State Bank of India (SBI) reported a 12% increase in net profit for the June quarter, reaching Rs 19,160 crore, surpassing estimates of Rs 17,166 crore as per a Moneycontrol poll. This marked an improvement from Rs 17,035 crore during the same period last year. Total income rose 10.31% to Rs 1.35 lakh crore, up from Rs 1.22 lakh crore.
Net interest income showed a slight decline, standing at Rs 41,072 crore, down by 0.13% year-on-year, as the net interest margin (NIM) decreased by 32 basis points to 2.90%. However, operating profit saw a significant increase of 15.49%, bolstered by a 55.40% rise in non-interest income, totaling Rs 17,346 crore.
The bank’s asset quality strengthened, with the gross non-performing assets (NPA) ratio improving to 1.83%, down from 2.21% a year earlier. SBI’s capital position remains robust, showcasing a capital adequacy ratio of 14.63% and a common equity tier-1 (CET-1) ratio of 11.10% as of June 30. As of August 8, SBI shares were trading 0.4% lower at Rs 802 per share.