SBI net profit up 122.72% in Q4

James Marshall
May 19, 2017

State-run lender Allahabad Bank reported a net profit of Rs. 111.15 crore for the quarter ended March 31 as compared with a loss of Rs. 581 crore in the year-earlier period mainly due to higher trading profits.

During the fourth quarter of 2016-17, provisions and contingencies rose 31.25 percent y-o-y at Rs 1,059.36 crore compared with Rs 807.13 crore in the corresponding quarter of the previous fiscal.

The city-headquartered bank's tax write-back almost doubled to Rs 1,016.88 crore for the March quarter of the last fiscal from Rs 515.06 crore for the corresponding period previous fiscal, the bank said in a regulatory filing.

Net interest income of the bank increased from Rs 405.45 crore in the fourth quarter of 2015-16 to Rs 501.94 crore in the fourth quarter of 2016-17.

Under Basel III regulation, the bank's capital adequacy ratio stood at 11.14 per cent with tier 1 capital at 8.94 per cent as of March 31, 2017.

State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank Of Hyderabad, State Bank of Mysore and State Bank of Travancore are the five associate banks merged with the parent, SBI.

State Bank of India (SBI) will be declaring its fourth quarter (Q4) and 2016-17 results on Friday. "We will be starting on a new slate", she added.

"This was a seven-way merger and the first time in the history of the world", Bhattacharya told reporters here today.

SBI stock was trading almost 2 per cent up at Rs 308.70 on BSE shortly before close of the session.

Bhattacharya said SBI had done well on a solo basis and the bank had chose to absorb the maximum pain arising out of the merger as a result of which the current quarter would be stressful.

"[In] FY18 we will still need to have slightly elevated credit costs, because as we go forward with the resolutions, it will depend on the amount of provisions that we will need to make upfront", Bhattacharya said.

Owing to this two-way pressure, the outlook of the margins is stable, she said.

Analysts on average had expected a net profit of Rs 2,833 crore for the lender, according to data compiled by Thomson Reuters.

However, net NPA declined to 3.71 per cent as against 3.81 per cent a year ago.

Standalone, SBI reported a rise in gross NPAs, which on March 31, 2017 stood at 6.9 percent of total advances, as against 6.5 percent for the corresponding period a year earlier. Gross NPA per cent increased to 6.90 (6.50).

However, for the year ended March 2017, SBI's consolidated net profit declined by about 98 per cent to Rs 241.23 crore from Rs 12,224.59 crore at the end of 2015-16 as the banks provisioning for the entire year had increased significantly.

Other reports by Click Lancashire

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