SBI net rises 10% to Rs 2,490 cr on non-interest income spike

Mr O. P. Bhatt, Chairman, State Bank of India, at a press conference in Mumbai on Saturday. — A robust jump in non-interest income helped State Bank of India post a net profit of Rs 2,490 crore in the second quarter ended September 30, 2009, up 10 per cent compared with Rs 2,260 crore in the corresponding period last year.

Non-interest income rose 50.45 per cent. Net interest income was up marginally by 2.81 per cent.

Mr O. P. Bhatt, Chairman, said that but for the liquidity overhang of Rs 50,000-60,000 crore, higher overhead costs incurred for setting up 550 branches and 3,000 ATMs and wage settlement expenses, the profit would have been higher.

Total income rose 19 per cent to Rs 21,301 crore (Rs 17,910 crore in Q2FY09).

Total expenditure increased by 20 per cent to Rs 16,466 crore (Rs 13,716 crore).

The figures of the current period include that of the erstwhile State Bank of Saurashtra, which was merged with SBI in August 2008. Hence, the figures of the previous period are not strictly comparable.