State Bank of India Q4 net profit more than doubles as expected

State Bank of India Q4 net profit more than doubles as expected

State Bank of India Q4 net profit more than doubles as expected

Standalone net profit, not including contributions from subsidiaries, jumped to 28.15 billion rupees ($433.5 million) for the three months to March 31 from 12.64 billion rupees a year earlier.

Deposits of the bank increased to Rs 20,44,751 crore as on March 17, up by 18.14 per cent year-on year from Rs 17,30,722 crore, it said in a statement.

Provisions for bad loans fell 9.4 per cent from a year earlier to Rs 10,993 crore in the March quarter.

Provisions for non-performing assets declined to Rs 10,992.92 crore from Rs 12,139.17 crore year-on-year. On a net basis, NPAs fell to 3.71 per cent from 4.24 per cent in December quarter and 3.71 per cent in the corresponding quarter previous year.

During the previous financial year, the lender narrowed its consolidated net loss to Rs 279 crore from Rs 719.84 crore in the previous financial year. The list stands at Rs 13,310 crore following fresh slippages in the March quarter. SBI has done well on a solo basis and the bank has chose to absorb the maximum pain arising out of the merger as a result of which the current quarter would be stressful.

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State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank Of Hyderabad, State Bank of Mysore and State Bank of Travancore are the five associate banks merged with the parent, SBI. "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. "This was a seven-way merger and the first time in the history of the world", Bhattacharya told reporters here today.

On Thursday, SBI shares closed at Rs 302.95 apiece, down 1.53 percent from their previous close.

According to Arundhati Bhattacharya, SBI chairperson, the fourth quarter was hard but satisfying. "In the near term, margins will be under pressure due to elevated credit cost due to the merger".

Bhattacharya, in a webcast from Kolkata, said the bank had taken the "maximum amount of pain" already, relating to the aligning the asset quality of the associate banks through the merger.

Large corporate advances rose 3.59 per cent from Rs 3,30,136 crore as on March of previous fiscal to Rs 3,41,990 crore as on last March. For the full year ended March 2017, SBI posted a net profit of Rs 10,484 crore, up 5.36% over financial year 2015-16 net profit of Rs 9951 crore.

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