contraction (down 65 bps), while net profit was impacted by higher NPA provisions, which spiked 50 per cent sequentially, despite robust other income growth, which clipped 76 per cent.
Although addition to stressed assets is marginally down, it still remains at elevated levels, he said.
Total provisioning of the bank stood at Rs 4,394.70 crore during the December quarter, up from Rs 3,996.97 crore in the corresponding period last fiscal, SBI said in a statement.
The gross non-performing assets, which represents portion of bad loans, stood at Rs 53,457 crore at the end of December, up from Rs 40,098 crore in the year ago period.
However, Kotak Securities gave an 'Accumulate' call on SBI shares, saying the current market price is reasonable.
IndiaInfoline Research head Amar Ambani said SBI's disappointing numbers, which is the lowest growth rate in net income in six quarters, belie the hypothesis that the worst of the credit cycle is behind the nation's largest lender.
Referring to the restructured assets, Chaudhuri said around Rs 3,700 crore is on the pipeline of which Rs 2,500 crore is likely to come from the mid-corporate segment.
Additionally, the bank will have to provide up to Rs 600 crore towards wage increase of 15 per cent starting the next quarter, Chief Financial Officer Diwakar Gupta said.
On the net interest margin front, the lender reported a flat NIM of 3.72 per cent in the third quarter.
"We hope to maintain the NIM at the current level or it may improve to 3.75 per cent," Chaudhuri maintained.
State Bank of India Q3 net profit rises 4%, bad loans weigh
(Reuters): State Bank of India, the country's biggest lender, posted a 4 percent rise in quarterly net profit, its smallest increase in six quarters, as higher provisions for bad loans and slower loan demand in a sluggish economy hurt growth.
Problem lending has risen in India as the country's worst economic slowdown in a decade clouds the outlook for banks including SBI, which accounts for a quarter of all loans and deposits in the country.
Net profit rose to 33.96 billion rupees ($631.40 million) for the quarter ended December, from 32.6 billion rupees a year