SBI net profit up 67% in Q2, chairman says asset quality significantly improved, BFSI News, ET BFSI
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A year ago, the bank reported a net profit of Rs 4,574 crore. On a sequential basis, the profit rose 17% from Rs 6,504 crore in the June quarter.
The bank’s asset quality has significantly improved, chairman Dinesh Khara said at the earnings announcement.
Gross non performing assets came in at 4.90% in the September quarter, lower than 5.32% in the June quarter and 5.28% in the year ago quarter.
Meanwhile, the net NPA ratio stood at 1.52% for the quarter.
The net interest income (NII) – the difference between interest earned and expended – rose 10.6% to Rs 31,184 crore in Jul-Sep.
The non interest income fell 3.7% to Rs 8,207 crore compared with Rs 8,527 crore a year ago.
Khara highlighted that the capacity utilisation of manufacturing is still very low. Advances rose by just 6.17% over last year, driven by personal retail advances, up 15.17% on year, and foreign office advances, up 16.18% on year.
Domestic advances grew 4.61%, with home loans, which constitute 24% of domestic advances, rising 10.74% on year.
Total deposits grew nearly 10% on year, current account deposits grew 19.2% and saving bank deposits grew 10.55%.
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