SBI's provision woes likely to continue

State Bank of India is all set to provide or keep aside a large amount of money for bad loans in the first quarter as well. Remember, in the previous quarter, the bank made Rs 4,000 crore provisions. CNBC-TV18 learns that in the first quarter of FY12, SBI will make another Rs 4,000 crore provisioning, but this time the profit may be a lot better. CNBC-TV18's Vidhi Godiawala.

Sources say the bank will make an additional provision of Rs 2,100 crore in the first quarter of this year, which will be over and above the normal provisions.
From the Rs 2,100 crore, the additional provision Rs 1,000 crore will be kept aside as enhanced provision for the bad loans. Now, this is after the Reserve Bank increased the rate of provision for these loans