 "SBI chairman Arundhati Bhattacharya")
State Bank of India (SBI), the country’s largest lender, posted a 61.6% drop in its net profit for the third quarter. The bank posted a profit of Rs 1,115.34 crore for the quarter that ended on December 31, 2015 as compared to Rs 2,910.06 crore posted in the same quarter of the previous fiscal.
The slump in the profit came on the back of increased provisioning for non-performing assets (NPAs), which jumped to Rs 7,644.62 crore as compared to Rs 4,810 crore in the same quarter last year.
Gross NPAs stood at 5.1% compared to 4.9% in the third quarter of previous fiscal. In absolute terms, in the same period, the gross NPA jumped to Rs 72,791.73 crore as compared to Rs 61,991.45 crore. Even on a sequential basis, GNPA increased from 4.15% at the end of the quarter ended September.
The lender’s net NPA stood at 2.89% for Q3 compared to 2.80% in same quarter previous fiscal. However, in absolute terms, the net NPA increased to Rs 40,249.12 crore as compared to Rs 34,468.74 crore. Net NPA also increased on a sequential basis from 2.14% at the quarter ended September.
Net interest income, difference between interests earned and expended, dropped by 1% to Rs 13, 606.47 crore from Rs 13,776.64 crore in the corresponding quarter last fiscal.
The capital adequacy ratio of the bank stood at 12.45%.
