State Bank of India (SBI) has recorded a net profit of Rs. 2,490 crore for the second quarter of 2009-10, against Rs. 2,260 crore in the year-ago period, up 10.2 per cent.
The operating profit increased by 15.31 per cent to Rs. 4,835 crore from Rs. 4,193 crore. Interest income on advances increased by 10.3 per cent, driven by 16.4 per cent growth in advances.
Interest expense has increased by 20.3 per cent. Net interest income is up by 2.81 per cent. Other income rose by 50.45 per cent.
Core fee income (commission, exchange and brokerage) increased by 58 per cent from Rs. 1,331 crore to Rs. 2,103 crore. Operating expenses were up 19.24 per cent.
“In spite of slowdown in market operations, our investment portfolio was up 56 per cent, thereby generating good growth in income. Due to strategic reduction in interest rates on term deposits and growth in CASA (current and savings account), the cost of deposits has come down to 6.06 per cent,” said O. P. Bhatt, Chairman, SBI, here on Saturday.
Gross advances rose by Rs. 81,724 crore from Rs. 4,98,513 crore in September 2008 to Rs. 5,80,237 crores in September 2009.
Credit deposit ratio is up at 67.54 per cent as at the end of September 2009 against 66.63 per cent at the end of March 2009.
Large and mid-corporate advances have grown from Rs. 1,63,285 crore to Rs. 1,86,892 crore, registering a growth of 14 per cent. Home loans grew by 23.4 per cent, car loans by 44.5 per cent and education loans by 42.23 per cent.
Agriculture advances have grown by 20.7 per cent.
International advances were up by 28 per cent at Rs. 94,776 crore against Rs. 73,852 crore.
For the half-year ended September 30, 2009, the operating profit was up by 4.33 per cent at Rs. 8,509 crores. “Growth is subdued mainly on account of provision for arrears of wage revision and additional contribution to pension funds amounting to Rs. 1,142 crore.”
Without these items, the operating profit would have been Rs. 9,651 crore thereby recording a year-on-year growth of 18.4 per cent.
Other income has grown by 49.44 per cent. “The growth has been driven by the growth in core fee income of 51.6 per cent as well as other income from treasury operations of 226 per cent. Net interest income has improved by 3.51 per cent to Rs. 10,634 crore as on September 30, 2009, from Rs. 10,273 crore as on September 30, 2008, despite the fact that PLR (prime lending rate) has come down by 200 basis points between these two dates.
Earning per share (EPS) for the first half of 2009-10 increased to Rs. 151.85 from Rs. 122.87. Return on assets (ROA) improved to 0.95 per cent from 0.92 per cent, and return on equity to 15.75 per cent from 14.6 per cent last year.