State Bank of India (SBI), as was largely expected posted a dismal set of numbers for the quarter ending Dec 31, 2015, with net profits dropping sharply, on the back of higher provisions.
The net profit of the bank for Q3 2016 was placed at Rs 1110 crores, as against Rs 2,910 crores (year-on-year), which was way below estimates.
The gross NPA was placed at 5.1% vs 4.11% QoQ. The Net NPA was at 2.89% vs 2.14% QoQ. The non performing assets of the bank are far better than some other PSU banking peers, which have reported a terrible set of results.
This has been the worst quarter for banks in quiet a few years, as non performing assets continue to weigh on the banking sector. This has also stalled economic growth, as lending activity has been curtailed.
The shares of State Bank of India were trading higher by 2 per cent, largely supported by the fact that the asset quality was slightly better than estimates.
Meanwhile, most of the PSU banking stocks saw their share prices dropping following the results.