SBI Q3 net profit rises by 4% as core income falls on higher provisioning on bad assets

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Standalone net profit rose to 33.96 billion rupees ($631.40 million) for the quarter ended December. (Reuters) Standalone net profit rose to 33.96 billion rupees ($631.40 million) for the quarter ended December. (Reuters)
SummarySBI reported a marginal 4.08% increase in net profit at Rs 3,396 crore for the third quarter.

bad loans, before recoveries and write-offs, stood at 5.3 percent of assets in the quarter, an increase of nearly a third from a year earlier at a time when analysts were expecting asset quality to improve.

The lender has been aggressive in identifying bad loans and making provisions since Chairman Pratip Chaudhuri took the reins in 2011. Its bad loan levels are above the industry average of around 3 percent.

SBI shares recovered ground after slipping as much as 3.5 percent after the results. At 1:20 p.m. (0750 GMT), the stock was down 0.6 percent. The stock is down 6 percent this year, underperforming the sector index that is down 1 percent in the same period. ($1 = 53.79 rupees)

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