State Bank of India (SBIN) Q4 99/00 earnings summary

Executive summary

• FY00 net profit rose 99.6% to ₹2,051.55 crore; excluding non-recurring investment-provision write-backs and prior-year Resurgent India Bond costs, profit growth was 40.95%.

• Total income increased 15.1% to ₹25,770 crore; operating profit rose 21.77% to ₹4,202.50 crore.

• Deposits reached ₹1,96,821 crore and advances ₹98,102 crore; domestic advances held over 20% market share.

Financial highlights

• Net interest income grew 14.27%; net interest margin eased to 3.16% from 3.29% as asset volumes expanded.

• Global interest income was ₹22,200.93 crore; other income rose 8.67%, led by securities-sale gains and leasing income.

• Operating expenses rose 6.76% reported, or 10.13% excluding prior-year bond issue costs and salary-arrear timing differences.

• Total dividend for FY00 was 50%, including the 25% interim dividend and a 25% final dividend, subject to RBI approval.

Outlook and guidance

• Corporate capital adequacy goal was above 12%; additional capital was expected during FY01, with subordinated debt preferred over equity initially.

• IT priorities included branch and ATM networking, internet banking, payment gateways and e-commerce; a technology plan was expected by September 2000.

• US GAAP adoption was targeted for completion by December 2001 to improve disclosure and align with international standards.

• Planned life-insurance entry through a subsidiary, with a 26% foreign-partner stake, was subject to regulatory approval and licensing.