SBI''s net profit rises 28%
By Our Banking Bureau | 20 Jun 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.
Featured articles
Lighter than air, yet very, very powerful
By Kiron Kasbekar | 03 Jan 2024
In March 2013 Chinese scientists pulled off a remarkable feat. They created the world’s lightest aerogel. Tipping the scales at a mere 0.16 milligrams per cubic centimeter – that’s a sixth of the weight of air!
COP28 explained: A closer look at COP28's climate change solutions
By Aniket Gupta | 27 Dec 2023
The 28th United Nations Climate Change Conference, also known as COP28, took place from 30th November 2023, to 13th December 2023, at Expo City in Dubai, United Arab Emirates.
What is a Ponzi scheme?
By Aniket Gupta | 06 Dec 2023
Ponzi schemes have long captivated the public imagination, drawing unsuspecting investors into a web of illusion and deception.
The Rise and Rise of HDFC Bank
03 Jul 2023
HDFC, which surged ahead of global majors like HSBC Holdings Plc and Citigroup Inc and left Indian peers like State Bank of India and ICICI Bank in market capitalisation, now ranks fourth largest among the world’s most valuable banks, after JPMorgan Chase & Co, Industrial and Commercial Bank of China Ltd and Bank of America Corp
India’s Millet Revolution To Enrich Global Food Basket
02 Apr 2023
Millets, a healthier and cheaper substitute to wheat and rice, are indigenous to many parts of the world, especially in the semiarid tropics of Asia and Africa, and offers a big scope for expanding production and consumption in the foodgrain deficient African continent
Market predator Hindenburg preys on Adani stock
06 Mar 2023
Almost a month after the damning report of short-seller Hindenburg Research on the Adani Group that claimed that the seven stocks within the group were about 85 per cent overvalued, one of the group's stocks, Adani Total Gas, closed at Rs835 on the BSE, down nearly 79 per cent from its 24 January level, almost close to reaching that valuation