Coal India's Net Profit Falls About 40% In Second Quarter

Coal India's Net Profit Falls About 40% In Second Quarter

Coal India's Net Profit Falls About 40% In Second Quarter

State Bank of India, the nation's biggest lender by assets, reported a second-quarter net profit of 15.82 billion rupees ($243.3 million), missing estimates, on higher provisions for bad loans.

Similarly, net NPAs rose to 8.84 per cent of net loans, from 8.59 per cent.

Income from non core business helped the bank making higher profits despite higher provisions and call fall in net interest margin to 2.37 per cent from 2.67 per cent a year back. Gross slippages stood at Rs 10,627 crore, while fresh slippages were Rs 9,026 crore including slippages from retail comprising Rs 4,448 crore.

Gross bad loans as a percentage of total loans was 12.62 percent at end-September compared with 13.05 percent a quarter earlier, and 13.45 percent a year earlier.

The lenders Net Interest Income (NII) - the core income a bank earns by giving loans - increased 27.3 percent to Rs 18,585.90 crore versus Rs 14,600.16 crore previous year. Slippages as a ratio of the total loan book fell to 1.85 per cent, from 5.37 per cent during the previous quarter. While SBI's profit fell on rising bad loans, the bank's asset quality has remarkably improved. "During the quarter, fresh slippage to NPA category was around Rs 2,000 crore", the lender's Managing Director and CEO Usha Ananthasubramanian told reporters here. The bank's asset quality, however, deteriorated as the amount of gross non-performing asset rose to Rs 21,454.27 crore during the period under review from Rs 19,094.53 crore in the same quarter last fiscal, according to a regulatory filing. Advances during the quarter increased 1 percent to Rs 18.92 lakh crore while deposits grew by 10.3 percent to Rs 26.23 lakh crore YoY.

Commenting on the numbers, which was lapped up by the market with an over 6 per cent rally, chairman Rajnish Kumar said, "this is a very satisfying quarter as far as our performance is concerned".

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