SBI raises Q4 profit by 123% to Rs. 2,815 cr as NPA woes ease
State Bank of India (SBI) recorded a net profit increased by 122.72 per cent from Rs 1264 Crore in fourth quarter results of financial year 2015-16 (Q4FY16) to Rs 2815 Crore in the financial year 2016-17 (Q4FY17), said Arundhati Bhattacharya, chairman of SBI, while announcing the last solo results of the bank before the merger of associates, on Friday evening.
The Net Interest Income (NII) increased by 17.33 per cent from Rs 15401 Crore in Q4FY16 to Rs18071 Crore in Q4FY17, whereas operating profit increased by 12.93 per cent from Rs 14192 Crore in Q4FY16 to Rs 16026 Crore in Q4FY17, the chairman said.
"We have taken maximum pain so that we can produce much better result in future," said the chairman said.
However, the bank, which is considered to be India's largest public sector lender, has increased their income from fee by 4.91 per cent from Rs 5,794 Crore in Q4FY16 to Rs 6,078 Crore in Q4FY17. The operating income increased by 9.28 per cent from Rs 25986 Crore in Q4FY16 to Rs 28398 Crore in Q4FY17.
"The total interest income of the bank increased by 10.36 per cent from Rs 42942 Crore in Q4FY16 to Rs 47393 Crore in Q4FY17, where as the interest income on advance increased from Rs 29242 Crore in Q4FY16 to Rs29861 Crore in Q4FY17 which is 2.12 per cent growth. This lower growth is reduction in base rate during the period," Anshula Kant, the deputy managing director and chief financial officer of SBI informed.
The deposit of the bank increased from Rs 1730722 Crore as on March 2016 to Rs 2044751 as on March 2017 which implicates a growth of 18.14 per cent year-over-year. The current account, savings account (CASA) deposit increased from Rs 717332 Crore as on March 2016 to Rs 890409 Crore as on March 2017, a year-over-year growth by 24.13 per cent, and chief financial officer said. Gross advances increased by 7.8 per cent from Rs 1509500 crore as on March 2016 last year to Rs 1627273 crore as on March 2017 this year. Large corporate advances rose 3.59 per cent from Rs 330136 crore as in March of previous fiscal to Rs 341990 crore as in last March. The bank also declared its gross non-performing assets (NPAs) increased to Rs 112343 Crore as on March 2017, from Rs 98113 Crore in March 2016, while its gross NPA ratio stood at 6.9 per cent in March 2017.
"We have two routes, which are National Company Law Tribunal (NCLT) or RBI to find the way to reach solution. We'll definitely find some way in order to take these accounts forward," the SBI chairman said.
The bank has reduced loan loss provisions by 9.44 per cent to Rs 10993 Crore in the three months ended March 2017 as compared to Rs 12139 in March 2017. "In this current fiscal, the credit costs are not going to come down, but in 2018-19, it will definitely be a better figure," the Chairman added.