Increase in non-interest income helped State Bank of India post a net profit of Rs 2,490 crore in the second quarter, a 10% increase compared with Rs 2,260 crore in the corresponding period last year.
Non-interest income rose 50.45 per cent and Net interest income saw a small increase of 2.81 per cent. Total income rose 19 per cent to Rs 21,301 crore (Rs 17,910 crore in Q2FY09) while total expenditure increased by 20 per cent to Rs 16,466 crore (Rs 13,716 crore).
In the first six months of FY2010, SBI saw a 24 per cent increase in net profit at Rs 4,820 crore compared to Rs 3,900 crore in the corresponding half last year.
As of September-end this year, total deposits increased by 25.16 per cent to Rs 7,72,904 crore (Rs 6,17,524 crore as of September-end 2008) and advances were up 16.39 per cent to Rs 5,80,237 crore (Rs 4,98,513 crore).
SBI Chairman, MR. O.P Bhatt pointed out that the bank was growing its savings bank deposit base at the rate of Rs 5,000 crore a month in the last few months and that robust growth in low-cost deposits and shedding high-cost term deposits would improve net interest margin by 10-15 basis points in every quarter.
In Q2FY10, the bank has made loan loss provisions amounting to Rs 997 crore (Rs 911 crore).