State Bank of India (SBI) on Wednesday reported a net profit of Rs 7,626 crore — the highest ever for the bank — for the quarter ended September 30, 2021, up 67 per cent from Rs 4,574 crore in the corresponding quarter of last year.
The bank’s net interest income (NII) — the difference between interest earned and expended — rose 10.6 per cent to Rs 31,184 crore for the period.
According to the bank, the asset quality improved during the quarter. Gross non-performing assets (NPAs) were at 4.90 per cent (Rs 1,23,941 crore) in the September quarter, lower than 5.32 per cent in the June quarter and 5.28 per cent (Rs 1,25,862 crore) in the year-ago quarter.
SBI has incurred an exceptional item during the second quarter after it fully provisioned Rs 7,418 crore on account of change in family pension rules, even as regulator granted dispensation to amortise in 5 years. The net interest margin (NIM) of the lender during the September quarter rose 16 basis points to 3.50 per cent.
“Our overall advances growth stands at 6 per cent plus and we would certainly like to see it growing at least up to 10 per cent,” SBI Chairman Dinesh Kumar Khara said. Corporate loans were muted in the second quarter. Lending to companies would pick up as the iron and steel sector and oil companies look to expand their working capital limits on improving demand, he said.
The bank said slippages for the quarter at Rs 4,176 crore have seen a sharp fall compared to Rs 15,666 crore in the quarter ended June 2021.
Chaudhuri arrest extremely unfortunate, says SBI chief
State Bank of India Chairman Dinesh Kumar Khara has said the recent arrest of former SBI Chairman Pratip Chaudhuri was “extremely unfortunate”. “It appears that he was not given an opportunity to be heard before issuing the arrest warrant,” Khara said.
As per Khara, the bank has utmost faith in the country’s judicial system and is confident that Chaudhuri will be released unconditionally. BI