SBI Q4 net dips 32%; shares take 4% hit on BSE
SBI's net profit for the January-March quarter has fallen by 32 per cent at Rs 1,867 crore due to a host of reasons, including higher provisioning for non-performing assets.
By PTI |
KOLKATA: Country's largest lender State Bank of India's net profit for the January-March quarter has fallen by 32 per cent at Rs 1,867 crore due to a host of reasons, including higher provisioning for non-performing assets.
Unveiling the numbers, SBI Chairman O P Bhatt said the fall in profit after tax was due to various reasons like provisioning for increased wages and pensions. Besides, higher provisioning for NPAs and a fall in treasury income also contributed to the decline in profit, he said.
The bank's net profit in the same quarter in the previous fiscal stood at Rs 2,742 crore.
The bank's provisioning during period in the quarter was 59.23 per cent of the bad assets against 56.98 per cent in the same period last year.
Asked whether the bank would be able to maintain a provision coverage ratio of 70 per cent against NPAs by September 2010, Bhatt said the bank was in dialogue with the apex bank to stagger it further to avoid a sharp fall in net profit.
The Reserve Bank last year had asked banks to increase provision to 70 per cent of the bad assets by September 2010.
Bhatt, however, sounded optimistic on outlook for the current year. "We expect a higher growth," he said.
SBI declared a dividend of 300 per cent at the rate of Rs 30 per share of face value of Rs 10 for the financial year 2009-10. This includes 100 per cent (Rs 10 per share) interim dividend paid earlier.
SBI's poor Q4 numbers dampened the investor sentiment in stock markets. Weighed down by SBI's disappointing show, the benchmark Sensex on the Bombay Stock Exchange closed down by 271 points. Shares of SBI took a hit of 4 per cent to close at Rs 2,222.65 on BSE.
The bank's profit for full fiscal 2009-10 almost remained flat at Rs 9,166 crore against Rs 9,121 crore in the previous financial year, Bhatt told reporters.
Net interest income increased 13.41 per cent during 2009-10 compared to the previous fiscal's, while fee income was up by 27 per cent.
The consolidated profit of SBI group for 2009-10 rose by 7.11 per cent to Rs 11,734 crore against Rs 10,955 crore in FY 2009. Total business of the bank grew Rs 1,54,983 crore during the 2009-10 fiscal.
Unveiling the numbers, SBI Chairman O P Bhatt said the fall in profit after tax was due to various reasons like provisioning for increased wages and pensions. Besides, higher provisioning for NPAs and a fall in treasury income also contributed to the decline in profit, he said.
The bank's net profit in the same quarter in the previous fiscal stood at Rs 2,742 crore.
The bank's provisioning during period in the quarter was 59.23 per cent of the bad assets against 56.98 per cent in the same period last year.
Asked whether the bank would be able to maintain a provision coverage ratio of 70 per cent against NPAs by September 2010, Bhatt said the bank was in dialogue with the apex bank to stagger it further to avoid a sharp fall in net profit.
The Reserve Bank last year had asked banks to increase provision to 70 per cent of the bad assets by September 2010.
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Bhatt, however, sounded optimistic on outlook for the current year. "We expect a higher growth," he said.
SBI declared a dividend of 300 per cent at the rate of Rs 30 per share of face value of Rs 10 for the financial year 2009-10. This includes 100 per cent (Rs 10 per share) interim dividend paid earlier.
SBI's poor Q4 numbers dampened the investor sentiment in stock markets. Weighed down by SBI's disappointing show, the benchmark Sensex on the Bombay Stock Exchange closed down by 271 points. Shares of SBI took a hit of 4 per cent to close at Rs 2,222.65 on BSE.
The bank's profit for full fiscal 2009-10 almost remained flat at Rs 9,166 crore against Rs 9,121 crore in the previous financial year, Bhatt told reporters.
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Net interest income increased 13.41 per cent during 2009-10 compared to the previous fiscal's, while fee income was up by 27 per cent.
The consolidated profit of SBI group for 2009-10 rose by 7.11 per cent to Rs 11,734 crore against Rs 10,955 crore in FY 2009. Total business of the bank grew Rs 1,54,983 crore during the 2009-10 fiscal.
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