SBI Q4 net up 75 pc at Rs 1,493 cr, plans new ventures

New Delhi, May 12 (UNI) Country's largest lender State Bank of India (SBI) today posted a whopping 75 per cent increase in its net profit at Rs 1,493.19 crore for the fourth quarter ended March 31, 2007 as compared to Rs 853.29 crore during the same quarter last fiscal.

Its total income also rose 29 per cent to Rs 14,435.76 crore in the said quarter from Rs 11,186.10 crore for the same period a year ago.

SBI said it would venture into more profitable businesses like private equity, wealth and pension funds management in its efforts to catch up with smaller, but nimbler private sector rivals such as ICICI Bank, HDFC Bank.

It is in the process of launching derivative embedded products to help customers utilise the new RBI dispensation to manage their risks and earnings more effectively, it said in a statement.

For the year ended March 31, 2007 the Bank's net profit increased three per cent to Rs 4,541.31 crore as compared to Rs 4,406.67 crore for the year ended March 31, 2006 while the total income increased to Rs 45,260.28 crore from Rs 43,414.77 crore during the period.

For the January-March quarter, the bank had improved its operational performance with net interest income jumping 35.64 per cent to Rs 11,541 crore from Rs 8,509 crore. Interest on loans increased to Rs 7,057 crore from Rs 4,789 crore, registering a growth of 48.29 per cent. Earnings were also helped by a 2 per cent fall in taxes at Rs 1,063 crore.

SBI's pre-tax profit for the quarter rose 21 per cent to Rs 3,968 crore. Interest on deposits grew from Rs 4,196 crore to Rs 5,700 crore, a growth of 35.86 per cent.

The faster rise in deposit rates was reflected in the bank's interest expenses surging 46 per cent during the quarter to Rs 7,221 crore.

The bank's balance sheet crossed Rs 5,00,000 crore and deposits Rs 4,00,000 crore.

Its Gross and Net NPA decreased from 3.61 per cent to 2.92 per cent and 1.88 per cent to 1.56 per cent respectively.

The bank declared a dividend of 140 per cent (Rs 14 per share).

With opening of seven offices in the year 2006-07, the total number of foreign offices of SBI has gone up to 83 in 32 countries.

UNI