State Bank of India (SBI) net profit nosedived to Rs 20.9 crore during the fourth quarter ended March 31, 2011 fiscal against Rs 1,866.60 crore in the same quarter previous fiscal.
The erosion in standalone net profit is mainly on account of higher provisioning against bad loans, operating expenses including employee cost besides tax outgo of over Rs 900 crore.
However, the total income during the quarter rose 18% to Rs 26,536.8 crore from Rs 22,474.1 crore in the corresponding period a year ago.
Despite dismal performance, the bank maintained the dividend at 300% for 2010-11. It will pay a dividend of Rs 30 per share on face value of Rs 10 after getting the shareholders approval.
For the fiscal ended March 2011, the net profit slipped by 10% to Rs 8,264.5 crore compared with Rs 9,166.05 crore in the previous fiscal.
However, the total income rose to Rs 97,218.9 crore during the fiscal against 85,962.07 crore in FY 2010.
During the fourth quarter, SBI made a provision of Rs 3,263.9 crore against bad debts compared with Rs 2,186.7 crore in the same period a year ago, an increase of 49%.
At the same time, tax outgo during January-March quarter rose to 1,901.8 crore from Rs 977.8 crore in the same period a year ago. Operating expenses of the bank including employee cost also rose to Rs 6,793.8 crore from Rs 6,036 crore.
On a consolidated basis, the net profit of the Group declined by 7% to Rs 11,179.9 crore for the year ended March 31, 2011 compared with Rs 12,013.6 crore a year ago. Total income increased to Rs 1,47,843.9 crore from Rs 1,13,093 crore.
Meanwhile, the bank shares dipped by 7.82% to Rs 2,412.75 at the end of the session on the BSE today.
