SBI looks at 35% growth in Q2 profit

Date: 10-09-2009

India's largest state-owned bank, State Bank of India (SBI), is expected to witness an increase in net profit of about 30-35% year-on-year in its July to September quarter. At the end of the first fiscal quarter, its net profit grew 42.03% at Rs 2,330 crore, compared to Rs 1,641 crore during the corresponding quarter a year ago.

Treasury income for the bank could not be hurt this quarter given a sharp spike in bond yields. SBI have yet not incurred any kind of 'mark-to-market' losses in the treasury for the July to September quarter. Since July, the bank has witnessed a growth in credit by Rs 5,000 crore a month. Its credit growth in April to June was flat on account of a high base, as the bank had seen huge retail growth in the first quarter of 2008-09. On a positive note, there was also huge repayment from oil and food companies in the first quarter of 2009-10.crack crack