SBI Q3 Consolidated Profit Plunges 67 Percent to Rs 1,259 Crore

The State Bank of India today posted 67 percent decline in consolidated profit in the third quarter.

The State Bank of India today posted a 67 percent decline in consolidated profit to Rs 1,259.49 crore for the third quarter. (Photo: Reuters)

The State Bank of India today posted a 67 percent decline in consolidated profit to Rs 1,259.49 crore for the third quarter ended 31 December 2015-16, on account of higher provisioning for bad loans. The SBI Group had registered a net profit of Rs 3,828.20 crore in the October-December quarter of the 2014-15 fiscal.

On a standalone basis, the SBI net profit plummeted by 61.6 percent to Rs 1,115.34 crore for the third quarter of the current fiscal. However, total income of the bank rose to Rs 46,731 crore during the third quarter, from Rs 43,784 crore in the same period of last fiscal. The total provisioning for non-performing assets jumped significantly to Rs 7,644.52 crore during the December quarter, up from Rs 5,327.51 crore in the corresponding period last fiscal.

The financial result has been arrived at after considering necessary provisions for Non-Performing Assets (NPAs), standard assets and investment depreciation on the basis of prudential norms issued by RBI, SBI said in a statement. The gross NPAs, which represent a portion of bad loans, stood at Rs 72,791.73 crore at the end of December, up from Rs 61,991.45 crore in the same period a year ago.

As of December 31, the bank’s portfolio quality declined, with gross NPAs at 5.10 percent of gross advances, as against 4.90 percent a year ago. Its net NPAs during the third quarter rose to 2.89 percent, from 2.80 percent in the period a year earlier. SBI stock was trading at Rs 156, down nearly 2 percent in the afternoon trade on BSE.