The country’s largest lender State Bank of India reported that its net profit in July-September period rose to Rs 4,574.16 crore from Rs 3,011.73 crore during the corresponding period a year ago, marking an increase of 52 per cent. The Mumbai-based lender’s net quarterly profit rose on account of lower provisioning for bad loans.
The bank’s net interest income or the difference between interest earned on loans and interest paid on deposits grew by 14.55 per cent to Rs 28,181.50 crore compared with Rs 24,600.32 crore during the same period last year.
SBI’s provisioning for bad loans fell sharply in September quarter to Rs 5,619.28 crore from Rs 9,420 crore in the previous quarter. On an annual basis, provisions for bad loans came down by 49 per cent.
The bank’s asset quality showed a slight improvement in second quarter of current financial as its gross non-performing assets as a percentage of total advances improved to 5.28 per cent from 5.44 per cent in the June quarter. Total gross NPAs stood at Rs 1,25,863 crore as against Rs 1,29,661 crore.
SBI said that its credit growth in retail segment is returning to pre-Covid-19 levels.
As of 2:36 pm, State Bank of India shares traded 0.42 per cent lower at Rs 203.90, under-performing the Sensex which was up nearly 1 per cent.
