Friday, May 20, 2011

SBI shows poor performance in profit earning due to enhanced pension liability

Country's largest lender State Bank of India (SBI), which reported its lowest quarterly numbers in the past one decade, has said that its pension liability is more than Rs 11,700 crore as on March 2011.


Consequent to revision in wages in accordance with the Ninth Bipartite Settlement and the proposed amendment to the SBI Pension Fund Rules, the Pension liability of the bank for the year ended March 31, 2011 as determined by the independent actuary amounted to Rs 11,707 crore, SBI said.
Thus, the bank made additional provision of Rs 7,927.41 crore from the reserves over and above the requirement Rs 3,779.7 crore for 2010-11.
Besides, gratuity liability of the bank determined by the independent actuary for the year ended March 31, 2011 estimated at Rs 1,965 crore was also provided for.
Rise in wage cost was one of the reasons for the sharp decline in the net profit for the fourth quarter ended March 2011. SBI's profit plunged by 99% to Rs 20.88 crore from Rs 1,866.60 crore in January-March 2010. This is the lowest ever fall in the net profit in past one decade.
For the entire fiscal ended March 2011, the net profit slipped by 10% at Rs 8,264.5 crore as compared to Rs 9,166.05 crore in the previous fiscal.
The total income, however, rose to Rs 97,218.9 crore in the fiscal against 85,962.07 crore for FY10.
Despite a dismal performance, the bank maintained a dividend at 300% for 2010-11. The bank will pay a dividend of Rs 30 per share on face value of Rs 10 after shareholders approval.
Source ; Business Standard.

No comments :

Contact Us

Viewers may share any information with the administrator in this email shyamali00@gmail.com
Any news, if approved, may be published in this blog under his /her name.

.................RECENT HEADLINES

Related Posts with Thumbnails

Blog Archive

Bookmark This Page

Bookmark and Share
All the information published in this webpage is submitted by users or free to download on the internet. I make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this page and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. All the other pages you visit through the hyper links may have different privacy policies. If anybody feels that his/her data has been illegally put in this webpage, or if you are the rightful owner of any material and want it removed please email me at "shyamali00@gmail.com" and I will remove it immediately on demand. All the other standard disclaimers also apply.