SBI’s Q2 net profit surges 67% YoY to record Rs 7,627 crore

SBI’s Q2 net profit surges 67% YoY to record Rs 7,627 crore

Country’s largest lender State Bank of India (SBI) on Wednesday reported a 67 per cent year-on-year (YoY) jump in net profit at Rs 7,627 crore in the July-September quarter (Q2FY22), aided by lower provisions. This is the highest ever quarterly net profit for the bank.

Net profit for the quarter beat street expectations as analysts had estimated a profit of Rs 7,450 crore. In the year-ago period, the bank had posted a net profit of Rs 4,574 crore.

Net interest income of the lender jumped 10.6 per cent YoY to Rs 31,184 crore during the quarter under review. Domestic net interest margin of the lender stood at 3.50 per cent in Q2FY22, up 16 bps YoY.

Asset quality of the lender improved on both sequential and annual basis as gross NPAs stood at 4.9 per cent at the end of September quarter as compared to 5.32 per cent in the preceding quarter and 5.28 per cent in the year-ago period. Net NPAs also came in lower at 1.52 per cent.

Its domestic advances grew by 4.61 per cent YoY and overall advances grew by 6.17 per cent, mainly driven by personal retail advances and foreign office advances. Home loans, which constitute 24 per cent of the bank’s domestic advances, grew by 10.74 per cent YoY. Total deposits of the lender grew at 9.77 per cent YoY.

“Our overall advances growth stands at 6% plus and we would certainly like to see it growing at least up to 10%,” Chairman Dinesh Kumar Khara said on a media call.

Corporate loans were muted in the second quarter, Khara said, adding that lending to would pick up as the iron and steel sector and oil look to expand their working capital limits on improving demand.

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