SBI Q2 net profit drops 35%; bad loans provision raise to Rs 7,600 crore
Its total income has increased from Rs 46854.8 crore in Q2FY16 to Rs 50742.9 crore in Q2FY17.
State Bank of India on Friday announced its financial result for the quarter ended on September 30. The bank's net profit dropped to Rs 2538.3 crore, loss of 34.5%, as compared to Rs 3879 crore during the same period last year.
In Q2FY17, the bad loan provisions stood at Rs 7669.6 crore, a jump of 99.6%, as against Rs 3841.7 crore in Q2FY16.
In a regulatory filing, the bank said, its total income has increased from Rs 46854.8 crore in Q2FY16 to Rs 50742.9 crore in Q2FY17.
Net interest income (NII) was at Rs 8424 crore for the quarter, a rise of 35.93% from Rs 6197 crore of Q2FY16. While Net interest margins (NIM) stood at 3.05%, a contraction of 27 basis points from 3.32% a year ago same period.
Talking on NIM, SBI said, “ The outlook for the NIM is steady in coming quarters.
Going ahead deposits of the bank also surged by 13.76% to Rs 18,58,999 crore from Rs 16,34,115 crore as on September 2015.
Further savings account deposits saw 16.64% yoy rise to Rs 64,995 crore, and that of current account deposits was at Rs 1,13,810 crore up by 12.65% yoy.
Following it, the CASA ratio was at 42.74%, expanding by 50 basis points from 42.24% of September 2015.
Arundhati Bhattacharya said, “ Generally CASA deposits was around Rs 8000 crore in month. While saving deposits went up by Rs 11,000 crore in just one day. This was after demonetization.”
Bhattacharya said, “ Loan growth has slowed in Q2. It was between 11-12% this period. But estimates may change in Q3.”
For the Q3 outlook Bhattacharya added,“ Not much will be impacted due to demonetization. Credit growth is expected to be around 10-11%, while full year credit growth guidance is at 10-12%. There will be also some possible cut in lending and deposits rate.”
Following the results, the shares of the bank plunged over 3%. At 1300 hours, the shares of the company were trading at Rs 272.40 per piece, down 3.27%, or Rs 9.20 on BSE.
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