Country's largest lender State Bank of India on Friday reported 31 per cent jump in its net profit at Rs3,100 crore in the September quarter, on account of improvement in interest income and tight control on expenses.
The bank had reported a profit after tax of Rs2,375 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 Rs37,263 crore in the quarter from Rs33,922 crore.
Net interest income increased by 8.36 per cent to Rs13,275 crore in quarter from Rs12,251 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 Rs8,365 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 Rs965 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 Rs4,787 crore.