Country’s largest bank State Bank of India (SBI) on Friday announced its Q1 results showing a rise in net profit by a nominal increase of 3.3 per cent at Rs3,349.08 crore for the quarter ended June 30 due to higher provisioning for bad loans.
Provision for bad loans increased to Rs3,903.41 crore as against Rs2,265.83 crore a year earlier, registering an increase of 72 per cent. However, the bank’s gross non-performing assets (NPAs) declined to 4.90 per cent of total advances at the end of June, against 5.56 per cent a year-ago.The country’s largest bank had a standalone net profit of Rs 3,241.08 crore in the same quarter last year.
Total income increased to Rs40,739.21 crore during the quarter, against Rs36,192.62 crore in the year-ago period, the bank said in a BSE filing.
During the quarter, the net interest income increased 15.12 per cent to Rs13,252 crore as against Rs11,512 crore in the April-June period of last fiscal.
On a consolidated basis, the bank’s net profit increased 3.4 per cent to Rs4,448.15 crore for the quarter ended June 30, against Rs4,298.56 crore in the year-ago period.
Total income increased to Rs60,620.93 crore as against Rs52,502.29 crore in the April-June quarter of 2013-14. Net Profit of the 5 associate banks declined to Rs702 crore from Rs837 crore, a fall of 16.09 per cent on an annual basis.
The associate banks of SBI are State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
Among these, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed entities. Another subsidiary, SBI Cards & Payment Services, registered a 70 per cent increase in net profit at Rs114 crore in June quarter, against Rs67 crore in the year-ago period.
In value terms, SBI’s Gross NPAs declined to Rs60,434.24 crore during the quarter under review, from Rs60,891.46 crore in the year-ago period.
However, net NPAs of the bank rose to Rs31,883.80 crore at the end of first quarter, against Rs29,989.84 crore in the year-ago period.
Fresh slippage declined 27 per cent to Rs9,932 crore from Rs13,766 crore in June 2013.
As of June 30, Capital Adequacy Ratio of the bank as per Basel III was 12.33 per cent. Shares of SBI closed 0.90 per cent down at Rs2,415.25 apiece on the BSE.
In the Budget, the Government had sounded positive about consolidation in the banking space and Financial Services Secretary GS Sandhu had said the process will kick-start with a merger within the SBI Group this fiscal.
Net profit of the five associate banks of SBI declined to Rs702 crore from Rs837 crore, a fall of 16.09 per cent on an annual basis.
The associates are State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
Among these, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed entities.