Subsidiaries drag SBI's Q4 profit

Standalone numbers were good on most fronts

State Bank of India (SBI)’s results for the March 2017 quarter (Q4) provide some hint at the pain awaiting the bank as it consolidates its associate banks with itself, with effect from April 1, 2017.

While the standalone operating performance was slightly better-than-expected on income, asset quality and profitability parameters, a key disappointment lies in the consolidated numbers. SBI’s consolidated net profit nosedived to Rs 241 crore in FY17 from Rs 12,225 crore in FY16. This was much lower than Bloomberg consensus estimate of Rs 6,887 crore. Though the bank did not share consolidated results for the nine months ended