SBI group Q2 net up 28 per cent

SBI group Q2 net up 28 per cent

Banks gross advances for the quarter up by Rs 81,724 crore

SBI group Q2 net up 28 per cent

During the quarter under review, the country’s premier lender grossed a total income of Rs 33101.65 crore, showing a growth of 22.22 per cent from the comparable quarter ended September 30, 2008 at Rs 27083.47 crore.  The figures of the current period include the working results of the branches of State Bank of Saurashtra (SBS) consequent to its merger with the Bank in August 2008.

The Bank’s stand-alone results showed a net profit of Rs 2490.04 crore for the quarter ended September 30, 2009 as compared with Rs 2259.72 crore for the same quarter last fiscal, an increase of 10.19 per cent.

Total income up

Total income of SBI during the quarter ended September 30, 2009 stood at Rs 21,301.04 crore, a growth of 18.93 per cent from the comparable quarter of the previous financial year at Rs 17,909.64 crore. Deposits of the Bank up by Rs.1,55,380 crore, reflected a growth of 25.16 per cent from Rs.6,17,524 crores in Sept 08 to Rs.7,72,904 in Sept 09.  CASA deposits of the Bank went up by 29.23 per cent on YoY basis, bolstered by savings bank growth of 31 per cent.

Growth in advances

The Bank’s gross advances went up by Rs 81,724 crore, a growth of 16.39 per cent from Rs 4,98,513 crore in Sept 08 to Rs.5,80,237 crore in Sept 09.  

During the first half of the current financial year , the banks’s  operating profit was up by 4.33 per cent to Rs 8509 crore.  Other income has grown by 49.44 per cent during H1FY10 over H1FY 09. The growth has been driven by growth in core fee income of 51.55 per cent as well as other income from treasury operations of 226 per cent.

Net interest income (NII) has improved by 3.51 per cent to Rs.10634 crores as on September-end 2009 from Rs.10273 crore as on September-end 2008, despite the fact that PLR has come down by 200 bps between these two dates.  

Merger plans

Moving a step further for the amalgamation of State Bank of Indore with itself, the board of State Bank of India on Saturday approved the swap ratio for the merger. “In today’s board meeting, the board approved the swap ratio,” SBI Chairman O P Bhatt told reporters here without disclosing the ratio.

With this, the merger of SBI with State Bank of Indore, which is the smallest subsidiary of the country’s largest lender, is likely to be completed soon. The government had given in-principle approval to the merger of State Bank of Indore with SBI early this month.