* SBI Q4 net 32.99 bln rupees vs 40.5 bln year-ago
* Non-performing loans at 4.75 pct vs 4.44 pct year-ago
* Shares fall almost 7 pct after Q4 earnings
(Adds details throughout)
May 23 State Bank of India, the
country's largest lender, posted its first quarterly net profit
drop in two years, missing market estimates after being dragged
down by lower interest income and higher provisions for loan
The state-run bank posted net profit of 32.99 billion rupees
($593.76 million) in the January-March quarter, compared with
40.50 billion rupees in the same period a year ago. Net interest
income, the difference between interest earned and interest
expended, fell 4.4 percent to 110.8 billion rupees.
Analysts, on average, had expected net profit of 37.9
billion rupees, according to Thomson Reuters I/B/E/S.
Shares in SBI fell as much as 6.89 percent in Mumbai
trading, its biggest one-day drop since February 2012. As of
0744 GMT, the stock was down 6.5 percent at 2,206.3 rupees,
compared with a 1.77 percent fall in the benchmark BSE index
Asset quality at the bank worsened over the past year.
Non-performing loans as a proportion of total assets rose to
4.75 percent, the highest among Indian banks, from 4.4 percent
at the end of March last year. It stood at 5.3 percent at
Most Indian state banks, including Bank of Baroda,
Punjab National Bank and Bank of India Ltd
have this month posted drops in quarterly profits, while private
sector rivals ICICI Bank Ltd and HDFC Bank Ltd
continued to post higher profit growth on stable asset
Overall, bad loans have risen to a record in India as the
country's worst economic slowdown in a decade clouds the outlook
for banks including SBI, which accounts for a quarter of all
loans and deposits in the country.
Government-controlled SBI, exposed to many of India's
biggest, most troubled borrowers including Suzlon Energy Ltd
and Kingfisher Airlines Ltd has said it
would ease payment terms on loans of 37 billion rupees in the
March quarter. Details were not immediately available.
In the year to March 2013, Indian banks sought to
restructure a record $16.6 billion loans through the Corporate
Debt Restructuring (CDR) Cell, an RBI-approved consortium of
lenders - an increase of 38 percent on the year before.
($1 = 55.5612 Indian rupees)
(Reporting by Swati Pandey in MUMBAI; additional reporting by
Abhishek Vishnoi; Editing by Daniel Magnowski)