The country’s largest state-owned bank today reported a net profit of Rs 5,196.2 crore for the quarter ended December, down 7 per cent from the year-ago quarter. Analysts had expected the bank to report a net profit of Rs 5,069.5 crore.
The bank’s earnings, though tepid compared to last year due to significant loan recoveries recognized in the year-earlier quarter, highlight a recovery seen in retail lending as the economy returns to normalcy after being hit by the Covid-19 pandemic, even as concerns around bad loans linger.
The Mumbai-based company’s shares, which have risen 22% this year up to last close, were up 2.3%. Net profit fell to Rs 5,196 crore ($712.73 million) for the three months ended December 31, from a record profit of Rs 5,583 crore reported a year earlier on the back of resolution of some large bad loan accounts.
Income from the company’s corporate banking operations fell nearly 19%, while overall provisions rose to Rs 10,342 crore from Rs 7,253 crore.