SBI H1 net exceeds Rs. 1,200 cr.

By Our Special Correspondent

MUMBAI, OCT. 30. State Bank of India (SBI) recorded a net profit of Rs. 1,223.64 crores for the half year ended September 30, 2001 against Rs. 1,042.65 crores in the corresponding period last year, registering a growth of 17.36 per cent. The operating profit has improved by 29.81 per cent to Rs. 2,902.36 crores from Rs. 2,235.77 crores

Announcing the first half financial results of the bank here, today, Mr. Janki Ballabh, SBI Chairman, said the growth in net profit was achieved due to increased operating profit, despite larger provisions made during the half year on considerations of prudence.

Total provisions made for this half year amounted to Rs. 1,678.72 crores as compared to Rs. 1,193.12 crores made in first half of 2000-01 due to increased provision for non-performing assets (NPAs) at Rs. 800 crores for the current half year as against Rs. 700 crores. This include provisioning envisaged as a proactive step towards building up provisions required for transaction to 90 days payment delinquency norm in financial year 2003-04 as stipulated by the Reserve Bank of India (RBI), higher provision for income tax at Rs. 763.89 crores against Rs. 463.73 crores due to higher operating profit and provision for investment depreciation at Rs. 116.18 crores against Rs. 3.86 crores.

Mr. Ballabh said the growth in operating profit was achieved due to increases both in the net interest income and other income, as well as due to containment of operating expenses. Net interest income of the Bank went up by 11.15 per cent to Rs. 4,322.27 crores from Rs. 3,888.84 crores. Other income grew up by 17.27 per cent.

During the period, domestic investments grew by Rs. 36,437 crores on a year-on-year basis. Income from the resource operations in the first half 2001-02 registered a growth of 38.89 per cent over the corresponding period last year.

The growth in housing finance achieved during the first half was Rs. 1,106 crores against a growth of Rs. 758 crores in the corresponding period of previous year.

In order to give thrust to the area of housing finance, several new initiatives have been taken.

The share of the priority sector credit in the net bank credit during H1 2001-02 remained above the 40 per cent benchmark level. The highlight of the performance in the first half was crossing the 10 lakh mark in the issue of Kisan Credit Card. In the area of small scale industries, a new scheme, SEM Credit Plus, in terms of which SSI are eligible to draw up to Rs. 25 lakhs in addition to their existing credit facilities, was introduced. As at September 30, 2001, the net NPA ratio has come down further to 5.58 per cent as compared to 6.03 per cent as at the end of March 2001.

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