The net non-performing assets (NPAs) in the reporting period have risen to Rs 4812 crore (Rs 4075.97 crore) as the entire Dabhol exposure amounting to over Rs 1300 crore has turned sticky.
The operating profit of the bank for Q3 (2004-05) has zoomed by 88.3% to Rs 3389.97 crore (Rs 1800.29 crore) in the reporting quarter. The net interest income recorded a growth of 32% during the quarter during the reporting quarter due to higher level of advances and lower cost of deposits. The profit from the sale of investment during the reporting quarter stood at Rs 947.64 crore.
The capital adequacy ratio of the bank has declined to 12.66% (14.74%) in the reporting period.
Managing director Chandan Bhattacharya told FE, the bank is getting ready for taking over two overseas banks in Asia and Africa. The due diligence is almost complete and the acquisitions will be announced in eight weeks or even earlier.
On whether SBI would shift its gilts portfolio from the available for sale (AFS) to held to maturity (HTM), Mr Bhattacharya said that the bank is yet to take a decision on the matter.
The provision for net NPAs in the reporting quarter is estimated at Rs 791.56 crore (Rs 400 crore). Net NPAs in the reporting quarter have come down to 2.56% (2.88%). The bank has made a provision of Rs 500 crore till December, 2004 towards wage revision.
Advances grew to Rs 1,95,565 crore as at the end of December 2004 from Rs 1,51,629 crore as at the end of December 2003. The domestic deposits in the reporting period excluding India Millenium Deposit (IMD) recorded a growth of 16.84% as compared to 14.37%.
The banks stock rose 7.1% to Rs 622.75 on BSE. Its the stocks biggest single-day gain since December 2. The shares have risen 40% in the past three months.