Country's largest lender State Bank of India has reported a standalone profit of Rs 2,312.20 crore for the quarter ended June 2019, aided by lower provisioning with stable asset quality.
Higher other income and operating income also boosted profitability, though tepid NII growth limited profits.
The bank had reported a loss of Rs 4,875.85 crore in the corresponding period last fiscal. On a quarter-on-quarter basis, it reported a whopping 176 percent jump in profit against Rs 838.40 crore in March quarter.
Net interest income grew by 5.2 percent year-on-year to Rs 22,938.8 crore in June quarter 2019.
Asset quality was stable with gross non-performing assets as a percentage of gross advances flat at 7.53 percent in Q1 compared to previous quarter, though net NPA as a percentage of net advances inched up by 6bps sequentially to 3.07 percent in June quarter.
Provisions for bad loans fell significantly by 32.80 percent quarter-on-quarter to Rs 11,648.5 crore in Q1. The same declined 10.65 percent YoY. Provision coverage ratio also improved to 79.34 percent at the end of June 2019, from 78.7 percent in March 2019.
Provisions and contingencies were lower by 44 percent sequentially and 52.2 percent year-on-year to Rs 9,183 crore, the bank said.
The lender further said it has been holding provision of Rs 3,553 crore for accounts covered under Insolvency & Bankruptcy Code and made provision of Rs 996 crore for arrears of wages.
Non-interest income (other income) during the quarter grew by 20 percent to Rs 8,015.4 crore compared to year-ago and operating profit increased 10.6 percent to Rs 13,246.2 crore YoY.
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