SBI shares touched an intraday high of Rs 1,124.50 on the NSE Friday after the bank posted a strong 10% rise in June-quarter profit.

Net profit for the quarter came in at Rs 21,121 crore, up 10.2% from Rs 19,160 crore a year earlier. That is a solid number for a bank of SBI’s size, and investors responded well to it.

The main driver was net interest income, which is essentially the difference between what the bank earns on loans and what it pays out on deposits. This figure rose nearly 15% year on year to Rs 46,992 crore.

Loan growth also stayed strong. Gross advances rose 18.6% year on year, and the bank’s total business, meaning deposits and loans combined, crossed the Rs 110 lakh crore mark for the first time. Total deposits grew close to 10% to over Rs 60 lakh crore.

Asset quality improved too. The gross NPA ratio, which shows the share of loans that have turned bad, eased slightly to 1.47% from 1.49% in the previous quarter. The net NPA ratio also ticked down to 0.38%.

The bank’s capital position strengthened as well, with its capital adequacy ratio rising to 15.67% from 14.63% a year ago. Return on assets stood at 1.11%, while return on equity came in at 17.87%.

By the end of the trading session, SBI shares settled at Rs 1,097.20, up 1.12% for the day.

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