SBI Q3 net falls 34% on higher loan provisioning

Net non-performing assets up at 3.24%

SBI Q3 net falls 34% on higher loan provisioning

Public sector lender State Bank of India(SBI) on Friday reported 34 per cent decline in net profit to Rs 2,234.34 crore for the quarter ended December 31, 2013 (Q3) from Rs 3,396 crore in the comparable quarter of 2012-13 owing to higher provisioning for bad loans.

With this, SBI suffered a fourth straight consecutive drop in net income as rise in bad loans clipped profitability.

Addressing a press conference here, SBI Chairperson Arundhati Bhattacharya said, “Profit after tax was down on one-time pension provision, mark-to-market loss and deferred tax liability.” 

She pointed out that the total provisioning for non-performing assets rose to Rs 3,428.59 crore during the December quarter, up from Rs 2,766.18 crore in the corresponding period of last financial year, the bank said.

Total income rose to Rs 39,061 crore during the third quarter from Rs 33,992 crore in the same period a year ago.

Gross non-performing assets (NPAs), which represents portion of bad loans, stood at Rs 67,799.33 crore at the end of December, up from Rs 53,457 crore in the year ago period.

Gross NPAs at 5.73 per cent of gross advances, as against 5.30 per cent a year ago.
Net NPAs during the third quarter rose to 3.24 per cent, from 2.59 per cent in the period a year earlier.

Fresh slippages during the quarter were Rs 11,438 crore as against Rs 8,365 crore in previous quarter while cash recovery stood at Rs 1,538 crore in the quarter gone by.  
Net slippages for the quarter were Rs 3,593 crore as against Rs 4,568 crore quarter-on-quarter.

The bank restructured assets worth Rs 3,900 crore in Q3, which is lower compared to Rs 8,585 crore in second quarter of 2013-14.

SBI's upgradation of accounts for the quarter were Rs 1,230 crore while write-off stood at Rs 5,077 crore.

Total advances increased 17.3 per cent to Rs 11.5 lakh crore and deposits grew 16.4 per cent to Rs 13.5 lakh crore, the bank said.

On a consolidated basis, the SBI group net profit fell 40 per cent to Rs 2,838 crore in Q3 compared to Rs 4,648 crore in the year ago period.

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