State Bank of India (SBI), the country's largest lender, today posted a 33 per cent drop in net profit at Rs 3,072.77 crore for the quarter ended September 30 (Q2) after higher provisioning for non-performing assets (bad debts).
State Bank of India's consolidated profit was Rs 4,575.31 crore a year earlier.
Total income on a consolidated basis rose to Rs 53,118.63 crore from Rs 49,917.47 crore in the same period a year ago, SBI said in a BSE filing.
On a standalone basis, SBI's profit declined 35 per cent to Rs 2,375 crore from Rs 3,658.1 crore. Total income was Rs 37,199.92 crore as against Rs 32,953.47 crore in the same period a year ago.
This is the bank's first earnings after Arundhati Bhattacharya took over as Chairperson on October 7.
Provisions for non-performing assets (NPAs) during the quarter rose to Rs 2,645.40 crore as against Rs 1,837.19 crore in the same period of the previous financial year.
As of September 30, the bank's gross non-performing assets (NPAs) deteriorated to 5.64 per cent of gross advances, compared with 5.15 per cent year a year ago. Net NPAs rose to 2.91 per cent from 2.44 per cent.
SBI shares traded at Rs 1,724.90, up 2.95 per cent on the BSE.
SBI's net interest income in the second quarter increased 11.64 per cent to Rs 12,251 crore from Rs 10,974 crore a year earlier.
During the first half of the financial year, standalone net profit slipped 24.21 per cent to Rs 5,616 crore. Total income rose to Rs 73,392.54 crore in the first six months from Rs 65,368.95 crore in the year-ago period.
The net interest margin of the bank stood at 3.51 per cent at the end of September.
The bank's capital adequacy ratio, as per Basel III norms, stood at 11.69 per cent at the end of the quarter.
On a consolidated basis, net profit in the first six months declined 22 per cent to Rs 7,371 crore from Rs 9,450 crore. Total income rose to Rs 1,05,620.92 crore in the first six months from Rs 96,700.17 crore in the year-ago period.
Group company SBI Life Insurance posted a