SBI reports Net Profit for Q3FY08 is at Rs.1808.64 crores as against Rs.1065.06 crores in Q3FY07, growth of 69.82%.

Highlights:

§ The Net Profit for 9MFY08 Rs.4845.87 crores, growth of 58.98% over 9MFY 07.

§ The Net Profit for Q3FY08 is at Rs.1808.64 crores as against Rs.1065.06 crores in Q3FY07, growth of 69.82%.

§ High net profit for fourth quarter in succession.

§ The Bank’s Operating Profit for 9MFY08 at Rs.8734.42 crores, growth of 39.35% over 9MFY07.

§ ROA of the Bank improved to 1.00% in 9MFY 08 from 0.78% in 9MFY07.

§ Marked improvement in ROE of the Bank to 18.01% in 9MFY 08 from 13.24% in 9MFY 07.

§ Market Share in Deposits and Advances 15.29% and 15.46% respectively.

Profitability:

* Net Interest Income (NII) in 9MFY08 at Rs.12220.64 crores has gone up by 16.26% over the NII of Rs.10511.49 crores in 9MFY07.
* Net Interest Margin (NIM) of the Bank at 3.01% excluding CRR balances.
* Total non-interest income increased from Rs.4347.88 crores in 9MFY07 to Rs.5877.73 crores in 9MFY08 thereby registering a strong growth of 35.19%.
* Fee Income also registered a growth of 15.68% to Rs.2854.03 crores in 9MFY08 from Rs.2467.22 crores in 9MFY07.
* Correspondingly, share of Non-Interest Income to Operating Income has increased from 29.26% in 9MFY07 to 32.48% in 9MFY08.
* Operating Expenses have been controlled and have a nominal increase of only 8.99% in 9MFY08 over 9MFY07 while staff expenses have gone up by just 5.21% despite ex-gratia payment under Exit Option.
* Provision for Income Tax has been made for Rs.2839.04 crores in 9MFY08 as against Rs.1985.86 crores in 9MFY07due to higher operating profit.
* Gross NPA ratio declined from 3.15% to 2.69%. Rs.933.96 crores has been provided towards loan loss provisions in 9MFY08 against Rs.698.27 crores in 9MFY07. Loan Loss Provision made in conformity with RBI guidelines.
* Net NPA Ratio has come down to 1.44% in December 07 from 1.56% in March 07.
* Capital Adequacy Ratio (CAR) of the Bank as on 31.12.07 is 12.28% and Tier I CAR is 7.53%. Rights Issue process is in advance stage.

Ratios:

§ Yield on Advances has increased to 9.93% from 8.61% (132 bps growth) whereas Cost of Deposits has increased to 5.55% from 4.71% (84 bps only) which is mainly due to higher term deposits mobilization and higher interest rates.

§ Yield on Investments increased to 6.95% from 6.74%.

§ Cost to Income Ratio has declined to 51.74% from 57.82% due to higher income and cost control.

Deposits:

§ Bank’s Deposits grew by Rs.105780 crores to Rs. 510132 crores as at the end of December 2007 from Rs.404352 crores as at the end of December 2006 recording a growth of 26.16%.

§ In absolute terms, CASA deposits increased from Rs171202 crores upto Dec 06 to Rs. 202642 crores upto December 07. Further within CASA, SB deposits increased from Rs. 127174 crores upto December 06 to Rs 146762 crores upto December 07. Similarly CA deposits increased from Rs. 33984 crores upto December 06 to Rs. 45238 crores upto December 07. CASA ratio of the Bank as on December 07 is 41.05%.

Advances:

§ Gross Advances grew to Rs.395343 crores as at the end of December 2007 from Rs. 314850 crores as at the end of December 2006 i.e. a growth of Rs.80493 crores equal to 25.57%.

§ The average yield on advances improved substantially to 9.93% in December 2007 from 8.61% in December 2006. Due to the volume growth in advances and improvement in yield, interest income on advances went up by 44.10% compared to 9MFY07.

§ As on 31st December 2007, the advances in personal segment have grown (Y-O-Y) by Rs.12564 crores (i.e. 18.06%) and (Y-T-D) by Rs.8542 crores (11.61%). The outstanding personal segment advances aggregate Rs.82132 crores at the end of December 2007.

§ The Bank continues to perform well in housing finance. As on 31st December 2007, housing advances have grown (Y-O-Y) by Rs. 6811 crores (i.e.16.02%) and (Y-T-D) by Rs.4540 crores (11.95%). The total outstanding of home loans as at the end of December 2007 are Rs.42522 crores. Asset quality under control.

§ Retail Advances constitute 24.04% of Bank’s Gross Domestic Advances as at the end of Dec 07. Housing Loans constitute 51.77% of Bank’s Retail Advances as on Dec 07.

§ Agricultural advances grew to Rs 41365 crores as at the end of December 2007 from Rs. 32263 crores as at the end of December 2006, i.e., a growth of Rs. 9102 crores (28.21%) on Y-O-Y basis and Rs.6373 crores on Y-T-D basis (18.21%).

§ Bank has achieved 17.69% ratio of agri advances to Adjusted Net Bank Credit for the 9 month ended December 2007 against 14.49% as on 31.03.2007.

ON TECHNOLOGY FRONT:

* The largest number of ATMs 8079 and largest card base (33.35 million Cards).
* 7800
* of SBI branches under CBS.
* More than 95% of business of SBI is now on Core Banking.
* 98% of business to be on Core Banking by March 2008.

BUSINESS GROUP HIGHLIGHTS

Retail Banking

* Thrust on Affordable Housing for all.
* Home Loans are now sanctioned for a period upto 25 years.
* Ceiling on concessional Home Loans in Rural Areas raised under SBI Gram Niwas from Rs.2 Lac to Rs. 5 Lacs.
* Reverse Mortgage Loan Scheme launched on 12th October 2007 for the benefit of senior citizens.
* In December 2007 the SBI group retains the position as the largest financier of Maruti cars with 15% share.
* In order to give a thrust to the Auto loan business we have taken a number of initiatives and implemented various new schemes and processes such as, pre-approved car loan limits to existing customers, online sanction system for Maruti cars at 18 select centres, execution of documents at mutually acceptable location at select centres
* Web based online application of Education Loan introduced w.e.f November 2007.

SME Business Unit

* As on December ’07 SME deposits have increased to Rs. 1,46,348 crores, recording year on year growth of 33.80% and SME advances have increased to Rs.69,134 crores and the year on year growth in SME advances is 33.60%.
* Introduced SME Power Gain & SME Power Pack, two value added current account products, SME sahaj a no frill Current account Product and SME Surabhi account with auto sweep and reverse sweep facilities. Also introduced Multicity Cheques, ATM cum Debit Cards, Inter core transactions, B 2 B payment solution for Corporates to provide on line pooling of funds and detailed MIS to related parties.
* Customer Relationship Executives recruited for Medium Enterprises from the Market and placed them in potential SME pockets to serve our ME customers.
* Conducted a Traders Bonanza Campaign for a period of four months and sanctioned loans to 48364 Traders to the tune of Rs.4984 crores during the campaign period.

Rural & Agri Business Group

* Upto December 07, the Bank has credit-linked 1.67 lac SHGs taking cumulative number of SHGs credit-linked to 9.35 lacs as on 31st December 2007.
* Piloting of SBITiny Cards, based on mobile communication and finger print verification has been rolled out in 10 states, covering 2379 villages of which 1968 villages are unbanked.
* The Bank has adopted 237 villages for their integrated development, formed 2,361 Farmers club and conducted 20,144 Farmers’ Meet during the year.
* Grameen Pay Order- a remittance product, has been launched across Bank’s sponsored RRBs to facilitate remittance from far-flung areas.

International Banking (Foreign Offices)

§ Net profit of our foreign offices at USD 115 mio. shows a growth of 45% compared to the corresponding period last year. This has surpassed the whole year profit earned during 2006-07 by 16% .

§ Deposits of foreign offices have grown by 50% and Advances have grown by 51% as compared to the corresponding period last year.

§ 54% of growth in Balance sheet was funded from Deposits against 20% in the corresponding period last year.

§ 31 M&A deals aggregating USD 19.82 bio. were handled by our foreign offices as against 13 deals of USD 5.38 bio. in 12 months last year.

§ Bank has been ranked # 1 in the Asia Pacific (ex-Japan and Australia) league table for mandated arrangers and book runners of Syndicated Loans.

§ A new electronic fund transfer product called ‘SBI Nepal Express Remit’ has been launched to enable Napalese settled in India to remit funds to Nepal.

New Businesses:

* The Bank incorporated its new subsidiary, SBI Pension Funds Pvt. Ltd., on December 14 2007. It will undertake management of pension funds under the New Pension System. Pension Fund Regulatory and Development Authority (PFRDA) is the primary Regulatory Authority and they will be initially allocating 55% of the corpus to the SBI subsidiary and the balance distributed between the other two players.
* The Bank has also started Financial Planning and Advisory services at 40 select branches to attract and retain young and mass affluent customers by providing value added services. The scope will be gradually enlarged.

Associate Banks

* All the Associate Banks have continued to perform very well. They have registered YOY growth of 17.15% in net profit . While the aggregate deposits have grown by 24.61%, the advances have grown by 23.16%.
* The Associate Banks command a market share of 7.48 in deposits and 7.75% in advances.
* CAR of Associate Banks taken together at 12.39%.
* Gross NPAs of ABs at 1.76% (2.11% in December 2006).

SBI Life

* Gross Income increased by 179% YOY from Rs. 1622.45 crs in Dec 06 to Rs. 4,519.38 crs.
* Net premium at Rs.2740.96 crs posted YOY growth of 101%.
* During FY08, 8.63 lacs additional lives were insured. Total Life in force 70.54 lacs.
* PAT of Rs. 37.74 crs. as against a loss of Rs.33.50 crs. in the corresponding period last year.
* Market Share 4.13 as on 30.11.2007.
* Ranked 3rd amongst the private insurance companies.

SBI MF

* Total Income at Rs.127.77 crs. posted a YOY growth of 55%.
* Profit After Tax at Rs.47.77 crs. posted a YOY growth of 81%.
* Assets Under Management (AUM) as on 31st December 2007 was Rs.29,312 crs. Growth of 72% over March 2007.

SBI Capital Markets Ltd

* Gross Income was Rs.237.42 crs YOY growth of 76%.
* PAT of Rs.115.63 crs. YOY growth of 86%.
* Ranked No.1 by Bloomberg and IFR Asia.
* Ranking released by Project Finance International:
* Ranked # 1 in Asia-Pacific and # 9 globally for Project Finance mandated lead arranger role.
* Ranked # 1 in Asia-Pacific for advisory role.
* Market share increased by 3.4% to 8.7% in Asia Pacific in year 2007.

SBI DFHI

o Gross income at Rs.85.80 crs. has registered YOY growth of 46%.
o PBT at Rs.80.58 crs. has recorded YOY growth of 90%.

SBI Cards

* The revenue in December 2007 is Rs. 618.80 crs. as against Rs.536.50 crs. in Dec 06, i.e, a growth in Income of 15%.
* YOY growth of 18% in Fee & Other Income.
* The number of Cards in force as on 31st December 07 is 3.24 million.
* Company is the second largest Credit card issuer in India.

SBI Factors & Commercial Services Pvt Ltd

§ Total income at Rs.101.49 crs. has recorded YOY growth of 46%.

* PAT at Rs.20.21 crs. has posted YOY growth of 88%.

Sourced From: Adfactors Public Relations Pvt Ltd

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