SBI's first quarter net profit fell to Rs3,241.1 crore from Rs3,752 crore as its gross NPAs grew to 5.6% from 4.99%, a year ago period
State Bank of India (SBI), the country's largest lender, on Monday reported 13.6% fall in its first quarter net profit due to higher provisioning of non-performing assets (NPAs). During the quarter, SBI's gross NPAs increased to 5.6% from 4.99% a year ago.
For the quarter to end-June, the state-run lender said, its net profit fell 13.6% to Rs3,241.1 crore from Rs3,752 crore while its total revenues, including interest income, increased to Rs36,192.6 crore from Rs32,415.5 crore, same period last year.
Reflecting the impact of slowing economy, the bank’s gross NPAs rose to 5.56% of total advances against 4.99% in June 2012.
Of over Rs7,000 crore exposure to 17 lenders, SBI has the maximum exposure of over Rs1,600 crore in the now defunct Kingfisher Airlines.
During the first quarter, net interest income (NII) for SBI grew 3.5% while non-interest income grew strongly by 28.1%, likely aided by treasury gains.
On consolidated basis, SBI’s net profit during the June quarter fell 12% to Rs4,298.56 crore from Rs4,874.7 crore a year ago.
“On the asset quality front, SBI reported disappointed set of numbers, as slippages surged to 5.3% (annualised slippage rate of 2.7% in previous quarter) while recoveries and upgrades came in lower sequentially. Hence, gross NPA levels increased sequentially by 19.0%, while net NPA levels increased by much higher 36.6% quarter-on-quarter. Provisioning expenses increased by 16.7% year-on-year (yoy). Thus, bottom-line de-grew by 13.6% yoy. Considering recent macro developments in an overall weak economic environment, we remain cautious on asset quality pressures for the sector,” said a brokerage in a note.
At 3.00pm Monday, SBI was trading 2.8% down at Rs1615 on the BSE, while the benchmark Sensex was marginally up at 18,991.6.
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