SBI profit up 12.5% at ₹19k cr on other income

THE State Bank of India on Friday reported a 12.5% year-on-year rise in net profit to ₹19,160 crore in the June quarter, primarily driven by the gains from treasury operations and better asset quality.

- ENS ECONOMIC BUREAU @ Mumbai

However, the country's largest lender's margin has been hit by the crimped yields on advances in a falling interest rate regime. The total income of the bank rose 10.31% to ₹1.35 lakh crore in the reporting period, while the key net interest income stood nearly flat at ₹41,072 crore, down 13 bps YoY as the key profitability gauge net interest margin (overall) slipped 32 bps to 2.90% while the domestic margin fell 33 bps to 3.02%.

This has impacted the net interest margin and the yields on advances but a 55.40% surge in other income to ₹17,346 crore has come cushioning this.