The country’s largest lender, State Bank of India, on Saturday reported a consolidated net profit of Rs 3,133 crore for the second quarter ended 30th September.
The bank had a net profit of Rs 2,458 crore in the same period previous fiscal, State Bank of India (SBI) said in a filing to the Bombay Stock Exchange.
“The figures are not comparable pursuant to the merger of State Bank of Saurashtra with the bank last year,” the bank said.
Total income stood at Rs 33,101.65 crore in the July-September quarter, while it had a total income of Rs 27,083.47 crore in the same period previous fiscal.
On standalone basis, the bank posted a net profit of Rs 2,490.04 crore in the second quarter, however it had a net profit of Rs 2,259.72 crore in the same period last year.
Total income stood at Rs 21,301.04 crore in the quarter ended on 30th September, while it had a total income of Rs 17,909.64 crore in the same period corresponding fiscal.
SBI chairman OP Bhatt said that the Reserve Bank may possibly review the method to reach the 70 per cent provisioning or may extend the period to two years.
The bank’s core fee-income grew to Rs 2,103 crore in the second quarter, up 58 per cent compared to Rs 1,331 crore in the same period last year, while interest income jumped by 10.34 per cent.
SBI’s total deposits moved up to Rs 7,72,904 crore as of September 2009, up 25.16 per cent from Rs 6,17,524 crore in the same period last year.
Current account and savings accounts (CASA), which give banks low-cost funds, contributed 40.96 per cent to the deposits against 39.70 per cent in the year-ago period. The bank expects the CASA proportion to grow further by the fiscal-end, Bhatt said.
SBI’s advances grew to 5,80,237 crore, up 16.39 per cent compared to Rs 4,98,513 crore in Q2 last fiscal.
Its car loans grew by 44.45 per cent in the quarter while large and mid corporate loans, home loans and education loans grew by 14 per cent, 23.40 per cent and 42.23 per cent respectively.
To expand its reach in rural ares, SBI plans to open around 6,000 ATMs in the next six months and would also look at expanding branch strength in semi-urban and rural areas, Bhatt said.
SBI’s standalone total income stood at Rs 21,301.04 crore in the second quarter against Rs 17,909.64 crore in the same period last fiscal.
The bank’s net interest margin, during the quarter, improved to 2.43 per cent against 2.30 per cent in the same period in last year.
SBI’s gross and net NPAs stood at 2.99 per cent (2.38 per cent) and 1.73 per cent (1.34 per cent) respectively for Q2. The lender saw its retail NPAs emerging mainly from the housing and education loans segments, Bhatt said.
The lender provided a total of Rs 7,449 crore to cover bad loans in the quarter and currently has a coverage ratio of 42.87 per cent, Bhatt said.
On a consolidated basis, the net profit of SBI rose to Rs 3,133 crore in the second quarter. It had reported a net profit of Rs 2,458 crore in the same period previous fiscal.
Total income stood at Rs 33,101.65 crore in July- September this year, while it had a total income of Rs 27,083.47 crore in the same period previous fiscal.
