State Bank of India, the India’s largest lender disclosed that its net profit for the September quarter slipped 34.6 per cent from a year-ago period since provisions against bad loans more than doubled from last year. It clocked a net profit of Rs2,538.32 crore from Rs3,879.07 crore in the year-ago period. The bank was expected to post a net profit of Rs2,585.40 crore.
Provisions and contingencies increased 21 per cent to Rs7,669.66 crore in the quarter from Rs. 6,339.56 crore a quarter ago. On a yearly basis, provisions increased 99.64 per cent from Rs. 3,841.77 crore. On the other hand, during the Sept quarter, net NPAs were at 4.19 per cent as compared to 2.14 per cent in the corresponding quarter last year.
SBI’s gross non-performing assets (NPAs) grew 4.18 per cent to Rs10,5782.96 crore at the end of the September quarter from Rs101,541.18 crore in the June quarter. Gross NPAs jumped 86.13% from Rs. 56,834.28 crore on yearly basis.
As a percentage of total loans, gross NPAs is clocked at 7.14 per cent at the end of the September quarter against 6.94 per cent in the previous quarter and 4.15 per cent in the year-ago quarter.
Net interest income (NII), or the core income a bank earns by giving loans, increased slightly 1.3 per cent to Rs14,437.46 crore in the September quarter from Rs. 14,252.55 crore last year.
Other income grew 36 per cent to Rs. 8,424.14 crore from Rs. 6,197.25 crore a year ago. Capital adequacy ratio for the quarter is registered at 13.94 per cent, up from 12.17 per cent a year ago.
On 11th Nov, SBI share price settled below 3 per cent at Rs. 273 while India’s benchmark Sensex Index fell 2.54 per cent to 26818.81 points.
Also, SBI Says Over 29,000 ATMs Up and Functioning
The bank provided an update on ATM functioning saying that 29,176 of its ATMs are up and working and the rest are anticipated to function by tomorrow. Arundhati Bhattacharya, SBI’s chairperson is of the view that Re-configuration (of ATMs), as they have done in the past, takes time so it has to be done one after another. It should turn normal within ten days’ time since one has to get this clear that there are more than two lakh ATMs (of all banks) in the country but there are only three to four vendors in the country.
Banks all over the country also faced heavy rush for the second day because people gathered to get new banknotes in exchange of old bills. Press Trust of India disclosed that many ATMs of many banks ran out of cash within few hours as there was a heavy rush. Withdrawals from ATMs will be restricted to Rs. 2,000 per day per card in the first few days, which will be raised to Rs 4,000 later.