State Bank of India's profit jumps 74% to record high

MUMBAI-State Bank of India, the country's largest lender, reported a 74% surge in quarterly net profit on Saturday, driven by higher loan growth and improving asset quality.

Net profit rose to a record 132.64 billion Indian rupees ($1.62 billion) in the June-September period, beating analysts' forecasts 105.30 billion rupees, according to Refinitiv IBES data.

Net interest income, the difference between interest earned and paid out, rose 13% to 351.82 billion rupees. Advances grew 18.15%, while deposits rose 9.99%.

Indian banks saw a 17.95% on-year jump in credit growth for the fortnight through Oct. 7, central bank data showed, and market participants expect growth to accelerate in coming months. Deposit growth lagged at 9.63% during this period.

SBI's core net interest margin, a key indicator of profitability, improved to 3.55% from 3.50% a year earlier.

The lender's asset quality also improved, with gross non-performing assets (NPA) falling to 3.52% from 3.91% in the previous three months. Net NPA also improved, falling 20 basis points.

Total provisions declined to 30.39 billion rupees in June-September from 43.92 billion rupees the previous quarter. The bank's capital adequacy ratio stood at 13.51%, up from 13.35% a year earlier. ($1 = 81.9620 Indian rupees). (ZAWYA)

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