State Bank of India (SBI) has made the record making net profit with 14% growth in the third quarter. It has over passed all the estimates made by the analysts.

The bank has posted a net profit of 2,828 crore in the quarter ended December 2010. The net interest income went up by 43% recorded at Rs 9050 crore for October-December 2010.

Some of the analysts were not happy with the performance in terms of earnings. While computing net profit SBI has not made any provisions for special home loans classified as a teaser loan scheme.

SBI chairman OP Bhatt said that the bank would make efforts to sustain its net interest margins. He also said that bank may not able to maintain the credit growth of 20% but can reach up to 18% in the full year.

Bank also records 22% rise in bank loan book to 7, 39,971 crore on a year on year basis. While 15% is the loan growth recorded for the first three quarters. Third quarter alone contributed 46747 crore of loans.

Talking about bad loans, provisions had increased to 1632 crore from 514 crore posted in the previous year which had increased the provision coverage ratio to 64%. RBI has given deadline of March 2012 for the bank to meet provision coverage ratio to 64%.

Hemindra Hazari of Karvy Stock Broking said that it is anticipated that bank will increase its NPA levels. Bank management has put their efforts to increase their market share and credit.