India’s biggest commercial bank, State Bank of India (SBI), on Thursday posted a 18.54% year-on-year decline in its net profit to Rs.
3,299 crore during the quarter ended March 31, from Rs.
4,050 crore recorded during the corresponding
quarter of the previous fiscal.
SBI chairman, Pratip Chaudhuri, said the decline is essentially due to higher provisioning on account of non-performing assets (NPAs).
Announcing the annual results of the bank for the financial year 2012-13, Chaudhuri said that the entire corporate India is currently suffering from demand crisis, the indirect pressure of which is felt in the loan repayment capacity. The challenge is almost equal from the small and medium enterprises segment, he added. The bank is currently reeling under a bad debt of 4.75%.
However, he added that it is not necessary that even in cases of loan loss accounts, where there has been even 100% provisioning, there are no chances of loan recovery. “There had been many cases, where there had been cash recovery of the written off accounts. Special incentives announced by the bank for recovery officers had really done miracles,” Chaudhuri said.
During the quarter under review, SBI’s loan loss stood at Rs. 3,974 crore, about 40% higher than Rs. 2,837 crore recorded during the corresponding quarter of the previous fiscal.
However, the lender’s witnessed a 20.48% for the entire fiscal year 2012- 13 to Rs. 14,105 crore from Rs. 11,707 crore recorded during the previous fiscal.
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