SBI Q4 profit drops 8% to Rs 3,040.7 cr; dividend at 300%

SBI Q4 profit drops 8% to Rs 3,040.7 cr; dividend at 300%

The country's premier lender State Bank of India (SBI) on Friday reported a drop of 7.8 per cent in its net profit for the 4th quarter of 2013-14 to Rs 3,040.7 crore from Rs 3,299.2 crore in the comparable quarter of the previous fiscal.

The SBI management at its board meet on Friday attributed the decline in net profit to higher provisioning against bad loans, which increased significantly in Q4 to Rs 5,884 crore from Rs 3,974 crore in the year-ago period.  It may be noted that SBI accounts for about a quarter of India's loans and deposits.

The gross Non Performing Assets (NPAs) as a percentage of total loan rose to 4.95 per cent during the quarter, from 4.75 per cent in the year-ago period, while the net NPA also increased to 2.57 per cent as compared to 2.10 per cent in the March 31, 2013.For the full-year, SBI's standalone results showed a sharp drop in net profit, falling from Rs 14,104.9 crore in 2012-13 to Rs 10,891.2 crore in 2013-14.

Consolidated results of all its subsidiaries showed a drop in net profits from Rs 17,916.2 crore to Rs 14,173.7 crore in 2013-14. Meanwhile, the bank at its board meeting this day declared a dividend of 300 per cent for the year.

Further, SBI scrip, valued at more than $32 billion, surged this day after the results were announced by almost 50 percent so far this year.  The Bank scrip on BSE closed at Rs 2,755.25, up by Rs 243.45 or 9.69 per cent from the previous closing.