SBI fourth quarter profit down 66%, analysts say this was expected
State Bank of India, the nation`s top lender by assets, reported a worse-than-expected 66 percent fall in quarterly profit due to sharply higher provisions for bad loans.
The lender, which accounts for nearly a quarter of India`s loans and deposits, said net profit was 12.64 billion rupees ($188.5 million) for the three months to March 31 from 37.42 billion rupees a year earlier.
Analysts on average had expected a net profit of 19.17 billion rupees, according to data compiled by Thomson Reuters.
Gross bad loans as a percentage of total loans rose to 6.5 percent in March from 5.1 percent in December. Provisions for bad loans more than doubled from a year earlier to 121.39 billion rupees.
Aditya Birla Money, in a note said, "SBI results are broadly in line with estimate."
It further said that the results are better when compared to its peers but this has already been factored in since the bank commands premium valuations. It said, "Asset quality stress still there and Groess Non-Performing Assets (GNPA) ratio rose from 5.1% to 6.5% QoQ while Net NPA ratio rose frm 2.89% to 3.81%. Slippages at Rs 303.1 billion vs Rs 207 billion QoQ are still high and shall be negative for the stock."
Analysts said that the guidance given by SBI management on asset quality watchlist remains a key.
(With Reuters)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
02:00 PM IST