SBI posts 31% rise in Q2 net profit on interest income

SBI’s total interest income grew 9.85 per cent to Rs 37,263 crore in the quarter from Rs 33,922 crore.

By: ENS Economic Bureau | Mumbai | Published: November 15, 2014 1:16:41 am

Aided by an improvement in interest income and tight control on expenses, State Bank of India, India’s largest lender, on Friday reported 31 per cent jump in its net profit at Rs 3,100 crore in the September quarter as against Rs 2,375 crore in the year-ago period.

SBI’s total interest income grew 9.85 per cent to Rs 37,263 crore in the quarter from Rs 33,922 crore. Net interest income increased by 8.36 per cent to Rs 13,275 crore in quarter from Rs 12,251 crore.

“The net profit is coming from the improved numbers as our interest income has gone up. Also, our expenses are very well controlled with overall operating expenses going up by 2.23 per cent,” SBI chairperson Arundhati Bhattacharya said. The bank saw improvement in the asset quality with gross NPA (non-performing assets) ratio at 4.89 per cent as against 5.64 per cent. Net NPA improved to 2.73 per cent from 2.91 per cent in the same period last year. “When we will see asset quality is improving, I don’t believe that we will really see anything very sharp because this downturn has been very deep,” Bhattacharya said.

“Once we see the demand cycle coming back, definitely we can begin to see things happening at a faster pace,” she said, adding that was still about a year away. Fresh slippages in the quarter stood at Rs 7,700 crore as against Rs 8,365 crore in the same period last year. Bhattacharya said the slippages were across the board. “In agriculture sector, we have seen a sharp spike in slippages (in Q1FY15) and that has not smoothened out. We are hopeful that in agriculture sector we will see some substantial pull back because of the instalment for debt waiver in Telangana have already been received and in other state it is also expected,” Bhattacharya said.

SBI’s recovery stood at Rs 965 crore in the period compared to Rs 1,414 crore year-ago. The bank upgraded Rs 1,670 crore of loans while it wrote off Rs 4,787 crore. It restructured Rs 4,351 crore of advances and has a pipeline of Rs 3,000 crore going forward. Shares of SBI rose by over 2 per cent on the BSE on Friday.

Saday Sinha, banking analyst, Kotak Securities, said, “SBI’s net profit was marginally higher than our expectations on the back of flat opex and lower tax payment while robust non-interest income helped in strong net revenue figure. The asset quality has remained stable.”

For all the latest Business News, download Indian Express App

Advertisement
Advertisement
Advertisement
Advertisement