SBI expects asset quality into improve further following quarterly profit beats estimatesYahoo Finance #Billion_Rupees

SBI expects asset quality into improve further following quarterly profit beats estimatesYahoo Finance #Billion_Rupees

February 12, 2019 0 By NewsTakers

By Chris Thomas and Abhirup Roy
(Reuters) – State Bank of India (SBI) on Friday said it expects non-performing asset levels to come down in the short term after it beat expectations with its highest quarterly profit in nearly seven years.
SBI, which accounts for more than a fifth of India’s banking assets, saw its gross bad loans as a percentage of total loans ease to 8.71 percent at end-December, from 9.95 percent in the previous quarter and 10.35 percent in the year-ago period.
For an interactive graphic on the bad loans ratio at some Indian public-sector lenders, click https://reut.rs/2Uzrb5h
In absolute terms, its gross bad loans eased from the previous quarter to 1.88 trillion rupees, helped by a slowdown in slippages.
As of the end of December, net NPA was at 3.95 percent, down from 4.84 percent in the previous quarter.
Net profit came in at 39.55 billion rupees ($556 million) for the third quarter ended Dec. 31, versus a loss of 24.16 billion rupees a year ago, and far ahead of analysts’ expectations for a profit of 32.08 billion rupees, according to Refinitiv data.
The results were helped by a 21.3 percent drop in bad loan provisions, a write-back on provisions made for mark-to-market losses, and higher net interest income on the back of healthy growth in loans.
This is the bank’s biggest quarterly profit since it reported 40.50 billion rupees in the March quarter of 2012.
(Reporting by Chris Thomas in Bengaluru; additional reporting by Arnab Paul; Editing by Muralikumar and Elaine Hardcastle)

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