State Bank of India (SBI), the country's largest bank, will be declaring its fourth quarter (Q4) and 2016-17 results on May 19. It will be the last quarterly result for the lender that won't factor in the performing the results of five associate banks that merged with the parent (SBI) with effect from April 1 this year.
On another issue, the bank clarified about charges on ATM transactions proposed to be levied from June 1 this year.
On Thursday, SBI shares closed 1.15 percent higher at Rs 298 apiece, close to its 52-week high of Rs 304.90. The stock has gained almost 10 percent in the past three months.
"State Bank of India has informed BSE that a meeting of the Central Board of the Bank will be held on May 19, 2017, inter alia, to discuss and approve the audited financial results of the Bank for the quarter and year ended 31st March, 2017. The Board may also consider in the above meeting the declaration of dividend, if any, for the financial year 2016-17," it said in a regulatory filing on Thursday.
The five associate banks that will merge with SBI are: SBBJ (State Bank of Bikaner and Jaipur), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala) and SBH (State Bank of Hyderabad).
Bank charges on cash withdrawals, ATM transactions
On Thursday, SBI said that customers of SBI Buddy mobile wallet can now withdraw cash from ATMs, subject to a levy of Rs 25 per transaction.
In a statement the bank denied that the levy is on all ATM transactions.
The bank also issued new rules on cash withdrawals by SBI Basic Savings Banks Deposit (BSBD) accounts (zero balance accounts) and others.
"Limit of 4 ATM withdrawals in a month only applies to the Basic Savings Banks deposit account. All Normal Saving Bank accounts will continue to get 8 free ATM transactions (5 SBI ATMs + 3 other bank ATMs) in Metros & 10 free transactions in Non Metro (SBI ATM + 5 Other Bank ATMs) free apart from the bank transaction."
Similarly, deposit of soiled notes beyond a threshold will be subject to charges. Upto 20 notes or up to value Rs 5,000, the bank won't levy any amount.
Q3 results
The bank had posted upbeat results for the third quarter ended December 2016, with net profit rising 134 percent spike YoY in December quarter (Q3) standalone net profit to Rs. 2,610 crore. The sharp increase was on account of higher other income and interest on deposits with the RBI and other lenders.
Other income rose 58 percent to Rs. 9,662 crore on account of the bank selling 3.9 percent stake in its subsidiary SBI Life Insurance Company for Rs. 1,755 crore. SBI's holding as a result, now stands at 70.10 percent in the subsidiary.
The bank's gross non-performing assets (NPAs) and net NPAs stood at 7.23 percent and 4.24 percent, respectively, in Q3, marking an increase from 5.10 percent and 2.89 percent in the corresponding quarter last financial year. In the September quarter (Q2), the gross and net NPAs stood at 7.14 percent and 4.19 percent, respectively.
Net interest income (NII) rose 7.69 percent to Rs. 14,751 crore in Q3 as against Rs. 13,697 crore in the year-ago period. Total income was Rs. 53,587 crore in Q3 as against Rs. 46,731 crore in December 2015 quarter.
SBI is the biggest lender in India and accounts for about a fourth of bank deposits and loans. Deposits spiked due to people returning the demonetised notes and stood at Rs. 20,40,777 crore as of December 31, 2016 as against Rs. 18,58,999 crore as of September 30, 2016.
