SBI Q1 net profit down 13.6% at Rs3,241 crore
12 Aug 2013
State Bank of India (SBI), the country's largest lender, today reported a 13.6 per cent decline in its standalone net profit for the first quarter of the current financial year (April-June 2013-14) to Rs3,241.08 crore, on the back of higher provisioning for non-performing assets.
SBI had reported a standalone net profit of Rs3,752 crore in the corresponding quarter last year.
SBI said its income during the April-June 2013-14 quarter increased to Rs36,192.62 crore, from Rs32,415 crore in April-June 2012-13.
The bank, however, saw its bad loans or non-performing assets (NPAs) rise to 5.56 per cent of its total advances at the end of June from the level of 4.99 per cent at the end of June 2012, mostly from loans stuck in corporates like the failed Kingfisher airline.
Gross NPAs of SBI in absolute terms stood at Rs60,891.46 crore during April-June 2013-14, up from Rs47,156.38 crore in the corresponding period a year ago.
Net NPAs of the bank rose to Rs29,989.84 crore (2.83 per cent) at the end of the first quarter from Rs20,324.01 crore (2.22 per cent) in the year-ago period.
SBI's consolidated (including those of its subsidiaries) net profit for the April-June 2013-14 quarter fell 12 per cent to Rs4,298.56 crore, from Rs4,874.7 crore in the corresponding quarter a year ago.
Consolidate income increased to Rs52,502.29 crore between 1 April and end-June 2013 from Rs46,839 crore during April-June 2012-13.
SBI expects its stressed loans and provisions to guard against them to eat into its profits this financial year and also affect other state-run banks to some extend.
SBI is the largest lender and creditor to many major companies, including Suzlon Energy and Lanco Infratech as also the failed Kingfisher Airlines.
