The country’s largest lender, State Bank of India Ltd., returned to profitability after three quarters.
Net interest income, or the core income of the bank, rose 12% year-on-year to Rs 20,905 crore, lower than the consensus forecast of Rs 21,355 crore. Normalized net interest margins widened to 2.76% from 2.67% in the previous quarter.
SBI’s asset quality improved during the quarter. Gross non-performing assets stood at 9.95% compared with 10.69% last quarter. Net NPAs stood at 4.84% versus 5.29%.
Most of the corporate slippages came from the already identified watch list, said the bank’s management. However, there was an increase in slippages in the retail and SME portfolio. The book of small and medium enterprise loans saw increased slippage as a dispensation provided by the Reserve Bank of India to these firms expired in the September-ended quarter.