SBI posts 10% rise in Q2 profit

Yes Bank stake sale boosts net

- MAHESH NAYAK

STATE BANK OF India (SBI) on Tuesday reported a 10% rise in its net profit at £20,160 crore for the September quarter on the back of a onetime income of 4,593 crore from the sale of shares of Yes Bank.

Excluding the onetime gain, the country’s largest lender reported an ordinary set of numbers, posting an operating profit of $27,311 crore,a 7% year-on-year decline.Ona sequential basis, SBI’s net profit rose by 5.2%. Analysts had estimated a net profit of 17,387 crore.

The bank’s net interest income (NII) increased by 3.3% yo-y and 4.7% q-o-q to 42,984 crore. The lender’s net interest margin (NIM) came in at 2.97%, a contraction of 17 bps yo-y, but up 7 bps q-o-q. NIM for the domestic business was 3.09%, down 18 bps yo-yand up 7 bps q-o-q. Domestic advances rose by a strong 12.32%,with SME, agriculture, and retail segments registering double-digit growth. Asset quality remained stellar, with gross NPA at a two-decade low of 1.73%, net NPA at 0.42% and PCRat 75.79%.

The SBI tock hit an all-time high of $959 on Tuesday before closing the session at $957.05, representing a 0.72% increase.