State Bank of India (SBI) sees FY’13 net profit at Rs 14,000-15,000 crore.
State Bank of India, countries largest lender on March 4, 2013 said that it expects to clock a net profit of Rs 14,000-15,000 crore in the current financial year, backed by strong internal generation and robust demand for loans.
“For SBI we got an allocation of 3,000 crore this year and we expect to make a net profit of another Rs 14,000-15,000 crore of net profit this year,” Pratip Chaudhuri Chairman of State Bank of India (SBI) told a television channel.
SBI had reported a marginal 4.08 per cent increase in net profit at Rs 3,396 crore for the third quarter ended December 31, 2012, mainly on account of higher provisioning for bad loans.
The public sector lender had announced earlier it will get Rs 3,004 crore as part of the government’s capital infusion plan for the current fiscal.
When asked about loan growth, Chaudhuri said, “It has been a huge, huge pleasant surprise. I was myself slightly diffident and pegging it at 16 per cent. But as of now the year-on-year growth we are finding it close to 18 per cent.
“And I would not be surprised if the year-on-year growth could be as high as 20 or even 21 per cent.”
“There has been a huge upsurge in loan demand after rationalization of our interest rates. So as we have made them more market-friendly, lowered the interest rates, we are seeing a huge demand for loans not only in the retail segment but also for corporates. Home and even for auto in our case.”
SBI cut lending rate by 0.05 per cent on January 30, a day after the Reserve Bank of India (RBI) cut its key policy rates.
After this marginal reduction, SBI’s base rate or the minimum rate of lending has come down to 9.70 per cent from 9.75 per cent effective February 4.