State Bank of India
(SBI), the country’s biggest lender, has posted a first half net
profit of INR54.1bn ($1.22bn), a 12.3% increase on the same period
last year.
But SBI missed analyst
forecasts on higher provisions – total provisions soared by 90%
year-on-year to INR70.7bn for the first six months of fiscal 2011 –
and warned that provisions will remain elevated in the coming
quarters.
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Positive metrics
included an increase of 87 basis points in SBI’s net interest
margin to 3.3% from 2.43% in the first half last year.
Low cost CASA deposits
increased by 27.7% in the first half, boosting the bank’s CASA
ratio by 6.83 percentage points to 47.79%.
SBI ended the first half
with a deposits market share of 16.57%, down 62 basis points
year-on-year, while its advances market share was 46 basis points
up at 17.03%.
For the year to March,
SBI said it expected credit growth of more than 18%.
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By GlobalDataSBI’s cards unit – the
60:40 joint venture with GE – returned to profit in the second
quarter.
Having shrunk its credit
card customer base from 3.1m to 2.6m in the past two years, bank
chairman OP Bhatt said SBI’s card unit was back in growth mode,
with a target of 40,000 new cardholders per month.
In particular, SBI is
targeting an increase in mass affluent sector cardholders, via its
Platinum card product.
