ALSO READSBI sees cost savings, no bad loans surprise after merger with units Indian cabinet approves State Bank's planned merger with subsidiaries Interview: India's top bank SBI eyes up to $1.5 billion capital raising next fiscal year Merger plan: SBI, 3 associates inform Cabinet nod to exchanges SBI, associate banks merger: Share swap record date Mar 17
India's largest public sector lender State Bank of India (SBI), which posted a net profit of Rs 2,815 crore in the last quarter of 2016-17, expects the basic expenses of merger of its associates with it would be behind now, its Chairman Arundhati Bhattacharya said here on Friday.
"In respect to merger of associates, we have ensured that we have taken maximum amount of pain so that going forward we can give much better results.
"Towards that end, the entire corporate book has been fully aligned...not only that even VRS expenses that come during this quarter to the extent of 75 per cent of estimated expenses, that have already provided for," she said.
"Going forward, I do not feel we would require anything more than Rs 100-200 crore in order to take care of these expenses. With that, the basic expenses of merger will be behind us and from the next quarter, we intend to start with a clean slate," she added.
Bhattacharya said the lender has just been through a "difficult but satisfying quarter".
The SBI on Friday reported a 122.72 per cent increase in its net profit to Rs 2,815 crore in the last quarter of 2016-17 as against Rs 1,264 crore in the same period in 2016.
Total income in the quarter under review was at Rs 57,720.07 crore, up 7.8 per cent from Rs 53,526.97 crore in the corresponding period of the previous fiscal, it said in a regulatory filing.
Net interest income rose by 17.33 per cent to Rs 18,071 crore in the last quarter from Rs 15,401 crore in the corresponding period of previous fiscal, while operating profit increased by 12.93 per cent to Rs 16,026 crore from Rs 14,192 crore in corresponding period of previous fiscal.
Deposits of the bank increased to Rs 20,44,751 crore as on March 17, up by 18.14 per cent over last year's Rs 17,30,722 crore, it said in a statement.
Gross advances increased by 7.8 per cent from Rs 15,09,500 crore as on March 16 last year to Rs 16,27,273 crore as on March 17 this year.
Large corporate advances rose 3.59 per cent from Rs 3,30,136 crore as in March of previous fiscal to Rs 3,41,990 crore as in last March.
SBI also said its gross non performing assets (NPAs) increased to Rs 1,12,343 crore as on March 31, from Rs 98,113 crore in the year ago, while its gross NPA ratio stood at 6.9 per cent in March 2017.
It reduced loan loss provisions by 9.44 per cent to Rs 10,993 crore in the three months ended March as compared to Rs 12,139 in the year-ago period. Return on assets declined marginally by five basis points to 0.41 per cent as on March 2017, from 0.46 per cent in the year-ago.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)