State Bank of India net profit falls 66% on bad loan provisions, 260% dividend declared

State Bank of India has reported Rs 1,263 crore net profit in Q4 against Rs 1,115 crore profit October-December quarter of the preceding fiscal. On a q-o-q (quarter on quarter) basis, the bank reported a 13.27 per cent rise in  net profit.

However, the bank reported a 66 per cent y-o-y (year-on-year) fall in profit as it posted Rs 3,742 crore in net profit in Q4 of previous fiscal.

The bank reported Rs 13,174 crore in provisions in the fourth quarter against Rs 7,949 crore provisions in the preceding quarter. The bank had Rs 6,943 crore in provisions in Q4 of previous fiscal.

The state lender had 6.5 per cent in gross NPAs against 5.10 per cent in the preceding quarter.

The bank said it has carried out its asset quality review (AQR) and the Q4 earnings reflect the same.

It has declared a dividend of Rs 2.60 per share (260%) for the financial year ended March 31, 2016. The date of payment of the dividend is fixed on June 22, 2016 and the dividend warrants will be dispatched before the date of payment, which will be payable, in India, at par at all branches of State Bank of India, irrespective of the amount.

 The SBI stock rose 10 per cent intraday. Later it settled the day 6.42 per cent higher at Rs 195.55 on the BSE.