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SBI''s net profit rises 28%news
Our Banking Bureau
20 June 2003

Kolkata: 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.

During 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 per cent.

SBI 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.

The 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).

The 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.

While 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.

The 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 current year.

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SBI''s net profit rises 28%