India’s largest bank reports sharp drop in bad loans – enough to make the streets ignore 7% drop in profits

The largest lender in the country National Bank of India (SBI) on Thursday posted an almost 7% drop in its stand-alone net profit to Rs 5,196.22 crore for the third quarter ended December. The bank had posted a net profit of Rs 5,583.36 crore during the October-December period of the previous fiscal year.

Total (stand-alone) income also declined slightly to Rs 75,980.65 crore in the third quarter of FY21, compared to Rs 76,797.91 crore in the same period of 2019-2020, a declared the SBI in a regulatory dossier.

On a consolidated basis, the bank recorded a 5.8 drop in net profit to Rs 6,402.16 crore in the quarter under review, compared to Rs 6,797.25 crore in the previous year period. .

The bank’s asset quality has improved significantly, with gross non-performing assets falling to 4.77% of gross advances as at December 31, 2020, compared to 6.94% in the corresponding period a year ago.

In terms of value, gross NPA or bad debt amounted to Rs 1,17,244.23 crore, compared to Rs 1,59,661.19 crore.

Likewise, net NPA fell 1.23% to Rs 29,031.72 crore, from 2.65% (to Rs 58,248.61 crore).

Provisions for bad and bad debts for the quarter reached Rs 10,342.39 crore, up from Rs 7,252.90 crore a year earlier.

SBI shares were trading 2.02% at Rs 342.65 each against the BSE.

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