Business Daily from THE HINDU group of publications
Friday, Aug 13, 2010
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Friday, Aug 13, 2010 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Home Page
-
Public Sector Banks Money & Banking - Interest Rates
Mr O.P. Bhatt Our Bureau New Delhi, Aug. 12 Aided by a sharp rise in net interest income, State Bank of India on Thursday reported a 25 per cent increase in net profit for the quarter ended June 30, 2010, at Rs 2,914 crore (Rs 2,330 crore). The SBI top management also signalled that a hike in the prime lending rate (PLR) was round the corner. "There is likely to be an upward bias on interest rates and lending rates in the near future. Now that we are done with the first quarter results we are reviewing our interest rates and there would be some tinkering soon. "The lending rate increase would have to be a minimum of 25 basis points," Mr O. P. Bhatt, Chairman of SBI, said at a press conference. The bottomline performance for the first quarter was also boosted by a write-back of excess provision of Rs 845.17 crore relating to employee benefits. Net interest income (NII) registered a 45 per cent growth at Rs 7,304 crore against Rs 5,025 crore in the corresponding quarter last year. The NII for the quarter was a threeyear high for SBI, according to officials. The bank's cumulative net interest margin (NIM) also improved significantly by 88 basis points to 3.18 per cent against 2.30 per cent in the same quarter last year. Sequentially, too, the growth in NIM was 22 basis points over the previous quarter. Mr Bhatt added, "Deposit rates have bottomed out and the era of cheap interest rates is now over." SBI's shares closed at Rs 2,784 on the BSE on Thursday, a new all-time high, and an increase of 6.93 per cent over the previous day's close.SBI sets base rate at 7.5% Higher provisions drag SBI net 32% Interest rates may not go up much, says SBI chief More Stories on : Public Sector Banks | Interest Rates | State Bank of India
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2010, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|