State Bank of India (SBI) topped Street estimates with a 28 per cent jump in net profit for the second quarter ended September 30, 2024.
Net profits of the country’s largest lender rose to ₹18,331.44 crore against ₹14,330.02 crore in the corresponding quarter of the previous year.
Analysts had projected SBI to report net profits in the region of ₹15,500 crore. Profits rode on the back of a 42 per cent jump in other income apart from a 5.37 per cent rise in core net interest income (NII).
Other income stood at ₹15,270.55 crore against ₹10,790.63 crore a year ago, while NII was ₹41,620 crore against ₹39,500 crore in the year-ago period.
The bank’s other income includes fees from third-party services, treasury income and recoveries from written-off accounts.
The SBI stock fell 1.86 per cent to end at ₹843.25 on the BSE.
Provisions jumped on a year-on-year basis to ₹4,505.73 crore from ₹115.28 crore.
Provisions for non-performing assets were at ₹3,631.01 crore against ₹1,814.89 crore in the same period of last year.
Asset quality improved with the percentage of gross non-performing assets (NPAs) falling to 2.13 per cent from 2.21 percent on a sequential basis and 2.55 per cent in the previous year.
The amount of gross NPAs fell to ₹83,369.23 crore from ₹86,974.08 crore in the last year.
The bank reported a loan growth of 14.93 per cent to ₹39,20,719 crore from ₹34,11,252 crore a year ago.
Deposits grew 9.13 per cent to ₹51,17,285 crore. The low cost CASA (current account and saving account) ratio stood at 40.03 per cent against 41.88 per cent last year.
SBI chairman C.S. Setty said the bank expects deposit growth of 10-11 per cent in this fiscal, which is lower than its earlier estimate of 12-13 per cent. The credit growth is likely to come at 14-16 per cent.
“Taking profits for the first half into account, the capital adequacy ratio (CAR) will be above 14 per cent. The current capital is sufficient to support additional credit of ₹ 6 trillion. There are no plans for raising equity capital at the moment.”
