Mumbai : Country’s largest lender SBI on Friday reported 71 per cent jump in consolidated net profit to Rs 2,152.2 crore for the December quarter of the current fiscal on account of rise in other income and drop in provisions of bad loans.
It had reported net profit of Rs 1,259.4 crore in the October-December quarter of the last fiscal.
On standalone basis, the State Bank of India reported a 134 per cent rise in net profit to Rs 2,610 crore for the quarter ended December 31, 2016-17. The bank had reported profit after tax of Rs 1,115 crore in the year-ago quarter.
“Net profit in the quarter rose 134 per cent and this was a function of the fact that in the third quarter of the financial year 2015-16, we took a maximum brunt of asset quality review (AQR) impact, and, therefore, those profits were not in line with what we are doing,” SBI chairman Arundhati Bhattacharya said in a concall with reporters. “In the quarter, the interest income has increased y-o-y by 8.07 per cent as we had lot of inflows in deposits and they have been invested quite well through our treasury. The other income showed a very healthy growth of 58.73 per cent on y-o-y basis,” she added.
In December, SBI sold 3.9 per cent stake in its subsidiary SBI Life Insurance for Rs 1,794 crore to KKR and Temasek. Other income was up 58.73 per cent to Rs 9,662 crore from Rs 6,087 crore, while the interest income grew 8.07 per cent to Rs 43,926 crore from Rs 40,644 crore. Total income was up 14.67 per cent to Rs 53,588 crore.
Although the bank’s total provision increased by 17.10 per cent to Rs 9,933 crore, the loan loss provision dropped by 5 per cent to Rs 7,245 crore from Rs 7,645 crore.
