MUMBAI: Aided by robust income growth and lower non-performing assets (NPAs), State Bank of India’s (SBI) net profit more than doubled to Rs 2,814.82 crore for the quarter ended March, 2017 as compared with Rs 1,263.81 crore a year ago.
For the full year FY17, while standalone net profit rose 5.36 per cent to Rs 10,484 crore from Rs 9,951 crore in the previous fiscal, consolidated annual profit fell by about 98 per cent to Rs 241.23 crore from Rs 12,224.59 crore, led by an increase in provisioning.
The fourth quarter results do not factor in the merger of associate banks, which was effected in April.
According to Arundhati Bhattacharya, SBI chairperson, the fourth quarter was difficult but satisfying.
“This was the first consolidated financial results after the seven-way merger,” she said adding that margins will be under pressure in the near-term due to high credit costs. Deposits stood over Rs 20 lakh crore, while advances were around Rs 16 lakh crore.
“Deposits of the associate banks will be re-priced, which will have a positive impact,” she added.
SBI accounts for more than a fifth of India’s total banking assets. The bank’s gross NPAs rose to 9.04 per cent from 6.40 per cent, while net NPAs rose to 5.15 per cent as against 3.73 per cent at the end of March, 2016. On a standalone basis, gross NPAs rose from 6.5 per cent to 6.9 per cent during the March quarter, while net NPAs fell to 3.71 per cent.
According to SBI, loan loss
provisions were lowered to Rs 10,993 crore during the fourth quarter of last fiscal as against Rs 12,139 crore.
In absolute terms, gross NPAs rose to Rs 1,12,343 crore in March, 2017 from Rs 98,173 crore. The bank’s operating profit rose by 12.93 per cent, from Rs 14,192 crore to Rs 16,026 crore. Net Interest
Income shot up 17.33 per cent from Rs 15,401 crore to Rs 18,071 crore during the quarter under review, while total interest income grew by 10.36 per cent.