SBI Q4 net profit up 75 per cent

New Delhi: India’s largest nationalised bank and the biggest lender State Bank of India on Sunday reported a 75 per cent rise in net profit to Rs 1,493 crore during fourth quarter of 2006-07.

SBI chairman O P Bhatt announcing the results for 2006-07 in Kolkata and also expressed the intension of the bank to focus on emerging opportunities.

During the period January-March 2007, the net profit rose 75 per cent from Rs 853.29 crore in the same period last year.

Total income of the bank grew 29 per cent in this period to Rs 14,435 crore from Rs 11,186 crore a year ago.

The Board of Directors also recommended a dividend of Rs 14 per share for 2006-07.

While the net profit for the year ended March 31, stood at Rs 4,541.31 crore, against Rs 4,406.67 crore in 2005-06, total income grew to Rs 45,260.28 crore from Rs 43,414 crore last year.

The marginal rise in full-year net profit was due to additional provisional for taxes and loan losses, Bhatt said.

The bank's deposits touched Rs 400,000 crore and advances crossed Rs 300,000 crore. Gross NPA (non-performing assets) decreased from 3.61 per cent to 2.92 per cent and net NPA 1.88 per cent to 1.56 per cent.

Operating profit rose more than 21 per cent to Rs 10,000 crore. Interest on loans grew 40 per cent to Rs 24,839 crore as it increased lending to consumers in the booming economy.

Bhatt also said PTI that the bank, which had been witnessing a drop in market share in deposits and advances for long, was now in the verge of reversing this trend.

During the current financial year, the bank would have to raise between Rs 14,000-15,000 crore through debt and equity.

Bhatt also said SBI was awaiting the passage of the SBI Amendment Act. The entire money would be raised by December this year, he said.

The SBI chief said capital adequacy ratio (CAR) of the bank was comfortable at 12 per cent, out of which Tier I was eight per cent and Tier II at four per cent.

"We are well within the mandate of Basel II norms", he said.

Net interest margin (NIM) of the bank increased to 3.31 per cent from 2.92 per cent.

Bhatt said there would be some pressure on NIM during the current fiscal.

Non-interest income had grown from Rs 4,385 crore to Rs 5,769 crore, reflecting a growth of 31.57 per cent. Interest income on loans also increased 40.36 per cent at Rs 24,839 crore during 2006-07.