SBI posts 137 pc jump in Q1 profit; rising NPAs remain a worry

Though SBI Chairman Pratip Chaudhuri asserted that earnings have stabilised and said this is the "new normal" for the country's largest bank, the rise in non-performing assets sparked concerns in the stock market where SBI shares closed down 4.26 per cent at Rs 1,887.95 apiece.

"While we used to have a profit ranging from Rs 2,000- 2,500 crore per quarter, it has increased to more than Rs 3,500 crore in this quarter. As our earnings have stabilised, this profit level has become the new normal for us," Chaudhuri told reporters announcing the quarterly results at the bank headquarters here.

The bank had reported a net profit of Rs 1,583 crore in the same period last fiscal.

He also said April-June quarter profits were the second highest quarterly earnings among all companies, after Reliance Industries.

Total income of the bank increased 16.9 per cent to Rs 32,415 crore in the June quarter compared to Rs 27,732 crore a year ago.

The bank's net non-performing assets (NPAs) rose to 2.22 per cent of total loan book, against 1.61 per cent a year ago. Similarly, gross NPA rose to close to 5 per cent from 3.5 per cent a year earlier.

In value terms, the net NPAs rose to Rs 20,324 crore (2.22 per cent of loans) during the June quarter, from Rs 12,435 crore (1.61 per cent).

The bank's net interest income (NII) rose a healthy 14.7 per cent to Rs 11,119 crore during this period. "While we were able to give adequate provisions, our NII growth was fairly robust. Also, operational expenses were contained," Chaudhuri said. (MORE)