SBI’s profit dips 7.83% to Rs 3,041 crore for January-March, 2013-14

Kolkata, May 23: Country’s largest bank SBI today reported a 7.83 per cent decline in net profit for the quarter ended March, 2014 at Rs 3,041 crore on higher provisioning for bad loans and future wage revision.

State Bank of India (SBI) had reported a net profit of Rs 3,299 crore on standalone basis in the January-March quarter of the previous fiscal.

The total income rose to Rs 42,443 crore for the period under review from Rs 36,331 crore in the same period a year ago, SBI said in a statement.

Net interest income rose by 16.4 per cent to Rs 12,903 crore.

Provisions for bad loans surged to Rs 5,884 crore, 48.05 per cent higher than Rs 3,974 crore in the year-ago period.

The total provisioning for the full year stood at Rs 7,587 crore, 70.06 per cent higher than Rs 4,461 crore in the previous year.

SBI Chairperson Arundhuti Bhattacharya said the decline in profit was due to higher provisioning for bad loans and future wage revision.

She said for the first time SBI had decided to adopt some quantitative changes in risk management for improving the asset quality.

Regarding NPA control, she said that bank had created certain committees to look at accounts showing stress.

The stressed sectors of the bank were engineering, textiles, pharmaceuticals and services, she said.

The bank was also particular in maintaining a healthy SME portfolio as well as restructuring of agri-products besides priority sector lending, she said. SBI would also conduct a professional study on operational risks.

Deposits of the bank at the end of March, 2014 stood at Rs 13,94,409 crore, while advances was Rs 12,45,122 crore.

She said that bank was looking at a credit growth of 15-16 per cent for the current fiscal, adding that if needed, it would be reviewed.

Going forward, asset quality of the bank was expected to be good, Bhattacharya said.