SBI’S STANDALONE PROFIT DIPS BY 38% DUE TO NPAs

Mumbai, Nov. 10: The country’s largest lender SBI on Friday posted multi-fold jump in consolidated net profit at 1,840.43 crore for the second quarter ended on September 30, boosted by sale of its stake in SBI Life Insurance.

Its profit was just `20.70 crore during the same quarter of the last financial year.

On standalone basis, SBI’s profit declined by 37.9 per cent to `1,581.55 crore, from `2,538.32 crore on account of rise in bad loans.

Total income on standalone basis increased to `65,429.63 crore in JulySeptember 2017 against `50,742.9 crore in the same period a year ago, SBI said.

As of September 30, the bank’s gross NPAs deteriorated to 9.83 per cent of gross advances, compared with 7.14 per cent year a year ago.

Similarly, the net NPAs rose to 5.43 per cent from 4.19 per cent.

Provisioning for NPAs or bad loans by the bank more than doubled to `16,715.20 crore during the quarter, as against `7,669.66 crore in the same period of last fiscal.

In absolute terms, its gross NPAs rose to `1,86,114.60 crore, from `1,05,782.96 crore at the second quarter of the previous fiscal. Net NPAs increased to `97,896.29 crore as against `60,013.45 crore.

Total income on consolidated basis rose to `74,948.52 crore during the second quarter of the current fiscal, from `72,918.4 crore in the same period of 2016-17.

SBI mopped up about `8,400 crore by diluting its stake in SBI Life Insurance through initial public offer during the September quarter.

The shares soared over 6 per cent.