State Bank of India posts 14% rise in Q2 profit as loan book expands
SBI's standalone net profit grew 14% year-on-year to Rs 23,038 crore in Q2, driven by higher interest income, a larger loan portfolio and lower loan-loss provisions.
India's largest public-sector lender, State Bank of India (SBI), reported a 14% year-on-year increase in standalone net profit to Rs 23,038 crore for the second quarter, up from Rs 20,160 crore a year earlier. Net interest income rose 15% YoY to Rs 49,143 crore, while operating profit grew 7% to Rs 34,226 crore.
The bank's loan book expanded to Rs 52.08 lakh crore, an 18% increase from the same period last year, with domestic advances up 17% and overseas advances up 23% in rupee terms. Growth was broad-based, with agriculture advances up 23%, SME loans up 22%, retail personal advances up 14% and corporate advances rising 16.1%.
Deposits climbed 12% YoY to Rs 62.78 lakh crore, though the CASA ratio fell to 38.32% as term deposits grew faster than low-cost deposits. The domestic net interest margin improved to 3.11%, an 11-basis-point rise from the June quarter.
Asset quality continued to improve; the gross NPA ratio declined to 1.39% from 1.73% a year earlier and the net NPA ratio fell to 0.36% from 0.42%. Loan-loss provisions dropped 33% to Rs 2,759 crore, supporting profitability.
SBI also strengthened its capital base, with the capital adequacy ratio rising to 16.09% and the common equity tier-1 ratio increasing to 13.34%.
"The reduction in provisions for bad loans and the expansion of our loan book have been key drivers of this quarter's performance," a bank spokesperson said.