New Delhi : The country’s largest lender SBI Friday reported over 5-fold jump in consolidated net profit to Rs 2,006 crore for the June quarter of the current fiscal even as non-performing assets (NPAs) or bad loans spiked sharply. Posting first quarterly earnings after the merger with its five associate banks and Bharatiya Mahila Bank Ltd (BMBL), the state-owned bank said in a statement that its net profit in the April-June quarter of last fiscal, 2016-17, was Rs 374 crore.
It said the figures, ratios and other information are based on the merged audited numbers.
“Historical data has been arrived at by aggregating the audited numbers of the erstwhile associate banks, Bharatiya Mahila Bank and SBI for comparison purposes.”
Asset quality of the bank slipped substantially because of higher accruals of bad loans from the books of associates, it added.
There were slippages with gross NPAs rising to 9.97 per cent of the gross advances as on June 30, 2017, from 7.40 per cent as at end-June 2016. Net NPAs or bad loans too soared to 5.97 per cent of the net advances by June end of this fiscal, up from 4.36 per cent in the year-ago period. “Gross NPAs increased from Rs 1,37,662 crore as on June 2016 to Rs 1,88,068 crore as on June 2017,” SBI said.
The operating income of the bank fell by 5.17 per cent to Rs 25,612 crore during April-June quarter of 2017-18, as against Rs 27,007 crore in the same period a year ago.