SBI net profits up by 75% for the quarter ended March 2007

For the quarter ended March 2007, the State Bank of India (SBI), posted a 75 per cent increase in net profit at around Rs 1,493 crore as against Rs 853 crore for the same period in 2006.

Operating profit for the period grew 34% to Rs 3,968 crore (Rs 2,962 crore) while total income rose 21% to Rs 3,968.4 crore (Rs 3,277.2 crore). The rise in the profits was led by the growth in the mid corporate segment and the bank is focussing on the growth in the segment.

For the year ended March 31, 2007, State Bank of India (SBI) has reported a modest 3% jump in net profit for 2006-07 at Rs 4,541.3 crore compared to Rs 4,406.7 crore during 2005-06. The bank has recommended a dividend of 140% (Rs 14 per share) for 2006-07.

Its operating profit grew 21.2% to Rs 10,000 crore (Rs 8,249 crore) while total income rose 4.25% to Rs 45,260.3 crore (Rs 43,414.8 crore). SBI's balance sheet size crossed has crossed Rs 5 lakh crore compared to Rs 4.6 crore a year earlier.

The gross NPA ratio of SBI declined from 3.61 per cent to 2.92 per cent. Correspondingly, the net NPA (non-performing assets) ratio declined from 1.88 per cent to 1.56 per cent.

SBI is planning to raise Rs Rs. 14,000-15,000 crore capital within the current fiscal to maintain the current rate of growth. The funds will be raised through a mix of debt and equity.

SBI currently had a market share of 15 per cent and it was proposed to be increased by one percentage point annually. SBI has also created a new business group to evaluate emerging business opportunities. It has decided to enter into business areas of private equity, infrastructure fund and venture capital.




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