The board of directors of State Bank of India (SBI)
has approved the accounts for the year 2002-03 and recommended
an 85-per cent dividend (Rs 8.5 per share) compared to
60 per cent in 2001-02.
the year under review, the bank posted a net profit of
Rs 3,105 crore (Rs 2,431.62 crore), registering a growth
of 27.69 per cent. The operating profit stood at Rs 7,775.40
crore (Rs 6,044.83 crore), recording a growth of 28.63
chairman A K Purwar attributed the growth in profit to
both net interest and fee-based incomes. The net interest
income at Rs 9,977.56 crore (Rs 9,081.25 crore) showed
a growth of 9.87 per cent. This was due to the growth
in both interest income on resources deployed in treasury
operations and advances.
income from treasury operations increased by 13.5 per
cent over the previous year and the profit on the sale
of government securities increased to Rs 1,715 crore (Rs
341 crore). The non-interest income grew by 37.51 per
cent to Rs 5,740.26 crore (Rs 4,174.48 crore).
net worth of the State Bank group, comprising SBI, its
associate banks and non-banking subsidiaries, amounted
to Rs 22,157 crore, while the operating profit stood at
Rs 11,184 crore and the net profit at Rs 4,199 crore.
the cost of deposits (excluding Resurgent India Bonds
and India Millennium Deposits) witnessed a reduction to
6.43 per cent (7.07 per cent), the transaction cost at
2.95 per cent (2.91 per cent) continued to cause concern.
operating expenses registered an increase of 10.14 per
cent while the staff cost increased by 10.4 per cent mainly
due to an additional contribution to the pension fund
and the provision for leave encashment liability for the