State Bank of India (SBI) reported a net profit for the second straight quarter with the improvement in asset quality. The state-owned lender’s net profit during the December-end quarter stood at Rs 3,955 crores as compared to a loss of Rs 2,416 crore a year ago.
India’s largest lender in its exchange filing said that the net interest income or core income of the bank increased by 21 per cent year-on-year to Rs 22,691 crores. The bank’s also reported the other income at Rs 8,035.23 crores.
The provisions and contingencies by the State Bank Of India stood at Rs 13,971 crores during the October-December quarter, higher than the Rs 10,185 crores in provisions reported by the bank in the previous quarter. Chairman Rajnish Kumar at a press conference said that the bank had an exposure of Rs 900 crore to IL&FS at the holding company level, and made 50 per cent provisions.
The State Bank’s gross bad loans during the quarter under review stood at 8.71 per cent as against 9.95 per cent in the preceding quarter. The net non-performing assets were at 3.95 per cent against 4.84 per cent in the July-September period.