The country's largest bank - State Bank of India (SBI) - on Friday reported net profit of Rs. 2,312.20 crore in April-June period compared with loss of Rs. 4,875.85 crore in the same quarter last year, according to a stock exchange notification filed by the bank. About 22 analysts, on an average, had expected the Mumbai-based lender to post a profit of Rs 4,083 crore, news agency Reuters reported citing Refinitiv data.
SBI's profit in June quarter rose on account of lower provisioning for bad loans and higher interest income. The bank's provisions for bad loans dropped 32.80 per cent to Rs 11,648.45 crore from Rs 17,335.84 crore in the previous quarter and Rs 13,037.90 crore in the year ago period.
SBI's net interest income, the difference between interest earned on loans and interest paid on deposits, rose 5.23 per cent to Rs. 22,938.79 crore from the year ago period.
Domestic credit growth for bank came in at 11.89 per cent year-on-year led by both retail as well as high rated corporates, SBI said in a press release.
Its gross non-performing assets or total bad loans in first quarter of current financial year came in at Rs 1,68,493.94 crore versus Rs 1,72,750.36 crore in the previous quarter.
State Bank of India's asset quality remained stable in the June quarter as its gross NPAs as a percentage of total advances were sequentially unchanged at 7.53 per cent and Net NPAs rose slightly to 3.07 per cent from 3.01 per cent in the previous quarter.
The bank held total provisions of Rs 35,553 for loan accounts covered under the Insolvency and Bankruptcy Code, SBI said in earnings release.
As of 2:23 pm, State Bank of India shares traded 0.03 per cent lower at Rs 317.10 underperforming the Sensex which rose 0.66 per cent.