State Bank of India reported net profit of Rs 4,050 crore for the fourth quarter of financial year 2012 against expectations of Rs 3,580 crore by a CNBC-TV 18 poll.
Though the numbers came against a profit of Rs 21 crore in the same quarter last year, they are not comparable as the bank had made huge provisions after the new chairman came in.
Net interest income stood at Rs 11,704 crore against CNBC-Tv18 expectation of Rs 11,777 crore.
Net interest margin which gives the sense of profitability of the bank came at 3.89 percent down from 4.05 percent in the last quarter.
Bad assets improved over the last quarter with gross non performing assets (NPA) coming down from 4.61 percent to 4.44 percent. Net NPA also came down from 2.22 percent to 1.82 percent.
The bank has made total provisions of Rs 3,140 crore against provision of Rs 2,047 crore in the last quarter. For NPAs the bank has made provisions of Rs 2,837 crore against Rs 3,006 crore. This shows a fall of 13 percent compared to last year and 6 percent compared to last quarter. Provision coverage ratio for the year stood at 68.10 percent against 64.95 percent last year.
Capital adequacy ratio, typically used to measure the strength of a bank’s capital, improved at 13.86 percent versus 11.98 percent in the same quarter last year. The bank has seen a capital infusion of Rs 7,900 crore this quarter and the ratio would owe much to this fresh capital. Other income went up to Rs 5,264 crore from Rs 4,815 crore during the same period.
SBI is paying a dividend of Rs 35 per share.
Deposits are up 12 percent over last year while advances are up 15 percent. But compared to last quarter, deposits are up 4 percent while advances have been flat.
The bank has restructured assets worth Rs 5,134 crore this quarter, much higher than the Rs 2.188 crore restructured last quarter. The bank to restructure an asset when a borrower is unable to make timely payments and approaches the lender to dilute its original terms of the loan. The restructuring includes the Rs 1200 crore exposure of the bank to Air India.
Fresh slippages (when a loan account slips to sub-standard asset that suggests non-receipt of repayment for 90 days) have come at Rs 4383 crore against Rs 8161 crore of slippages last quarter.
The stock is up 4 percent at Rs 1,914.