State Bank of India (SBI) has reported a net profit of Rs.3,396.06 crore in the third quarter ended December 31, 2012, a growth of 4.08 per cent as compared to Rs.3,263.04 crore in the third quarter of 2011-12. Higher provisions and lower interest income brought down the net profit. Net interest income (difference between interest earned and interest expended) was down by 3.16 per cent at Rs.11,154.46 crore against Rs.11,518.80 crore.
Total provisions increased by 9.95 per cent to Rs.4,394.70 crore from Rs.3,996.97 crore. Provisions towards loan loss were lower at Rs.2,766.18 crore against Rs.3,006.11 crore, down by 7.98 per cent.
“Retail growth showed maximum growth on the back of home and auto loan growth. We will be selective in our lending in the mid-corporate segment,” said Pratip Chaudhuri, Chairman, while addressing a press conference here on Thursday.
Retail advances increased from Rs.1,75,322 crore in December 2011 to Rs.1,99,824 crore in December 2012, and home loans from Rs.99,019 crore to Rs.1,13,163 crore. Auto loans increased by 31.25 per cent and education loans by 9.68 per cent.
SME advances increased from Rs.1,52,951 crore in December 2011 to Rs.1,70,316 crore in December 2012 , an increase of 11.35 per cent. “We expect loan growth to stay above 18 per cent, while deposit growth to be above 14 per cent for the fiscal,” Mr. Chaudhuri added.
Deposits of the bank increased from Rs.10,00,965 crore to Rs.11,56,691 crore, a growth of 15.56 per cent. Savings bank deposits increased from Rs.3,67,896 crore to Rs.4,10,906 crore, up by 11.69 per cent. Gross advances increased from Rs.8,69,393 crore to Rs.10,09,110 crore, a growth of 16.07 per cent. Large corporate advances increased from Rs.1,24,567 crore to Rs.1,56,684 crore and mid-corporate advances from Rs.1,66,903 crore to Rs.1,78,509 crore.
On slippages, Mr. Chaudhuri said that “many accounts in the mid-corporate segment, pharmaceuticals, iron and steel have turned into slippages. We expect about Rs.2,000 crore of those assets to be reversed to standard by fiscal end.”
No loans to troubled Sahara cos
PTI reports:
The bank said it did not have any exposure to Sahara group companies but had deposits of Rs.700-800 crore from the firms. “I think some of our branches have their (Sahara companies) deposits ... so if they get pulled out, it will be Rs.700-800 crore. But we don’t have any advances to them,” Mr. Chaudhuri said.
The bank had not yet received any notice or circular from the SEBI or other enforcement agencies for freezing Sahara accounts, another senior bank official said.
“It (SEBI notice) will come. It takes two or three days for them to send the notice (after the order has been passed). The moment it comes we will take action,” the official said.
SEBI on Wednesday ordered freezing of bank accounts of two Sahara Group companies and attaching all investments and properties of Sahara Housing Investment Corporation and Sahara India Real Estate Corporation and their top executives, including group chief Subrata Roy with regard to the investor refund case involving over Rs.24,000 crore.
