SBI has posted a net profit of Rs 5583 crore in the third quarter ended December 31. The bank had reported a net profit of 3954.81 crore in the corresponding period of the previous year.
State Bank of India share price rose 3.5 per cent to Rs 321.60 apiece on BSE to hit day’s high after the bank announced its December quarterly earnings. The bank has posted a net profit of Rs 5583 crore in the third quarter ended December 31. The bank had reported a net profit of 3954.81 crore in the corresponding period of the previous year. The net interest income (NII) of the bank during the quarter increased by 22.42 per cent on-year to Rs 27,779 crore from Rs 22,691 crore in a year-ago period. It posted loan growth of 7.4 per cent year-on-year. However, the gross NPA of the bank stood at 6.94 per cent as compared to 7.19 per cent in the third quarter of the previous year.
Similarly, the bank reported a net NPA at 2.65 per cent as against 2.79 per cent in the last year. Around 2 PM, SBI was trading 2.19 per cent higher at Rs 317.20 apiece on BSE. It is the biggest quarterly profit by SBI in at least 15 years, according to a Reuters news report. The gross slippages of the bank in December quarter stood at Rs 20,098 crore, compared to Rs 9,162 crore on a quarter-on-quarter basis.
As the gross NPA and net NPA have been reduced by 25 bps and 14 bps, respectively, SBI’s December quarter earnings indicate an improvement in the bank’s asset quality. While, Capital Adequacy Ratio (CAR) of the bank improved by 96 bps to 13.73 per cent as on December 31, 2019, The operating profit surged 44.34 per cent to Rs 18,223 crore.