SBI Q1 net profit up 21.5 per cent

The bank had a net profit of Rs 2,852.45 crore in the year-ago period, SBI said.
Total income, however, decreased marginally to Rs 32,808.06 crore in April-June quarter of 2010 from Rs 33,132.7 crore in the same quarter last fiscal. On a standalone basis, SBI net profit grew 25 per cent to Rs 2,914.2 crore in the first quarter, up from Rs 2,330.37 crore in the year-ago period. The bank’s income increased to Rs 22,142.08 crore in the quarter under review from Rs 21,041.51 crore in the year-ago period. Meanwhile, SBI said it will take a call on hiking deposit rates and lending rates for existing borrowers by at least 25 bps.

To review interest rates

“There is an upward bias on interest rates ... on the both deposit and lending rates. We will review deposit rates and benchmark prime lending rate,” SBI Chairman O P Bhatt told reporters here while announcing the first quarter results of the bank. Asked about the quantum of the likely hike, Bhatt said, “It has to be minimum 25 basis points.” He, however, did not say when the bank would review the rates. “The deposit rates have almost bottomed out for the industry and there is definitely an upward bias as far as advances are concerned because of the way the RBI is managing the inflation and liquidity,” he added.

Bhatt also said that the bank is planning to raise Rs 20,000 crore from rights issue this fiscal. If rights issue does not happen, options are also open for raising the fund through preferential issue and follow-on offer, he added. He expects the bank’s credit growth at 21-22 per cent for current fiscal.

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