SBI Q4 net dips 32pc, shares take 4pc hit on BSE
Sunday, 16 May 2010
KOLKATA, May 15 (PTI): Country's largest lender State Bank of India's net profit for the January-March quarter has fallen by 32 per cent at Rs 18.67 billion due to a host of reasons, including higher provisioning for non-performing assets.
Unveiling the numbers, SBI Chairman OP Bhatt said the fall in profit after tax was due to various reasons like provisioning for increased wages and pensions. Besides, higher provisioning for NPAs and a fall in treasury income also contributed to the decline in profit, he said.
The bank's net profit in the same quarter in the previous fiscal stood at Rs 27.42 billion.
The bank's provisioning during period in the quarter was 59.23 per cent of the bad assets against 56.98 per cent in the same period last year.
Asked whether the bank would be able to maintain a provision coverage ratio of 70 per cent against NPAs by September 2010, Bhatt said the bank was in dialogue with the apex bank to stagger it further to avoid a sharp fall in net profit.
The Reserve Bank last year had asked banks to increase provision to 70 per cent of the bad assets by September 2010.
Bhatt, however, sounded optimistic on outlook for the current year. "We expect a higher growth," he said.
SBI declared a dividend of 300 per cent at the rate of Rs 30 per share of face value of Rs 10 for the financial year 2009-10. This includes 100 per cent (Rs 10 per share) interim dividend paid earlier.
Unveiling the numbers, SBI Chairman OP Bhatt said the fall in profit after tax was due to various reasons like provisioning for increased wages and pensions. Besides, higher provisioning for NPAs and a fall in treasury income also contributed to the decline in profit, he said.
The bank's net profit in the same quarter in the previous fiscal stood at Rs 27.42 billion.
The bank's provisioning during period in the quarter was 59.23 per cent of the bad assets against 56.98 per cent in the same period last year.
Asked whether the bank would be able to maintain a provision coverage ratio of 70 per cent against NPAs by September 2010, Bhatt said the bank was in dialogue with the apex bank to stagger it further to avoid a sharp fall in net profit.
The Reserve Bank last year had asked banks to increase provision to 70 per cent of the bad assets by September 2010.
Bhatt, however, sounded optimistic on outlook for the current year. "We expect a higher growth," he said.
SBI declared a dividend of 300 per cent at the rate of Rs 30 per share of face value of Rs 10 for the financial year 2009-10. This includes 100 per cent (Rs 10 per share) interim dividend paid earlier.