State Bk.in.gdr Regulatory News (SBID)

29 Oct 2007 07:00

State Bank Of India27 October 2007 STATE BANK OF INDIA Central Office, Mumbai - 400 021. UNAUDITED FINANCIAL RESULTS FOR THE HALF-YEAR ENDED 30TH SEPTEMBER 2007 (Rs.in crores) State Bank of India State Bank of India (Consolidated) ------------------------------------------------ ------------------------------------------------ Quarter ended Half-year ended Year Quarter ended Half-year ended Year ended ended 30.09. 30.09. 30.09. 30.09. 31.03. 30.09. 30.09. 30.09. 30.09. 31.03. 2007 2006 2007 2006 2007 2007 2006 2007 2006 2007 Particulars (Reviewed)(Reviewed)(Reviewed)(Reviewed)(Audited)(Reviewed)(Reviewed)(Reviewed)(Reviewed)(Audited) 1 Interest Earned (a) + (b) + (c) + (d) 11616.28 8799.62 22706.77 17278.24 38454.23 17058.28 12797.59 33358.30 25117.56 55575.35(a) Interest/discount on advances / bills 8365.07 5906.71 16353.59 11369.06 24839.18 12395.84 8656.53 24247.11 16695.58 36832.81(b) Income on Investments 2862.96 2513.65 5461.30 5075.28 10456.19 4200.55 3653.60 8051.67 7407.09 15163.71(c) Interest on balances with Reserve Bank of India and other inter bank funds 386.61 375.84 888.67 830.17 2719.61 435.40 486.37 1017.61 1009.77 3122.94(d) Others 1.64 3.42 3.21 3.73 439.25 26.49 1.09 41.91 5.12 455.892 Other Income 2041.94 1437.69 3180.54 2525.86 6806.05 4365.98 2716.33 6948.50 4515.21 12801.483 TOTAL INCOME (1+2) 13658.22 10237.31 25887.31 19804.10 45260.28 21424.26 15513.92 40306.80 29632.77 68376.834 Interest Expended 7853.36 5259.32 14742.48 10205.91 23436.82 11783.16 7747.73 22230.59 15016.68 33982.755 Operating Expenses (i) + (ii) 3091.64 2865.45 6070.15 5680.04 11823.52 5795.83 4731.05 10881.27 8962.85 20001.78(i) Employees cost 1995.22 1954.71 4021.59 3879.00 7932.58 2756.68 2648.29 5530.53 5260.21 10597.46(ii) Other Operating Expenses 1096.42 910.74 2048.56 1801.04 3890.94 3039.15 2082.75 5350.74 3702.64 9404.326 TOTAL EXPENDITURE (4) + (5) 10945.00 8124.77 20812.63 15885.95 35260.34 17578.99 12478.78 33111.86 23979.53 53984.53(excluding Provisions and Contingencies)7 OPERATING PROFIT (3 - 6) 2713.22 2112.53 5074.68 3918.15 9999.94 3845.27 3035.14 7194.94 5653.24 14392.30(before Provisions and Contingencies)8 Provisions (other than tax) and Contingencies (net of write-back) 85.71 321.30 245.08 572.44 2409.64 333.67 291.05 721.00 958.17 3580.169 Exceptional Items 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0010 Profit from Ordinary Activities before tax (7-8-9) 2627.51 1791.23 4829.60 3345.71 7590.30 3511.60 2744.09 6473.94 4695.07 10812.1411 Tax expenses 1016.09 606.74 1792.37 1362.65 3048.99 1307.04 942.32 2345.74 1866.92 4192.3412 Net Profit from Ordinary Activities after tax (10-11) 1611.42 1184.49 3037.23 1983.06 4541.31 2204.56 1801.77 4128.20 2828.15 6619.8013 Extraordinary items (net of tax expense) 0.00 0.00 0.0014 Net Profit for the period (12-13) 1611.42 1184.49 3037.23 1983.06 4541.31 2204.56 1801.77 4128.20 2828.15 6619.80Net Profit after Minority Interest 2150.72 1734.44 4012.38 2697.45 6364.3715 Paid-up equity share capital 526.30 526.30 526.30 526.30 526.30 526.30 526.30 526.30 526.30 526.30(Face Value of Rs.10 per share)16 Reserves excluding Revaluation Reserves 30503.66 26824.39 30503.66 26824.39 30503.66 41691.86 36680.41 41691.86 36680.41 41691.86(as per balance sheet of previous accounting year)17 Analytical Ratios(i) Percentage of shares held by Government of India 59.73% nil 59.73% nil nil 59.73% nil 59.73% nil nil(ii) Capital Adequacy Ratio 12.85% 12.63% 12.85% 12.63% 12.34% 12.36%(iii) Earnings Per Share (EPS)(a) Basic and 30.62 22.51 57.71 37.68 86.29 40.86 32.96 76.24 51.26 120.93diluted EPS before Extraordinary items (net of taxexpense): not annualised(b) Basic and diluted EPS after Extraordinary items : Not annualised 30.62 22.51 57.71 37.68 86.29 40.86 32.96 76.24 51.26 120.93(iv) NPA Ratios(a) Amount of gross non-performing assets 10632.09 9737.51 10632.09 9737.51 9998.22(b) Amount of net non-performing assets 5831.27 4734.40 5831.27 4734.40 5257.72(c) % of gross NPAs 2.92% 3.38% 2.92% 3.38% 2.92%(d) % of net NPAs 1.63% 1.67% 1.63% 1.67% 1.56%v) Return on Assets (Annualised) 0.99% 0.91% 0.97% 0.78% 0.84%18 Public Shareholding--- No. of shares 211959678 211959678 211959678 211959678 211959678--- Percentage of Shareholding 40.27% 40.27% 40.27% 40.27% 40.27% Unaudited Segment-wise Revenue, Results and Capital Employed (Rs.in crores) Quarter ended Half-year ended Year ended 30.09.2007 30.09.2006 30.09.2007 30.09.2006 31.03.2007 Particulars (Reviewed) (Reviewed) (Reviewed) (Reviewed) (Audited) 1 Segment Revenue (income)a Banking Operations 12909.83 10199.55 25758.22 19797.01 44536.00b Treasury Operations 3262.98 2644.45 5582.16 5220.09 11464.20Total 16172.81 12844.00 31340.38 25017.10 56000.20Less : Inter Segment Revenue 2514.59 2606.69 5453.07 5213.00 10739.92Net Income from Operations 13658.22 10237.31 25887.31 19804.10 45260.282 Segment Results (Profit before tax)a Banking Operations 2422.35 1798.89 5307.72 3411.85 8706.55b Treasury Operations 641.74 -70.99 325.03 -218.00 117.73Total 3064.09 1727.90 5632.75 3193.85 8824.28Add/(Less) : Unallocated -436.58 63.33 -803.15 151.86 -1233.98Profit before Tax 2627.51 1791.23 4829.60 3345.71 7590.30Less : Income Tax (including FBT) 1016.09 606.74 1792.37 1362.65 3048.99Net Profit 1611.42 1184.49 3037.23 1983.06 4541.313 Capital Employed (Segment Assets-Segment Liabilities)a Banking Operations 27898.62 24528.60 27898.62 24528.60 27898.62b Treasury Operations 3399.94 3115.49 3399.94 3115.49 3399.94Total 31298.56 27644.09 31298.56 27644.09 31298.56 (Segment Assets and Liabilities are as on 31st March of the previous year) 1. The working results for the quarter ended 30th September 2007 have been arrived at after considering provisions for NPAs, Gratuity, Pension, Leave Encashment, Investment Depreciation, Income Tax (after adjustment for deferred tax), Wealth Tax, Fringe Benefit Tax (FBT) and Other Contingencies on an estimated basis. 2. Accounting Standard 15 "Employee Benefits" (revised 2005) is effective for accounting periods commencing on or after 07.12.2006. As per this Standard, the difference (as adjusted by any related tax expense) between the transitional liability and the liability that would have been recognised at the same date, as per pre revised Accounting Standard (AS) 15, 'Accounting for Retirement Benefits in the Financial Statements of Employers', should be adjusted immediately against opening balance of revenue reserves and surplus. The Institute of Chartered Accountants of India has made a limited revision to this provision, which has been notified on 17.10.2007. This revision provides the Bank with another option to charge additional liability arising upon the first application of the standard as an expense over a period up to 5 years. The Bank is currently examining both the alternatives. The impact of the Accounting Standard 15"Employee Benefits" (revised 2005) has not been ascertained for transitional provision and current period(s). In the interregnum, the Bank has made adequate provisions as per pre-revised Accounting Standard 15, 'Accounting for RetirementBenefits in the Financial Statements of Employers'. 3. During the quarter ended 30th September 2007, the Bank has utilised the additional provision of Rs. 200 crores made, over and above RBI norms, towards non performing advances, which was created during the quarter ended 30th June, 2007. Though this does not have any impact on the profit for the half year ended 30th September 2007, the operating profit andnet profit of the quarter ended 30th September 2007 are higher by Rs. 200 crores and Rs. 132.02 crores, respectively, and correspondingly operating profit and net profit were lower during the quarter ended 30th June, 2007. 4. During the half-year ended 30th September 2007, the Bank has acquired 29,50,019 shares of its subsidiary Indian OceanInternational Bank Ltd. (IOIB) Mauritius, increasing its stake in IOIB from 56.84% to 61.93%. 5. During the quarter ended 30th September 2007, the Bank has infused additional Capital of CAN $ 31.50 mio (equivalent to Rs. 121.90 crores, approximately) in its foreign subsidiary,State Bank of India (Canada) for the purpose of funding business growth 6.During the quarter ended 30th September 2007, the Boards of State Bank of India (SBI) and State Bank of Saurashtra (SBS) have accorded approval for merger of SBS with SBI. The matter has further been referred to RBI and Government of India for approval. As the merger process has not yet been crystallized, there is no impact on the Bank's results. 7. In terms of RBI circular dated 20th April 2007, the Bank had accounted for amortization of premium in respect of securities included in the 'Held to Maturity' (HTM) category as an adjustment against 'Other Income'. Based on the clarification issued by RBI on 11th July 2007, Banks are required to reflect the amortization of premium held in HTM category by an adjustment to the 'Interest Earned'. Accordingly, the Bank has carried out the reclassification of the same for the period ended 30th September 2007. This change in accounting procedure does not have any impact on the net profit for the period(s) under review. 8. During the half-year ended 30th September 2007, the Bank has raised USD 225 million (Rs.915.86 crores) as Hybrid TierI Capital in the form of Perpetual Non Call 2017 Bonds. 9. During the half-year ended 30th September 2007, the entire share holding of Reserve Bank of India in State Bank of India (aggregating 31,43,39,200 equity shares (59.73%), with a face value of Rs. 10/- each) has been transferred to the Central Government. 10.During the half-year ended 30th September 2007, the Bank has shifted SLR investments having aggregate Face Value of Rs.9081.57 crores (corresponding previous period - Rs.9400 crores) from 'Available for Sale' (AFS) category to 'Held to Maturity' (HTM) category, resulting in a net revaluation loss of Rs.297.67 crores (corresponding previous period - Rs.225.73 crores). 11. The qualifications made by the Statutory Central Auditors in their review report on the financial results of quarterended 30th June 2007 and the resolution thereof: (i) Non compliance of AS 15 (revised 2005), the impact of which has not been ascertained: The management's response is detailed in Note 2 above. (ii) Creation of additional provisions of Rs. 200 Crores towards NPAs, which has resulted into operating profit for the quarter being lower by Rs. 200 Crores and net profit for the quarter being lower by Rs. 132.02 Crores: The resolution ofthis detailed in Note 3 above. 12. Number of Investors Complaints received and disposed of during the quarter ended 30th September, 2007: (i) Pending at the beginning of the quarter - 87 (ii) Received during the quarter - 2504 (iii) Disposed of during the quarter - 2515(iv)Lying unresolved at the end of the quarter - 76. 13. Previous period figures have been regrouped/reclassified, wherever necessary, to conform to current period classification. The above results have been approved by the Central Board of the Bank on the 27th October 2007 and were subjected to Review by the Auditors S. K. BHATTACHARYYAManaging Director and Chief Credit & Risk Officer T. S. BHATTACHARYAManaging Director & Group Executive(Corporate Banking) O. P. BHATTCHAIRMAN MumbaiDate : 27th October 2007 This information is provided by RNS The company news service from the London Stock Exchange