India's largest lender, State Bank of India's net profit is marginally up by 4 per cent at Rs 3,396 crore for October-December quarter against Rs 3263 crore in the corresponding quarter of previous fiscal.
The profitability was muted due to rising pressure on account of bad loans and slow growth in interest on loans.
Net Interest Income declined by 3 per cent to Rs 11,154 crore from Rs 11,519 crore in year ago period. However, ‘Other Income' rose by 76 per cent to Rs 3648 crore from Rs 2073 crore in Q3 FY12.
During the third quarter, total provisions were increased by 10 per cent to Rs 4,395 crore from Rs 3,997 crore in the year-ago quarter. Provisions towards loan losses which form a part of the total provisions were lower at Rs 2,766 crore against Rs 3,006 crore in Q3 FY12.
On the loans front, the bank turned selective on loans to mid-corporates (loan growth 7 per cent) due to rising bad loans.
Loan growth was strong in the large corporate (26 per cent), agriculture (24 per cent) and international (28 per cent) segments.