SBI Q4 net plunges to Rs 20.88 crore

Net profit of State Bank of India for the fourth quarter ended March 2011 nosedived to Rs 20.88 crore (Rs 208.8 million) against Rs 1,866.60 crore (Rs 18.66 billion) in the same quarter in the previous fiscal.

The erosion in the standalone net profit is mainly on account of higher provisioning against bad loans, operating expenses, including employee cost besides tax outgo of over Rs 900 crore (Rs 9 billion).

Shares of the company dipped 6.34 per cent at Rs 2,451.40 in the afternoon session on the Bombay Stock Exchange.

However, the total income during the quarter rose 18 per cent to Rs 26,536.8 crore (Rs 265.36 billion) from Rs 22,474.1 crore (Rs 224.74 billion) in the corresponding period a year ago.

Despite dismal performance, the bank maintained dividend at 300 per cent for 2010-11. The bank will pay dividend of Rs 30 per share on face value of Rs 10

after shareholders approval.

For the entire fiscal ended March 2011, the net profit of the bank slipped by 10 per cent at Rs 8,264.5 crore (Rs 82.64 billion) as compared to Rs 9,166.05 crore (Rs 91.66 billion) in the previous fiscal.

However, the total income rose to Rs 97,218.9 crore (Rs 972.18 billion) in the fiscal against 85,962.07 crore (Rs 859.62 billion) for FY 2010.