SBI profit falls 8% but beats estimates
May 23 2014 , Kolkata
Gross NPA down sequentially, Q4 provisions rise to `5,884 cr
SBI chairperson Arundhati Bhattacharya attributed the drop in the net profit to higher provisioning for bad loans. Provisions for bad loans increased significantly to Rs 5,884 crore in the fourth quarter, up from Rs 3,974 crore in the same period previous year. SBI expressed its commitment to increase scrutiny of bad loans through regular reviews and use of new technology. The gross non-performing loans as a percentage of total loans fell 78 basis points sequentially to 4.95 per cent in the March quarter, she said.
The net NPA was at Rs 31,096 crore in the fourth quarter against Rs 21,957 crore for the year-ago period, representing a rise of 41.63 per cent. In percentage term, net NPA increased to 2.57 per cent as on March 31, 2014 from 2.10 per cent as on March 31, 2013.