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SBI's Q3 net up at Rs 2.85 billion

State Bank of India has posted a net profit of Rs 2.85 billion during the third quarter ended December 31, 1998 as against Rs 2.07 billion for the corresponding period last year.

The total income was Rs 55.52 billion during the last three months as compared to Rs 45.28 billion for the same period last year.

The net profit for the nine months ended December 31, 1998 was Rs 11.43 billion as compared to Rs 9.12 billion for the corresponding period in the last financial year, showing an increase of 25.25 per cent, according to M P Radhakrishnan, chairman of SBI.

Radhakrishnan said in Bombay that the operating profit was also higher at Rs 23.12 billion as compared to Rs 18.80 billion for the corresponding period in 1997-98, showing an increase of 22.95 per cent.

Net interest income was up by 13.92 per cent to the corresponding period of 1997-98. Interest income from resource operations in India was higher at Rs 60.51 billion as against Rs 49.19 billion in the corresponding period of 1997-98, an increase of 23.01 per cent.

Other income was also up by 21.92 per cent. Average advances in India during these nine months period registered an increase of 16.49 per cent. Average deposits in India during these nine months period (excluding RIBs) was Rs 1.3 trillion as against Rs 1.12 trillion in the corresponding period in 1997-98, an increase of Rs 176.3 million.

Presently, the personal banking loans at Rs 71.96 billion (outstanding level) account for 10.62 per cent of total non-food advances, spread over about 2.8 million accounts. It was proposed to increase these advances by at least 30 per cent every year.

Radhkrishnan further stated that during this quarter, the bank has computerised 130 more branches taking the total of such branches to 1,481. Computerised branches now cover 51 per cent of the aggregate deposits and 66 per cent of the total advances of the bank. The bank has also firmed up its plan for networking of the branches after trying it out on a pilot basis in two centres at Bombay and Bangalore.

The bank has finalised its plan to increase the number of automatic teller machines from the present 23 to 59 by March-end. So far, over 21,000 ATM cards have been issued by the bank. The bank has introduced a remote log-in facility for corporate customers at some identified branches in Bombay, new delhi, Ahmedabad and Patna circles and aims to introduce the facility at about 25 branches by the year-end.

In order to take care of all requirements arising out of introduction of euro currency, the software used in the computerised branches was suitably upgraded. Also, an upgraded version of the software making in Y2K compliant was released for the branches, he added.

The chairman said that the bank opened nine domestic branches during the third quarter of 1998-99. He emphasised on opening of specialised branches, two of the newly opened offices were personal banking branches and five were commercial branches.

The bank has already opened 20 PBBs and proposes to open 100 such branches by June 1999. These outfits will be fully computerised using the state-of-the-art technology and will provide a full range of products and services.

UNI

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