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SBI's net profit to cross Rs 10,000-cr mark in current fiscal

india Updated: May 31, 2009 10:19 IST

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The country's largest lender ,State Bank of India, is hopeful of earning more profit than the landmark figure of Rs 10,000 crore in the current fiscal.

"Looking at the past performance and (the) way the bank has been expanding its businesses, we expect the net profit to cross Rs 10,000-crore mark in FY'10," a senior SBI official told PTI.

It would not be appropriate to give the profit target but the aggressive growth strategy that the bank has adopted will help it earn an impressive number this year as well, he said.

Earlier this month, SBI Chairman O P Bhatt while announcing the results said deposits and advances are likely to grow by 25 per cent each during the year.

The banking behemoth SBI recorded an impressive 36 per cent net profit of Rs 9,121.2 crore in 2008-09, up from Rs 6,729.1 crore in the previous fiscal. The total income of SBI rose to Rs 76,479.2 crore against Rs 57,645.2 crore a year ago, up by 33 per cent.

Interest income stood at Rs 63,788.43 crore, up 30 per cent from Rs 48,950.31 crore in the previous fiscal.

SBI's other income surged to Rs 12,691 crore against Rs 8,695 crore registering an increase of 45 per cent.

Deposits grew 38.08 per cent in FY 2009. The bank's advances grew by 29.8 per cent against the industry average of about 17 per cent. However, due to high cost of deposits, the Net interest Margin for FY 2009 fell to 2.93 per cent against 3.07 per cent recorded last fiscal.

Bhatt had said now with the cost of deposits stabilising, NIM was expected to improve by June or remain at this level.