent to Rs. 4,253.24 crore from Rs. 2,954.07 crore. The net interest income excluding the onetime item of interest on income tax refund went up to Rs. 3,541.34 crore, an increase of 20 per cent. This was mainly due to higher interest income on advances and lower interest expenditure on deposits. Operating expenses registered a decline of 1.28 per cent thanks to a reduction of 3.58 per cent in payment to employees due to savings of Rs. 88 crore on account of VRS amortisation in the current quarter.

Provisions made for the quarter under reference were higher at Rs. 2,216.65 crore, against Rs. 1,013.00 crore made in Q1 of 2004-05. Major provisions made were towards depreciation in investment Rs. 1,308.33 crore (Rs. 4.99 crore), NPAs Rs. 236 crore (Rs. 210 crore) and taxes Rs. 450.07 crore (Rs. 684.34 crore).

Deposits up 13.8 per cent

Deposits of the bank as on June 30 have registered an increase of 13.8 per cent at Rs. 376,141 crore compared to Rs. 330,648 crore on the last Friday of June 2004. Advances were up by 32.5 per cent at Rs. 220,523 crore against Rs. 166,387 crore.

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