MUMBAI, Nov 5 (Reuters) – State Bank of India (SBI.NS), 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)
Reporting by Nupur Anand in Mumbai and Neha Arora in New Delhi; Editing by
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