State Bank of India (SBI), India’s largest bank, reported an 8% increase in its second-quarter net profit to ₹14,330 crore, driven by higher net interest income, non-interest income, and lower provisions.
SBI’s net interest income rose 12% to ₹39,500 crore, while non-interest income increased 22% to ₹10,791 crore.
The bank’s loan loss provisions declined 10% to ₹1,815 crore, as it received provision write-backs on standard assets and other provisions.
SBI’s gross advances grew 12.39% to ₹34,11,252 crore, and the bank expects credit growth of 13-14% in FY24.
Chairman Dinesh Kumar Khara allayed fears regarding growth in the unsecured loans portfolio, emphasizing that the gross non-performing assets ratio in this portfolio was only 0.69%. He also said that 94% of these loans have been given to government sector employees and the rest to employees of highly rated corporates.
Overall, SBI’s net non-performing assets ratio improved to 2.55% from 3.52% a year ago, its lowest level in more than 10 years.