SBI Q2 net down 35%; increase in NPAs not as bad as feared

State Bank  of India (SBI), the largest public sector lender, today reported a fall of 35.08% in standalone net profit to Rs 23.75 billion for the quarter ended Sept. 30, 2013 as compared to Rs 36.58 billion in the same period last year. Analysts had expected profit of Rs 26.75 billion.

Total income increased by 12.89% to Rs 371.99 billion for the quarter ended Sept. 30, 2013 as compared to Rs 329.53 billion in the same period last year.

Net interest income (NII) of the bank stood at Rs 122.52 billion during the quarter.

The bank has made provision of Rs 30.29 billion, which was 65.90% higher than the same period last year.

Net NPA was at Rs 321.51 billion for the quarter ended Sept 30, 2013, as compared to Rs 226.15 billion for the quarter ended Sept. 30, 2012, representing a sharp increase of 42.17%.

Meanwhile in percentage term, net NPA increased to 2.91% as on Sept. 30, 2013 from 2.44% as on Sept. 30, 2012.

Capital adequacy ratio (CAR) under Basel III of the bank was at 11.69% as on Sept. 30, 2013. Provision coverage ratio of the bank stood at 61.16% as on Sept. 30, 2013. Fresh slippages came at Rs 82.65 billion.

Domestic net interest margin increased sequentially to 3.51% for Q2FY14 from 3.44% for Q1FY14. CASA Ratio for September 2013 remained strong at 43.58% with savings bank deposits touching all time high at Rs 4,454.43 billion.

Shares of the bank gained Rs 35.6, or 2.12%, to trade at Rs 1,711.05. The total volume of shares traded was 515,211 at the BSE (12.49 p.m., Wednesday).