SBI Q2 profit jumps by 219 pc at Rs 3,012 crore, asset quality improves

Government-owned State Bank of India (SBI) on Friday reported a standalone net profit of Rs 3,012 crore for the July to September quarter (Q2 FY20), up 219 per cent from Rs 945 crore in the same quarter of previous fiscal.

The country largest lender clocked net interest income of Rs 24,600 crore, up 17.67 per cent from Rs 20,906 crore in Q2 FY19. The domestic net interest margin improved to 3.22 per cent, registering an increase of 42 basis points and 21 basis points sequentially.

At the same time, non-interest income increased to Rs 12,023 crores in Q2 FY20 from Rs 9,375 crores in Q2 FY19, an increase of 28.24 per cent year-on-year.

The operating profit increased to Rs 18,199 crores from Rs 13,905 crore, marking an increase of 30.88 per cent. Domestic credit growth at 8.43 per cent was mainly driven by retail-personal advances (18.9 per cent year-on-year), the bank said in a statement.

Significantly, the gross non-performing asset (NPA) ratio at 7.19 per cent was down 276 basis points year-on-year as well as 34 basis points sequentially. In absolute terms also, gross NPA declined.

The net NPA ratio at 2.79 per cent was down 205 basis points year-on-year as well as 28 basis points sequentially. In absolute terms also, net NPA declined.

SBI said its gross slippage at Rs 8,805 crore during Q2 FY20 declined from Rs 16,212 crore during Q1 FY20 while provision coverage ratio (PCR) improved significantly by 1,049 basis points year-on-year from 70.74 per cent as on September last year to 81.23 per cent in September 2019. Sequentially also, PCR improved by 189 basis points.

The credit cost for the quarter declined by 8 basis points year-on-year to 1.97 per cent in Q2 FY20. Cost to income ratio improved from 55.96 per cent in Q2 FY19 to 53.47 per cent in Q2 FY20.

Capital adequacy ratio improved to 13.59 per cent as on September, an increase of 98 basis points year-on-year and 70 basis points sequentially.