SBI Q2 net up 21 per cent

By Our Banking Bureau | 31 Oct 2003

Mumbai: State Bank of India has recorded a 20.99 per cent growth in net profit for the second quarter ended September 30,2003, at Rs 988.74 crore as compared to Rs 817.20 crore in the year ago period.

Mr A.K. Purwar, Chairman, SBI, said, growth in retail advances largely contributed to the profit in the second quarter. "Although the bank's net interest margins have been under pressure, the position is likely to improve by the fourth quarter. Net interest margins have been lower as advances' growth has not been along the targeted lines. Interest margins are expected to go up from 2.79 to 2.90 per cent by year end."

SBI's total income for the quarter grew to Rs 102,69.01 crore (Rs 8,962.91 crore). This is inclusive of interest earned at Rs 7,613.94 crore (Rs 7,825 crore) and other income at Rs 2,655.07 crore (Rs 1,137.91 crore).

Total expenditure of the bank was at Rs 7,408.10 crore (Rs 7,284.08 crore). This is inclusive of interest expended at Rs 5,198.91 crore (Rs 5,425.95 crore) and operating expenses at Rs 2,209.19 crore (Rs 1,858.13 crore).

The gross NPA ratio has come down to 8.89 per cent as on September 30, from 9.34 per cent as on March 31.
During this period, the net NPA ratio was at 2.56 per cent (4.50 per cent). Gross NPAs of the bank have declined from Rs 13,506 crore to Rs 13,135.71 crore.

Total provisions and contingencies made by the bank for the quarter ended September 30, stood at Rs 1,872.17 crore (Rs 861.63 crore).

The bank has also earmarked the Rs 1,010.32 crore premium earned on from the debt buyback programme of the Government of India, for additional NPA provisions.

Higher provisioning for the income-tax was at Rs 1,195.56 crore (Rs 918.20 crore).