SBI's Q1 net rises 6% as bad loans decline

State Bank of India today reported a 5.9 per cent increase in net profit at Rs 4,713.57 crore or Rs 47.13 billion for the first quarter ended June on the back of a decline in bad loans.

The country's largest bank registered a consolidated net profit of Rs 4,448.15 crore or Rs 44.48 billion in the same quarter last year.

Total income rose to Rs 62,927.46 crore or Rs 629.27 billion, from Rs 60,620.93 crore or Rs 606.20 billion in April-June of 2014-15.

The bank's provisions for bad loans fell to Rs 3,358.58 crore or Rs 33.58 billion as against Rs 3,903.41 crore or Rs 39.03 billion in the year-ago period.

At the same time, its gross non-performing assets (NPAs) dropped to 4.29 per cent of total advances at the end of June, against 4.90 per cent a year ago.

On a standalone basis, the bank's net profit increased by 10.2 per cent to Rs 3,692.43 crore for the quarter under review as against Rs 3,349.08 crore a year ago.

Total income was up at Rs 44,730.87 crore or Rs 447.30 billion during the quarter, against Rs 40,739.21 crore in the year-ago period.

In value terms, SBI's gross NPAs slumped to Rs 56,420.77 crore or Rs 564 billion (4.29 per cent of loans) during the June quarter, from Rs 60,434.24 crore or Rs 604.34 billion (4.90 per cent) on a yoy basis.

Net NPAs of the bank declined to Rs 28,669.14 crore or Rs 286.69 billion (2.24 per cent) at the end of the first quarter, against Rs 31,883.80 crore or Rs 318.83 billion (2.66 per cent) in the year-ago period.

Following the announcement of results, shares of SBI were trading 3.25 per cent down at Rs 273.90 on BSE.

Photograph: Reuters