SBI Q1 net falls 14% on higher provisions against bad loans

Moneycontrol Bureau

India's largest lender State Bank of India (SBI) disappointed the street with the first quarter net profit falling higher-than-expected nearly 14 percent year-on-year to Rs 3,241 crore, dented by higher provisions against bad loans and muted growth in the net interest income, which grew just by 3.5 percent to Rs 11,512 crore in April-June quarter from Rs 11,119 crore.

However, the growth in net interest income was a little higher than analysts' forecast.

Analysts on an average had expected the bank to report net profit of Rs 3,565 crore and net interest income of Rs 11,288 crore.

SBI expanded its standalone loan book by about 16 percent (Y-o-Y) to nearly Rs 11 lakh crore. However, sequential growth in credit was just at 1.44 percent. Deposit grew 14 percent Y-o-Y to Rs 12.57 lakh crore.

Gross non-performing asset (NPA) increased 19 percent sequentially to Rs 60,891 crore and net NPA jumped 36.6 percent Q-o-Q to Rs 29,989 crore during April-June quarter.

At 12:57 hours IST, the stock fell 3.28 percent to Rs 1,607 on the BSE.