SBI posts 78% drop in Q1 net profit at Rs 1,046 crore on 2-fold rise in provisions

Mumbai: Country's largest lender State Bank of India Friday reported a massive 77.8 percent fall in its net profit to Rs 1,046 crore for the June quarter due to nearly two-fold jump in provision for bad loans.[caption id="attachment_2772680" align="alignleft" width="380"] Reuters[/caption]The bank had a consolidated net profit of Rs 4,714 crore in the corresponding quarter last year. However, its total income during the three-month period rose to Rs 69,415 crore against Rs 63,164.5 crore in the April-June quarter of 2015-16.Provision for bad loans witnessed nearly a two-fold increase to Rs 6,340 crore, against Rs 3,358.58 crore in the year-ago period.Its gross non-performing assets (NPAs) rose to 6.49 percent of total advances at the end of June, against 4.29 percent a year ago.On standalone basis, the bank's net profit decreased by 32 percent to Rs 2,520.9 crore for the quarter ended June 30, against Rs 3,692.4 crore in the year-ago period.Total income on standalone basis increased to Rs 48,928.6 crore during the quarter, against Rs 44,730.87 crore in the same period a year ago.In value terms, SBI's Gross NPAs almost doubled to Rs 1,01,541 crore (6.49 percent of loans) during the June quarter, from Rs 56,420.77 crore (4.29 percent) in the year-ago period.Net NPAs of the bank also rose to Rs 57,420.98 crore (4.05 percent) at the end of the first quarter, against Rs 28,669.14 crore (2.24 percent) in the year-ago period.SBI shares were trading 8.70 percent up at Rs 246.70 apiece on the BSE.