The State Bank of India on Wednesday posted a 55.24 per cent rise in net profit for the April-June quarter of 2021-22. The net profit of the country’s largest lender came in at Rs 6,504 crore for the quarter under review compared with Rs 4,189 crore a year ago.

The bank’s net profit was above the Street’s expectations. Analysts had estimated the lender to report a profit of Rs 6,374.5 crore for the quarter. Operating profit increased 5.06 per cent to Rs 18,975 crore compared with Rs 18,061 crore a year ago.

The net interest income of the bank was Rs 27,638 crore during the quarter compared with Rs 26,642 crore in the corresponding period a year ago, a growth of 3.74 per cent.

The rise in NII came below the Street’s expectations on account of lower-than-expected credit growth of 5.8 per cent.

The asset quality worsened sequentially amid the second wave of the Covid-19 pandemic, but was better compared with the previous year.

The gross non-performing asset ratio stood at 5.32 per cent at the end of June 2021 compared with 4.98 per cent at the end of March 2021. The same was 5.44 per cent at the end of June 2020.

‘‘In respect of asset quality also, I am satisfied with the outcome... slippages have come on account of the lockdowns. I think once the economic activity comes back, we will also be in a position to pull back the slippages,’’ SBI chairman Dinesh Khara told reporters.

Fresh slippages during the quarter were Rs 15,666 crore.

Current a/c rule

The Reserve Bank on Wednesday allowed time to banks till October 31 to implement changes on the current account front, following reports of small businesses being hit with account freezes in the last few days.

The central bank said the circular is aimed at enforcing credit discipline among borrowers as well as to facilitate better monitoring by the lenders, but made it clear that a ‘‘graded approach’’ had been prescribed to banks on the opening and operating of current accounts and cash credit/overdraft CC/OD facilities.