New Delhi, Nov 4 (PTI) The country's largest lender State Bank of India (SBI) on Wednesday reported a 55 per cent increase in consolidated net profit at Rs 5,245.88 crore for the second quarter ended September 30 on account of decline in bad loans.
The bank's net profit stood at Rs 3,375.40 crore in July-September quarter of the previous fiscal, SBI said in a regulatory filing.
Total income rose to Rs 95,373.50 crore in the quarter under review as compared with Rs 89,347.91 crore a year ago.
On a standalone basis, the bank's net profit rose nearly 52 per cent to Rs 4,574.16 crore as against Rs 3,011.73 crore.
The lender's standalone total income rose to Rs 75,341.80 crore in the July-September quarter from Rs 72,850.78 crore a year ago.
The bank's asset quality also improved, with gross non-performing assets (NPAs) declining to 5.28 per cent of the gross advances as on September 30, 2020 from 7.19 per cent a year ago.
Net NPAs or bad loans also declined to 1.59 per cent of the advances from 2.79 per cent a year ago.
As a result, gross NPAs in absolute terms reduced to Rs 1.25 lakh crore from Rs 1.61 lakh crore in the year-ago quarter.
Similarly, provision for bad loans declined to Rs 5,619.28 crore as compared to Rs 11,396.87 crore in the same quarter a year ago.
SBI, in a statement, said but for the Supreme Court's interim order dated September 3 on classification of NPAs, the gross NPAs and net NPAs would have been at 5.88 per cent and 2.08 per cent, respectively.
Operating profit excluding exceptional items increased to Rs 16,460 crore from Rs 14,714 crore in the same quarter a year ago, registering an increase of 11.86 per cent, the statement said.
Net interest income rose 15 per cent to Rs 28,181 crore during the quarter as against Rs 24,600 crore a year ago.
Gross slippage declined to Rs 2,756 crore during the quarter under review from Rs 8,805 crore in the year-ago period.
Provision coverage ratio increased significantly to 88.19 per cent as on September 30, 2020 from 81.23 per cent at the end of second quarter of last financial year.
Net interest margin improved to 3.34 per cent from 3.22 per cent at the end of second quarter of previous fiscal. PTI DP RVK