Mumbai: The country’s largest lender ,State Bank of India, is hopeful of earning more profit than the landmark figure of Rs10,000 crore in the current fiscal.
“Looking at the past performance and (the) way the bank has been expanding its businesses, we expect the net profit to cross Rs10,000-crore mark in FY10,” a senior SBI official told PTI.
It would not be appropriate to give the profit target but the aggressive growth strategy that the bank has adopted will help it earn an impressive number this year as well, he said.
Earlier this month, SBI chairman O P Bhatt while announcing the results said deposits and advances are likely to grow by 25% each during the year.
The banking behemoth SBI recorded an impressive 36% net profit of Rs9,121.2 crore in 2008-09, up from Rs6,729.1 crore in the previous fiscal. The total income of SBI rose to Rs76,479.2 crore against Rs57,645.2 crore a year ago, up by 33%.
Interest income stood at Rs63,788.43 crore, up 30% from Rs48,950.31 crore in the previous fiscal.
SBI’s other income surged to Rs12,691 crore against Rs8,695 crore registering an increase of 45%.
The bank’s advances grew by 29.8% against the industry average of about 17%. However, due to high cost of deposits, the Net interest Margin for FY 2009 fell to 2.93% against 3.07% recorded last fiscal.
Bhatt had said now with the cost of deposits stabilising, NIM was expected to improve by June or remain at this level.