SBI Q3 net doubles to Rs 2,610 cr, first rise in five quarters

Country’s largest lender State Bank of India (SBI) has posted 134% rise in net profit at Rs 2,610 crore for the third quarter ended December 2016 due to lower provisions for bad loans.

It had posted a net profit of Rs 1,115 crore in the same period a year ago.On Friday, its stocks closed 0.2% lower at Rs 275 apiece on Bombay Stock Exchange. (BSE)

The net interest income, revenues from interest minus expenses, for the reporting quarter rose by 7.6% Rs 14,751 crore. The other income comprising fees, commissions and treasury showed a hefty 59.7% rise at Rs 9,661 crore in Q3 of FY17 from Rs 6,086 crore in Q3 of FY16.

SBI chairman Arundhati Bhattacharya said NIM may decline by 5-6 basis points by end of March 2017.


The provisions for non-performing assets (NPAs) declined to Rs 7,244 crore in Q3FY17 from Rs 7,644 crore in same quarter in FY16.
Sequentially also NPA provisions showed a decline.
It had set aside Rs 7,669 crore for NPAs in the second Quarter ended September 2016.
The provision coverage ratio (PCR) improved sequentially to 62.87% in Q3 from 62.12% in Q2 FY17. The PCR was lower than level of 65.23 per cent at end of December 2016.
The gross NPA at end of December 2016 stood at Rs 1,08,172 crore (7.23%).
The slippages in the reporting quarter were Rs 2,390 crore from at Rs 1,05,782 crore in September 2016.
Its “watch list” – pool of stressed corporate loans – was Rs 17,992 crore in December 2016 down from Rs 34,776 crore in March 2016.
Commenting on slippage of loans into NPAs, SBI chairman said chunky pieces (big ticket stressed units) are out of the way.
The stress in the system will reduce only when the demand in the system picks up.