SBI Q2 profit plunges 99.6% on higher bad loan provisioning

Mumbai: Country’s largest lender SBI today recorded 99.6 percent dip in consolidated net profit at Rs 20.7 crore for the September quarter on account of 3-fold jump in bad loan provisioning. [caption id=“attachment_2772680” align=“alignleft” width=“380”]  Reuters[/caption] Its profit was Rs 4,991.70 crore during the same quarter of the last financial year. Total income on consolidated basis rose however to Rs 72,918.4 crore during the second quarter of the current fiscal, from Rs 66,828.8 crore in the same period of 2015-16, State Bank India said in filing to stock exchanges. On standalone basis, SBI’s profit declined 35 percent to Rs 2,538.32 crore, from Rs 3,879.07 crore. Total income was Rs 50,742.9 crore as against Rs 46,854.8 crore in the same period a year ago. Provisioning for non-performing assets (NPAs) or bad loans on group basis rose nearly three-fold to Rs 15,326.91 crore during the quarter under review, as against Rs 5,330.96 crore in the same period of last financial year. As of September 30, the bank’s gross NPAs deteriorated to 7.14 percent of gross advances, compared with 4.15 percent year a year ago. Similarly, the net NPAs rose to 4.19 percent from 2.14 percent. In absolute terms, its gross NPAs crossed the Rs 1 lakh crore mark to Rs 1,05,782.96 crore, from Rs 56,834.28 crore at the second quarter in the previous fiscal, nearly 100 percent increase. Net NPAs increased to Rs 60,013.45 crore as against Rs 28,591.96 crore. SBI was trading at Rs 274.40, down 2.56 percent, on BSE.