SBI’s Q2 standalone net profit slumps over 40% on year

Mumbai: State Bank of India on Monday reported an over 40 per cent year-on-year decline in its standalone net profit for the quarter ended September 30.

According to the state-run lender, its net profit in the three months through September fell to Rs 945 crore from Rs 1,582 crore in the same period of the last fiscal year.

In the first quarter of this financial year ending March, the bank had reported a net loss of Rs 4,876 crore.

“Operating profit declined by 30.47 per cent from Rs 19,999 crore in Q2FY18 to Rs 13,905 crore in Q2FY19, mainly due to lower trading income in Q2FY19 and one-time income of Rs 5,436 crore on part stake sale in SBI Life during Q2FY18,” the bank said in a statement.

However, the lender’s net interest income increased by 12.48 per cent to Rs 20,906 crore in the quarter under review from Rs 18,586 crore in Q2FY18.

Besides, provisioning for non-performing assets (NPAs), or bad loans, in the second quarter declined to Rs 10,184.50 crore, from Rs 16,715.20 crore in the same period a year ago.

Gross NPAs during July-September rose to 9.95 per cent, against 9.83 per cent in the same quarter of the last fiscal year.

Net NPA, however, fell to 4.84 per cent from 5.43 per cent in the second quarter last year.

“Recovery in written-off accounts registered a robust growth of 14.59 per cent from
Rs 1,158 crore in Q2FY18 to Rs 1,327 crore in Q2FY19,” the statement added.