SBI Q3 net profit rises by 4% as core income falls on higher provisioning on bad assets
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 earlier, the bank said on Thursday.
Analysts, on average, had expected a net profit of 36.96 billion rupees, according to Thomson Reuters I/B/E/S.
Net interest margin, a key gauge of profitability, stood at 3.7 percent at end-December, in line with estimates. Provisions rose to 26.7 billion rupees in the quarter, from 24.1