State Bank of India (SBI) today reported net profit worth Rs 2234.34 crore for the quarter ended December 31, down 34% from a year ago, on higher bad loans and increased provisioning. The bank saw provisions worth Rs 3,429 crore for non-performing assets (NPA) during the quarter, up 24% from a year ago.
Net interest income (NII) for the quarter rose 13.3% from a year ago to Rs 12,640.52 crore. The bank's operating profit during the three month period stood at Rs 7618 crore, down 2% from the previous year. Total income rose 15% yoy to Rs 39,061 crore in the October-December period. At 2PM, Friday, SBI stock was down 3% on Bombay Stock Exchange, at Rs 1,459 a piece.
Domestic net interest margin (NIM) stood at 3.51% unchanged on a quarter-on-quarter basis.
Asset quality worsened as gross NPA as a ratio to total assets rose 9 basis points sequentially to 5.73%. Gross NPAs during the quarter stood at Rs 67,799 crore, up 5.6% quarter-on-quarter. Net NPA ratio rose 33 bps sequentially to 3.24% as on December 31.
SBI Q3 net profit falls 34% y-o-y
State Bank of India (SBI) today posted a 34 per cent decline in net profit at Rs 2,234.34 crore for the third quarter ended December 31, 2013 on account of higher provisioning for bad loans.
The country's largest bank had a net profit of Rs 3,396 crore on standalone basis in the October-December quarter of 2012-13.
The total provisioning for non-performing assets rose to Rs 3,428.59 crore during the December quarter, up from Rs 2,766.18 crore in the corresponding period last fiscal, SBI said in a filing on the BSE
Total income of the bank rose to Rs 39,061 crore during the third quarter from Rs 33,992 crore in the same period a year ago.
The gross Non-performing Assets (NPAs), which represents portion of bad loans, stood at Rs 67,799.33 crore at the end of December, up from Rs 53,457 crore in the year ago period.
As of December 31, the bank's portfolio quality declined, with gross NPAs at 5.73 per cent of gross advances, as against 5.30