[sbinews] SBI - Working Results Yr ended 31-03-2004 (Bank's Website)

  • From: "Rajendra S. Pai" <rspai9@xxxxxxxxx>
  • To: sbinews@xxxxxxxxxxxxx
  • Date: Fri, 28 May 2004 20:13:39 -0700 (PDT)


The Operating Profit of the Bank for 2003-04 stood at
Rs 9553.46 cr. as compared to Rs. 7775.40 cr. in
2002-03, recording a growth of 22.87%. 

The Bank has posted a Net Profit of Rs 3681.00 cr. for
2003-04 as compared to Rs.3105.00 cr in 2002-03,
registering a growth of 18.55%. 

The growth in profit in 2003-04 has been achieved due
to increase in both Net Interest Income as well as
Profit on sale of Investments. In 2003-04 the Bank
registered a substantial growth in the Profit on sale
of Investments which increased to Rs 3073.46 cr as
against Rs.1694.60 cr in 2002-03. 

Net Interest Income was Rs. 11186.32 cr. as against
Rs. 9977.54 cr in the previous year, ie., a growth of
12.12%. This was due to growth in both interest income
on resources deployed in treasury operations as well
as on advances. 
Average level of Advances in India was higher by
10.14% and average level of resources deployed in
Treasury Operations in India was higher by 10.79% . 
Cost of deposits (excluding Resurgent India Bonds/
India Millennium Deposits) witnessed a reduction from
6.43% in 2002-03 to 5.48% in 2003-04. 
Net Interest Margin was higher at 3.04% compared to
2.95% in the previous year. 
Non-interest income grew by 32.62%, from Rs 5740.26 cr
in 2002-03 to Rs 7612.45 cr in 2003-04. 
Operating Expenses have registered an increase of
16.40%. Staff cost has increased by 13.34% mainly due
to additional contribution to pension fund and
provision for leave encashment liability for current
year as per AS15. 
Major amounts of provisions were as under: 
Rs 3702.75 cr. towards non-performing assets (as
against Rs.2592.93 cr in 2002-03) which include
floating provision of Rs 990.00 crores over and above
the RBI norms for NPAs. 
Rs.1243.86 cr towards Income Tax, adjusted for
deferred tax. (as against Rs.2162.14 cr in 2002-03). 
Rs 49.12 cr towards Standard Assets (as against
Rs.69.22 cr in 2002-03). Including this amount, the
total provision held on Standard Assets amounts to Rs
377.03 cr. 
Rs. 495.58 cr towards provision for depreciation on
investments in India, including amortisation of
premium on 'Held to Maturity' category. (as against
392.98 cr. in 2002-03) 

Key Performance Indicators Indicators  2003-04 
Return on Average Assets (%)  0.94%  0.86%  
Return on Equity (%)  18.19%  18.05%  
Expenses to Income (%)
(Operating Expenses to Total Net Income)  49.18%
Earnings Per Share  (Rs.) 69.94 59.00 
Capital  Adequacy  Ratio  (%) 13.53% 13.50% 
Tier I 8.34% 8.81% 
Tier II 5.19% 4.69% 
Net NPAs to Net Advances   3.48%  4.50%

Growth in Deposits 
The domestic deposits of the Bank (excluding India
Millennium Deposits) increased by 16.03%. The Personal
segment deposits recorded a growth of 10.77% and
formed 49.95-% of the aggregate deposits of the Bank. 

Deployment of Credit: 
The domestic loan portfolio of the Bank increased by
13.58% in 2003-04 
Personal Segment (Retail) loans recorded a growth of
36% in 2003-04 
In the thrust area of housing loans, there was a
growth of Rs.4, 893 cr in the year 2003-04 (as on the
last Friday of March 2004) compared to a growth of
Rs.3, 973 cr (as on last Friday of March 2003) in
2002-03. Housing Loans as a percentage to Retail Loans
improved to 51.47% as of March 2004 from 49.98% as of
March 2003. Share of Housing Loans in the total
non-food advances improved to 10.96% as of March 2004
from 9.20% as of March 2003. 
Number of cars financed by the Bank under the tie-up
programme with Maruti Udyog Ltd. grew by 117% from
16,929 as on March 2003 to 36,786 as on March 2004. 

Development Banking 
The Bank continues to be deeply involved in
development banking through its vast rural and
semi-urban branch network, specialised branches for
agriculture and small scale industries and new
innovative products. 

For the Services and SSI sector, Bank has introduced
several new products. 
For Rural Housing, Bank has introduced Gram Niwas &
Sahyog Niwas Schemes. 
The Bank has issued 6.09 lac Kisan Credit Cards during
2003-04 with aggregate credit limit of Rs. 1,598.13
Cr. During the year 2003-04, the Bank crossed the
20-lac mark in issuance of Kisan Credit Cards. The
Bank has also introduced Kisan Gold Credit Card for
high net worth farmers. NPA Management 
The Gross NPA ratio has come down from 9.33% as on
31st March '03 to 7.75% as on 31st March '04, and the
Net NPA ratio, from 4.50% as on 31st March '03 to
3.48% as on 31st March '04. 
Under the SARFAESI Act 2002, notices have been issued
in 12,553 cases involving an amount of Rs. 5,114 cr,
effecting a recovery of Rs. 130 crores till March
76 Assets involving Dues of Rs. 570.35 Cr (Principal
Amount) have been sold to ARCIL during 2003-04 at an
offer price of Rs. 162.33 Cr. 

State Bank of India has made rapid strides in adopting
technology as a key enabler for achieving efficiency
of its business operations. 
The State Bank Group, which has 13635 branches, has
computerised all the branches during the year 2003-04.

The State Bank Group has at present over 3900
networked ATMs comprising of over 2800 ATMs of SBI and
1100 of the Associate Banks covering 1296 centers. It
constitutes the single largest ATM network in the
The Bank has an ATM Card base of more than 5 million 
SBI has entered into sharing of ATM network with
Indian Bank, UTI Bank and HDFC Bank for larger
coverage and increasing non-interest income. 
Internet Banking for retail customers has been rolled
out to 1,100 branches covering over 300 centres,
facilitating easier access to Bank's services. This
facility is being used by more than 2,50,000
The Bank is rapidly moving towards a centralized
database with a state-of-the-art Core Banking
Solution. The Core Banking Solution will enable
on-line, real-time transaction processing and provide
on-line interface to a multitude of technology driven
delivery channels. 

Business Process Reengineering 

The Bank is undertaking a Business Process
Reengineering Project and has engaged Mckinsey & Co,
as advisor for the project. The objective of this
exercise is to strengthen Bank's ability to acquire
new customers, build lasting relationships with
existing customers and to increase customer
satisfaction through world-class service. Capital
Adequacy Ratio 

The Bank has a comfortable Capital Adequacy Ratio of
13.53% as of March, 2004 as compared to 13.50% in
March 2003. 

Cross Selling within SBI Group 
Cross selling of products from SBI Life Insurance Co.
Ltd. and SBI Funds Management Pvt. Ltd has commenced
in right earnest through our Branch Network in the
entire Group. 
Over 2600 Branches are now engaged in insurance
selling distributing a range of life insurance
products like Mortgage Redemption Insurance,
Endowment, Pension and Term Insurance. 
During the financial year 2003-04, our Bank branches
have covered over 1,28,700 lives and collected premium
of Rs. 82 Crs. 
The Bank has recently tied up with New India Assurance
Co. Ltd. for distributing their non-life products
through our Branch network. 
Group assets have increased from Rs. 4,97,756 cr as on
31st March 2003 to Rs 5,50,749 cr as on 31st March
Group net profit for the year 2003-04 stood at Rs.5531
cr as against the figure of Rs. 4199 cr in FY 2002-03.
Thus the SBI Group has crossed the Net Profit of US $
1 Billion mark.. 
Group Operating Profit for the same period stood at Rs
14,568 cr as against the operating profit of Rs 11,316
cr in FY 2002-03 

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