India's largest lender, the State Bank of India, reported a consolidated net profit of £310.53 million for the three month period ended June 30, the first quarterly result after merger of its associate subsidiaries and BMBL. It had reported a net profit of £86.73 million in the same quarter of the last fiscal. The net profit, on a stand-alone bases was down over 20 per cent as bad loans rose during the April-June period of the current financial year.
SBI said the results of the current quarter are not comparable on account of merger of its subsidiaries – State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Patiala, and State Bank of Hyderabad, State Bank of Travancore, besides the Bharatiya Mahila Bank Ltd (BMBL) with itself with effect from April 1, 2017. It added, “The results for this quarter includes operations of erstwhile banking subsidiaries & BMBL. Hence the results for this quarter are not comparable with that of the corresponding period of the previous year and immediately preceding quarter.” The bank's total consolidated income during the April-June quarter of 2017-18 stood at £7.07 billion, SBI said in a regulatory filing.
It said it has worked out historical data of erstwhile five associate banks, BMBL and of itself for comparing first quarter results of this fiscal, from quarter of 2016-17. The total income was however, £6.29 billion, as against £4.89 billion. The bank's stand-alone asset quality deteriorated further, with gross non-performing assets (NPAs) rising to 9.97 per cent as on June 30, 2017 as against 6.94 per cent as at end-June 2016.
