Pratip Chaudhuri in Mumbai on Monday. (PTI)
Mumbai, Aug. 12: The State Bank of India (SBI) today reported disappointing numbers for the first quarter ended June with its standalone net profit falling 13.61 per cent to Rs 3,241 crore from Rs 3,752 crore in the year-ago period.
The poor performance was further marred by a rise in bad loans and operating expenses.
Asset quality continued to be a source of concern as a spike in non-performing assets (NPAs) from the agri and mid-corporate segment saw gross NPAs rising to Rs 60,891 crore during the quarter from Rs 51,189 crore in the preceding three months. NPAs stood at Rs 47,156 crore in the same period last year.
Gross NPAs as a percentage of total assets rose to 5.56 per cent from 4.75 per cent in the last quarter of 2012-13.
The proportion of net NPAs (post provisions) rose to 2.83 per cent from 2.10 per cent during the same period.
In absolute terms, bad loans from the agri segment rose to Rs 12,720 crore (Rs 10,138 crore in the March quarter), while NPAs from the mid-corporate segment were placed at Rs 20,330 crore (Rs 18,443 crore).
A big worry for the lender was the surge in fresh slippages, which swelled to Rs 13,766 crore from Rs 5,868 crore in the preceding quarter and Rs 10,844 crore in the same period last year.
SBI chairman Pratip Chaudhuri, who will step down next month, was confident that the bank would be able to improve the asset quality of its agri loans by re-classifying some of it to the standard category. However, he admitted the conditions were challenging for the the mid-corporate and SME segments. Senior SBI officials said the bank had loans worth Rs 10,000 crore that it needed to restructure.
The stock markets gave a thumbs-down to the spike in bad loans with the SBI stock losing 3.41 per cent, or Rs 56.65, to end at Rs 1,604.80 after hitting a 52-week low in intra-day trade.
The quarter saw the SBI reporting a net interest income of Rs 11,512 crore, a rise of 3.48 per cent over Rs 11,125 crore in the year-ago period.