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Arundhati steers SBI to 30% Q3 profit rise, reins in NPAs

Arundhati steers SBI to 30% Q3 profit rise, reins in NPAs
The bank had reported a net profit of Rs 2,234.34 crore in the same period a year-ago. The total income of the bank rose to Rs 43,784 crore in the October-December 2014 quarter as against Rs 39,068 crore during the corresponding quarter of the previous fiscal.

“Overall, other incomes increased 24 per cent, on the back of a strong NII (Net Interest Income) performance and lower expenses which have driven profit,” SBI Chairman Arundhati Bhattacharya said. Other income grew to Rs 5,283 crore from Rs 4,215 crore in the year ago period, she said, adding that treasury income zoomed to Rs 920 crore from Rs 238 crore last year, while fee income rose 10.75 per cent to Rs 3,291 crore from Rs 2,971 crore. Strict cost control measures saw the bank spending only 5.51 per cent more on operating expenses at Rs 9,720 crore against Rs 9,213 crore.

NII rose 9.20 per cent to Rs 13,777 crore from Rs 12,616 crore in the year-ago period. The lender’s asset quality also improved during the quarter. Gross Non-Performing Assets improved to 4.90 per cent from 5.73 per cent, while net NPAs stood at 2.80 per cent as against 3.24 per cent.

“With all the recovery efforts we are doing, we hope to keep NPA level under control going forward. But we have to wait for a quarter or two to say that we have come out of the problem,” Bhattacharya said. Bhattacharya said slippages came from sectors such as iron and steel, textile trade, services and power. Markets lapped up the spike in overall metrics. The SBI stock jumped by 8 per cent to Rs 307.05 on the BSE.  
PTI

PTI

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