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SBI dips as Q3 net profit lags Street estimates

The stock was down 3% to Rs 1,456 on reporting 34% yoy fall in net profit at Rs 2,234 crore for Q3FY14.

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SI Reporter Mumbai
Last Updated : Feb 14 2014 | 1:52 PM IST
State Bank of India (SBI) has dipped nearly 3% to Rs 1,456 on NSE after reporting 34% year-on-year (yoy) fall in net profit at Rs 2,234 crore for the third quarter ended December 31, 2013 (Q3), due to higher provisioning for bad loans. The country’s largest state-owned lender had profit of Rs 3,396 crore in the same quarter last fiscal.

Net interest income (interest earned minus interest expended) or NII of the bank however, increased 13% at Rs 12,640 crore in December quarter, compared to Rs 11,176 crore in the corresponding quarter of previous fiscal.

Analyst on an average had expected profit of Rs 2,530 crore on NII of Rs 13,761 crore for the quarter.

The bank has put aside Rs 3,429 crore in the December quarter towards non-performing assets (NPA), which is 24% higher than of Rs 2,766 crore it provided for bad loans in the same period a year ago.

Its gross NPA as a percentage of advances during the quarter, increased to 5.73% from 5.30% in a year ago quarter, while net NPA rose to 3.24% from 2.59%.

The stock opened at Rs 1,502 and touched a high of Rs 1,515 on NSE, before announcement of the results. A 3.62 million shares changed hands on the counter so far on the BSE and NSE.
 

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First Published: Feb 14 2014 | 1:50 PM IST

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