|SBI chief Bhattacharya|
Announcing the third quarter results of the bank, the chairman said...
that the bank was seeing continued stress due to bad loans. State Bank of India on Friday posted a 34-percent decline in net profit at Rs 2,234.34 crore for the third quarter ended December 31, 2013 on account of higher provisioning for bad loans.
This was particularly true of smaller corporates and medium-sized enterprises. Though there was a high incidence of bad loans in the agricultural sector, she was confident of improvement there because of a better crop output. The bank's deposits grew over 16.7 percent to Rs 13,49,940 crore at the end of the quarter while total domestic advances rose 15.4 percent to Rs 9,66,028 crore.
The country's largest bank had a net profit of Rs 3,396 crore on standalone basis in the October-December quarter of 2012-13.
The total provisioning for non-performing assets rose to Rs 3,428.59 crore during the December quarter, up from Rs 2,766.18 crore during the same period last year.
The gross Non-performing Assets (NPAs), which represents portion of bad loans, stood at Rs 67,799.33 crore at the end of December, up from Rs 53,457 crore in the year ago period.
As of December 31, the bank's portfolio quality declined, with gross NPAs at 5.73 per cent of gross advances, as against 5.30 per cent a year ago.
Its net NPAs during the third quarter rose to 3.24 per cent, from 2.59 per cent in the period a year earlier.