STATE BANK OF INDIA-SBI Results Says PSU banks are Safe bet

The largest bank of India, SBI has reiterated what the stock market has been trying to say all the time – PSU banks are better off today in the global meltdown scenario as their exposures are minimal. There has been a sell off on all bank counters but the brunt of the sell off faced by private sector banks has been harsher. SBI touched a new low yesterday at Rs.991 but soon recovered to end at the day at Rs.1057.

The bank beat pessimistic analyst expectations and posted a better performance for the second quarter ended 30^th Sept 2008. On a standalone basis, net income was up, on a YoY by 40.37%. Interest earned stood at Rs 15566.50 crore against Rs 11616.28 crore previous year while interest expended was Rs 10111.15 crore against Rs 7853.36 crore same quarter last year. Net profit was up 40.23% at Rs 2259.72 crore.

On a consolidated basis, total income of the bank increased by 26.41% to Rs 27,083.47 crore. Its net profit grew 11.50% at Rs.2458 crore. Interest earned was Rs 22568.05 crore against Rs 17058.28 crore in 2007. Interest expended was Rs 15049.33 crore for the quarter ended Sep 30, 2008 against Rs 11783.16 crore in 2007. Increase in the lending rates helped SBI shore up its bottomlines.
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