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HindustanTimes Tue,16 Sep 2014

SBI profit plunges 35% as NPA provisions rise

HT Correspondent, Hindustan Times  New Delhi, November 14, 2013
First Published: 00:31 IST(14/11/2013) | Last Updated: 00:33 IST(14/11/2013)

State Bank of India (SBI), India’s biggest lender, on Wednesday announced its worst quarterly profit in over two years with a 35% year-on-year decline to Rs. 2,375 crore for the quarter ended September from Rs. 3,658 crore last year due to sharp rise in the provision for bad loans.

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Provisions for non-performing assets (NPAs), or bad loans, rose 44% to Rs2,645 crore from Rs1,837 crore in the year-ago period.

“Stress is great on the mid-corporates side,” said Arundhati Bhattacharya, chairman, SBI.

“We don’t see that stresses have improved.”

As of September 30, gross NPAs fell to 5.6% of gross advances from 5.2% a year ago. Net NPAs rose to 2.9% from 2.4% last year.

Shares closed at Rs. 1,698, up 1% on the BSE as net interest margin was up 3.5%.


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