SBI Q2 profit up 67 per cent to record Rs 7,627 crore – Times of India

Mumbai: Country’s largest lender State Bank Of India posted its highest quarter Benefit 7,627 crore for the September quarter, up 67% on the back of an 11% rise in net interest income and healthy recovery from stressed accounts.
NS net interest margin There was an improvement of 16 basis points (100bps = 1 percentage point) to 3.5%, which is also reflected in the net income number, which increased from Rs 28,181 crore in the year-ago period to Rs 31,184 crore in Q2FY22.
SBI Chairman dinesh khara Said that, while all indicators point to recovery in the economy, credit demand is yet to improve. “We estimate that the capacity utilization is still at 60%. The utilization of working capital limit is around 50% but we are seeing signs of demand in some sectors and our pipeline for term loans is Rs 1.5 lakh crore,” he said. Khara said the asset quality has improved after better collection efforts.

SBI has a record profit despite making a provision of Rs 7,418 crore for the family pension scheme. The bank’s gross deposits grew 9.8% year-on-year to Rs 38.1 lakh crore, while gross advances, which include investments corporate bond and commercial paper, rose 6.2% to Rs 25.3 lakh crore.
The share of low-cost deposits – current and savings accounts – rose to 46.2% of total deposits from 45.4% a year ago. Home loans, which account for 24% of the loan book, grew 10.7 per cent. However, slippage – when the standard account is converted into a non-performing account – rose 51% to Rs 4,176 crore at the end of September, from Rs 2,756 crore a year ago.
After making provisions, the bank’s net non-performing assets (NPAs) stood at Rs 37,119 crore. Net NPAs as a percentage of total debt stood at 1.52%