SBI net seen up 25% in Q4, 17% in FY04

The State Bank of India (SBI) is likely to declare 17 per cent growth in net profit at around Rs 3,700 crore for 2003-04.

The bank is also likely to register a 25 per cent growth in net profit in the fourth quarter backed by a boom in credit growth.

SBI was likely to record a net income of Rs 93,000 crore in 2003-04 against Rs 73,800 crore in the previous year according to sources in the bank.

SBI recorded a Rs 3,105 crore net profit for 2002-03, against Rs 2431.62 crore in the previous year. The bank's operating profit last year had increased 28.63 per cent to Rs 7775.40 crore vis-...-vis Rs 6044.83 crore in 2001-02.

Bulk of the growth in net profit in 2002-03 was from treasury operation which stood at Rs 1,715 crore against Rs 341 crore in the previous year.

In 2003-04, sources said the growth in profit was backed by retail growth and a better credit market.

This year however there has been mixed results for the respective regional circles. While some had recorded increased profits, some had in fact recorded a decline in profit.

Circles like Bengal, Kerala, posted declining profits, while Patna, and North-east witnessed a marginal rise in net profits.

Bangalore and Chennai circles on the other hand registered a reasonable rise in profits while New Delhi and Mumbai were among the best performers among all circles.

Last year the bank had made huge provisions in view of redemption of the Resurgent India Bonds which had capped its profits to Rs 3105 crore.

Sources said the extent of provision this year was comparatively less allowing the bank to register a 17 per cent growth in net profit.