SBI profit plunges 35% as NPA provisions rise

  • HT Correspondent, Hindustan Times, New Delhi
  • |
  • Updated: Nov 14, 2013 00:33 IST

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%.

 

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