MUMBAI, May 27: SBICAP, the investment banking arm of State Bank of India (SBI), has posted a net profit of Rs 27.91 crore for the year ended 1998, recording a 63 per cent increase over the previous year. However its gross income has come down from Rs 141.44 crore in 1997 to Rs 140.49 crore in 1998. The reduction in interest cost from Rs 30.27 crore in 1997 to Rs 13.15 crore in 1998 also accounted for the profit.While the capital markets remained subdued during the year and public issues accounted for only 20 per cent of the domestic capital issues as against 53 per cent in 1997, SBICAP has retained its leading position in the market in terms of amount and number of issues raised. It acted as lead manager to 10 issues raising Rs 2575.22 crore -- 89.3 per cent of the total amount raised by public issues.
The company has also been ranked number one by Prime Database for the total amount of debt raised through the private placement route during the year. The company attributes the increase in net profit toincrease in fee based income and income from securities.
The company has been consistent in maintaining its dividend at the rate of 25 per cent on its equity of Rs 58.03 crores, with Asian Development Bank stake at 14 per cent and SBI stake at 86 per cent It has also carved niches in credit syndication, infrastructure advisory and international offerings.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
