The teaser loan scheme of State Bank of India which had been its strength since quite some time and brought in huge business to the lender has also offered a major set back to the bank in terms of profits.

Higher provisioning requirements announced by Reserve Bank of India last November led to dip in net profits of the country's largest lender by a staggering 98.88% to Rs 21 crore for Q4 of last fiscal.

The provisioning requirements were increased by the apex bank from 0.4% to 2%.

"We are in dialogue with the Reserve Bank of India on a rollback of this hike in provisioning norm for teaser loans and we are hopeful that the RBI will withdraw it," SBI Chief Pratip Chaudhuri said.

Provisioning in the last quarter of last fiscal rose by 82.10%.