State Bank of India (SBIN) Q4 01/02 earnings summary

Executive summary

• FY2001-02 total income rose 13.2% to Rs.33,985 crore; net profit increased 51.6% to Rs.2,431.6 crore, while adjusted net profit grew 31.53% to Rs.2,841.76 crore.

• Deposits reached Rs.2,70,560 crore, up 11.4%; advances rose 6.3% to Rs.1,20,806 crore, and the capital adequacy ratio improved to 13.35%.

Financial highlights

• Operating profit increased 52.39% to Rs.6,044.83 crore; net profit was Rs.2,431.62 crore versus Rs.1,604.25 crore in FY2000-01.

• Adjusted net profit, excluding differences in IMD and VRS costs, investment depreciation and HFT valuation accounting, rose 31.53% to Rs.2,841.76 crore from Rs.2,160.48 crore.

• Net interest income increased 8.33% to Rs.9,081.24 crore; non-interest income rose 7.51% to Rs.4,174.48 crore, led by forex and commission/exchange income.

• Total assets grew 10.3% to Rs.3,48,228 crore; investment holdings rose 18.1% to Rs.1,45,142 crore.

Outlook and guidance

• Core banking implementation by TCS had commenced, with tangible results expected within a year; network plans targeted 20 cities by October 2002 and 49 cities by December 2002.

• FY2002-03 targets included issuing over 8.20 lakh Kisan Credit Cards and 1.15 lakh Kisan Gold Cards; strategic priorities included technology adoption, cost reduction, risk control and customer-focused services.