SBI net profit stagnant at ₹17K cr

Q1 FY25 RESUTS Provisions against aging loans grew, rising fund cost that jumped 23.4% crimped margins THE country's The State Bank of India, country's largest lender, has reported a 0.89% rise in net income year-on-year to ₹17,035 crore in the the June quarter, but fell by a steep 17.7% sequentially, as provisions against aging loans grew while the rising fund cost that jumped 23.4% crimped margins.

- BENN KOCHUVEEDAN

Chairman Dinesh Kumar Khara told reporters here on Saturday that the net interest margins fell 12 bps to 3.35% as the bank has been paying more for its funds by way of fixed deposits. But he said that the bank will be able to maintain the margins at 3.23.4% range in the reminder of the fiscal.

The loan loss provisions rose by 70.4% to ₹4,518 crore, from ₹2,652 crore a year ago, despite the bank reporting improvements in overall asset quality with the gross bad loans ratio improving by 55 bps to 2.21 and the net bad loans ratio declining by 14 bps to 0.57 in the reporting period. Both these ratios are the best in over past ten years, Khara said.