Post the merger with its five associates and Bharatiya Mahila Bank, State Bank of India reported a five-fold jump of 436 percent in net profit at Rs 2,006 crore as a merged entity for the first quarter of FY18 helped by fall in provisions. Earlier this year, the government gave the central bank greater power to push defaulting borrowers into bankruptcy proceedings.
Net interest income fell 3.5 per cent to Rs 17,606 crore on like-to-like basis which was due to lower lending rates.
A year ago, profits of SBI, which is now among the top 50 global banks, as a combined entity stood at Rs 374 crore. "Also, small banks will get access to products like mutual funds", Minister of State for Finance Santosh Gangwar said as the House passed the bill to repeal the SBI (Subsidiary Banks) Act 1959, State Bank of Hyderabad Act 1956 and to further amend the State Bank of India Act, 1955 following the merger of five associates with the parent SBI.
The result compared with the Rs 30.29 billion average analyst estimate, Thomson Reuters data showed. SBI expected these bad loans, which are under its national banking portfolio, would see a "pull back" to the standard category.Читайте также: Shares hit by US-North Korea tensions
SBI, which accounts for about a fifth of India's banking sector assets, said for the merged entity, gross bad loans as a percentage of total loans was 9.97 percent at the end of June from 9.11 percent three months earlier and 7.40 percent at the end of June past year.
The bank completed the data merger process, merger of administrative offices, reallocated branches to different regions, migrated accounts to the new process, re-mapping and shifting of accounts to different controllers, movement of the staff and rationalisation during the April to June quarter.
Bank of Baroda, the fifth-biggest Indian lender by assets, also reported on Friday first-quarter profit more than halved and its bad-loan ratio widened.
SBI shares were down 4.8% at 0815 GMT in a Mumbai market that was down 1%.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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