SBI posts 78% drop in Q1 net profit at Rs 1,046 crore on 2-fold rise in provisions
Provision for bad loans witnessed nearly a two-fold increase to Rs 6,340 crore, against Rs 3,358.58 crore in the year-ago period
Mumbai: Country's largest lender State Bank of India Friday reported a massive 77.8 percent fall in its net profit to Rs 1,046 crore for the June quarter due to nearly two-fold jump in provision for bad loans.
The bank had a consolidated net profit of Rs 4,714 crore in the corresponding quarter last year. However, its total income during the three-month period rose to Rs 69,415 crore against Rs 63,164.5 crore in the April-June quarter of 2015-16.
Provision for bad loans witnessed nearly a two-fold increase to Rs 6,340 crore, against Rs 3,358.58 crore in the year-ago period.
Its gross non-performing assets (NPAs) rose to 6.49 percent of total advances at the end of June, against 4.29 percent a year ago.
On standalone basis, the bank's net profit decreased by 32 percent to Rs 2,520.9 crore for the quarter ended June 30, against Rs 3,692.4 crore in the year-ago period.
Total income on standalone basis increased to Rs 48,928.6 crore during the quarter, against Rs 44,730.87 crore in the same period a year ago.
In value terms, SBI's Gross NPAs almost doubled to Rs 1,01,541 crore (6.49 percent of loans) during the June quarter, from Rs 56,420.77 crore (4.29 percent) in the year-ago period.
Net NPAs of the bank also rose to Rs 57,420.98 crore (4.05 percent) at the end of the first quarter, against Rs 28,669.14 crore (2.24 percent) in the year-ago period.
SBI shares were trading 8.70 percent up at Rs 246.70 apiece on the BSE.
India VIX settled at 21.84 levels. BSE Smallcap and Midcap indices fell between 0.5 and 0.8 percent. Auto was the biggest drag. Banking was the top gaining sector
Among the sectoral indices, oil & gas shed over 4 percent, while FMCG rose over 2.5 percent. BSE Midcap gained by 0.6 percent and BSE Smallcap ended flat at the closing bell
Markets ended higher for the third consecutive session led by a rally in IT stocks and positive global sentiment