SBI Q2 net more than triples to Rs3,012 cr, despite higher provisioning
25 October 2019
State Bank of India (SBI) has reported a three-fold jump in its net profit for the July-September 2019-20 quarter on the back of higher net interest income and other income.
The bank had reported a net profit of Rs944.87 crore in the comparable quarter of the previous year.
The bank reported a net profit of Rs3,484.30 core on exceptional income from sale of partial stake in subsidiary SBI Life Insurance Company.
SBI’s operating profit zoomed 31 per cent to Rs18,199 crore from Rs13,905 crore. Domestic credit growth was at 8.43 per cent at the end of September quarter mainly driven by retail-personal advances (up 18.90 per cent YoY).
The bank’s net interest income, or the difference between interest earned on loans and paid on deposits, rose 17.7 per cent year-on-year to Rs24,600.32 crore.
Other income, which includes core fee income, rose 9.26 per cent to Rs8538.39 crore during the quarter.
Provisioning during the quarter increased 8.7 per cent to Rs13,138.93 crore. In the April-June quarter, the bank had set aside Rs9,812.94 crore for provisioning.
The asset quality improved with gross NPA ratio coming in at 7.19 per cent, down 276 bps YoY. SBI’s gross non-performing assets (NPAs), as a percentage of total advances, were at 7.2 per cent in the July-September quarter compared with 7.5 per cent in the April-June quarter and 9.95 per cent in the year-ago quarter.
The bank’s total provisioning stood at Rs22,399 crore, which was 89.63 per cent of total outstanding, as of 30 September 2019.
Post provisioning, net NPA ratio was at 2.79 per cent against 3.07 per cent in the April-June quarter and 4.84 per cent in the year-ago quarter.