NOTE: SBINEWS DOES NOT PERMIT CIRCULATION OF ATTACHMENTS. ATTACHMENTS, IF ANY, CIRCULATED WILL BE ONLY BECAUSE OF VIRUSES. PLEASE,THEREFORE, IGNORE ATTACHMENTS IF ANY IN SBINEWS MESSAGES ************************************************************************ SBI Q3 Net Mounts 17% To Rs 919 Cr (Financial Express) OUR BANKING BUREAU MUMBAI, JAN 30: The State bank of India (SBI) has posted a 16.82 per cent rise in net profit at Rs 919.44 crore for the third quarter ended December 31, 2003, compared to Rs 787.05 reported in same period of the preceding fiscal. The bank posted a net profit of Rs 2,808.54 crore for the nine months of the current fiscal, registering a growth of 18.63 per cent. The growth in net profit was achieved due to increased operating profit, despite larger provisions made during nine-month period on considerations on prudence. SBI chairman AK Purwar, said the the net-profit for the whole of the fiscal may be at 20 per cent. Total income of the bank in the third quarter of period under review decreased to Rs 8,559.34 crore (Rs 9,066.92 crore). Mr Purwar said that net non-performing assets (NPA) of the bank fell to 2.88 per cent and provision for NPAs (58 per cent) is estimated at Rs 2,660.32 crore while total provisions amounted to Rs 4,379.6 crore. Under the SARFASI Act, notices have been issued in 11,892 cases involving an amount of Rs 4,862 crore, effecting a recovery of Rs 105.48 crore provisions For investment depreciation is estimated at Rs 222.57 crore. "Even after the 90-day provisioning, the bank's NPA figure would rise only to three per cent", he said. The bank has restructured assets worth of Rs 3,300 crore and in the corporate debt restructuring (CDR) category, it has restructured Rs 1,200 worth of assets. Retail lending grew by 5,552 crore (Rs 4,468 crore) in the nine-month period. housing Loans recorded a growth of Rs 3,024 crore up to December. The retail segment constitutes 19.27 per cent of the total advances, which would be increased to 30 per cent in next two years. "We will prefer to stick to our existing model than use the agency channel for expanding our retail exposure", he said adding that bank's system is much safe and customer friendly. The bank has been available to arrest its loss in mobilising deposits and trying to do the same on the advances front. "We have created the technology platform in semi-urban and rural areas and business in these areas will gather volume now", he said. The bank was looking at self-help groups, contract farming and rural housing in a big way, he said. Total advances of the bank will grow by 12-13 per cent as against the target of 16 per cent in the current fiscal, said Mr Purwar adding that this would be achieved in the fourth quarter. The bank has a small exposure of in equity and has no interest to increase its equity exposure. Mr Purwar also said that the bank will go for a small token securitisation programme. "We are not interested in large scale securitisation programme as we are flushed with funds", he said. On government's package to the Food Corporation of India, he said "it would have some impact but there were a lot of infrastructure projects lined up for funds, including several from power sector and we expect to have Financial closures for some of them". Referring to the interest rate scenario, he said it should remain stable in immediate term taking into account the inflation and hardening of rates globally. On the information technology front, Mr Purwar said all the 13,613 branches of SBI and its seven associates have achieved computerisation, almost eight months ahead of schedule. The bank has also invested over Rs 600 crore on initiatives in the current fiscal and has commenced testing of core-banking solution in 30 branches. From July one, SBI would start massive rollout of this solution. The other income of the bank grew by 56.48 per cent and profit on sale of investment increased by 220.42 per cent and other income (other than profit on sale of investment) increased by 11.32 per cent. The cost of the deposit witnessed a decline from 6.6 per cent in nine months period to 5.65 per cent ---------------------------------------------------------------------- Email From ""Rajendra S. Pai" <rs.pai@xxxxxxxxx>" was security checked by 3.90 version of CxProtect(tm) On: mail_store at: 09:21:56, 31-Jan-2004 Saturday ---------------------------------------------------------------------- *************************************************************************** Mailing list (sbinews@xxxxxxxxxxxxx) related information: News/articles about SBI and Banking related matters published in the print media, Internet etc will be circulated through this Mailing List. 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