SBI profit drops 18.5 percent in January-March quarter

India's largest lender State Bank of India (SBI) Thursday said its net profit dropped by 18.54 percent to Rs.3,299.22 crore in the quarter ended March 31 owing to lower interest income and higher provisioning.

This is the first quarterly drop in the company's profit in the last two years. For the financial year 2012-13, the bank has posted a net profit of Rs.14,104.98 crore, as compared to Rs.11,707.29 crore registered in the previous year.

The bank's total income rose to Rs.135,691.94 crore for the year ended March 31, 2013, as compared to Rs.120,872.90 crore recorded in 2011-12, SBI said in a statement.

Interest income on advances increased from Rs.22,141 crore in the fourth quarter last fiscal to Rs.23,064 crore during the same period previous fiscal.

Share price of the company slumped on disappointing quarterly numbers.

SBI share price dipped 8.30 percent at Rs.2,168 at the Bombay Stock Exchange (BSE) after the results were announced. This is the biggest single-day drop in the company's share price since February 2012.

The company's board at a meeting held here Thursday approved distribution of dividend of Rs.41.50 per share for the accounting year ended March 31, 2013.

"The date of payment of the dividend is fixed as June 17, 2013 and the dividend warrants will be payable, in India, at par at all branches of State Bank of India, irrespective of the amount," SBI said.