The country’s largest lender State Bank of India on Friday posted an 81 per cent increase in its standalone net profit at Rs 4,189.34 crore for the quarter ended on June 30, 2020 as bad loans declined. The numbers stood at Rs 2,312.02 crore in the April-June quarter of 2019-20.
The net interest income (NII) rose 16.2 per cent to Rs 26,641.56 crore during the quarter under review against to Rs 22,938.8 crore in year-ago period.
As per media polls, bank’s profit and NII was estimated to hit the target of Rs 3,222.2 crore and Rs 23,940.3 crore respectively. But the actual result crossed all the expectations.
Lender’s standalone total income increased to Rs 74,457.86 crore in June 2020 quarter as against Rs 70,653.23 crore in the same period a year ago, as per the data posted by the SBI on stock exchanges.
In June 2020, SBI sold 2.1 per cent equity stake in SBI Life Insurance Company via offer for sale route and raised Rs 1,539.73 crore.
The provisions and contingencies jumped by 36.1 per cent at Rs 12,501.3 crore YoY. In addition to this, additional provision and adhoc provision also increased by Rs 1,836 crore and 1,614 crore respectively.
It was provisioned on a sequential basis that dropped by 7.4 per cent.
SBI said its gross non-performing assets (NPA) of the total advances declined to 5.44 per cent at June-end, over 7.53 per cent at June-end last year.
Similarly, net NPAs also declined to 1.8 per cent in June 2020 against 3.07 per cent a year ago.
On a consolidated basis, SBI’s net profit rose by 62 per cent to Rs 4,776.50 crore as against Rs 2,950.50 crore in the same quarter a year ago.
At the same time, total income increased Rs 87.984.33 crore as compared to Rs 83,274.04 crore in the first quarter of the previous fiscal.