The seven associate banks of the State Bank of India (SBI) have collectively reported a marginal 1.59 per cent decline in net profit.
The combined net profit of the seven banks has been pegged at Rs 618 crore in financial year 2000-01, down from Rs 628 crore in the previous year.
State Bank of Saurashtra has reported the steepest fall in net profit -- a 84 per cent dip -- at Rs 14 crore, down from Rs 89 crore. The next to follow is State Bank of Mysore, which reported a 45.83 per cent decline in net profit at Rs 26 crore (Rs 48 crore). State Bank of Bikaner and Jaipur has recorded a 12.5 per cent decrease in net profit at Rs 105 crore (Rs 120 crore).
The fall in net profit is attributed primarily to outgoes on account of the voluntary retirement scheme (VRS) expenses. In case of SBS, ballooning of non-performing assets has taken its toll on its balance sheet.
In percentage terms, State Bank of Travancore has reported the highest rise in net profit by 47 per cent at Rs 97 crore (Rs 66 crore), while State Bank of Indore is the next in line to report a 42 per cent rise in net profit at Rs 64 crore (Rs 45 crore).
State Bank of Patiala reported a 23 per cent jump in net profit at Rs 161 crore (Rs 131 crore), while State Bank of Hyderabad showed a 17 per cent rise at Rs 150 crore (Rs 128 crore). These four banks reported a healthy rise in net profit despite VRS expenses.
