BENGALURU: State Bank of India (SBI), the country’s largest lender by assets, posted a 52% rise in second-quarter profit on Wednesday, helped by higher income from its treasury operations and a drop in bad loan provisions.
The results come as consumer demand picks up during India’s festive season, although regulatory measures aimed at helping borrowers – including a one-time loan restructuring – are likely to slow the banking sector’s recovery.
Net profit at SBI rose to 45.74 billion rupees ($611.75 million) for the three months ended Sept. 30, from 30.12 billion rupees a year earlier. Analysts expected Mumbai-based SBI to report a profit of 33.33 billion rupees, according to Refinitiv data.
Gross bad loans as a percentage of total loans, a measure of asset quality, eased to 5.28% from 5.44% in the June quarter, after a top court directive that banks should not recognize non-performing assets until it passes orders on a case involving interest on loans under moratorium.
Income from its treasury operations jumped 22% to 228.39 billion rupees, while provisions for bad loans slid 50%.
SBI’s shares, which have fallen nearly 40% so far this year, were trading down 1.4% after the results in a weak Mumbai market.
($1 = 74.7690 Indian rupees)
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