In first, SBI takes out Rs 485 cr in profit from overseas ops
Mumbai : State Bank of India today said that for the first time it has repatriated Rs 485 crore of profit from its foreign operations, which helped boost the September quarter net by 10 percentage points to 25.12 per cent at Rs 3,879 crore.
“We’ve repatriated Rs 485 crore profits from our global operations that contribute close to a quarter of our business. As far as I can recall, this is the first time in our history that we have taken out profit from overseas operations,” SBI chairperson Arundhati Bhattacharya told reporters while announcing a market beating set of Q2 numbers.
She was quick to add that if at all Rs 485 crore is excluded, we would have still reported a 15 per cent healthy rise in profits as other heads of non-interest income and interest income too reported healthy growth.
SBI has as many as 194 branches spanning 36 countries, and 377 correspondent banks in 86 countries and a few subsidiaries. But most of these operations are being carried out through branch routes. These operations contribute almost a quarter of the bank’s business.
Bhattacharya said, “this Rs 485 crore has definitely helped us in reporting higher profit. Even if you take that out, we’ve a 15 per cent rise, thanks to rise in loan book and our higher income from treasury operations which has gone up”.
When asked whether the bank’s going forward will continue to bring in profits from its overseas operations, she said, “I do expect some more money to flow in Q3. We are sure we don’t want to keep the money parked with the branches idly going forward. But if you ask me if that will the case every quarter, I would say yes in most of the quarters”.
However, she was quick to add that the bank will not be taking out capital from foreign operations, saying, “We don’t want to do what private sector players do with the capital of our overseas arms. Anyway we don’t have many foreign arms as most of our overseas operations are branch based. So there is not much need to pump capital into them”.