ICAI to question SBI on its high provisions in Q4

Taking a strong note of State Bank of India's (SBI) huge profit erosion for March quarter due to a rise in provisions, the Institute of Chartered Accountants of India (ICAI) today said it will ask the country's largest bank to explain the reasons for earmarking higher provisions for bad loans. The ICAI will also be writing to Reserve Bank of India and capital market regulator Sebi with regard to the issue.

SBI's Q4 profits plunged by nearly 99% to Rs 20.88 crore for the quarter ended March 31, 2011 as against Rs 1,866.60 crore it had posted for the same period last year. One of the major denting factors was a 82% jump in its total provisioning which increased to Rs 6,059 crore.