Mumbai: State Bank of India on Friday said its net profit for the December jumped 134% from a year-ago period due to higher net interest income and other income.
The bank reported a net profit of Rs2,610 crore in the December quarter against Rs1115.34 crore a year ago. According to 18 Bloomberg analyst estimates, the bank is expected to post a net profit of Rs 2,509.70 crore.
Net interest income (NII), or the core income a bank earns by giving loans, rose 7.7% to Rs1,4751.54 crore from Rs1,3697.01 crore last year.
Other income increased 58.73% to Rs9,661.92 crore from Rs6,086.97 crore in the same period last year.
Other income includes Rs1,755 crore gains on the sale of 3.9% stake of held by SBI in the subsidiary SBI Life Insurance Company Ltd.
Provisions and contingencies rose 12.5% to Rs8,942.83 crore in the quarter from Rs7,949.38 crore a year ago. In December 2016, KKR & Co and Singapore’s Temasek Holdings bought 3.9% stake of SBI Life Insurance for Rs 1800 crore.
Gross NPAs rose marginally by 2.3% to Rs1.08 trillion at the end of the December quarter from Rs1.06 trillion in the September quarter. On year-on-year basis it jumped 48.61% from Rs7,2791.73 crore.
As a percentage of total loans, gross non-performing assets, or NPAs, stood at 7.23% at the end of the December quarter as compared to 7.14% in the previous quarter and 5.1% in the year-ago quarter.
Net NPAs were at 4.24% in the December quarter compared to 4.19% in the previous quarter and 2.89% in the same quarter last year.
Deposits rose 22.1% from a year ago to Rs 20.41 trillion while advances were up 4.1% to Rs 14.48 trillion.
At 1.1pm, State Bank of India was trading at Rs 280 on BSE, up 1.5% from previous close while India’s benchmark Sensex Index rose 0.12% to 28364.14 points.