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Published: Mon, November 13, 2017
Economy | By Melissa Porter

SBI standalone profit falls 37.7%

SBI standalone profit falls 37.7%

Coal India Ltd posted 40 per cent drop in net profit to Rs 369 crore for the quarter ended September 30 as compared with Rs 612 crore same period previous year.

Net interest income rose nearly 3 percent from a year earlier to 185.86 billion rupees while total provisions including for bad loans rose almost 27 percent to 184.18 billion rupees, the lender, majority owned by the Indian government, said on Friday.

To set aside enough buffers against the expected bad loans, SBI's provisions increased 87 percent over the previous three months to Rs 18,418 crore in the quarter ended September. Fresh slippages stood at Rs 9,026 crore in the reporting quarter.

This is published unedited from the PTI feed.

Instead, the NPAs worsened from a year ago, with gross NPAs at 7.14 per cent and net NPAs at 4.19 per cent as on September 2016. However, on consolidated basis, the merged entity would have made a loss of Rs 557 crore in the same period last fiscal, as the associate banks had incurred huge losses due to higher slippages after the RBI's asset quality review forcing them to make additional provisions.

The bank said that in order to boost its capital adequacy, the lender may raise around Rs 1,000 crore through QIP issue within the current fiscal. Advances during the quarter increased 1 percent to Rs 18.92 lakh crore while deposits grew by 10.3 percent to Rs 26.23 lakh crore YoY.

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

On a postive note, the bank's asset quality improved on sequential basis post decline in fresh slippages in the second quarter.

Commenting on the numbers, which was lapped up by the market with an over 6 per cent rally, chairman Rajnish Kumar said, "this is a very satisfying quarter as far as our performance is concerned".

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