State Bank of India (SBIN) Q4 00/01 earnings summary

Executive summary

• FY01 reported net profit fell 21.8% to ₹1,604.25cr, while adjusted net profit rose 24.94% to ₹2,160.48cr after comparable one-time and investment-provision adjustments.

• Deposits grew 23.4% to ₹242,828cr and advances grew 15.8% to ₹113,590cr; net NPA ratio improved to 6.03% from 6.41%.

Financial highlights

• Total income ₹30,021cr, up 16.5% YoY; expenditure ₹28,417cr, up 19.8%; reported net profit ₹1,604.25cr, down 21.8%.

• Adjusted operating profit before IMD issue and VRS expenses was ₹5,263.16cr, up 25.24%; after those charges, operating profit was ₹3,966.78cr.

• Net interest income ₹8,247.79cr, up 19.04%; net interest margin 3.18% vs 3.16%; non-interest income ₹4,017.82cr, up 12.57%.

• Total assets increased 20.7% to ₹315,644cr; investments rose 33.7% to ₹122,876cr, while the loan portfolio increased 15.8% to ₹113,590cr.

Outlook and guidance

• FY02 housing finance growth budget set at ₹4,000cr; housing loans grew 46% annualized, adding ₹1,543cr during FY01.

• Internet banking coverage targeted 100 branches by August 2001, with network coverage planned for 350 branches by March 2002.

• Priorities include cross-selling retail products, mid-corporate and priority-sector lending, fee income, cost reduction, technology investment and improved asset quality.

• Expected normal monsoon and improving industrial performance supported a favorable GDP outlook, while the economic slowdown remained a near-term concern.