State Bank of India<http://economictimes.indiatimes.com/state-bank-of-india/stocks/companyid-11984.cms>, the country's largest lender, reported a 46% decline in its net profit for the quarter ended June due to higher provisions.
The bank posted a net profit of Rs 1,584 crore in the April-June quarter against Rs 2,914 crore from a year ago. SBI <http://economictimes.indiatimes.com/sbi/stocks/companyid-11984.cms>chairman Pratip Chaudhuri said the decline in profit was largely due to higher provisioning and depreciation on investments. "We had to make higher loan provision as per the stiffer prudential provisioning norms of the Reserve Bank across all grades of assets," he said. The bank made a loss of Rs 1,048 crore in the form of depreciation in investment, and a Rs 300-crore loss on equity investments. The provisions made by the bank increased by 75% over last year to Rs 2,439 crore. Of this, the bank made a specific provision of Rs 550 crore under counter cyclical head. Chaudhuri said as far as asset quality of the bank is concerned, there has been a net increase of Rs 2,442 crore in NPAs during the quarter due to continued stress in mid corporate, SME and agri segments. Of the Rs 1,060-crore increase in corporate sector NPAs, as much as Rs 796 crore has come from the standard restructured portfolio. The bank's capital adequacy ratio for Tier-I stood at 7.6% but Chaudhuri expressed hope that the bank will come out with the issue in the current financial year and the government is committed to infuse capital in the bank. "The Rs 20,000-crore amount is likely to be raised in phases and it can be a combination of rights issues and QIPs." SBI's total income, however, rose to Rs 27,731.6 crore in the quarter to end June from Rs 22,142 crore from a year ago. Operating profit grew 18.06% at Rs 7,242 crore compared to Rs 6,134 in the first quarter of previous fiscal. -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
