State Bank of India (SBI), India’s largest lender, on Friday, reported a 41.2% year-on-year jump in its October-December net profit to Rs 5,583 crore, led by higher interest and other income. While the bank’s interest income rose 8.6% year-on-year (y-o-y) to Rs 67,692 crore, its other income increased 13.3% to Rs 9,106 crore during the reporting quarter.
SBI’s net profit was lower than the Rs 5,871.6 crore estimated by a Bloomberg poll of 13 analysts. The bank’s net interest income, the difference between interest earned and expended, stood at Rs 27,778.79, up 22.4% from the same period last year.
The bank’s asset quality improved in the third quarter of FY20, with gross non-performing assets (NPAs) as a percentage of total advances at 6.94%, down 177 basis points (bps) y-o-y, and 25 bps sequentially. In absolute terms, the bank’s gross NPAs declined 15% y-o-y to Rs 1.59 trillion. It’s capital adequacy ratio under Basel III norms stood at 13.73%, up 96 bps y-o-y and 14 bps from a quarter ago.
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