The country’s largest bank State Bank of India (SBI) on Friday reported 8 per cent decline in net profit at Rs. 3,041 crore for the fourth quarter ended March 31, 2014 on account of higher provisioning against bad loans.
SBI had a net profit of Rs. 3,299 crore on standalone basis in the January-March quarter of the previous fiscal.
The bank’s total income rose to Rs. 42,443 crore in Q4, 2013-14, from Rs. 36,331 crore in the year ago period, SBI said in a statement.
At the same time, the net interest income of the bank rose by 16.4 per cent to Rs. 12,903 crore, from Rs. 11,591 crore in the fourth quarter of the last fiscal.
Provisions against bad loans increased significantly in Q4 to Rs. 5,884 crore from Rs. 3,974 crore in the year-ago period.
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.
The net NPA also increased to 2.57 per cent as compared to 2.10 per cent in the March 31, 2013.
The gross NPA, which represents portion of bad loans, stood at Rs. 61,605 crore at the end of March, up from Rs. 51,189 crore in the year ago period.
For full fiscal (2013-14), the bank reported a 23 per cent decline in net profit at Rs. 10,891 crore compared to Rs. 14,105 crore in the previous fiscal.
The total income of the bank rose to Rs. 1,36,351 crore, from Rs 1,19,655 crore in 2012-13.
It declared a final dividend of Rs. 30 per shares or 300 per cent for 2013-14.
The SBI scrip was down 2.79 per cent at Rs. 2,582 in the afternoon trade on the BSE.
On a consolidated basis, SBI’s net profit declined by 21 per cent to Rs. 14,174 crore during the 2013-14 as compared to Rs. 17,916 crore in the year ago period.
However, operating profit on consolidated basis increased by 2.87 per cent to Rs. 42,097 crore, as compared to Rs. 40,922 crore in the previous fiscal.
Net Interest Margin (NIM) of the bank stood at 3.49 per cent at the end of March 2014.
Capital Adequacy Ratio improved to 12.44 per cent with Tier I capital at 9.72 per cent and Tier II at 2.72 per cent at the end of 2013-14.
Total business – deposits and advances – of the bank has increased by Rs. 3,58,234 crore to Rs. 26,39,531 crore, from Rs. 22,81,297 crore in 2012-13.
The total number of branches have increased to 15,869 with 1,053 branches opened during the year.
Net profit of five associate banks also declined to Rs. 2,777 crore during the fiscal ended March 2014, from Rs. 3,678 crore in the year ago period, the statement said.