SBI net profit down 38% on higher provisioning

SBI share price gains 6%, as asset quality improves

State Bank of India’s (SBI’s) standalone net profit declined 37.9 per cent to Rs 1,581 crore in the second quarter (Q2) of FY18, from Rs 2,538 crore in the same period last year, due to higher provisioning.

Slippages were under control, as gross non-performing assets (GNPA) declined sequentially from Rs 188,068 crore to Rs 186,115 crore at the end of Q2FY18. GNPA stood at Rs 1,05,782 crore at the end of Q2 FY17.  The stock market reacted positively to the improvement in asset quality. Share price gained 6.2 per cent to Rs 333.2 per share on the BSE.

SBI Chairman Rajnish Kumar