SBI registers drop in profits; bank's chairman claims all is well

SBI has registered a 32 percent drop in the net profits in the fourth financial quarter (Q4), which ended on March 31 this year. The net income of the bank in Q4 this year has fallen from last year's impressive Rs. 27.4 billion to Rs 18.7 billion. The reason cited behind the fall in profits is higher provisioning in the areas of pay-revision arrears, liquidity overhang and non-performing assets. Alleviating fears of investors, Chairman of the State Bank of India, Om Prakash Bhatt said on Friday that despite the low profits, the bank was in a position to mobilise resources expand the base of the bank.