The country’s largest lender State Bank of India reported 81 per cent jump in its profit after tax to Rs 4,189 crore for the first quarter ended June 30, as against Rs 2,312 crore in the year-ago period.
The rise in profit was on account of one-off gains of Rs 1,539.73 crore on sale of certain portion of investment in the lender’s life insurance subsidiary - SBI Life.
With this, the bank now holds 55.50 per cent in its life insurance arm, down from 57.60 per cent earlier.
“In the third successive quarter, SBI has delivered a strong performance. The net profit as compared to the corresponding period of last year has gone up by 81 per cent.
“It is safe to presume that we are asymptomatic and that is not a guarantee of what will happen in the future like any other individual,” its chairman Rajnish Kumar told reporters on Friday.
The profit was also helped by a healthy 16.14 per cent growth in its net interest income at Rs 26,642 crore during the quarter.
Domestic net interest margin (NIM) improved to 3.24 per cent, registering an increase of 23 bps year-on-year.
Gross non-performing assets (NPAs) stood at 5.44 per cent as against 7.53 per cent. Net NPAs were at 1.86 per cent compared to 3.07 per cent.