SBI Q4 up 46%, to consolidate international operations
Boosted by higher earnings from interest and other incomes, country's biggest lender SBI on Saturday posted 45.62 per cent growth in net profit at Rs 2,742.31 crore for the March quarter of past fiscal.kolkata Updated: May 10, 2009 01:32 IST
Boosted by higher earnings from interest and other incomes, country's biggest lender SBI on Saturday posted 45.62 per cent growth in net profit at Rs 2,742.31 crore for the March quarter of past fiscal.
Sounding bullish on business growth this fiscal, SBI Chairman O P Bhatt while announcing the results said deposits and advances are likely to grow by 25 per cent each.
While the asset quality during the fiscal improved and the treasury operations did well, the revenue from foreign operations declined almost 20 per cent during the financial year 2008-09 over the previous fiscal.
Bhatt said the bank would consolidate its international operations in a big way, instead of expanding branches abroad.
"SBI will consolidate its international operations and will not go for much branch expansion," Bhatt said here.
The net interest margin (NIM) dipped to 2.93 per cent at the end of March 2009 from 3.07 per cent as on March 31, 2008.
Asked for reasons for decline in NIM, he said the cost of deposits increased while the yield on advances declined. He said now with cost of deposits was stabilising, NIM was expected to improve by June or remain at this level.
Capital adequacy ratio of the bank under Basel II as on March 31, 2009 stood at 14.25 per cent.
The bank, which will raise around Rs 20,000 crore this fiscal, also has massive hiring plans.