SBI net dips 99% in Q4 on bad loans

The drop in was due to higher provisioning on account of pension liability,gratuity,tax,loan loss and Rs 500 crore for special home loan schemes,SBI Chairman Pratip Chaudhuri said.

He said it was one-time provisioning and would not appear again except for Rs 1,100 crore which would be made for counter-cyclical buffer over the next two quarters.

For the entire year,however,SBI net profit declined 9.84 per cent to Rs 8,265 crore,as against 9,166 crore in 2009-10.

Loan loss provisions made during 2010-11 were Rs 8,792 crore. Slippages were mostly from the agriculture and corporate sector,Chaudhuri said.

Net interest margin for FY11 was 3.32 per cent as compared to 2.66 per cent in FY10.

Chaudhuri said that the outlook for NIM was good.

Capital adequacy ratio (CAR) for FY11 stood at Rs 11.98 crore as against 13.98 per cent in FY10.

With this kind of CAR,the bank would be able to sustain 20 per cent loan growth.

Total business grew to Rs 2,60,139 crore y-o-y,with advances at Rs 1,30,322 crore and deposits at Rs 1,29,817 crore.

SBI shares nosedived 7.78 per cent to Rs 2,413.60 on the Bombay Stock Exchange.