State Bank of India reports record quarterly profit
State Bank of India, the country’s largest lender by assets, reported a record quarterly profit on Wednesday as provisions for bad loans more than halved, Reuters reported.
Most large Indian banks have reported higher profits for the September quarter, buoyed by a rebound in credit demand as the economy reopened fully and low interest rates boosted spending on automobiles and homes.
SBI’s net profit rose 66.7% to 76.27 billion rupees ($1.02 billion) for the three months ended Sept. 30, from 45.74 billion rupees a year earlier, beating analysts’ expectations for a profit of 71.82 billion rupees, according to Refinitiv IBES data.
Provisions for bad loans slid 52% to 26.99 billion rupees, while the bank’s gross bad loan ratio, a measure of asset quality, slipped to 4.90% from 5.32% a quarter earlier.
SBI shares have outperformed the blue-chip NSE Nifty 50 index so far this year with a near 90% jump, Reuters reported.