(IBNS) India’s biggest lender State Bank of India has posted a higher than expected net profit of Rs 4050 crore for the quarter ending March 31, 2012. The net profit last year was Rs 21 crore.
Rise in non-core income and fall in provisioning for bad loans contributed to the higher profit.
The total interest income rose from Rs 21, 721 crore in Q4FY11 to Rs 28,583 crore in Q4FY12 (31 percent YOY growth) with a sequential growth of 3.13 percent.
Interest income on advances rose from Rs 16, 257 crore in Q4FY11 to Rs 22, 141 crore3s in Q4FY12.
Interest income on resource operations increased from Rs 5305 crores in Q4FY11 to Rs 6307 crores in Q4FY12.
Addressing media in Kolkata after their AGM, SBI chairman Pratip Chaudhuri said the bank would go to the Moody’s Investors Services for a ratings upgrade.
“We would be going to the Moddy’s. Our overall ratings however remains the same,” Chaudhuri said.
He said the SBI also expects a growth of 16 percent to 18 percent in credit demand in the remaining part of this fiscal year.
The bank’s asset quality also improved with the net non-performing asset (NPA) ratio going down to 1.82% as against 2.22% in the Oct-Dec quarter.
In the same period the gross NPA ratio fell from 4.61% to 4.44%.
The return on assets (ROA) has increased from 0.88 % in Mar 2012 as against 0.71 % in Mar 2011.