State Bank Of India Q4 Net More Than Doubles To Rs. 2,815 Crore
Mumbai: State Bank of India (SBI), the country’s largest lender by assets, has recorded more than double its net profit in the fourth quarter as planned, while its non-performing loan ratio declined quarterly.
The autonomous net result, including the contributions of the subsidiaries, jumped to Rs. 2,815 crore for the three months to March 31, Rs. 1,264 crore in the previous year. It was the biggest profit of six quarters.
On average, analysts expected a net profit of Rs. 2,833 crore for the lender, according to data compiled by Thomson Reuters.
Active registration 150 billion in the banking sector of India has been a concern for the regulator and the government, which controls the 20 lenders who dominate the sector.
While the OSE did as well as its state competitors in managing their assets at a disadvantage, investors remain cautious because of their high exposure to industries under stress such as steel and power.
This month, the government amended its laws, giving the central bank greater power to identify and enforce the resolution on specific loans.
Gross unsecured loans as a percentage of total loans to the SBI, which account for more than a fifth of total bank assets in India, fell to 6.9% in March from 7.23% in December.
In absolute terms, however, gross bad loans increased to Rs. 1.12 lakh million rupees in late March of Rs. Rs 1.08 million lakh in December.
Provisions for doubtful accounts decreased 9.4 percent compared to the previous year to Rs. 10,993 crorein the March quarter.
Net interest income increased by 17.3% during the year prior to Rs. 18,071 crore in the March quarter. Fee income rose 4.9 percent compared with the previous year to Rs. 6,078 crore.
OSE, which merged its five subsidiary banks with itself and also supported a niche lender for women in the first consolidation movement in the sector also faces integration challenges fluidity of operations.
President Arundhati Bhattacharya told Reuters last month that the bank expects an increase in annual profit in three years on profits and cost efficiencies resulting from the merger of the subsidiaries.
SBI shares’ are ranked 2.5 percent higher after the results in a Mumbai market, which fell 0.1 percent.