>STATE BANK OF INDIA (SMC)

Performance of Quarter Ended, December 2009
For the quarter ended December 09, SBI – India's largest bank has reported subdued results with Consolidated Net Profit slipping by 8% to Rs 3304.59 crore on the back of 9% increase in the Net Interest Income to Rs 8781.70 crore. Despite 51% increase in the other income to Rs 7283 crore, 49% increase in the Operating expenses to Rs 9572.66 crore and whopping increase in the provision for taxation to Rs 1454.01 crore has resulted in Net going down.

The core fee income of the bank was up by 36% in the quarter under review. The other income of the bank was marginally up by 4% to Rs 3365.71 crore, while the cost to income ratio has expanded by 220 bps to 52.3% restricting Operating Profits up by just 3% to Rs 4618.14 crore.

The operating expenses were mainly driven by opening 1091 new branches and 6842 ATMs over the year. Further 7% increase in the total provisions including taxation has paved Net Profit flat for the quarter ended December 09.

Asset Quality
Net NPA of the bank has increased by 62% on y-o-y basis and 14% on q-o-q basis to Rs
11270.79 crore.
The % of GNPA of the bank stood at 3.11% in Q3FY10 as against 2.99% in Q2FY10 and 2.50% in Q3FY09. The % of NNPA was at 1.88% as against 1.73% in Q2FY10 and 1.39% in Q3FY09. The provision coverage ratio including Assets under correction was 56.19%.

Business Highlights

• The total business of the bank grew by 15% to Rs 1378139 crore for the quarter ended December 09 as against Rs 1202495 crore in the corresponding previous year.
• The Aggregate deposits of the bank rose by 11% to Rs 770985 crore in the quarter ended December 09 as against Rs 692922 crore in the corresponding previous quarter.

Performance of Associates and Subsidiaries:

• Associate Banks' net profit increased by 9.85% from Rs.2015 crore to Rs 2213 crore in nine months ended December 09.
• SBI Funds Management Average Assets under management (AUM) have increased from Rs 24104 crore as on Dec 2008 to Rs 37900 crore as on Dec 09, a growth of 57% on y-o-y basis.
• SBI Factors: Net profit has grown by 43% to Rs 38.20 crore in nine months ended December 09 compared to Rs 26.79 crore in corresponding previous year.
• SBI Card has reported Net loss of Rs 123 crore during nine months ended December 09

To read the full report: SBI