India's largest public sector lender State Bank of India (SBI), which posted a net profit of Rs 2,815 crore in the last quarter of 2016-17, expects the basic expenses of merger of its associates with it would be behind now, its Chairman Arundhati Bhattacharya said here on Friday.
The fourth quarter result does not take into account acquisition of its five associates State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala, and State Bank of Hyderabad and Bharatiya Mahila Bank (BMB) as the merger came into effect from April 1.
Commenting upon the quarter, she said it had been hard but satisfying quarter and the biggest thing which had happened was the merger.
The lender also said cash recovery from NPA aggregated to Rs 488.37 crore for the year ended March 2017 and reduction of NPAs were to the tune of Rs 2,052.10 crore. Net interest income for SBI rose 17.33 percent to Rs 18,071 crore for the March quarter.
On an absolute basis, however, gross bad loans increased to 1.12 trillion rupees at end-March from 1.08 trillion rupees in December.
Asset quality: Gross non-performing assets (NPAs) of the bank eased to 6.90 per cent of gross advances at the end of March quarter from 7.23 per cent reported for the sequential quarter ended December 31, 2016.
The SBI stock rose by 1.72 percent to Rs 308.15 at the BSE, after the earnings.
The bank's gross non-performing assets ratio at the end of the March quarter was at 15.53 per cent compared with 13.26 per cent in the corresponding previous quarter. For the full year ended March 2017, SBI posted a net profit of Rs 10,484 crore, up 5.36% over financial year 2015-16 net profit of Rs 9951 crore.
Total income: Standalone total income of the bank jumped 7.83 per cent on a year-on-year basis to Rs 57,720.07 crore.
However, net NPA declined to 3.71 per cent as against 3.81 per cent a year ago.
The provision coverage ratio stood at 74%.
Retail constituted 22 per cent of the loan amount contributed by auto and home loans. The impact on profit would not be much.
She said the bank would be very selective in corporate lending and the lending would depend on region, sector and credit rating, among others.
This is published unedited from the PTI feed.