STATE BANK OF INDIA REPORTS A 66.23 % DECLINE IN NET PROFIT IN Q4
Kolkata, May 28 The State Bank of India (SBI) on Friday reported a 66.23 percent decline in its net profit in the quarter ended March 31, 2016 due to increased provisions to cover bad loans, at Rs.1,264 crore as against Rs.3,742 crore in the corresponding period of previous year.
“During the fourth quarter of the last fiscal, the total slippages was at Rs.30,000 crore of which about Rs.20,000 crore was from large and mid corporate,” said bank’s chairman Arundhati Bhattacharya.
She said that of the slippages from large and mid corporates, about Rs.4,700 crore came from power sector, Rs.3,500 crore from engineering, Rs.2,300 crore from iron and steel and about Rs.2,300 crore from oil and gas.
During the quarter, cash recovery stood at Rs.1,627 crore, while upgradation was Rs.97 crore and write off was Rs.3,408 crore, she said.
The bank’s operating profit increased by 11.22 percent to Rs.14,192 crore in the January-March quarter as compared to Rs.12,760 crore in the same period last year.
In the quarter under review, the net interest income increased by around four percent to Rs.15, 291 crore as compared to Rs.14,712 crore in the corresponding period last year.
The largest bank of India posted a decline in its net profit by 24 percent to Rs.9,951 crore in 2015-16 as compared to Rs.13,102 crore in 2014-15.
On asset quality, the bank reported that its net non-performing assets (NPA) went up by 169 bps at 3.81 percent in FY16 as against 2.12 percent in the previous year.
The bank said that gross NPA ratio in agriculture loans declined from 8.9 percent in 2014-15 to 6.93 percent in 2015-16 while gross NPA ratio in SME loans remained stable at around 7.8 percent. Net impaired asset ratio is up marginally to 6.4 percent from 6.8 percent.