SBI net set to cross Rs 3,000-cr mark

KOLKATA: The country''s largest bank, State Bank of India, was set to post a net profit of over Rs 3,000 crore during the financial year 2001-02, compared to Rs 1604.25 crore registered in the previous year, banking industry sources said.
The SBI''s board of directors will meet in Kolkata on June 20 to consider the audited financial results for 2001-02.
"The last quarter of the bank was particularly good in the previous financial year and is expected to be repeated this year as well," they said.
Reduced wage burden following VRS offered by the bank last fiscal and substantial reduction in NPAs would help SBI come out with an encouraging net profit for 2001-02, sources said.
Another reason for a huge spurt in net profit is the fact that the bank would not have to make any huge provisions that it made last year on account of India Millennium Deposits (IMD) whose expenses ran into Rs 443.19 crore. The bank absorbed the full amount on IMD last fiscal apart from VRS related expenses.
SBI had posted a net profit of Rs 1604.25 crore for the year 2000-01 as compared to Rs 2051.55 crore in 1999-2000. The reduction was due to the IMD issue expenses and VRS related expenses that depressed the profit by Rs 640.98 crore.
SBI had said that the net profit after adjusting for IMD and VRS as applicable in both the years, would have been Rs 2160.48 crore in 2000-01 as against Rs 1729.15 crore in 1999-2000.