Said SBI chairman GG Vaidya: "Unlike in the first half of 1999-2000, when the arrears of salary revision were provided after arriving at the operating profit, salary revision of employees has been given effect to before arriving at the operating profit of 2000-01 in the first half of this fiscal. Further, with the abolition of interest tax from April 1, 2000, the operating profit of this half-year did not include the interest tax element. After adjusting for the two factors, the increase in the operating profit for the first-half of this fiscal is still more impressive at 49 per cent, again a record achievement."

The growth in net profit was achieved on account of the increased operating profit, despite larger provisions made during the half-year on consideration of prudence. Total provisions made for this half-year amounted to Rs 1,206.14 crore (Rs 1,043.03 crore) mainly due to increased provision for NPA at Rs 700 crore for the current half year (Rs 560 crore).

While the net NPA ratio at the end of September 2000 has come down and the recovery and upgradation of NPAs is receiving constant and focused attention of the top management, additional provision has been made. "This is to ensure that the impact of requirement of provisions for the current year on account of reduction in the period for shifting substandard NPAs to doubtful category from 24 months to 18 months as per RBI norms, is evenly spread over each quarter", said Mr Vaidya.

Net interest income of the bank went up by 29.43 per cent to Rs 3,900.76 crore (Rs 3,013.71 crore). Average advances in India were higher by 23.79 per cent to Rs 95,967 crore (Rs 77,525 crore). The increase in interest income on advances in India was, however, 15.29 per cent, on account of reduction in the average yield on advances to 10.37 per cent (11.31 per cent). The reduction in yield is in turn due to reduction in the prime lending rate (PLR). The average PLR during first six months of the current year came down by 11.25 per cent (12 per cent).

Average resources deployed in treasury operation in India went up by 11.82 per cent to Rs 1,13,248 crore from Rs 1,01,274 crore. The average yield was higher at 10.28 per cent (9.97 per cent). Interest income on treasury operation increased by 15.34 per cent.

Average deposits (excluding Resurgent India Bonds) rose by 15.07 per cent to Rs 1,71,692 crore (Rs 1,49,213 crore). The cost of deposits reduced to 7.53 per cent from 7.98 per cent. Other income of bank grew by 6.12 per cent. Staff cost has increased to the extent of 12.28 per cent. Other operating expenses increased by 4.22 per cent.

Global deposits of the bank stood at Rs 1,82,260 crore (excluding RIB) as on the last Friday of September, and the bank's domestic deposits stood at Rs 1,76,013 crore. Personal segment deposits rose by 8.7 per cent in the first half of the current fiscal. SBI's net global advances at Rs 1,05,602 crore on the last Friday of September 2000, up by 7.65% over the figure at end-March 2000. This compares to a rise of 3.8 per cent recorded in the similiar period last year. Net domestic advances rose by 5.46 per cent (2.6 per cent) to Rs 90,205 crore.

The bank had a market share of 96 per cent of gold deposit up to September 2000, 5.5 tonnes of gold was mobilised under the scheme. SBI is in the process of finalising its joint venture partner for its insurance venture. The bank has appointed KPMG Consulting for drawing up its IT plan, which is expected to be ready shortly.