One of the largest Banks in India i.e. State Bank of India may earn a profit of more than Rs. 10,000 crore in the current fiscal year. The sustained effort to contain bad assets and increase in the business of the bank has added to the increase in the profit margin. Senior officials at the bank have confirmed that there is an all round effort to achieve a profit of more than 10, 000 crore during the year.
In the year 2010-11 State Bank of India had posted a profit of Rs. 8,265 crore which was 9.84% lower than the profit in 2009-10. This dip in profit was mainly because of loan loss, gratuity, high pension and the standard asset provision on special home loan scheme.The first of the current financial year was also not good for SBI as it made a profit of Rs. 1,584 crore which is 46% lower than what it was in the previous year for the same period.
The company was hit by increased tax outgo and bad loans, due to which its fourth quarter ending march 2011 witnessed low profit. The company is now hoping to make a good amount of profit due to good business coming in and low bad loans. SBI expect to make a net profit of Rs.2, 500 crore in the second quarter of 2011-12. SBI expects the Net Interest Margins to be robust and stand at 3.5% in the year 2011-12 on the back of rising lending rates.
Bell The Bull expects better performance from SBI on the back of rise in profits