SBI Q1 net dips 14% as bad loans hurt
State Bank of India (SBI), India’s largest bank, today disclosed a 13.6% decline in net profit, its second consecutive drop in quarterly net profit, to Rs 3241 crore in the quarter ended June. HT reports.business Updated: Aug 12, 2013 23:03 IST
State Bank of India (SBI), India’s largest bank, on Monday disclosed a 13.6% decline in net profit, its second consecutive drop in quarterly net profit, to Rs 3241 crore in the quarter ended June.
The bank had made Rs 3,752 crore profit in the same quarter last year. It blamed the profit decline on increase in provisioning for rising bad loans and muted growth in interest income.
“Overall deterioration in macro conditions have made it more difficult,” said Pratip Chaudhuri, chairman, SBI, who will retire in September.
He said the bank is not considering revision of lending rates soon.
Net interest income (the difference between interest earned and interest paid) grew 3.5% to Rs 11,512 crore during the quarter ended June 2013 against Rs 11,125 crore in same quarter a year ago. Non-interest income rose 28% to Rs 4474 crore in the quarter ended June from Rs 3,493 crore last year.
The lender saw deterioration in asset quality as bad loan or gross non-performing assets (NPAs) rose to 5.56% of total advances at the end of June, against 4.99% a year ago. In value terms, the bank's gross NPAs increased to R60,891.46 crore during the June quarter, from Rs 47,156.38 crore in the corresponding period a year ago.