SBI Q2 net up 10 per cent on good earnings | business | Hindustan Times
Today in New Delhi, India
Dec 16, 2017-Saturday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

SBI Q2 net up 10 per cent on good earnings

Bolstered by a healthy growth in net interest income and core fee income, India's largest lender State Bank of India posted a 10.19 per cent jump in its standalone net profit at Rs 2,490 crore for the second quarter of current financial year.

business Updated: Nov 01, 2009 00:09 IST

Bolstered by a healthy growth in net interest income and core fee income, India's largest lender State Bank of India on Saturday posted a 10.19 per cent jump in its standalone net profit at Rs 2,490 crore for the second quarter of current financial year.

The bank saw a credit growth of 16.39 per cent in the quarter and is optimistic about achieving a growth rate of 22 per cent for the full financial year, SBI Chairman O P Bhatt told reporters in Mumbai.

"If the growth in credit picks up, we should achieve around 22 per cent growth by the end of this fiscal," Bhatt said.

The bank will have to raise Rs 36,000 crore in the next five years to maintain a capital adequacy ratio of 12 per cent, he said. CAR, at present, stands at 14.11 per cent.

SBI will have to make an additional Rs 5,000 crore provisioning on bad loans after the Reserve Bank directed banks to increase the loan loss coverage ratio to 70 per cent, in its quarterly monetary policy review, Bhatt said.

"We have to provide up to Rs 5,000 crore (to reach 70 per cent coverage)," Bhatt said.