SBI net jumps 78.5% in Q1

Spurred by higher interest income, the State Bank of India has reported a 78.55 per cent growth in net profit at Rs 1,425.81 crore in the first quarter of 2006-07, against Rs 798.57 crore in the year-ago period.

“Higher interest income on advances as well as other income has contributed to the robust growth in net profit. The gain has been from the growth of the loan book and the reduction of overheads,” said a senior SBI official.

Total income increased 27.8 per cent to Rs 12,229 crore, from Rs 9,566 crore.
Interest income on advances was 46.25 per cent higher at Rs 7,988 crore, against Rs 5,462.35 crore.
Gross advances grew 29 per cent to Rs 3,44,087 crore (Rs 2,66,963 crore).
Deposits jumped 19 per cent to Rs 4,49,660 crore (Rs 3,77,742 crore).

The official said that the strong growth in advances was driven by a 30 per cent jump in loans to mid-sized corporates, 25 per cent increase in international loans and 29 per cent growth in loans to agriculture.

The net interest margin fell slightly to 3.31 per cent (3.37) due to the mark-up in the cash reserve ratio.