SBI Q1 net up marginally at Rs3,241 cr; NPA provisioning jumps 72%

State Bank of India, India's largest lender, has reported a marginal rise in net profit for the first quarter of the financial year ended 30 June 2014, at Rs3,349 crore, against the Rs3,241 crore reported in the same period a year ago.

SBI said the 3.3-per cent increase in net profit was due mainly to higher operating profit of Rs8,788 crore in Q1 FY'15, which increased by 16.37 per cent from Rs7,551 crore in Q1 FY'14.

The higher operating income helped offset a 72-per cent increase in provisioning for bad loans from Rs2,266 crore in the first quarter last financial year to Rs3,903 crore in the first quarter of the current financial year.

Net interest income of the public sector bank increased by 15.12 per cent to Rs13,252 crore in Q1 FY'15, from Rs11,512 crore in Q1 FY'14.

Operating profit increased by 16.37 per cent to Rs8,788 crore in Q1 FY'15 from Rs7,551 crore in Q1 FY'14.

Total interest income increased by 15.03 per cent to Rs36,487 crore in Q1 FY'15 from Rs31,718 crore in Q1 FY'14.

Deposits of the bank stood at Rs14,18,915 crore at the end of the April-June 2014 quarter against Rs12,57,389 crore at end of April-June 2013, showing a 12.85 per cent growth.

Gross advances of the bank increased 12.52 per cent to Rs12,32,288 crore at the end of June 2014, from Rs10,95,145 crore at end-June 2013.

SBI's credit-deposit ratio (domestic) declined by 90 bps to 77.9 per cent in June 2014 from 78.8 per cent in June 2013.

On a consolidated basis, the bank's net profit, after minority interest and share of associates, for the first quarter was up at Rs4,448 crore from Rs4,299 crore in Q1FY14.

Total income rose to Rs60,621 crore from Rs52,502 crore in the year-ago period.

SBI said fresh slippages in assets were down 27.85 per cent at Rs9,932 crore in April-June 2014 against Rs13,766 crore in April-June 2013. Gross NPAs declined to Rs60,434 crore in April-June 2014 from Rs60,891 crore in April-June 2013.

The bank's capital adequacy ratio as of June 2014 (as per Basel III) stood at 12.33 per cent (Tier I at 9.63 per cent) and 12.56 per cent (Tier I at 9.86 per cent) with retained profits.

SBI Cards & Payment Services (Pvt) Ltd registered a net (after- tax) profit of Rs114 crore in Q1 FY'15 against Rs67 crore in Q1 FY'14 - an year-on-year growth of 70.13 per cent.

SBI Funds Management Pvt Ltd recorded a year-on-year growth of 16.90 per cent in net profit at Rs39 crore in Q1 FY'15 against Rs33 crore in Q1 FY'14.

SBI Life Insurance Company Ltd posted a net profit of Rs241 crore in Q1 FY15, a YOY growth of 13.56 per cent from Rs213 crore in Q1 FY'14.

Net profit of the 5 associate banks of SBI declined 16.09 per cent year-on-year to Rs702 crore in Q1 FY'15 from Rs837 crore in Q1 FY'14.

Combined net profit of foreign banking subsidiaries (FBS) of SBI recorded a YoY growth of 123 per cent at Rs70 crore in Q1 FY'15 from Rs31 crore in Q1 FY'14.

SBI group net profit increased by 3.48 per cent to Rs4,448 crore in Q1 FY'15 from Rs4,299 crore in Q1FY14 while operating profit for Q1 FY'15 increased 11.77 per cent to Rs11,545 crore from Rs10,329 crore in Q1FY14.