The numbers of the largest bank of India, SBI brought a lot of cheer. Improvement in asset quality plus increase in profitability was met with a lot of cheer. For Q4FY15, SBI posted a 23% (YoY) rise in net profit at Rs.3742 crore with a 14% increase in NII at Rs.14,712 crore. NIM was up at 3.54% v/s 3.5% (QoQ) v/s 3.66% (YoY).

And in terms of asset quality, thanks to the sale of loans to Asset Reconstruction Company (ARC), the bank’s Gross NPA, sequentially dropped from 4.9% to 4.25% and Net NPA fell from 2.8% to 2.1%. It sold loans to the tune of Rs.4510 crore to ARC while write offs were at Rs.4874 crore v/s recoveries at Rs.4485 crore. What is worrisome is that fresh restructuring jumped up almost 5 times (QoQ) at Rs.11,885 crore - -this may have come on the back of RBI diktat to set aside at least 15% in provision from the 5% earlier, if restructuring is done after 1^st April. Slippages slipped 32% (QoQ) at Rs.4769 crore.

In terms of provisions, QoQ, it was up 26% and up 12% (YoY) at Rs.6593 crore. Provision coverage ratio was at 69.13%.

Deposits showed a 13% (YoY) rise at Rs.13,94,409 crore while advances stood at Rs.12,45,122 crore, up 7% at Rs.13,35,424 crore.