SBI post-merger Q1 net profit jumps to Rs 3,105 cr

Country's largest lender SBI today reported a consolidated net profit of Rs 3,105.35 crore for the 3-month period ended June 30, the first quarterly result after merger of its associate subsidiaries and BMBL.

SBI had reported a net profit of Rs 867.32 crore in the same quarter of last fiscal.

On standalone basis, the net profit was down over 20 per cent as bad loans rose during the April-June period of the current financial year.

SBI said the results for this quarter are not comparable on account of merger of its subsidiaries -SBBJ, SBM, SBT, SBP and SBH besides Bharatiya Mahila Bank Ltd (BMBL) with itself with effect from April 1, 2017.

"The results for this quarter includes operations of erstwhile Banking Subsidiaries & BMBL. Hence the results for this quarter are not comparable with that of the corresponding period of the previous year and immediately preceding quarter," it added.

The bank's total consolidated income during the April- June quarter of 2017-18 stood at Rs 70,776.56 crore, SBI said in a regulatory filing.

The total earnings in the same quarter of 2016-17 was at Rs 69,414.82 crore.

Separately, SBI said in a statement that on a comparable basis, bank's consolidated net profit in April-June, 2017-18, rose by over five-times to Rs 2,006 crore, as against Rs 374 crore a year earlier.

It said it has worked out historical data of erstwhile five associate banks, BMBL and of itself for comparing first quarter results of this fiscal, from same quarter of 2016-17.

On standalone basis, net profit during the quarter under review was down 20.4 per cent to Rs 2,005.53 crore as against Rs 2,520.96 crore in year-ago period.

The total income was however Rs 62,911.08 crore, as against Rs 48,928.60 crore.

Bank's (standalone) asset quality deteriorated further, with gross non-performing assets (NPAs) rising to 9.97 per cent as on June 30, 2017 as against 6.94 per cent as at end- June 2016.

Net NPAs or bad loans stood at 5.97 per cent at the end of June quarter, 2017-18, up from 4.05 per cent by June 30, 2016-17.

The provisions (standalone) to cover for bad assets almost doubled to Rs 12,125.26 crore for the first quarter of this quarter, from Rs 6,339.56 crore.

NPA provisions (consolidated) for June quarter were of the order of Rs 12,227.60 crore, up from Rs 11,353.57 crore by the end of June 2016.

State Bank of India (SBI) provision coverage ratio as on June 30, 2017 stood at 60.79 per cent.

The SBI stock plunged 4.60 per cent to Rs 282.90 on BSE in the afternoon.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)