SBI net profit falls 32% in Q1

Mumbai: India's largest public sector lender State Bank of India (SBI) on Friday reported a 32 per cent fall in its standalone net profit to Rs 2,520.96 crore in the 2016-17 fiscal's first quarter ended June 30, compared with Rs 3,692.43 crore in the corresponding quarter last year. The gross non-performing asset (NPA) as a percentage of total loans rose to 6.94 per cent in the quarter under review, from 4.29 per cent in the year-ago period. The lender's asset quality during the June quarter deteriorated significantly as the NPAs in absolute term rose by nearly 80 per cent year-on-year to Rs 1,01,541.18 crore compared with Rs 56,420.77 crore in the same period in the last fiscal. In the quarter, the SBI's capital adequacy ratio under Basel III norms stood at 14.01 per cent as against 12 per cent in the year-ago period. The bank's operating profit in the quarter was at Rs 1,1053.86 crore in the quarter, up 20 per cent from Rs 9,202.10 crore in the same period in the last fiscal. Total provisions and contingencies stood at Rs 7,413.10 crore for the quarter, as compared with Rs 3,999.73 crore in the year-ago period. Provisions for bad loans rose to Rs 6,339.56 crore in the quarter, from Rs 3,358.58 crore in the corresponding quarter, the company said in a filing to BSE. Its net interest income, the difference between interest earned and interest expended, was up 4.22 per cent year-on-year at Rs 14,312.31 crore, compared with Rs 13,732 crore in the year-ago quarter.