Business Daily from THE HINDU group of publications
Sunday, Oct 29, 2006
Corporate Results - Public Sector Banks
Markets - Stocks
Money & Banking - Financial Performance
The slight decline in profits follows higher tax provisions
The bank did not enjoy the benefit of interest on income tax refund at Rs 712 crore, available last year
Mumbai , Oct. 28
The net profit of State Bank of India has fallen marginally by 2.53 per cent to Rs 1,184.49 crore (Rs 1,215.36 crore) for the second quarter ended September 30.
The slight decline in profits follows higher tax provisions.
Also, the bank did not enjoy the benefit of interest on income-tax refund at Rs 712 crore, available last year.
For the first quarter ended June 30, the bank saw a 34.7 per cent dip in net profit to Rs 798.57 crore (Rs 12,299.23 crore).
Provisions have been placed at Rs 1,288.07 crore (Rs 767.56 crore).
Net Interest Margin stands at 3.32 per cent (3.13 per cent).
Deposits increased by 10.77 per cent and cost of deposits declined to 4.51 per cent (4.64 per cent).
"The strategy is to stay away from bulk deposits. That is why the growth in deposits is slightly less than the industry average," said Mr O P Bhatt, Chairman, State Bank of India.
Advances increased by 21.18 per cent and yield on advances improved to 8.55 per cent (7.81 per cent).
The capital adequacy ratio stood at 12.63 per cent (11.3 per cent).
The ratio of net Non Performing Assets to total assets was 1.67 per cent (2.27 per cent).
Shares of SBI closed at Rs 1,093.15, up 2.57 per cent, on the BSE on Friday.
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