MUMBAI: State Bank of India, the country’s largest lender, reported an 8 per cent increase in net profit for the July-September quarter on Saturday, helped by healthy core lending income and robust loan growth.
The state-run lender’s net profit rose to 143.30 billion rupees ($1.72 billion) in its fiscal second quarter, from 132.65 billion rupees a year ago. That was slightly higher than analysts’ estimate of 141.83 billion rupees, according to LSEG data.
Net interest income — the difference between a bank’s interest earned and paid — rose 12.3 per cent to 395 billion rupees from 351.83 billion rupees a year ago.
Net interest margin — a key gauge of lenders’ profitability — shrank to 3.43 per cent, compared with 3.55 per cent a year ago, and 3.47 per cent in the prior quarter.
SBI’s loans grew by 12.4 per cent year-on-year, while deposits grew 11.9 per cent.
Indian banks have consistently clocked double-digit loan growth over the past few months due to rising demand for credit, aided by increased consumer spending.
The ongoing festive season is expected to further boost customer spending, helping sustain the demand for retail loans.
SBI’s gross non-performing assets (NPA) ratio was at 2.55 per cent as of end-September, compared with 2.76 per cent at the end of June. — Reuters
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