The country's largest lender by assets, State Bank of India, on Friday said that its net profit in quarter ended March 2021 rose 80 per cent to Rs 6,451 crore compared with Rs 3,581 crore during the same period last year. Profit was aided by decline in provisions for bad loans an annual basis. Its provisions for bad loans fell to Rs 9,914 crore versus Rs 11,840 crore in the same period last year.
SBI's net interest income (NII) or the difference between interest earned and interest expended came in 19 per cent higher at Rs 27,067 crore versus Rs 22,767 crore in the same quarter last year.
SBI's asset quality saw an improvement during the quarter as its gross non-performing assets (NPAs), as a percentage of total advances, came in at 4.98 per cent as against 6.15 per cent during the March quarter of last year. Gross NPAs stood at Rs 1,26,389 crore.
Net NPAs as a percentage came in at 1.5 per cent.
SBI announced a dividend of Rs 4 per share, its first payout since May 2017, when it had rewarded shareholders with Rs 2.6 per share.
The lender reportedly received a windfall of nearly Rs 4,000 crore as part of dues owed by bankrupt steelmaker Bhushan Power and Steel.
As of 2:23 pm, State Bank of Shares rose 3.54 per cent to Rs 398, outperforming the Sensex which was up 1.62 per cent.