LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

State Bank of India first-quarter results weighed down by subsidiary bank mergers

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Fri, Aug 11, 2017
05:39 pm
Reuters
RELATED NEWS
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here

State Bank of India`s first-quarter profit fell short of expectations as the nation`s top lender by assets saw a spike in bad loans after merging five subsidiary banks with itself, sending its shares more than 5 percent lower.

Indian banks` sour assets have surged in the past year or so after a regulatory crackdown to clean up the sector dominated by state-run lenders. This year, the government gave the central bank greater power to push defaulting borrowers into bankruptcy proceedings.

State Bank, under Chairman Arundhati Bhattacharya who has been at the helm since October 2013, has fared better than its state-run peers in managing its bad loans. However, the five so-called associate banks that were merged with the parent effective April 1, had a relatively poor asset quality.

SBI, which on Friday reported its first quarterly results after the merger, said net profit was 20.06 billion rupees ($312.84 million) in the three months through June, from 3.74 billion rupees a year earlier. Pre-merger, the bank`s year-earlier profit was 25.21 billion rupees.

The result compared with the 30.29 billion rupee average analyst estimate, Thomson Reuters data showed.

Bhattacharya, whose four-year term is due to end in October, told a news conference the bank expected a "pull back", guiding for lower additions to bad loans in the full year to March 2018 and improvement in net interest margins.

The bank expects its slippage ratio to fall to below 3.3 percent in the year to March 2018, from 5.78 percent last financial year, it said in a presentation. Provisioning costs will likely be less than 2.25 percent in 2017/18 compared with 2.9 percent last year.

However, loan growth will remain muted at 6 to 8 percent for the full year, Bhattacharya said, as the economy is still adjusting to factors including a ban on high-value banknotes late last year and a new goods and services tax that was implemented last month.

SBI, which accounts for more than a fifth of India`s banking sector assets, said for the merged entity, gross bad loans as a percentage of total loans rose to 9.97 percent at the end of June from 9.11 percent three months earlier and 7.40 percent at the end of June last year.

The bank will need to make additional provisions of 85.71 billion rupees this financial year for its exposure to 12 large borrowers which have been taken to bankruptcy court, SBI said. It has outstanding loans of 502.47 billion rupees on those accounts.

Bank of Baroda, the fifth-biggest Indian lender by assets, also reported on Friday first-quarter profit more than halved and its bad-loan ratio widened.

SBI shares closed 5.6 percent lower in a Mumbai market that fell 1.1 percent. Bank of Baroda shares closed 4.2 percent down.

($1 = 64.1225 Indian rupees)

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

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here

LATEST NEWS

Karnataka College and University Exam News Today: Deputy CM said THIS regarding exams in colleges and universities in the state - check all details here

TIMEX FIT launched, priced at Rs 6995; packs telemedicine feature

Samsung Galaxy M42 5G smartphone India launch soon; Check expected price, specifications and more

Most downloaded non-gaming app in March: WhatsApp, Facebook, Instagram and Messenger in top 5, but this is the No. 1

Rakesh Jhunjhunwala Stocks: Experts bet big on these two stocks with bumper returns

Haridwar Kumbh Mela 2021: 2nd Shahi Snan today; Mela inspector says difficult to ensure social distancing at 'Har Ki Pauri'

No onboard food facility for these flyers amid rising covid cases: Aviation Ministry

WATCH VIDEO: Expert shows how simple steam inhalation can protect you against Covid-19

Remdesivir export ban due to Covid 19 spike: This is what Modi government told domestic manufacturers

Maharashtra Board Class 10, Class 12 exams postponed—Check what minister said about CBSE, ICSE, IB and Cambridge boards

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved