State Bank Of India Q4 Net Profit More Than Doubles As Expected

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SBI chairman Arundhuti Bhattacharya said loan loss provisions were lowered to Rs 10,993 crore during the fourth quarter of last fiscal as against Rs 12,139 crore in the year-ago period.

The country's largest lender SBI on Friday reported more than doubling of its net profit at Rs 2,814.82 crore for the March quarter.

For the financial year ended March 31, 2017, the bank recorded a net loss of Rs 390.67 crore compared with a profit of Rs 12,743.28 crore a year ago.

SBI also said its gross non-performing assets (NPAs) increased to Rs 1,12,343 crore as on March 31, from Rs 98,113 crore in a year ago, while gross NPA ratio stood at 6.9 per cent in March 2017.

Income shot up 17.33 per cent from Rs 15,401 crore to Rs 18,071 crore during the quarter under review, while total interest income grew by 10.36 per cent. Fee income rose 4.9 per cent from a year earlier to Rs 6,078 crore.

The SBI has reduced loan loss provisions by 9.44 per cent to Rs 10,993 crore in the quarter as compared to Rs 12,139 crore in the same period past year. "This was a historic quarter, in a sense, it was the last as a solo bank".

The bank has declared a dividend of Rs 2.60 per share for the financial year ended March 31, 2017. Higher provisions on account of costs associated with the merger have taken a toll on the consolidated results.

On an absolute basis, however, gross bad loans increased to Rs 1.12 trillion at end-March from Rs 1.08 trillion in December.

Bhattacharya, in a webcast from Kolkata, said the bank had taken the "maximum amount of pain" already, relating to the aligning the asset quality of the associate banks through the merger. The impact on profit would not be much. Net interest margin (NIM) as of March 2017 stood at 2.84 per cent, she said. The slippages were slowing down, she said adding that the telecom sector was now a cause for concern. In Q4FY16, SBI had created a watch-list of accounts worth Rs 31,352 crore and expected 70% of it to slip into the non-performing category in a worst-case scenario. Domestic advances rose by 8 percent (YoY) backed by 21 percent retail loan growth (YoY), especially in auto, home and personal loans.

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