State Bank of India (SBI) chairman Pratip Chaudhuri said on Tuesday the bank’s profit is expected to surge to R15,000 crore in the current financial year against R11,700 crore posted in 2011-12.
“We are expecting to post a profit of R14,000 crore to R15,000 crore this fiscal,” Chaudhuri said, adding, “The H1 profit has been estimated at R7,500 crore.”
The chairman, who was here to address the meeting of deputy general managers of the Bank in the country, asserted the bank has regained its market position with a market capitalisation of R1.66 lakh crore. He said the bank’s share prices has touched R2,500 from a low of R1600 in January 2012.
Chaudhuri said SBI is in a strong footing to carry out business. While the Basel III norm requires a capital adequacy ration (CAR) of 10, SBI has a higher of 11% CAR. Besides the huge profit it is going to earn this fiscal, and the substantial mobilisation of deposits, there would be a recapitalisation of R3,000 crore by the Centre.
However, there credit deployment is an area of challenge for the Bank as the demand from the commercial and industries is weak, he said.
The offtake of credit in sectors like power, steel, aluminum and metals had been slow in 2008,2009 and 2010. In order to meet the challenge, the Bank is diversifying its credit strategy and emphasizing more on individual and housing loans.