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SBI Q1 net up 15.5 per cent at Rs1,223 crore
Mumbai: The State Bank of India has reported a 15.54 per cent increase in net profit in the first quarter of 2005-06, ended June 30, 2005, on the back of higher interest income and lower operating costs.

This was despite a substantial increase in provisions against bad loans and losses in securities trading.

The bank has earned a net profit of Rs1,222.83 crore for the quarter against Rs1,058.40 crore in the year-ago period. Total income increased to 10,742.85 crore (Rs9,205.29 crore). Net interest income rose by 19.88 per cent to Rs3,541.34 crore (Rs2,954.07 crore).

Net interest margin (NIM) improved to 3.14 per cent from 2.99 per cent. SBI officials said the increase in profit was due to business growth in the retail and SME sectors in addition to which the bank has been able to contain costs.

Operating expenses fell by 1.28 per cent partly because there was a 3.5 per cent fall in the wage bill on account of the voluntary retirement scheme amortisation.

Thus in the current quarter wage cost may go just go up following the payment of arrears. Gross advances increased to Rs 2,20,523 crore (Rs 1,66,387 crore). Deposits registered a 13.76 per cent growth at Rs376,141 crore (Rs 330,648 crore).
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J&K Bank net profit up
New Delhi: Jammu and Kashmir Bank (J&K Bank) has reported a net profit of Rs48.44 crore for the quarter ended June 30, 2005, a 2.43 per cent increase over Rs47.27 crore recorded in the corresponding period last year.

The deposit base has expanded 9.23 per cent to Rs19,326.80 crore (Rs17,694.09 crore).

Earning per share stood at Rs9.99 (Rs 9.25) while capital adequacy stood at 14.96 per cent.
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RBI to take action against credit card companies
New Delhi: The Reserve Bank of India (RBI) is planning to take strict action against credit card companies for issuing cards recklessly. The apex bank has asked the Ahmedabad-based Consumer Education Research Society (CERC) to rate the services of the credit card issuing companies.

During his recent visit to Ahmedabad, Y V Reddy, governor, RBI, said that credit card companies needed to be more transparent and there should be a methodology or a system to rate the services of these companies. He assured CERC full support from the apex bank.

The Ahmedabad-based CERC said it has been receiving large number of complaints from credit card users, who are being harassed by credit card companies for aggressive marketing, excessive billing without usage, false promises thereafter resulting in lots of charges, or receiving threats from the local mafias for collection of dues.
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