NEW DELHI: The country's largest lender, State Bank of IndiaBSE -3.89 % on Friday beat street estimates by reporting a second quarter profit after tax (PAT) of Rs 3658 crore versus an ET Now poll of Rs 3514 crore.
This a 30 per cent gain in quarterly net profit, the smallest increase this year, as higher provisioning for bad loans constrained earnings growth. That compares with a more than doubling in net income in the previous quarter.
State Bank of India slipped over 3 per cent in afternoon trade. At 01:06 pm, SBIBSE -3.89 % was trading 3.6 per cent lower at Rs 2162. It has made a low of Rs 2163 and a high of Rs 2269 in trade today.
The gross Non-performing assets (NPAs) stood at 5.15% versus 4.19% quarter-on-quarter. The net NPAs came in at 2.44% versus 2.22% on a quarter-on-quarter basis. The state-owned bank, has exposure to debt-laden firms such as Kingfisher Airlines LtdBSE 4.97 %, Air India Ltd and Deccan Chronicle Holdings LtdBSE -4.98 %.
The net interest income for the quarter stood at Rs 10,974 crore. The bank reported fresh slippages of Rs 8,495 crore.
SBI has been aggressive in identifying bad loans and making adequate provisions since Chairman Pratip Chaudhuri took reins of the bank in 2011. Still, problem loans at the bank are the highest in the industry. That, coupled with low capitalisation, prompted ratings agency Moody's to downgrade the bank last year.
Bad loans increased by nearly 45 per cent to Rs 492 crore in the September quarter compared with a year earlier, SBI said.
(Source : economictimes.indiatimes.com)
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