The country's largest lender by assets - State Bank of India - on Friday reported 81 per cent annual increase in net profit to Rs 4,189.4 crore in quarter ended June 30. The bank had reported net profit of Rs 2,312.20 crore in the same quarter last year. A gain of Rs 1,540 crore from selling a stake in unit SBI Life Insurance helped push SBI's net profit.
SBI's net interest income or the difference between interest earned and interest expended rose 16 per cent to Rs 26,641.56 crore as against Rs 22,938.79 crore during the same quarter last year.
The bank's asset quality improved in June quarter as its gross non-performing loans came in at Rs 1,29,660.69 crore as against Rs 1,49,091.85 crore in the previous quarter. As a percentage of total advances - Gross NPA came in at 5.44 per cent versus 6.15 per cent in March quarter.
Its Net NPA came in at 1.86 per cent versus 2.23 per cent in the previous quarter.
SBI's provisions for bad loans dropped during the quarter as bank provided Rs 9,420.46 crore in June quarter as against provisioning of Rs 11,894 crore in the previous quarter.
State Bank of India shares rose as much as 4.2 per cent to Rs 194.40 after the earnings announcement.