State Bank of India reported 66 per cent fall in net profit to Rs 1,264 crore for the quarter ended March 31, 2016 against Rs 3742.02 crore in the corresponding quarter a year ago.
Net profit of the company slid after the country’s largest lender reported 89.73 per cent jump in provisions to Rs 13,174.05 crore in the quarter under review as against Rs 6,943.31 crore in the corresponding quarter a year ago.
Net interest margins of the lender jumped 3.93 per cent year-on-year to Rs 15,290.76 crore for the quarter ended March 31, 2016.
Net non-performing asets (NPA) or bad loans as a percentage of net advances stood at 3.81 per cent during the last quarter of 2015-16, against 2.12 per cent year ago. Net NPA of the company was at 2.89 per cent in the sequential quarter ended December 2015.
The public sector lender gross non-performing assets stood at 6.50 per cent for the quarter under review.
The bank said it has implemented asset quality review according to Reserve Bank of India guidelines. Provision coverage ratio as on March 31, 2016 stood at 60.69 per cent.
State Bank of India also declared a dividend of Rs 2.60 per share (260 per cent) for the financial year ended March 31, 2016. The date of payment of the dividend is fixed on June 22, 2016.
Shares of the company were trading 1.69 per cent up at Rs 186.85 at 1.15 pm.