SBI Q4 net drops YoY amid higher provisions

India’s second largest lender, State bank of India has posted its Q4FY16 results. The stock has surged for the third consecutive day despite of not so good results from the bank. The bank also declared a dividend of 2.60 Rs per share for the financial year ended March 31, 2016.

Bank’s Total Income for Q4FY16 stands flat at Rs 53526.97 crore as against Rs 46731.01 crore in the last quarter, an increase of 1.3 per cent. Out of the total income the Interest Earned has come in at Rs 42831.35 crore in this quarter as compared to Rs 40553.5 crore for Q3FY16, an increase of 5.6 per cent. The Interest Expended too has risen but at a slower pace by 2.2 per cent at Rs 27540.59 as against Rs 26947.03 crore in the last quarter. Thereby the Net Interest Income (NII) has risen by 12.4 per cent at Rs 15290.76 crore.

The Net profit (PAT) for the quarter ended Q4FY16 has witnessed a rise of 13.3 per cent at Rs 1263.81 crore from Rs 1115.34 crore in the previous quarter. The rise was in the wake of tax benefit the bank received at Rs 245.96 crore.

Company’s Gross NPA stands at Rs 98172.8 crore as compared to Rs 72791.73 crore, an increase of 34.9 per cent. In absolute terms Gross NPA is 6.5 per cent i.e. higher than 5.1 per cent in the previous quarter. Net NPA has come in at Rs 55807.02 crore as against 40249.12 crore an increase of 38.7 per cent.

Year on Year Total Income has risen by 3.4 per cent while Net profits have dropped 66.2 per cent due to lower provisions and contingencies expenses during the same quarter of last year.Gross NPA and Net NPA too have shown a substantial rise of 73.1 per cent and 102.3 per cent respectively, YOY.

For the year ended March 2016, SBI has posted Total Income of Rs 272871.03 crores as against Rs 257289.51 crore for year ended March 2015 i.e. and increase of 6.1 per cent. On the contrary Net profit has declined from Rs 16994.3 crore in FY15 to Rs 12224.59 crore in FY16, a decrease of 28.1 per cent.

SBI is promoted by Government of India, which holds 61.32 per cent stake in the Bank. The Company provides Domestic Operations, International Operations and Treasury Operations.