The State Bank of India (SBI), nation’s top lender by assets, fourth-quarter (Q4) net profit more than doubled in line with expectations to Rs 2,815 crore with total income rising by 7.8% at Rs 57,720 crore. However, SBI net non-performing assets (NPAs) in March quarter stood at 3.71% compared to 3.81% a year ago.
In Q3, SBI had reported that profits had also more than doubled from a year ago in the October-December period. This was then the first such rise in five quarters for the nation’s top lender by assets, helped by lower provisions for bad loans. SBI accounts for more than a fifth of India’s total banking assets. SBI gross bad loans as a percentage of total loans fell to 6.9 percent in March from 7.23 percent in December, according to Reuters.
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Shares of SBI were trading at Rs 306.85 a unit, up 1.29 per cent compared to the previous close, at 1231 hrs on BSE.
In 2016 during the March quarter, the public sector bank had recorded a standalone profit of Rs 1,263.81 crore. The gross non-performing assets rose to 6.9 from 6.5 per cent in the January- March quarter as compared to the fourth quarter of 2015-16. At the end of the 2016-17 financial year in March 2017, SBI’s consolidated net profit declined by about 98 per cent to Rs 241.23 crore from Rs 12,224.59 crore at the end of 2015-16. The total income of the bank in Q4 on a standalone basis increased 7.8 per cent to Rs 57,720 crore from Rs 53,526.97 crore as compared to the earlier year. As far as the full fiscal is compared, the total income of SBI increased by 9.2 per cent to Rs 2,98,640.45 crore from Rs 2,73,461.13 crore at the end of 2015-16.