State Bank of India today reported a 21.8 per cent dip in net profit at Rs 1,604 crore for 2000-01. Operating profits registered a 25.24 per cent rise to Rs 5,236 crore.
The drop in the net profit is due to a large provisioning for its voluntary retirement scheme (VRS), costs of India Millennium Deposit (IMD) and writeback of investment depreciation.
IMD issue expense amounting to Rs 443.19 crore was absorbed in full in the year. The bank had initially planned to write down the total VRS outgo in one year but later changed its decision to spread it over five years, charging only Rs 853.19 crore to the balance-sheet this financial year. Write back on depreciation was Rs 550 crore.
Declaring the result, SBI chairman Janaki Ballabh said the bank expected to report 25 per cent growth in adjusted profits in the current financial year.
This was because of the positive impact of VRS on the bank
