Date:28/07/2004 URL: http://www.thehindubusinessline.com/2004/07/28/stories/2004072802240800.htm

Back Marginal drop in SBI income in Q1

Our Bureau

Mumbai, July, 27

STATE Bank of India's total income during the quarter dropped to Rs 9,205.2 crore from Rs 9,523.2 crore in the corresponding period, the previous fiscal.

Net interest income of the bank rose by 10.03 per cent to Rs 2,954.07 crore (Rs 2,684.69 crore) on account of higher interest income on advances and lower interest expenditure on deposits. Other income declined to Rs 149.94 crore (Rs 815.37 crore), mainly due to a decline in profit on sale of investments, said a press release.

Treasury profits dwindled to Rs 373.01 crore (Rs 1,292.05 crore).

Retail advances have grown by Rs 1,377 crore in first quarter of the current fiscal. During the period, the growth in retail advances was 4.15 percent over March 2004 and constitutes 23.47 per cent of SBI's domestic gross advances as on the last Friday of June 2004 as against 19.96 per cent, as on the last Friday of June 2003, the release said.

Advances to the housing sector grew by Rs 987 crore taking the bank's total housing portfolio to Rs 18,054 crore. Housing loans constitute 52.28 per cent of the retail advances as on June 2004.

SBI's total deposit base as on the last Friday of June 2004, grew by 18.74 per cent to Rs 2,93,782 crore from Rs 2,47,423 crore on last Friday of June, 2003.

Gross advances grew by 16.86 per cent to Rs 1,66,387 crore over Rs 1,42,377 crore in the corresponding period last fiscal.

Net NPAs of the bank were marginally lower at 3.45 per cent as on June 30, 2004 as compared to 3.84 per cent in corresponding period, the previous fiscal.

Provisions made for this quarter were lower at Rs 1,013 crore (Rs 1,626.58 crore). Provisions for NPAs also declined to Rs 210 crore (Rs 850 crore).

Last year the bank had made a higher provisioning of around Rs 650 crore, over and above the RBI norms, said the release.

Provisions for taxes were also lower at Rs 684.34 crore (Rs 835 crore).

The capital adequacy ratio stood at 13.82 per cent as on June 30, 2004, up from 13.71 per cent at end of June 30, 2003.