State Bank of India – the country’s largest lender – today lowered its slippage figures downward by Rs 1,389 crore as the bank realised the figures were inflated due to double counting.
During the second quarter earnings announcement on 9 November, SBI had said gross slippages were Rs 8,495 crore. After the revision, gross slippages are pegged at Rs 7,111 crore while fresh slippages (net of upgradation and recovery) are at Rs 2,277 crore.
“Our slippages and upgradation figures are revised by Rs 1389 crore as an error was occurred due to double counting. The accounts had slipped and upgraded in the same quarter.
However, there is no change in the closing NPA level,” Pratip Chaudhuri, chairman, SBI told Business Standard. The accounts that were revised were loans to mid- sized corporate entities. SBI had closed the quarter with gross NPA ratio at 5.15% compared to 4.99% on June-end while the net NPA increased to 2.44% from 2.22%. Investors took a note of the clarification as the stock closed the day at Rs 2,190.65, up 1.59% from its previous close at the Bombay Stock Exchange as compared to 0.07 decline of the the broader market. SBI expects Rs 4,000 crore of slippages in the October-December quarter State Bank of India (SBI) has reported 30% growth in net profit for the quarter ended September to Rs 3,658 crore from Rs 2,810 crore recorded in the same period of last year, due to lower provisioning towards bad loans. Gains from treasury operations also boosted the earnings though income from core activities, as indicated by net interest income registered a marginal growth of 5%. The bank’s management had said the lower provisioning in second quarter is due to front loading of provisioning in the first quarter. The provision coverage ratio for SBI fell for the second straight quarter, which was 62.78% compared with 68.10% as on March-end.