Mumbai: SBI The largest lender in the country posted the highest quarterly profit Rs 7,627 Crore for the September quarter, up 67% at the back of a 11% increase in clean interest income and stressful recovery.
The net interest margin increased by 16 basis points (100bps = 1 percentage point) to 3.5%, which was also reflected in the amount of net income, which rose to Rs 31,184 Crore at Q2FY22 from RS 28,181 Crore in the period last year.
Chairman of SBI Dinesh Khara said that, while all indicators point to economic improvement, credit demand has not increased.
“Our estimate is that capacity utilization is still at 60%.
The use of working capital limits is around 50%, but we see signs of demand in some sectors and our pipes for the loan period is Rs 1.5 lakh crore,” he said.
Khara added that the quality of assets increased after better collection efforts.
SBI profit record despite making provisions of Rs 7,418 Crore for the family pension scheme.
Bank gross deposits rose 9.8% year-on-year to rs 38.1 lakh crore, while gross progress, including investment in corporate bonds and commercial papers, up 6.2% to the 25.3 lakh rs crore.
Part of low-cost deposits – current accounts and savings – increased to 46.2% of total deposits from 45.4% a year ago.
Home loans, which are 24% of loan books, up 10.7%.
However, Slippage – when a standard account changes to non-performance – up 51% in September-end to RS 4,176 Crore from RS 2,756 Crore a year ago.
After making provisions, the Net Net Acet (NPA) of the Bank reached Rs 37,119 Crore.
NBA Net as a percentage of total loans reaching 1.52%