SBI net profit falls, but asset quality improves
By Express News Service | Published: 10th November 2017 04:27 PM |
MUMBAI: State Bank of India (SBI) on Friday reported a 38 per cent decline in its standalone net profit at Rs 1,581.55 crore for the quarter ended September 2017 against Rs 2,538.32 crore. The country’s largest lender’s consolidated net profit, however, saw a mutli-fold increase at Rs 1,840.43 crore from Rs 20.70 crore over the previous year, thanks to stake dilution in its insurance arm.
Standalone total income increased to Rs 65,429.63 crore in July-September 2017 compared to Rs 50,742.9 crore. While SBI’s profit fell on rising bad loans, the bank’s asset quality has remarkably improved.
Fresh slippages during the quarter stood at Rs 9,026 crore during the quarter under review against Rs 26,249 crore in the previous quarter. The annualised slippage ratio declined to 1.85 per cent compared to 5.28 per cent during the June quarter.
“We have made more than 50 per cent provision for both of RBI’s NCLT list, including Rs 3,855 crore provided towards first list of NCLT accounts,” said Rajnish Kumar, chairman and managing director, SBI.
Speaking to media, he said the watchlist at the end of September quarter was down to Rs 21,000 crore from Rs 24,000 crore as of the June quarter. Gross slippages stood at Rs 10,627 crore, while fresh slippages were Rs 9,026 crore including slippages from retail comprising Rs 4,448 crore. Provisions and contingencies stood at Rs 19,137.4 crore, sharply higher by 114.3 per cent sequentially and 142.3 per cent annually. Gross NPAs fell to 9.83 per cent of gross advances compared to 7.14 per cent a year ago. Similarly, the net NPAs rose to 5.43 per cent from 4.19 per cent.
Provisioning for non-performing assets (NPAs) or bad loans by the bank more than doubled to Rs 16,715.20 crore during the quarter under review, against Rs 7,669.66 crore in the same period of last financial year. In absolute terms, its gross NPAs rose to Rs 1,86,114.60 crore, from Rs 1,05,782.96 crore at the second quarter of the previous fiscal. Net NPAs increased to Rs 97,896.29 crore against Rs 60,013.45 crore.