Lower than anticipated slippages helped State Bank of India (SBI) shares gain 7 per cent despite the lender reported 32 per cent decline in net profit to Rs.2,521 crore for the quarter ended June 30.
Profit fell as loan loss provisions increased by Rs.2,981 crore to Rs.6,340 crore during the reporting period, the bank said.
“The worst is behind us in terms of non-performing assets but you cannot shut if off like a tap, it will taper off,” said Arundhati Bhattacharya, chairman of the country’s largest lender.
Fresh slippage during the quarter was Rs.8.790 crore — lower than what the market was expecting — of which Rs.2,947 was from the watch list of Rs.31,000 crore that was declared by the bank in the beginning of the financial year.
Despite the slippages, healthy recovery and upgradation ensured gross NPA increasing only by Rs.3,300 crore during the quarter to Rs 1.01 lakh crore or 6.94 per cent of its gross advances.
Ms.Bhattacharya also said that the bank’s capital adequacy ratio was boosted after revaluation of real estate assets which were about Rs.14,384 crore, and this mainly contributed to the common equity tier-I capital. The bank’s overall capital adequacy ratio increased to 14.01 per cent from 13.12 per cent.
Bank of IndiaBank of India, reported Rs.741 crore loss in the first quarter as compared to Rs.130 crore profit in the same period of the previous year. The stock ended over 10 per cent higher than its previous close as the performance was seen better than expected. The losses would have increased had there not been a tax write back of Rs. 375 crore.
Central BankYet another State-owned lender Central Bank of India reported a net loss of Rs.599 crore in Q1 as compared to a net profit of Rs.203 crore during the same period of the previous year due to higher bad loans. Over Rs. 2,000 crore of gross NPAs were added in the quarter. Central Bank stock ended 1.77 per cent lower than its previous close.
Dhanlaxmi BankDhanlaxmi Bank reported a profit of Rs. 5.73 crore for the first quarter of 2016-17comapred to a loss of Rs. 22.71 core in the corresponding period of the previous year.
