Public sector State Bank of India on Friday posted a 218 per cent jump in standalone net profit for the September quarter to Rs 3,011.73 crore. The lender had posted a profit of Rs 944.87 crore in the same quarter last year.
Analysts in an ET NOW poll had projected a profit of Rs 2,345 crore.
Reacting to the earnings numbers, shares of the lender jumped nearly 7 per cent to Rs 295.75.
Under exceptional items, the bank reported a net profit of Rs 3,484.30 core on sale of partial investments in subsidiary SBI Life Insurance Company.
Fresh slippages halved to Rs 8,800 crore from Rs 16,000 crore on a quarterly basis.
The asset quality of the bank improved with gross non-performing asset (NPA) ratio coming in at 7.19 per cent, down 276 bps yearly and 34 bps sequentially. Net NPA ratio was at 2.79 per cent, down 205 bps YoY and 28 bps QoQ.
Net Interest Income (NII) of the lender increased to Rs 24,600 crore in Q2FY20 from Rs 20,906 crore in Q2FY19, an increase of 17.67 per cent.
SBI’s operating profit zoomed 31 per cent to Rs 18,199 crore from Rs 13,905 crore. Domestic credit growth was at 8.43 percent at the end of September quarter mainly driven by retail-personal advances (up 18.90 per cent YoY).
The bank was holding total provisions of Rs 22,399 crore, which was 89.63 per cent of total outstanding, as of September 30, 2019.
Provision Coverage Ratio (PCR) significantly improved to 81.23 per cent as on September 30, 2019 from 70.74 per cent last year. Sequentially, PCR improved by 189 bps.
The bank said it was “well capitalised”, with fresh additional Tier I fund raising of Rs 3,104.80 crore during the quarter.
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