Mumbai, August 3
Lower provisions and higher interest income helped SBI return to the black during the first quarter ending June with a net profit of Rs 2,312 crore as against a net loss of Rs 4,876 crore a year ago.
The largest lender said its provision plunged a full 35% to Rs 10,934 crore for the reporting period from Rs 16,849 crore, helping the bottomline. A further boost came from higher net interest income which grew 5.23% to Rs 22,939 crore from Rs 21,798 crore. This was on the back of a marginal increase in domestic net interest margin to 3.01% from 2.95%.
Overall asset quality improved massively boosted by a dip in both the gross non-performing loan ratio to 7.53 from 9.95 as well as the net NPA ratio to 3.07 from 4.84%.
Despite good numbers, the street did not take the numbers positively, primarily due to higher slippages. The SBI counter lost nearly 3% at Rs 308.45 on the BSE after the result announcement against a gain of 0.3% on the benchmark. — PTI
Interest income grows to Rs 22,939 crore
- The largest lender said its provision plunged a full 35% to Rs 10,934 crore for the reporting period from Rs 16,849 crore, helping the bottomline
- A further boost came from higher net interest income which grew 5.23% to Rs 22,939 crore from Rs 21,798 crore
- Overall asset quality improved massively boosted by a dip in both the gross non-performing loan ratio to 7.53% from 9.95% and the net NPA ratio to 3.07% from 4.84%.
