SBI Q3 net jumps 134% to Rs2,610 cr despite a 0.9% increase in NPAs

State Bank of India (SBI), the country's largest lender, has reported a 134 per cent growth in its net profit for the October-December 2016-17 to Rs2,610 crore from Rs1,115.34 crore in the year-ago quarter, despite an overhang of non-performing assets and the pangs of government's demonetisation drive.

The strong growth can be attributed to a low base in Q3FY16 that was impacted by provisions. Other incomes also contributed to the record growth in profitability.

SBI's net interest income, which is the difference between interest earned and interest expended, grew by 7.7 per cent year-on-year to Rs14,754.54 crore in the quarter ended December 2016, while its loan growth stood at 4.06 per cent (one per cent sequentially) at Rs14,47,000 crore.

The bank's deposits during the quarter jumped 22.1 per cent to Rs20,40,000 crore compared with corresponding period of the previous fiscal and by 9.7 per cent sequentially.

At the same time, SBI's its gross non-performing assets as a percentage of gross advances increased by nine basis points to 7.23 per cent, while its net NPAs rose five basis points to 4.24 per cent compared with the previous quarter.