State Bank of India has reported a plunge in quarterly profit. The bank posted a 99% drop in net profit to Rs21 crore. Total provisioning shot up 82% to Rs6,059 crore. More than half that money, Rs3,264 crore, went towards loan losses.
Some of SBI’s other figures look more promising. Net interest margin was at 3.32% during the quarter, compared to just 2.66% in the same period last year.
Meanwhile, net non-performing assets fell to 1.63% in contrast to 3.28% in 2010’s fourth quarter. Markets reacted to the results in shock. Shares of the bank lost 7.78% to 2,413.60
In politics, the BJP is turning on the heat over Karntaka governor H.R. Bharadwaj’s recommendation for President’s rule in the state. On Tuesday members of the Karnataka BJP joined party chief Nitin Gadkari in Delhi to take their case to the President. Gadkari later claimed the party held 122 seats in the state’s 224-member assembly. He also said the delegation had asked for Bharadwaj to be recalled. On Sunday, Bharadwaj had sent a controversial letter to the President recommending central rule.
And finally, SBI’s unexpectedly bad results let the bears loose on Indian markets. The Sensex plunged 208 points to 18,137. And the Nifty lost 60 to 5,439.