SBI Reports 14 Percent Rise in Net Profit for Second Quarter

State Bank of India announced its financial results for the second quarter, posting a standalone net profit of Rs 23,038 crore, marking a 14 percent increase compared to the same period in the previous year. The performance exceeded the average expectations of analysts surveyed by ET NOW, who had projected a net profit of Rs 22,619 crore.

The institution's net interest income also saw substantial growth, rising 14.3 percent year-over-year to reach Rs 49,143 crore, compared to Rs 42,984 crore in the prior year. This figure similarly outperformed market forecasts, which had anticipated Rs 48,570 crore.

Asset quality metrics showed improvement during the quarter. The gross non-performing assets ratio improved to 1.39 percent, down from 1.47 percent in the previous quarter and 1.73 percent from a year ago. Additionally, the net non-performing assets ratio declined to 0.36 percent, showing progress from 0.38 percent in the preceding quarter and 0.42 percent in the previous year.

Total provisions dropped to Rs 4,217 crore from Rs 5,047 crore recorded in the previous quarter. Meanwhile, operating profit experienced a minor decline of 1.3 percent year-over-year, coming in at Rs 26,937 crore compared to Rs 27,311 crore.

Other income fell by 23.8 percent year-over-year to stand at Rs 11,777 crore, down from Rs 15,462 crore. However, the bank recorded an exceptional gain of Rs 7,288 crore stemming from the sale of a stake in SBI Funds.

Regarding key margin indicators, the domestic net interest margin was reported at 3.11 percent, while the whole bank net interest margin stood at 2.94 percent. The slippage ratio was recorded at 0.50 percent for the quarter.