Bad loans, higher operating expenses squeeze SBI`s Q4 net to Rs20.9 crore
17 May 2011
State Bank of India (SBI), the country's largest lender, today reported a net profit of Rs20.88 crore for fiscal fourth quarter ended 31 March 2011 against Rs1,866 crore reported in the fourth quarter of the previous fiscal (2009-10).
State-run SBI attributed the erosion in stand-alone net profit to higher provisioning for bad loans and increased operating expenses, including wage costs, besides a Rs924 crore tax outgo.
SBI's total income during the quarter, however saw a substantial rise (18 per cent) at Rs26,536.8 crore against Rs22,474.1 crore in the previous year quarter.
SBI's provisioning for bad loans rose 49 per cent to Rs3,263.9 crore during January-March 2011 from Rs2,186.7 crore in the same period a year ago.
Its tax outgo during January-March 2011 quarter nearly doubled to Rs1,901.8 crore from the previous year quarter's Rs977.8 crore. Operating expenses in the January-March 2011 quarter rose to Rs6,793.8 crore from Rs6,036 crore during the previous year quarter.
However, the total income of SBI during the quarter rose 18 per cent to Rs26,536.8 crore from Rs22,474.1 crore in the corresponding period a year ago.
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