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.
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%.