SBI reports record quarterly profit as bad debt provisions decline

0


Bangalore: The State Bank of India (SBI) reported record quarterly profit on Wednesday, as provisions for bad debts fell by more than half and costs of credit fell, pushing stocks up more than 3% to a record high.

Most major Indian banks reported higher profits for the September quarter, supported by a rebound in credit demand as the economy fully reopens and low interest rates have boosted spending on automobiles and housing.

SBICredit growth was 6.17% at the end of the September quarter, driven by a 15.17% jump in personal loans to individuals, the state bank said. He had forecast an overall credit growth of 9% for the 2022 fiscal year.

Net profit rose 66.7% to Rs 7,627 crore ($ 1.02 billion) for the quarter ended Sept. 30, beating analysts’ expectations for a profit of Rs 7,182 crore, according to data from Refinitiv IBES.

Net interest income rose 10.7%, while net interest margin, a key indicator of a bank’s profitability, was 3.50%, up 16 basis points from to a year ago.

Bad debt provisions fell 52%, while the Mumbai-based bank’s gross bad debt ratio, a measure of asset quality, fell to 4.90% from 5.32% a quarter earlier . The cost of credit fell 51 basis points to 0.43%.

Private sector competitors ICICI Bank and HDFC Bank reported strong quarterly results last month thanks to strong loan growth, but Axis Bank lags its peers.

SBI Shares, which have outperformed the blue chip NSE Nifty 50 index so far this year with a jump of nearly 90%, rose 3.7% to a record Rs 540.8 after the results.

(Reuters)



Source link

Share.

Leave A Reply