Millennium Post

SBI’s quarterly net soars 30%

SBI’s quarterly net soars 30%
State Bank of India (SBI) declared an increased net profit (after minority interest) by 31.84 per cent for the second quarter of financial year 2012-13 (y-o-y growth) to Rs 4,575 crore from Rs 3,470 crore in the corresponding period of the previous fiscal.

The bank is the highest in the country to register this figure, with ONGC being number one and Reliance Industries second in this regard, said SBI chairman Pratip Chaudhuri in Mumbai on Friday.

The net Profit  (after minority interest)  increased by 57.95 per cent from Rs 5,983 crore in the first half of 2011-12 to Rs 9,450 crore in the first half of 2012-13, and by 30.16 per cent (y-o-y growth) from Rs 2,810 crores in the second quarter of 2011-12 to Rs 3,658 crore in the corresponding period of 2012-13. The total interest income increased by 13.75 per cent from Rs 26,027 crore in Q2FY12 to Rs 29,607 crores in Q2FY13.

Savings bank deposits rose from Rs 3,52,408 crore in September 2011 to Rs 3,96,543 crore in September 2012, representing a y-o-y growth of 12.52 per cent. Agricultural advances went up from Rs 95,833 crore in September 2011 to Rs 1,15,119 crore in Sept 2012, displaying a y-o-y growth of 20.12 per cent, while international advances increased from Rs 1,25,364 crore in Sept 2011 to Rs 1,59,649 crore in Sept 2012, representing 27.35 per cent y-o-y growth.

The operating profit of the five associate banks increased from Rs 3,555 crore in the first half of 2011-12 to Rs 4,295 crore in the corresponding period of 2012-13. (20.83 per cent) while net profit is up by 22.60 per cent.

‘We have become the market leader in auto loans (28.28 per cent) and in home and educations loans too, and are at present the cheapest loan provider,’ said Chaudhuri.

‘Our cost of deposits are the lowest in the country at 5 per cent and we expect to see more robust loan growth as we have adequate funds,’ he informed, adding that branch expansions are slow and hope to significantly expand by 1,000 branches next year.

He said that many of the bank’s non-performing assets (NPAs) are of temporary nature and major accounts that had fallen into NPA status have come back of which majority are in the hotel, power and construction segments.

About the Rs 1,900 crore write-offs by SBI, he said that there are many large accounts at the apex level and the net increase in NPAs number should be focused on. ‘Compared to other banks, State Bank of India is the most pro-active in declaring and identifying NPAs,’ he pointed out.
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