Net profit of SBI jumped to Rs 4,574 crore in the September quarter, compared to Rs 3,011 crore in the same period last year.
SBI witnessed a higher interest income and a drop in bad loan provisions in Q2 FY21.
India’s largest bank — State Bank of India — registered a 52% rise in net profit in the second quarter of the current fiscal year 2020-21. The bank witnessed a higher interest income and a drop in bad loan provisions. The net profit of the bank jumped to Rs 4,574 crore in the September quarter, compared to Rs 3,011 crore in the same period last year. On a quarterly basis, the profit rose 9 per cent from Rs 4,189.3 crore reported in Q1FY21. While the net NPA fell to 1.59 per cent of total assets, compared to 2.79 per cent in the same quarter last year, the gross NPA stood at 5.28 per cent, compared to 7.19 per cent a year ago.
SBI said in a BSE filing that it has made a provision of Rs 2,214 cr for the quarter ended 30 September towards employee wage revision. Total cumulative provision on this account from 1 November 2017 till 30 September 2020 is Rs 12,470.41 crore, pending the industry level settlement for employee wage revision, it added.
SBI’s provisions fell 49 per cent year-on-year to Rs 5,619 crore in July-September. During the quarter, the bank made additional provisions worth Rs 239 crore against accounts that may be impacted by the Covid-19 pandemic. This increased the total provisions held by the bank against such accounts to Rs 3,247 crore as of 30 September.
On the other side, the total deposits rose 14.4 per cent on-year to Rs 34.7 lakh crore. and low cost current account and savings accounts deposits rose 15 per cent over the previous to Rs 15.27 lakh crore. The term deposits also grew 14 per cent. The bank also said that the credit growth in retail is coming back to pre Covid-19 levels. Meanwhile, it is to be noted that following the results, SBI’s share plunged as much as 1 per cent in the afternoon trade, however, it recovered the fall by 2:40 pm.