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State Bank clocks higher profit in first quarter

MUMBAI: Despite challenging market conditions and provisioning, State Bank of India has clocked a 15.08 per cent jump in its net profit for the quarter ended June 30, 2008, at Rs. 1,640.79 crore against Rs. 1,425.81 crore in the year-ago period. The bank attributed the robust growth to a nearly 67.8 per cent year-on-year growth in its operating profit, which grew to Rs. 3,962.34 crore in the quarter from Rs. 2,361.46 crore in the corresponding period last year.

The bank clocked a 30 per cent year-on-year growth in advances which rose to Rs. 4,48,327 crore from Rs. 3,44,834 crore in the first quarter of 2007-08.

“We have seen a healthy credit demand in the quarter and expect to maintain the growth in the coming months,” a top bank official told PTI here.

Similarly, its deposit base grew to Rs. 5,61,857 crore, up 24.9 per cent, from Rs. 4,49,660 crore in the year-ago period. The bank made a total mark-to-market provisioning of Rs. 1,656.61 crore on its investment portfolio during the quarter against a write-back of Rs. 377 crore in the corresponding quarter last year, the official said. The bank saw a 30.8 per cent growth in mid-corporate advances, a 23.2 per cent jump in SME loans and a modest 9.3 per cent growth in agriculture loans, the official said.

A similar growth was registered in its auto and housing loans which went up by 41.31 per cent and 17.4 per cent respectively while educational loans jumped by an impressive 46 per cent, the official said. Gross non-performing assets (NPAs) during the quarter declined to 2.54 per cent from 3.3 per cent, resulting in a write-back of Rs. 247.40 crore in loan loss provisions, the bank said.

Total income rose to Rs. 16,203.07 crore from Rs. 12,229.09 crore. Also, the contribution of current and savings account (CASA) deposits to total posted a marginal growth during the period to 41.9 per cent from 41.06 per cent. The capital adequacy ratio, as on June 30, 2008, stood at 12.99 per cent.

The combined net profits of SBI’s associate banks, during the quarter, declined to Rs. 285.95 crore from Rs. 520.70 crore in the year-ago period, it said. — PTI

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