New Delhi: The country's largest lender State Bank of India (SBI) today reported more than doubling of its net profit at Rs 2,814.82 crore for the March quarter.
The public sector bank had registered a standalone net profit of Rs 1,263.81 crore in the same period a year ago. However, for the year ended March 2017, SBI's consolidated net profit declined by about 98 percent to Rs 241.23 crore from Rs 12,224.59 crore at the end of 2015-16.
However, net NPA declined to 3.71 percent as against 3.81 percent a year ago.
For the full fiscal, total income increased by 9.2 percent to Rs 2,98,640.45 crore from Rs 2,73,461.13 crore at the end of 2015-16.
Shares of SBI were trading at Rs 306.85 a unit, up 1.29 percent compared to previous close, at 1231 hrs on BSE.
Analysts on average had expected a net profit of 28.33 billion rupees for the lender, according to data compiled by Thomson Reuters.
A record $150 billion of soured assets in India's banking sector has been a concern for the regulator and the government, which controls 20-plus lenders that dominate the sector.
While SBI has fared better than its state-run peers in managing its bad assets, investors remain wary due to its heavy exposure to stressed industries such as steel and power.
This month, the government tweaked its laws, giving its central bank greater power to identify and enforce resolution on specific soured loans.
SBI, which merged its five subsidiary banks with itself and also took over a niche lender to women in the first consolidation move in the sector, also faces challenges of smoothly integrating the operations.
Chairman Arundhati Bhattacharya told Reuters last month that the bank expected a boost to annual profit in three years on cost and efficiency gains from the absorption of the subsidiaries.
(With additional inputs from agencies)
Updated Date: May 19, 2017 15:02:53 IST