Economic downturn has taken a toll on India's largest lender State Bank of India's Q1 2013 performance with asset quality deteriorating, despite higher profit after tax.
The country's largest lender, reported profit after tax in line with street estimates of Rs 3751 crores, rising sharply over Rs 1584 crores in the corresponding period of last year.
However, the gross non performing assets of the bank came in at 4.99%, which disappointed the markets. The stock was down more than 3%, post the results.
SBI reported a net NPA of 2.22%, as against 1.11 reported in the corresponding period of last year
The net income of the bank was Rs 11,119 crores, as against Rs 9699 crores in Q1 2012.
SBI has reported a capital adequacy of 13.70% as on June 30, 2012. While SBI reported decent PAT, asset quality concerns as expected has weighed on performance. Analysts believe that going forward PSU banks are likely to continue to see asset quality strains. With monsoons taking a hit, it is likely that asset quality of State Bank of India could worsen over the next few quarters, before it gets better.