SBI second quarter net profit rises 30 per cent

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The country's largest lender State Bank of India (SBI) Friday said its net profit increased by 30.16 per cent to Rs 3,658.14 crore for the quarter ended Sep 30, 2012, as compared to Rs.2,810.43 crore recorded in the corresponding quarter of previous year.

The bank's total income increased to Rs.32,953.47 crore in the second quarter of 2012-13 as compared to Rs.29,394.32 crore recorded in the corresponding quarter of previous year.

This is the slowest increase in the bank's net profit in the last three quarters. The results were below the market expectations. The share price of SBI slumped more than four per cent due to below expectations earnings and other numbers.

SBI was trading 3.95 per cent lower at Rs.2,154.85 at the Bombay Stock Exchange in the afternoon session. The scrip slumped to a low of Rs.2,151 in the intra-day.

Higher provisioning for bad loans has hit SBI earnings in the second quarter of the current financial year.

The bank's gross non-performing assets (NPAs) increased to 5.15 per cent for the quarter ended Sep 30 as compared to 4.19 per cent in the previous quarter.

The net NPAs increased to 2.44 per cent in the quarter under review as compared to 2.22 per cent in the previous quarter.

SBI Group net profit after minority interest increased to Rs.4,575.31 crore for July-September 2012 quarter as compared to Rs.3,470.43 crore recorded in corresponding period of 2011.

Total income of SBI Group increased from Rs.41,244.65 crore for the quarter ended Sep 30, 2011 to Rs.49,917.47 crore in the second quarter of the current financial year.