State Bank of India reports 123% rise in Q4 net profit; Key things to know

SBI said, The disclosures relating to the divergence for the financial year 2015-16, in respect of provisions made by the bank against non-performing assets dated 18th April 2017 issued by RBI, is not applicable to the Bank.”

State Bank of India Chairman Arundhati Bhattacharya. Photo: IANS

Highlights:

SBI reports net profit of Rs 2,814.82 crore in Q4.

Gross NPAs expanded 40 basis points yoy to 6.90% in Q4.

SBI, in its press release, said that provision coverage ratio was at 65.95%.

State Bank of India (SBI) reported 122% rise in its standalone net profit for the fourth quarter ended March 31, 2017. The bank posted net profit of Rs 2,814.82 crore in Q4, rising by 122.72% compared to Rs 1,263.81 crore in the corresponding period of the previous year.

Net Interest Income (NII) grew by 17.33% year-on-year (YoY) and 22.50% quarter-on-quarter (QoQ) to Rs 18,070.72 crore in Q4.

Provisions for non-performing assets (NPAs) stood at Rs 10,992.92 crore, lower by 9.44% yoy but higher by 51.74% qoq.

In percentage terms, gross NPAs stood at 6.90% versus 6.50% of Q4FY16 and 7.23% of Q3FY17 – expanded by 40 basis points yoy.

On valuation basis gross NPAs were at Rs 1,12,342.99 crore, increasing by 14.43% yoy and 3.85% qoq.

SBI, in its press release, said that provision coverage ratio was at 65.95%.

Further, the bank added that it has fully amortised the loss in respect of sale of assets to ARCs in the current and previous years which was at Rs 1,131.01 crore.

SBI said, The disclosures relating to the divergence for the financial year 2015-16, in respect of provisions made by the bank against non-performing assets dated 18th April 2017 issued by RBI, is not applicable to the Bank.”

In accordance of RBI's instruction in maintaining provisions. SBI said, "The bank has made a provision of 7.5% amounting to Rs 856 crores against outstanding in the long term food credit advance to a State Provision Coverage Ratio as on March 31, 2017 was 65.95 %."

While, SBI has invoked RBI's SDR/S4A scheme to a total of 10 accounts having outstanding balance of Rs 5,169.51 crore as on March 31, 2017 .

Meanwhile, deposits for this period stood at Rs 20,44,751.39 crore, rising by 18.14% from Rs 17,30,722.44 crore a year ago same period. On the other hand, borrowings declined by 1.74% to Rs 3,17,693.66 crore versus Rs 3,23,344.58 crore similar quarter of previous year.