SBI net profit up 3.3%; but stock falls on higher provisions, low other income

State Bank of India surprised the Street in its first quarter (April to June) results. Its net profit rose 3.3% compared to the same quarter last year to Rs 3349 crore. The figure last year stood at Rs 3241 crore.

The numbers come higher than Rs 2824 crore as was estimated by analysts. The profit has been marred by low other income (non interest income) and high provisions. Net interest income grew by 15% to Rs 13253 crore, which is also higher than Rs 13,026 expected by the analysts.

Total Income has increased from Rs. 3619 crore to Rs. 40739 crore for the quarter ended June 30, 2014. At the consolidated level, the net profit stands at Rs 4448 crore while total income stands at Rs 60620 crore.

However, the total non performing assets grew to 2.66% from 2.57% in previous quarter though it has fallen by 17 basis points compared to the same quarter last year. Gross non performing assets have reduced marginally by 5 basis points (100 basis pts=1%). Provisions also rose and now stands at Rs 3,903 crore against Rs 2266 in the same quarter last year, but has come down significantly from Rs 5,584 crore compared to the last quarter. Other income fell declined 5% on yearly basis to Rs 4,252 crore from Rs 4,474 crore in corresponding quarter of last fiscal.

Freshly restructured loan stood at Rs 3598 crore which is a significant decline compared to the last quarter. Though provisions came down significantly compared to last year, it is up 72% compared to the same quarter last year.

The bank has made a provision of Rs. 3,496 crore against Rs. 5,891 crore sequentially.

Loan book of the bank grew 13% on an yearly basis and its deposits grew 12.8%.

The stock fell 1% and stood at Rs 2416 after the results came out.