SBI posts steepest quarterly profit fall in 2 yrs of 33 pct on higher provisioning for NPAs

Total income on a consolidated basis rose to Rs 53,118.63 crore from Rs 49,917.47 crore in the same period a year ago,SBI said in a BSE filing.

On a standalone basis,SBI’s profit declined 35 per cent to Rs 2,375 crore from Rs 3,658.1 crore. Total income was Rs 37,199.92 crore as against Rs 32,953.47 crore in the same period a year ago.

This is the bank’s first earnings after Arundhati Bhattacharya took over as Chairperson on October 7.

Provisions for non-performing assets (NPAs) during the quarter rose to Rs 2,645.40 crore as against Rs 1,837.19 crore in the same period of the previous financial year.

As of September 30,the bank’s gross non-performing assets (NPAs) deteriorated to 5.64 per cent of gross advances,compared with 5.15 per cent year a year ago. Net NPAs rose to 2.91 per cent from 2.44 per cent.

SBI shares traded at Rs 1,724.90,up 2.95 per cent on the BSE.

SBI’s net interest income in the second quarter increased 11.64 per cent to Rs 12,251 crore from Rs 10,974 crore a year earlier.

During the first half of the financial year,standalone net profit slipped 24.21 per cent to Rs 5,616 crore. Total income rose to Rs 73,392.54 crore in the first six months from Rs 65,368.95 crore in the year-ago period.

The net interest margin of the bank stood at 3.51 per cent at the end of September.

The bank’s capital adequacy ratio,as per Basel III norms,stood at 11.69 per cent at the end of the quarter.

On a consolidated basis,net profit in the first six months declined 22 per cent to Rs 7,371 crore from Rs 9,450 crore. Total income rose to Rs 1,05,620.92 crore in the first six months from Rs 96,700.17 crore in the year-ago period.

Group company SBI Life Insurance posted a 34 per cent rise in net profit at Rs 431.70 crore from Rs 321.51 crore in first half of 2012-13.

SBI Cards & Payments Services Pvt Ltd’s H1 net profit more than tripled to Rs 143.38 crore.

SBI’s net interest income in the second quarter increased 11.64 per cent to Rs 12,251 crore from Rs 10,974 crore a year earlier.

During the first half of the financial year,standalone net profit slipped 24.21 per cent to Rs 5,616 crore. Total income rose to Rs 73,392.54 crore in the first six months from Rs 65,368.95 crore in the year-ago period.

The net interest margin of the bank stood at 3.51 per cent at the end of September.

The bank’s capital adequacy ratio,as per Basel III norms,stood at 11.69 per cent at the end of the quarter.

On a consolidated basis,net profit in the first six months declined 22 per cent to Rs 7,371 crore from Rs 9,450 crore. Total income rose to Rs 1,05,620.92 crore in the first six months from Rs 96,700.17 crore in the year-ago period.

Group company SBI Life Insurance posted a 34 per cent rise in net profit at Rs 431.70 crore from Rs 321.51 crore in first half of 2012-13.

SBI Cards & Payments Services Pvt Ltd’s H1 net profit more than tripled to Rs 143.38 crore.

Earlier in the day,it was reported State Bank of India (SBI) may lag consensus profit forecast for the July-September quarter when it reports results later in the day,Thomson Reuters StarMine’s SmartEstimates shows.

‘Buy’ SBI shares

StarMine’s SmartEstimates,which places greater emphasis on forecasts by top-rated analysts,expects SBI to report a profit of 25.73 billion rupees for the quarter,compared with a consensus mean estimate of 27 billion rupees.

Multiple dealers disagree,saying the SBI’s asset quality might be better than expected.

SBI bad loans

State Bank of India posts steepest quarterly profit fall in over 2 years

(Reuters) – State Bank of India (SBI) ,the country’s largest lender,posted its steepest fall in quarterly net profit in more than two years due to worsening asset quality and a slump in treasury operations.

SBI,which accounts for a quarter of the country’s loans and deposits,said on Wednesday its net profit fell 35 percent to 23.75 billion rupees ($373 million) in the quarter ended September. Net interest income,or the difference in interest earned and paid out,rose 11.6 percent.

Analysts,on average,had expected profit of about 27 billion rupees.

Indian state banks,with their high exposure to the power and infrastructure sectors,have been particularly hit by the country’s economic slowdown. SBI’s outgoing chairman said last month that asset quality pressures are likely to continue.

Net nonperforming loans,as a percentage of total assets,worsened to 2.91 percent from 2.83 percent in the preceding quarter.