Shares of State Bank of India touched a day high of Rs 1,006.55 on 3 November, then closed lower on the day it posted a 14.3% profit rise.

India’s largest lender earned a standalone net profit of Rs 23,038 crore in the September quarter, up from Rs 20,160 crore a year ago.

Standalone covers the bank’s own books, without its subsidiaries. A one-off gain played a big part.

SBI booked exceptional gains of about Rs 7,289 crore, which include a stake sale in its fund management arm.

Last year’s one-off was Rs 4,593 crore. Look past the one-offs and the picture is softer.

Operating profit, which is what the bank earns before setting money aside for bad loans and tax, slipped 1.4% to Rs 26,937 crore from Rs 27,311 crore a year earlier, so the bank’s day-to-day earnings did not grow.

Core lending did well. Net interest income, the gap between what SBI earns on loans and pays on deposits, rose 14.7% to Rs 49,143 crore from Rs 42,847 crore.

Other income, which includes fees, fell 23.8% to Rs 11,777 crore.

Money set aside for bad loans and other risks fell 21.9% to Rs 4,217 crore, which lifted the bottom line. Bad loans also shrank as a share of lending.

The gross bad-loan ratio fell to 1.39% from 1.73% a year ago, meaning about Rs 1.39 of every Rs 100 lent has turned sour. The net ratio improved to 0.36% from 0.42%.

The wider SBI group, which includes its subsidiaries, reported a 20% rise in profit to Rs 25,361 crore, from Rs 21,137 crore a year earlier.

The bank’s own profit was Rs 21,121 crore in the June quarter. Its latest dividend, for shareholders on its books in May, was Rs 17.35 a share.

The stock ended the day at Rs 970.25 on NSE, down 1.70% from the previous close of Rs 987.00.

After opening at Rs 992.70, it touched Rs 1,006.55, which was up by 1.98%, before sliding to a low of Rs 961.20.

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