SBI Q1 net falls 32%, gross NPAs cross Rs 1 lakh cr-mark

State Bank of India (SBI), the nation's top lender by assets, reported a 32% drop in first-quarter on Friday which was in line with estimates. The bank's bad loans rose slightly.

SBI shares rose more than 8.5% at 1320 hours after the results on the lower-than-expected rise in bad loans.

The lender, which accounts for more than a fifth of India's total bank loans and deposits, said standalone net profit was Rs 2,521 crores for the three months to June 30, against Rs 3,692 crores reported a year earlier.

Analysts on average had expected a net profit of Rs 2,540 crores, according to data compiled by Thomson Reuters.

Gross bad loans as a percentage of total loans rose to 6.94% as of end-June, from 6.50% in March.

The net interest income rose by just 4.2% to Rs 14,312 crore in the quarter under review as against Rs 13,732 crore in Q1FY16.

The other income, comprising revenues from treasury, commissions and fees, rose to Rs 7,335 crore from Rs 5,087 crore in June 2015.

The asset quality remained under pressure, reflected in the rise in gross non performing assets at Rs 1,01,541 crore in June 2016 as compared to Rs 56,420 crore a year ago.

The provisions for NPA rose to Rs 6,339 crore in Q1FY17 from Rs 3,358 crore in year-ago period.

The capital adequacy ratio (CAR) was 14.01% in June 2016 while it was 12% a year ago.

State Bank of India