India's largest lender reaps record profit

The State Bank of India has reported a more than 70% increase in quarterly net profit due to loan growth and improved asset quality Read Full Article at RT.com

India's largest lender reaps record profit

The State Bank of India’s net profit surges by more than 70% on loan growth and improved asset quality

The State Bank of India (SBI), the country’s biggest lender, has seen an almost 74% surge in quarterly net profit, the bank said in a press release on Saturday.

According to the statement, net profit soared by 73.93% year-on-year in June-September, to its “highest ever” figure of 132.65 billion rupees ($1.6 billion).

SBI’s net interest income also rose by 13% to 351.82 billion rupees, while operating profit increased by 16.82% year-on-year.

The bank’s asset quality has improved, with gross non-performing assets (NPA) falling to 3.52% from 3.91% in the previous quarter, while loan growth spiked by 19.93%.

Overall, according data from the Indian Central Bank, national lenders saw a decade-high 17.95% year-on-year surge in credit demand in October.

Media reports say five of India’s six biggest banks have reported a rise in earnings for the latest quarter due to increased income from loans.

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However, deposit growth in the country’s banks lagged behind at 9.63% during this period, and analysts warn it may lead to tighter liquidity in the banking system unless the situation does not change.

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