State Bank of India (SBI) has dipped 4% to Rs 3,295 after the public sector bank reported 22% decline in consolidated net profit at Rs 2,437 crore for the second quarter ended September 2010 of this fiscal compared to a net profit of Rs 3,133 crore during the corresponding quarter of previous year. However, total income has increased by 15% to Rs 37,925 crore from Rs 33,102 crore during the quarter.
The country's largest lender has reported fall in net profit mainly due to a substantial loss registered by merged entity State bank of Indore. The bank provided Rs 2,162 crore for loan-loss provisions to take its provision coverage ratio to 62.78%. Reserve Bank of India rules require it to achieve 70% provisioning coverage ratio by September next year
On standalone basis, the bank net profit grew merely by 0.4% to Rs 2,501 crore in the second quarter against Rs 2,490 crore in the year-ago period.
The stock opened at Rs 3,330 and touched low of Rs 3,289 on the NSE. Around 61,732 shares have changed hands on the counter on opening deals.
