SBI net up 79% for Q1 at Rs 1,426cr

The Net Profit for Q1FY08 Rs 1425.81 crores, growth of 78.55% over Q1FY 07.

Continued high net profit for second quarter in succession after net profit of Rs 1493.19 crores in Q4FY07 (with a growth of 74.99% over Q4FY06).

Profits in Q4FY07 and Q1FY08 highest ever quarterly profits for SBI.

Consolidated Net Profit up from Rs. 963 crores in Q1FY 07 to Rs. 1862 crores in Q1FY 08, growth of 93.32%.

Highlights:

The Bank's Operating Profit for Q1FY08 for Rs 2361.46, growth of 30.78% over Q1FY07.

ROA of the Bank improved to 0.94% in Q1FY 08 from 0.64% in Q1FY07.

ROE of the Bank has improved to 17.57% in Q1FY 08 from 11.23% in Q1FY 07.

Market Capitalization at Rs 80276 crores (US$ 19.72 billion) as on 30th June 2007 without any external capital infusion since 1996.

Profitability:

The Operating Profit for Q1FY08 at Rs.2361.46 crores has gone up from Rs.1805.62 crores in Q1FY07 thereby registering a growth of 30.78%.

Bank has posted a Net Profit of Rs. 1425.81 crores for Q1FY08 registering a growth of 78.55% when compared with the Net Profit of Rs 798.57 crores for Q1FY07.

Net Interest Income (NII) in Q1FY08 at Rs 4497.40 crores has gone up by 15.00% over the NII of Rs 3910.61 crores in Q1FY07.

Net Interest Margin (NIM) of the Bank for Q1FY08 is 3.31% including CRR balances and 3.50% excluding CRR balances.

Total non-interest income increased from Rs. 709.59 crores in Q1FY07 to Rs. 842.58 crores in Q1FY08 thereby registering a growth of 18.74%.

Fee Income also registered a growth of 16.28% which has gone up to Rs 885.86 crores in Q1FY08 from Rs 761.85 crores in Q1FY07.

Correspondingly, share of Non-Interest Income to Operating Income has also marginally increased from 15.36% in Q1FY07 to 15.78% in Q1FY08.

Operating Expenses have registered a moderate increase of only 5.82% in Q1FY08 over Q1FY07 while staff expenses have gone up by just 5.30%.

Provision for Income Tax has been made for Rs. 776.53 crores in Q1FY08 as against Rs. 755.90 crores in Q1FY07.

Gross NPA ratio declined from 3.64% to 3.13%. Correspondingly, Net NPA ratio declined from 1.84% to 1.62%. However, Rs 506.32 crores has been provided towards loan loss provisions in Q1FY08 against Rs 173.82 crores in Q1FY07. The Provision Cover has marginally come down to 48.83% in Q1FY 08 from 50.29% in Q1FY07, though up from 47.41% as on March 07 by 142 bps.

The Bank added Rs.2523.50 crores to its capital during quarter ended June 2007 by way of Upper Tier-II Subordinated Debt, which helped the Bank in improving its Capital Adequacy Ratio.

The Bank also raised US $ 225 mio (Rs.915.86 crores) as IPDIs overseas during the quarter ended June 2007 which helped the Bank in improving its Tier-I Ratio.

Capital Adequacy Ratio (CAR) of the Bank as on 30.06.07 is 13.13% and Tier I CAR is 8.32%.

Ratios:

Cost of Deposits has increased to 5.35% from 4.63% due to higher term deposits mobilization and higher interest rates.

Yield on Advances has increased to 9.80% from 8.48% (132 bps growth).

Yield on Investments (Incl. CRR) decreased to 6.21% from 7.22%

Non Interest Income to Operating Income increased to 15.78% from 15.36%

Cost to Income Ratio has declined to 55.78% from 60.92%

Deposits:

Bank's Deposits grew by Rs.71918 crores to Rs. 449660 crores as at the end of June 2007 from Rs.377742 crores as at the end of June 2006 recording a growth of 19.04%.

The cost of deposits has increased from 4.63% in June 06 to 5.35% in June 2007 mainly due to higher rate of interest for time deposits.

CASA ratio has fallen from 42.67% as on June 06 to 41.06% as on June 07. In absolute terms, CASA deposits increased from Rs.151055 crores upto June 06 to Rs. 174466 crores upto June 07. Further within CASA, SB deposits increased from Rs. 119787 crores upto June 06 to Rs 135933 crores upto June 07. Similarly CA deposits increased from Rs. 31268 crores upto June 06 to Rs. 38533 crores upto June 07. However, CASA ratio has fallen due to higher mobilization of Term deposits (on the back of higher interest rates being offered).

Advances:

Gross Advances grew to Rs. 344087 crores as at the end of June 2007 from Rs 266963 crores as at the end of June 2006 i.e. a growth of Rs.77124 crores equal to 28.89%.

The average yield on advances improved substantially to 9.80% in June 2007 from 8.48% in June 2006. Due to the volume growth in advances and improvement in yield, interest income on advances went up by 46.25% compared to Q1FY07.

As on 30th June 2007, the advances in personal segment have grown (Y-O-Y) by Rs.12171 crores (i.e. 19.33%) and (Y-T-D) by Rs.1548 crores (2.09%). The outstanding personal segment advances aggregate Rs.75138 crores at the end of June 2007.

The Bank continues to perform well in housing finance. As on 30th June 2007, housing advances have grown (Y-O-Y) by Rs.6048 crores (i.e. 18.22%) and (Y-T-D) by Rs.1259 crores (3.31%). The total outstanding of home loans as at the end of June 2007 was Rs.39241 crores.

Retail Advances constitute 25.81% of Bank's Gross Domestic Advances (Excl. Food) as at the end of June 2007. Housing Loans constitute 52.22% of Bank's Retail Advances as on June 07.

Agricultural advances grew to Rs 36922 crores as at the end of June 2007 from Rs 28356 crores as at the end of June 2006, i.e., a growth of Rs.8566 crores (30.21%) on Y-O-Y basis and Rs.1930 crores on Y-T-D basis (i.e. 5.51%). Disbursements during the quarter ended June 2007 were at Rs.3742 crores as compared to Rs.3785 crores during quarter ended June 2006.

ON TECHNOLOGY FRONT:

The largest number of ATMs 7124 and largest card base (28.27 million Cards).

86 of SBI branches and 10638 of SBI Group Branches under CBS.

90% of business of SBI Group is now on Core Banking.