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SBI's net profit to cross Rs 10,000-cr mark in current fiscal

New Delhi, June 01, 2009

The country's largest lender, State Bank of India (SBI) is hopeful of earning more profit than the landmark figure of Rs 10,000 crore in the current fiscal.

"Looking at the past performance and (the) way the bank has been expanding its businesses, we expect the net profit to cross Rs 10,000-crore mark in FY'10," a senior SBI official said.

It would not be appropriate to give the profit target but the aggressive growth strategy that the bank has adopted will help it earn an impressive number this year as well, he said.

Earlier this month, SBI Chairman O P Bhatt while announcing the results said deposits and advances are likely to grow by 25 percent each during the year.

The banking behemoth SBI recorded an impressive 36 percent net profit of Rs 9,121.2 crore in 2008-09, up from Rs 6,729.1 crore in the previous fiscal.

The total income of SBI rose to Rs 76,479.2 crore against Rs 57,645.2 crore a year ago, up by 33 percent.

Interest income stood at Rs 63,788.43 crore, up 30 percent from Rs 48,950.31 crore in the previous fiscal.

SBI's other income surged to Rs 12,691 crore against Rs 8,695 crore registering an increase of 45 percent.

Deposits grew 38.08 percent in FY 2009. The bank's advances grew by 29.8 percent against the industry average of about 17 percent.

However, due to high cost of deposits, the Net interest Margin for FY 2009 fell to 2.93 percent against 3.07 percent recorded last fiscal.

Bhatt had said now with the cost of deposits stabilising, NIM was expected to improve by June or remain at this level. 

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