SBI profit edges up, margins shrink as loans surge
State Bank of India, the nation’s biggest lending institution, said after-tax earnings climbed 10 percent during the three months that ended in September. The Mumbai-based lender posted standalone profits of 20,159.67 crore rupees compared with 18,331.44 crore rupees during the matching period one year earlier, helped by expanding loan portfolios and better credit quality.
Total lending increased 12.73 percent from a year ago, while domestic advances gained 12.32 percent. Consumer loans expanded 15.09 percent, powered by gains in small business credit, agricultural financing and personal borrowing. Customer deposits rose 9.27 percent, and checking plus savings accounts grew 8.06 percent to represent 39.63 percent of total deposits.
Asset quality showed continued strength, with gross bad loans falling to 1.73 percent from 2.13 percent twelve months prior. Net troubled assets dropped to 0.42 percent. The bank’s domestic interest margin narrowed to 3.09 percent from 3.27 percent, while net interest income edged up 3.28 percent to 42,984 crore rupees. Operating profits reached 31,904 crore rupees.
