IDBI Bank reports major loss of Rs 3200 crore for Q4
20 May, 2017, 08:42 | Author: Cecelia Webb
According to SBI statement, "loan loss provisions" were lowered to Rs 10,993 crore during the fourth quarter of last fiscal as against Rs 12,139 crore in the year-ago period.
The bank, which posted its last solo financial earnings on Friday, reported a surge in net profit and a rise in net interest income, but asset quality deteriorated marginally in the quarter ended March 2017. The bank's operating profit rose by 12.93 per cent, from Rs 14,192 crore to Rs 16,026 crore.
Provisions for bad loans fell 9.4 per cent from a year earlier to Rs 10,993 crore in the March quarter.
The gross non-performing asset ratio of the bank stood at 6.90 per cent during the quarter compared with 6.5 per cent over the previous year.
For the year ending March 31, 2017, total income from operations went upto Rs 6,404.57 crore from Rs 6,150.21 crore.
Shares in SBI were trading 2.5 per cent higher after the results in a Mumbai market that was down 0.1 per cent.
In absolute terms, gross NPAs rose to Rs 1,12,343 crore in March, 2017 from Rs 98,173 crore. Bhattacharya observed that while the Reserve Bank of India (RBI) had eased norms for decision-making at the Joint Lenders Forum (JLF), it was hard to say to what extent this would help.
Bhattacharya said the lender has just been through a "difficult but satisfying quarter".
"Deposits of the associate banks will be re-priced, which will have a positive impact", she added.
Owing to this two-way pressure, the outlook of the margins is stable, Bhattacharya said in a video conference.
Posting strong fourth quarter results for the last time as a standalone entity, SBI Chairman Arundhati Bhattacharya said, "In FY18, we will still see slightly elevated credit costs as the resolutions take place as we will need to make provisions upfront and though we have asked to spread out some provisions over a few quarters, that is still not available".
Under Basel III, the Bank's Capital Adequacy Ratio stood at 11.14 pc with the Tier 1 capital at 8.94% as on 31st March, 2017.
Retail constituted 22 per cent of the loan amount contributed by auto and home loans.
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