SBI's Q4 net profit up 26 percent; Bank to restructure business operation

SBI's credit card business incur losses of $37.5 million

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The bank said its net profit for the quarter ended March 31, 2008, was Rs.1883 crore ($470.75 million) up from Rs.1493 crore ($373.25 million) reported for the same period a year earlier. Analysts had forecast that the bank's net profit would be Rs.1700 crore ($425 million) for the fourth quarter.

For the year ended March 31, 2008, the bank said its net profit stood at Rs.6729 crore ($1.68 billion), up from Rs.4541 crore ($1.13 billion) reported a year earlier, or a YoY growth of 48.18 percent.

State Bank of India has the lowest cost of funds among the nation's lenders. The bulk of its funds come from savings bank deposits that cost about 3.5 percent in annual interest payments.

According to a press release issued by the bank, its total business growth for the financial year 2007-08 was over Rs.1,81,000 crore ($45.25 billion). During the same period, the deposits were up by 23.4 percent from Rs.4,35,521 crore ($108.88 billion) to Rs.5,37,406 crore ($134.35 billion).

The market share in deposits has increase from 14.8 percent to 15.4 percent driven by low cost deposits where market share has increased from 13.9 percent to 17.4 percent, the release said.

The bank's advances also grew during the financial year 2007-08 by Rs.79,949 crore ($19.98 billion), or a YoY growth of 23.36 percent, from Rs.3,42,232 crore ($85.55 billion) to Rs.4,22,181 crore ($105.54 billion).

While mid corporate advances grew by 24.4 percent, SME advances grew by 26.3 percent, the bank said.

The bank also crossed the 18 percent benchmark when its agriculture advances grew at 24.6 percent.

In the loan front, home loans grew by 18,7 percent, auto loans by 29.9 percent and educational loans by 33.6 percent.

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