KOLKATA: State Bank of India has posted a net profit of Rs. 4,406.70 crore in 2005-06, which was only 2.37 per cent higher than 2004-05 with Fringe Benefit Tax and provision for depreciation on investments impacting profit growth.

SBI Chairman A. K. Purwar said the bank's net NPA had declined from 2.65 per cent to 1.87 per cent. Deposits stood at Rs. 3,80,046 crore as on March 31, 2006 although the overall growth of deposits was lower at Rs. 12,998 crore during 2005-06 due to repayment of India Millennium Deposits, amounting to Rs. 25,629 crore on December 29, 2005. Net interest income was Rs. 15,635.60 crore, a growth of 12.1 per cent He said SBI was looking forward to unlocking the value held through its equity in its seven associates in which its stake ranged from 75 per cent to 100 per cent. Taken together, these banks were the second biggest entity (after SBI) in the Indian banking sector with a total business of Rs. 2,72,000 crore. "We are awaiting the passage of the SBI Subsidiary Act and would launch the IPOs of some of these associates thereafter. "I expect good money,'' he said, saying that the quantum of the float would depend on the requirement of each associate bank and was likely to be raised through a mix of divestment and fresh issue.

Mr. Purwar said education, health and tourism had been identified as the bank's growth areas and he expected that the current fiscal would see a good outlook primarily thanks to the series of infrastructure projects planned which would need to be financed. "We expect the additional capital requirement will be around Rs. 7.000 crore this fiscal,'' he said.

He anticipated a small increase in interest rates but said that credit growth would be robust despite this.

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