SBI sees over 10000cr net profit in 2010-11

NEW DELHI: Enthused by impressive first quarter numbers, the State Bank of India (SBI) is hopeful of earning a net profit of over Rs 10,000 crore in the current financial year, which will be a landmark in the Indian banking industry. The bank had recorded a 0.4% rise in net profit at Rs 9,166.05 crore in the last financial year. "It (net profit) should cross Rs 10,000 crore this year," SBI chairman O P Bhatt said.
The country's largest bank has already reported an over 25% growth in net profit at Rs 2,914.20 crore for the first quarter ended June 2010 despite an increase in its bad debts.The rise in net profit was mainly due to a three-year high net interest income and a decline in the cost of deposits and savings.
Net interest income rose 45.35% during Q1, compared to the same quarter a year ago. Growth in net income was 4.3% in June 2009. Operating profit zoomed 67% in the first quarter. It had declined 7.3% last year. However, fall in treasury income and rise in provisioning among others pulled down SBI profit growth last year. The total income rose to Rs 85,962.07 crore compared to Rs 76,479.2 crore in 2008-09.
SBI has already expressed hope that it is aiming at a profit growth of 20% in the current financial year. Meanwhile, SBI raised its benchmark lending rate by 50 basis points and deposit rates by up to 150 basis points effective Monday.