State Bank of India (SBI), the country’s largest lender by assets, has reported an 81% annual increase in net profit to ₹ 4,189.4 crore in the last quarter, which ended on June 30. The bank reported a net profit of ₹ 2,312.20 crore in the same quarter last year. A gain of ₹ 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% to ₹ 26,641.56 crore, against ₹ 22,938.79 crore during the same quarter last year.
The bank’s asset quality improved in the June quarter as its gross non-performing loans came in at ₹ 1,29,660.69 crore against ₹ 1,49,091.85 crore in the previous quarter. As a%age of total advances – Gross NPA came in at 5.44% versus 6.15% during the quarter that ended in March.
Its Net NPA came in at 1.86% versus 2.23% in the previous quarter.
SBI’s provisions for bad loans dropped during the quarter as the bank provided ₹ 9,420.46 crore in the June quarter, compared to ₹ 11,894 crore in the previous quarter.
State Bank of India shares rose as much as 4.2% to ₹ 194.40 after the earnings announcement.