SBI

India’s largest commercial bank posted a set of disappointing numbers for Q4FY13. The bank’s asset quality remained patchy, there was a slip in it’s operational performance, slippages increased and its provisioning also rose. These factors weighed heavily on the market, especially on a day when the mood was that of a large sell off.  Net profit for the quarter came in at Rs.3299 crore, down 18.5% (yoY).  NII which is its core income that too for the largest bank of India, the decline of 5% (YoY) at Rs.1100 crore did not go well.  Other income was up 3% at Rs.5547 crore.  NIM came in at 3.34% v/s 3.31% (QoQ).

Gross NPA rose to 4.75%, up from 4.44%  and Net NPA also increased from 1.82% to 2.10%. Provisions rose 33% (YoY) and by a whopping 57% (QoQ) at Rs. 4,181 crore. Fresh slippages during the quarter were at Rs 5,868 crore while restructured assets in Q4 were at Rs 8,669 crore. Rs.1090 crore loan was rescheduled by Reliance Power and Suzlon added to the lion’s share in restructuring –its exposure was to the tune of around Rs.3500 crore and that positive side to this is that SBI has provided fully for this. And if one looks positively, it is good that SBI has provided for all though that has meant that its costs have gone up now but for the long term, it bodes well.