SBI net up 4% on bad loan provisions

 

MUMBAI: The country's largest lender SBI on Thursday announced a net profit of Rs 3,396 crore for the quarter ended December 2012, an increase of 4% over the corresponding period last year as provisions for bad loans continued to be a drag on earnings.

SBI, which accounts for almost one fourth of banking in India, is seen as a proxy for the Indian economy. The bank's chairman Pratip Chaudhuri was optimistic on loan growth, stating that there was a good pick-up in loans in December-February period. Forecasting an 18% growth in advances and 14% deposit growth for the whole year, Chaudhuri said the last quarter would see decline in bad loans as some borrowers are likely to be upgraded to 'standard' category after paying their dues in time.

As of December 2012, the bank's advances stood at Rs 10,09,110 crore, up 16.1% from the previous year. Deposits for the period rose 15.6% to Rs 10,00,965 crore. The ratio of gross non-performing assets to total assets (NPAs) rose from 5.2% in the preceding quarter to 5.3%, while that of net NPAs rose to 2.6% from 2.4%. 

AMJAD KHAN

PGDM 2nd SEM