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 Working Results for the 9 month ended 31-12-2003 (From the Bank's website www.statebankofindia.com ) HIGHLIGHTS The Bank posted a Net Profit of Rs. 2808.54 cr for the 9 month period ended 31st December 2003 compared to Rs. 2367.45 cr. in 9 month period ended 31st December 2002 , registering a growth of 18.63% The Operating Profit for the 9 month period ended 31st December 2003 at Rs. 7188.14 cr recorded a growth of 36.46% over Rs.5267.40 cr in 9 month period ended 31st December 2002. The growth in Operating Profit was achieved due to increase both in the Net Interest Income and in Other Income. The growth in Net Profit was achieved due to the increased Operating Profit, despite larger provisions made during the 9 month period on considerations of prudence. ANALYSIS OF PERFORMANCE Net Interest Income of the Bank went up by 9.19% to Rs 7872.72 cr in 9 month period ended 31st December 2003 as against Rs. 7210.20 cr in 9 month period ended 31st December 2002. Ø Average level of advances in India during the 9 month period ended 31st December 2003 were Rs. 130101 cr as compared to Rs. 118984 cr in 9 month period ended 31st December 2002, i.e., higher by 9.34%. Average yield on advances declined to 8.32% from 9.17 % due to declining interest rates.. Ø Average resources deployed in treasury operations in India went up by Rs.23038 cr recording a growth of 12.35% as compared to 9 month period ended 31st December 2002. The average yield in resource operations was lower at 8.62% as compared to 9.56% in the corresponding period last year due to declining interest rates. Ø Average deposits in India (excluding Resurgent India Bonds/India Millennium Deposit) rose by Rs 27500 , i.e, by 11.95%. Ø The cost of deposits witnessed a decline from 6.56% in 9 month period ended 31st December 2002 1 to 5.65% in 9 month period ended 31st December 2003. Other Income of the Bank grew by 56.48% as compared to 9 month period ended 31st December 2002. Profit on sale of Investment increased by 220.42% and other income (other than profit on sale of investment) increased by 11.32% The Other Operating Expenses of the Bank registered an increase of 24.52% mainly on account of technology drive initiated by the Bank . Staff Cost registered an increase of 9.24% Total provisions made for the 9 month period ended 31st December 2003 amounted to Rs. 4379.60 cr as compared to Rs.2899.95 cr made in 9 month period ended 31st December , 2002 on account of the following: Ø Provision for NPAs at Rs 2660.32 cr for the 9 month period ended 31st December 2003. Ø Provision for investment depreciation at Rs. 222.57 cr Retail Lending q The performance has significantly improved in Retail loans with a growth of Rs.5,552 cr in 9 months of 2003-04 compared to the growth of Rs. 4,468 cr in the corresponding period in the previous fiscal. q In the thrust area of housing loans, there was a growth of Rs.3,024 cr upto December 03 over March, 03, compared to a growth of Rs.2,539 cr in 9 months of 2002-03. Total Housing loans outstanding as on December, 03 were Rs.15,335 cr as against Rs.12,174 cr upto March, 2003. Housing Loans as a percentage to Retail Loans improved to 51.28% as of December, 2003 from 49.98% as of March, 2003. Share of Housing Loans in the total non-food advances improved to 10.79% as of December, 2003 from 9.20% as of March, 2003. q Number of cars financed by the bank grew by 140% from 11,836 as on December, 02 to 28,365 as on December, 2003. 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. q For the Services and SSI sector, Bank has introduced several new products. q For Rural Housing, Bank has introduced Gram Niwas & Sahyog Niwas Schemes. q The Bank has crossed 20 lac mark in the issuance of Kisan Credit Cards upto November, 2003 with aggregate limit of over Rs.5247 cr. The Bank has also introduced Kisan Gold Credit Card for high-end farmers. NPA Management q The Gross NPA ratio has come down from 9.33% as on 31st March '03 to 9.16% as on 31st December '03, and the Net NPA ratio, from 4.50% as on 31st March '03 to 2.88% as on 31st December 2003. q Under the SARFAESI Act 2002, notices have been issued in 11,892 cases involving an amount of Rs. 4,862 cr, effecting a recovery of Rs. 105.48 crores till December 2003. Technology State Bank of India has made rapid strides in adopting technology as a key enabler for achieving efficiency of its business operations. q The State Bank Group having more than 13000 branches stands fully computerised today. q The SBI Group has at present over 2800 networked ATMs comprising of 2200 ATMs of SBI and 604 of the Associate Banks covering 898 centers. It constitutes the single largest ATM network in the country. q The Bank is in the process of implementing a Core Banking solution. The Core banking facility will enable online interface to a multitude of technology driven delivery channels. q SBI has entered into sharing of ATM network with Indian Bank, UTI bank, HDFC Bank and ICICI Bank for larger coverage and increasing non-interest income. q 4 million ATM cum Debit cards have been issued upto December, 2003. q Internet Banking for retail customers has been rolled out to 949 branches covering 232 centres, facilitating access to Bank's services. Capital Adequacy Ratio The Bank continues to have a very comfortable Capital Adequacy Ratio. CAR has improved from 13.50% in March '03 to 14.74% as of December'03. 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 1700 Branches are now engaged in insurance selling with more than 700 trained and qualified Insurance Facilitators distributing a range of life insurance products like Mortgage Redemption Insurance, Endowment, Pension and Term Insurance. In the first nine months of the financial year, our Bank branches have covered over 66,000 lives and collected premium of Rs. 28.15 Crs. The Bank has recently tied up with New India Assurance Co. Ltd. for distributing their non-life products through our Branch network. STATE BANK GROUP Group assets have increased from Rs. 4,97,756 cr as on 31st March 2003 to Rs 5,21,347 cr as on 31st Dec 2003 Group net profit for 9 months period stood at Rs. 4241 cr as against the whole year profit of Rs. 4199 cr in FY 2002-03 Group Operating Profit for 9 months stood at Rs 10763 cr as against the whole year operating profit of Rs 11316 in FY 2002-03 ( For tables of performance parameters, please visit the Bank's website www.statebankofindia.com ) ---------------------------------------------------------------------- Email From ""Rajendra S. 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