SBI real estate revaluation adds Rs 31,965 crore to reserves

State Bank of India reported a net profit of Rs 2521 crore in the first quarter of FY17 – a 31 per cent drop from Rs 3692 crore in the corresponding quarter last year. The bank said that its capital adequacy jumped to 14 per cent from 12 per cent as on March 2016. The increase in capital followed a revaluation of real estate assets which resulted in Rs 31,965 crore being added to revaluation reserves.

Following the better-than-expected results, the bank’s share price jumped 8 per cent to Rs 245, up 18 per cent from its previous close. The slowdown in asset quality deterioration led investors to believe that the bad loan problem in public sector banks was coming to an end, thereby triggering a rally in public sector bank stocks.
The drop in net profit was due to a rise in provisions for bad loans which jumped from Rs 3,999 crore to Rs 7413 crore. However, the provisions were sharply lower than Rs 13,174 crore in the preceding quarter.

 In absolute terms, the bank’s gross non-performing assets rose Rs 3,369 crore from the preceding quarter to Rs 1,01,541 crore. The ratio of gross non-performing assets rose to 6.94 per cent from 6.5 per cent in the preceding quarter.

The bank said its interest income increased 5 per cent to Rs 41593 crore as on QIFY17 from Rs 39643 crore in the corresponding quarter last year.

Total Income has increased from Rs 44730 crore for the quarter ended June 30, 2015 to Rs 48928 crore for the quarter ended June 30, 2016 – an increase of 10 per cent.

Source: TOI

(20)

Zricks.com

Zricks.com is a simpler way to search for Residential and Commercial projects & properties across India with over 5000+ Projects, 1000+ Properties, 2500+ developers, 1500+ Agents, 8000+ Localities. Check out Walkthrough, Compare, QnA & Brochure page to see what everyone is talking about.

Leave a Reply

X

Pin It on Pinterest

X
Share This
%d bloggers like this: