New Delhi: The State Bank of India (SBI), the country's largest lender, today reported a 22.2% decline in consolidated net profit to Rs2,437.10 crore for the second quarter ended 30 September 2010. The Bank had a net profit of Rs 3,133.10 crore in the year-ago period, it said in a statement to the Bombay Stock Exchange, PTI reports. The decline was due to increased provisioning for bad loans.
On a standalone basis, SBI's net profit grew by just 0.4% to Rs2,501.30 crore in the second quarter, against Rs2,490 crore in the year-ago period. Standalone income increased to Rs23,813.30 crore in the quarter under review from Rs21,301 crore, a growth of 11.7%.
SBI's total income, however, increased by 14.6% to Rs37,925.40 crore in the July-September quarter from Rs33,101.6 crore in the corresponding previous quarter. The Bank posted a net profit after minority interest of Rs2,363.90 crore in the period, compared to Rs3,050.90 crore in the corresponding period last year.
According to the statement, the lender has increased provisions for non-performing assets by 96% to Rs2,160 crore. The provision ratio widened to 62.78% as of 30 September from 60.70% as of 30 June. The Reserve Bank of India in October 2009 said it would require banks to increase the minimum provision ratio to 70% from 10%.
Gross non-performing assets climbed 34% from a year earlier to Rs23,200 crore as of 30 September, partly due to the inclusion of State Bank of Indore's Rs854 crore in bad loans, the Bank said. SBI acquired State Bank of Indore with effect from 26 August 2010 and the results include the operations of State Bank of Indore for the period to 30 September and are therefore not comparable.
The State Bank of India stock price fell 1.9% to Rs3,422.65 at the close of trading today, before the results were announced. The stock has gained 51% and is the second-best performer for the quarter among the 14 Indian lenders tracked by the Bankex index.
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