SBI Q2 Results: Net profit jumps 67% to Rs 7,627 cr, asset quality improves

Total income increases 3% to Rs 77,689 cr

Country's largest public lender, State Bank of India (SBI), on Wednesday reported a 67% rise in net profit at Rs 7,627 crore for the July-September quarter of fiscal year 2021-22 as against Rs 4,574 crore in the corresponding period of last year. This, as provisions for bad loans more than halved.

Total income increased 3% at Rs 77,689 crore as against Rs 75,342 crore in year-ago period. Provisions for bad loans slid 52% to Rs 2,699 crore, while the bank's gross bad loan ratio, a measure of asset quality, slipped to 4.90% from 5.32% a quarter earlier.

Most large Indian banks have reported higher profits for the September quarter, buoyed by a rebound in credit demand as the economy reopened fully and low interest rates boosted spending on automobiles and homes.

"Our overall advances growth stands at 6% plus and we would certainly like to see it growing at least up to 10%," SBI Chairman Dinesh Kumar Khara said on a media call.

Corporate loans were muted in the second quarter, Khara said, adding that lending to companies would pick up as the iron and steel sector and oil companies look to expand their working capital limits on improving demand.

SBI's credit growth in the quarter was driven by a 15.17% jump in personal retail loans.

SBI shares, which have outperformed the blue-chip NSE Nifty 50 index so far this year with a near 90% jump, rose as much as 4% to a record high after the results before settling 1.1% higher.