SBI net up 30%; provisions, NPAs pinch; shares fall

State Bank of India, the country’s biggest lender, posted a 30 percent gain in quarterly net profit, the smallest increase this year, as higher provisioning for bad loans constrained earnings growth.

Net profit rose to Rs 3658 crore for the quarter ended September from Rs 2810 crore a year earlier, the bank said on Friday.

Gross non-performing loans increased to 5.15 percent of total assets at end-September, compared with 4.19 percent a year earlier.

[caption id=“attachment_520393” align=“alignleft” width=“380”] The bank’s provision coverage ratio again witnessed a fall to 62.7 percent from 64.3 percent a quarter ago. AFP[/caption]

A CNBC TV18 poll had estimated the net profit at Rs 3,444 crore.

The bank’s net interest income came in at Rs 10,973, up 5 percent on year. The poll had seen the figure at Rs 11,357 crore.

Reacting to the earnings, shares of SBI declined about 4 percent to Rs 2,157.

Net non-performing assets rose to 2.44 percent as of 30 September from 2.22 percent a quarter ago.

The bank’s net interest margin stood at 3.77 percent compared with 3.57 percent a quarter ago.

The bank witnessed fresh slippages worth Rs 8,495 crore during the quarter. It also restructured assets worth Rs 4,694 crore, which is about three-fold rise from a quarter ago.

The bank’s provision coverage ratio again witnessed a fall to 62.7 percent from 64.3 percent a quarter ago.

With inputs from Reuters