Shares of State Bank of India (SBI) ended 1.86% lower at ₹843.25 on the BSE on Friday after the country’s largest commercial lender released its September quarter earnings report. The board of the PSU bank also approved a proposal for raising long term bonds up ₹20,000 crore through a public issue or private placement, during the current fiscal.
SBI has clocked 28% rise in its standalone net profit at ₹18,331 crore for the second quarter ended September 30, 2024. The PSU lender had posted net profit of ₹14,330 crore in the year-ago period.
During the quarter under review, net interest income (NII) jumped by 5.37% year-over-year to ₹41,620 crore, from ₹39,500 crore in the same period last year. The interest income of the bank surged 12.32% year-on-year (YoY) to ₹1.14 lakh crore, SBI said in an exchange filing.
The operating profit of the PSU lender surged by 51% YoY to ₹29,294 crore in Q2 FY25, from ₹19,417 crore during the same period last year.
Net interest margins (NIM) of the public sector bank declined by 15 basis points (bps) YoY to 3.14% as compared to 3.29% in the same period last year. Sequentially, the NIMs dropped by 8 bps from 3.22% in a June quarter of the current fiscal. Domestic NIMs slipped to 3.27% in Q2 FY25 from 3.35% in Q1 FY25, and 3.43% in Q2 FY24.
On the asset quality front, SBI saw its gross non-performing asset (NPA) improving to 2.13% as on September 30, 2024, as against 2.21% in the previous quarter and 2.55% in the year ago period. In a similar trend, net NPA ratio dropped to 0.53% against 0.57% in Q1 FY25 and 0.64% as on September 30, 2023.
In absolute terms, the GNPA of the bank stood at ₹83,369 crore as compared to ₹84,226 crore in a quarter ago period and ₹86,974 crore in the corresponding period last year. The net NPA was at ₹ 20,294 crore in Q2FY25 versus ₹21,555 crore in Q1 FY25 and ₹21,352 crore in Q2 FY24.
Provisions of the bank increased to ₹4,506 crore from ₹3,449.4 crore in the June quarter. In the year ago period, provisions stood at ₹115 crore.
During the July-September quarter of FY25, the bank reported a credit growth of 14.93% YoY with domestic advances rising by 15.55% YoY. The capital adequacy ratio (CAR) as at the end of Q2 FY25 stood at 13.76%.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)
