India's largest lender State Bank of India (SBI) Thursday said its net profit dropped by 18.54 percent to Rs.3,299.22 crore in the quarter ended March 31, owing to lower interest income and higher provisioning.
This is the first quarterly drop in the company's profit in the last two years.
Total income of the bank during the period under review, however, increased to Rs.36,330.87 crore from Rs.33,959.54 crore for the same period last year.
Net interest income of the bank during the fourth quarter last fiscal stood at Rs.11,078 crore, down by 4.42 percent compared to same period previous fiscal.
During the quarter under review, the bank's total provisioning stood at Rs.4,180.99 crore compared to Rs.3,140.41 crore for the same period a year ago.
"Provisioning for bad loans during the quarter has increased compared to same period previous fiscal. Yield on advances is also down," SBI chairman Pratip Chaudhuri told reporters after announcing the results here.
More From This Section
According to Chaudhuri, the bank continued to face steep challenges in the mid-sized companies segment.
The PSU bank's gross NPA as a percentage of total loans rose to 4.75 percent during the quarter from 4.44 percent in the year ago period, while its net NPA was at 2.10 percent of loans during the last quarter last fiscal against 1.82 percent in the same period previous fiscal.
Mid corporate sector as well as SME sector contributed to the NPA, the chairman said.
For the financial year 2012-13, the bank has posted a net profit of Rs.14,104.98 crore, as compared to Rs.11,707.29 crore registered in the previous year.
The bank's total income rose to Rs.135,691.94 crore for the year ended March 31, 2013, as compared to Rs.120,872.90 crore recorded in 2011-12, SBI said in a statement.
Interest income on advances increased from Rs.22,141 crore in the fourth quarter last fiscal to Rs.23,064 crore during the same period previous fiscal.
Share price of the company slumped on disappointing quarterly numbers.
SBI share price dipped 8.30 percent at Rs.2,168 at the Bombay Stock Exchange (BSE) after the results were announced. This is the biggest single-day drop in the company's share price since February 2012.
The company's board at a meeting held here Thursday approved distribution of dividend of Rs.41.50 per share for the accounting year ended March 31, 2013.
"The date of payment of the dividend is fixed as June 17, 2013 and the dividend warrants will be payable, in India, at par at all branches of State Bank of India, irrespective of the amount," SBI said.