PROFITABILITY OF SBI

Submitted By :-Sandeep RaiBatch :- “D”Roll No.:- 21

WHAT IS PROFITABILITY?

A class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well.

Mar. 06 Mar.07 Mar.08 Mar.09 Mar. 10

4,406.67 4,541.31 6,729.12 9,121.23 9,166.05

Net Profit ( In Crore)

RATIO

DPS

Mar '06 Mar '07 Mar '08 Mar '09

Mar'10

14 14 21.5 29 30

RATIO

Earnings Per Share Earnings Per Share = (Net Income) / (Number of shares of common

stock outstanding)

RATIO

MARCH 06 MARCH 07 MARCH 08 MARCH 09 MARCH 10

15.94 14.50 13.72 15.74 13.89

Return on Net Worth(%)

IN CRORE

RATIO

Basic Earning Power RatioEBIT = Net Income + Interest + Taxes

IN CRORE

RATIO

Net Profit MarginProfit Margin Ratio = (Net Income) / (Sales)

IN CRORE

RATIO

Return on Assets Return on Assets = (Net Income) / (Total Assets)

IN CRORE

OTHER RATIO

RATIO Mar. 06 Mar. 07 Mar.08 Mar.09 Mar.10

Interest Expended / Interest Earned

56.32 59.35 65.23 67.28 66.66

Other Income / Total Income 3.60 2.25 1.56 1.18 1.21

Operating Expense / Total Income

28.37 28.19 24.13 22.91 27.61

Selling Distribution Cost Composition

0.28 0.20 0.30 0.33 0.26

IN CRORE

Reverse Repo Rate 6.00 5.00 5.00 3.50 4.00

CRR 6.75 7.75 7.75 8.25 5.50

Lending rate from 12.25% to 11.75% in 2009-2010.

05-06 06-07 07-08 08-09 09-10

SBI that has 12,000 branches all over the country, controls about 25% of the total loans and deposits in the country. Provisions have increased from Rs.3734.57 Cr in FY 09 to Rs.4394.83 Cr in FY 10.

SLR -- -- -- 25 24

MONETORY POLICY

Repo Rate -- -- -- 8.00 5.50

THANK YOU