SBI reports Rs 2,312 crore net profit in Q1, asset quality slips

The gross non-performing asset ratio fell to 7.53 per cent of total advances for the current quarter, as against 10.69 per cent in the year-ago quarter

State Bank of India (SBI) on Friday reported a net profit of Rs 2,312 crore for the June quarter, as against a loss of Rs 4,876 crore in the year-ago period. This was on the back of healthy credit growth in both the retail and corporate segments. However, the deterioration in asset quality surprised analysts.

The consensus estimate of analysts was for the lender to report a net profit of Rs 4,106 crore for the quarter.

“SBI reported results below estimates on both the asset quality and the profitability fronts," said ICICI Securities in a note. The asset quality "surprised