State Bank of India (SBI) on Monday beat analysts' expectations, reporting a net profit of 40.3 percent in the second quarter as bad loan provisions fell and asset quality improved.
SBI reported a net profit of Rs 944.9 crore in the quarter ended September 30 compared to a profit of Rs 1,581.5 crore in the same period last year. A CNBC TV18 poll estimated a loss of Rs 224.7 crore for the bank.
The lender posted a surprise loss of Rs 4,876 crore in the June quarter.
The lender's gross bad loans as a percentage of total loans stood at 9.95 percent in the second quarter as against 10.69 percent in the last quarter.
Its total income (consolidated) rose to Rs 79,302.72 crore in the quarter under review, compared to Rs 74,948.51 crore in the year-ago period, the bank said in a regulatory filing.
The bank's asset quality improved, with gross bad loans as a percentage of total loans at 9.95 percent at Sept-end, compared with 10.69 percent in the previous quarter. It was still slightly higher than 9.83 percent in the year-ago period.
SBI's gross slippages were at Rs 10,888 crore in the second quarter as compared at Rs 14,349 crore in the last quarter.
The bank’s credit growth stood at 11.1 percent on a yearly basis, the statement read.
Shares of SBI rose 3.5 percent to trade at Rs 295.40 per share at 1527 IST on the BSE Sensex.
With inputs from agencies.