State Bank of India (SBI) on Thursday reported 25.05 per cent growth in the net profit at Rs.2,914.20 crore in the first quarter ended June 30, 2010, against Rs.2,330.37 crore in the same quarter in the previous fiscal.
The operating profit of the bank recorded a. year-on-year growth of 66.97 per cent at Rs. 6,134 crore during the reference period against Rs. 3,674 crore in the same quarter in the previous fiscal. Net interest income increased by 45.35 per cent to Rs.7,304 crore.
Interest expenses on deposits have decreased by 11.85 per cent during the first quarter of the current fiscal against a growth of 47.19 per cent in the first quarter of the previous year, “through strategic shedding of high cost bulk deposits,” SBI said in a press release.
Interest income on advances has increased by 8.62 per cent year-on-year driven by a growth of 20.74 per cent in advances.
Interest earnings from investments were increased by 3.08 per cent.
The bank recorded a business growth of 12.62 per cent at Rs.1,65,769 crore at the end of June 2010 (deposits Rs.51,734 crore and advances Rs.1,14,035 crore).
Deposits of the bank went up from Rs.7,63,563 crore in June 2009 to Rs.8,15,297 crore in June 2010 recording a growth of 6.78 per cent.Gross Advances went up by Rs.1,14,035 crore, a growth of 20.74 per cent, from Rs.5.50 lakh crore in June 2009 to Rs.6.63 lakh crore in June 2010.
Net Interest Margin improved significantly from 2.30 per cent as on June 30, 2009, to 3.18 per cent on June 30, 2010.
