Millennium Post

SBI logs 31% jump in Q2 net profit to Rs 3,100 crore

The bank had reported a profit after tax of Rs 2,375 crore in the year-ago period. ‘Net profit is coming from the improved numbers as our interest income has gone up. Also, our expenses are very well controlled with overall operating expenses going up by 2.23 per cent,’ SBI Chairman Arundhati Bhattacharya told reporters.

Total interest income grew 9.85 per cent to Rs 37,263 crore in the quarter from Rs 33,922 crore.
Net interest income increased by 8.36 per cent to Rs 13,275 crore in quarter from Rs 12,251 crore.
Operating expenses were up 2.23 per cent to Rs 9,423 crore from Rs 9,218 crore. Domestic net interest margins stood at 3.49 per cent from 3.48 per cent.

The bank saw improvement in the asset quality with gross NPA (non-performing assets) ratio at 4.89 per cent as against 5.64 per cent. Net NPA improved to 2.73 per cent from 2.91 per cent in the same period last year. Fresh slippages in the quarter stood at 7,700 crore as against Rs 8,365 crore in the same period last year.

Bhattacharya said the slippages were across the board. ‘In agriculture sector, we have seen a sharp spike in slippages (in Q1FY15) and that has not smoothened out. We are hopeful that in agriculture sector we will see some substantial pull back because of the instalment for debt waiver in Telengna have arleady been received and in other state it is also expected,’ she said. Recovery stood at Rs 965 crore in the period compared to Rs 1,414 crore year-ago. The bank upgraded Rs 1,670 crore of loans while it wrote off Rs 4,787 crore.

It restructured Rs 4,351 crore of advances and has a pipeline of Rs 3,000 crore going forward.
Total sale of non performing assets to asset reconstruction companies in the quarter stood at Rs 406 crore.

Shares of SBI rose by over 2 per cent, adding Rs 5,174.17 crore to its market valuation after earnings.
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