India's largest commercial bank has targeted a profit of Rs 16-17 billion for the year (April-March) compared with last year's Rs 10.28 billion.State-run SBI will unveil third quarter results on January 27.

"I am not going to spring surprises for the worse.

" The surprises could be for the better," SBI chairman GG Vaidya told Reuters at the sidelines of a conference of bank chairmen in Pune.

The bank had announced a net profit of Rs 7.02 billion for the six months ended September 30 against Rs 8.58 billion in the year ago period.

A hefty increase in provisions against sticky loans was the main factor behind the 18 per cent fall in six month net profit.

The bank made a provision of Rs 1.47 billion for salary revision arrears and provisions for non performing assets were higher at Rs 5.6 billion against Rs 3.39 billion in the first half of last year.

It also set aside an extra sum of Rs 310 million towards a shortfall in a subsidiary's mutual fund scheme.

Vaidya said the broking business of SBI Securities, a wholly owned subsidiary, will be transferred to SBI Capital, the investment banking arm of SBI.

"SBI Securities will be a shell company and we will use it for any other venture when we want to," Vaidya said.