India's largest lender State Bank of India's fourth quarter net profit tumbled nearly 99% year-on-year to Rs 21 crore on higher provisioning against non-performing assets. This is much below the street expectations.
According to CNBC-TV18's estimates, PAT was seen up 59% at Rs 2963 crore versus Rs 1866 crore YoY and January-March quarter NII was seen at Rs 9176 crore.
Following the worse-than-expected results, investors chose to dump the stock and shares plunged more than 6% to Rs 2,454 on the NSE.
The bank's January-March quarter net interest income was down 36% year-on-year to Rs 8058 crore. Its Q4 PAT was at Rs 20.9 crore versus Rs 1866 crore a year back. It made a provision of Rs 4157 crore versus Rs 2349 crore a year ago. Out of total provision, the bank has earmarked Rs 3264 crore for NPAs as against Rs 2187.
The company's provision for NPAs was up 49% at Rs 3,264 crore versus Rs 2,187 crore, YoY. Its gross NPA at 3.28% versus 3.05%, YoY. Its net NPA was at 1.63% versus 1.72%, YoY.
The Reserve Bank of India has mandated that banks must reach provisioning coverage ratio of 70% for the NPAs recorded till September, 2010.
Source: www.moneycontrol.com
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Priyanka Kothari,
Client Service Associate.
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