State Bank of India (SBI) recoded a net profit of Rs. 7,299 crore for the nine months ended December 31, 2009, up by 14.4 per cent, as compared to Rs. 6,379 crore in the corresponding period in the previous year. For the third quarter ended December 2009, it recorded a net profit of Rs. 2,479 crore against Rs. 2,478 crore in the year-ago period.
Net interest income increased by 9.69 per cent in the quarter under review compared with the same period in the previous fiscal. However, net interest margin declined to 2.82 per cent from 3.10 per cent.
“Despite a fall in yield by 62 basis points from 10.42 per cent as on December 2008 to 9.80 per cent as on December 2009 owing to reduction in prime lending rate (PLR) by 125 basis points, interest income on advances has been maintained,” said O. P. Bhatt, Chairman, while addressing a press conference here on Monday. Sixty-seven per cent of the incremental growth in lending during the quarter has been at sub-PLR rates, in which the share of home loans is 28 per cent.
Interest expenses on deposits were contained in the third quarter 2009-10 with 2.35 per cent growth over the same period of the previous fiscal.
Core fee income is up by 36 per cent at Rs. 581 crore. Total other income was muted by a decline in profit on sale of investments of Rs. 237 crore and miscellaneous other income of Rs. 256 crore.
Deposits went up by Rs. 78,063 crore despite shedding of bulk deposits of Rs. 72,802 crore, resulting in a year-on-year growth of 11.26 per cent from Rs. 6,92,922 crore in December 2008 to Rs. 7,70,985 crore in December 2009.
Gross advances were up by Rs. 97,581 crore, a growth of 19.15 per cent from Rs. 5,09,573 crore in December 2008 to Rs. 6,07,154 crore in December 2009.
Home loans grew by Rs. 4,930 crore, an average of Rs. 1,643 crore a month, “which is the highest in the industry. With this, the bank has become the leader in the industry, both in levels and disbursements of home loans.”