The State Bank of India, on Friday, reported 81% year-on-year increase in their net profit. The bank recorded a standalone net profit of Rs. 4189.34 crore for the quarter ending June 2020. In the same quarter last year, the bank recorded a profit of Rs. 2312.20 crore.
Moneycontrol.com also recorded a 16.1% increase in the difference between interest earned and interest expended. Therefore, the interest income for the quarter recorded to Rs. 26,641.56 crore as compared to Rs. 22,938.8 crore last year.
As per the financial results posted by the bank, the total standalone profit increased as compared to last year. The institution recorded a profit of Rs. 74,457.86 crore in the first quarter of 2020-21 as compared to Rs. 70,653.23 crore in the same quarter, last year.
The country’s biggest lender also recorded a reduction in the total Non-Performing Assets which declined to 1.8% by the end of June. The company recorded a 3.07% decline at the end of June, last year. According to India TV, the gross non-performing assets of the total advances declined to 5.44% by the end of June, this year. This is as compared to 7.53% recorded by the end of June last year.
It is also reported that the bank raised Rs. 1539.73 crore by selling 2.1% equity stake to SBI Life Insurance through an offer of sale route. The bank has also reported a slump in in fresh slippages. It was recorded to be Rs. 3,637 crore in the first quarter of the current year as opposed to Rs. 8,101 crore in the last quarter of the last financial year.
The moratorium has also been recorded at 9.5% of the total loan book at the end of June as against 23% in the last quarter of the last financial year.
According to CNBC TV18, the shares of SBI at around 2:25 PM increased by 4% to Rs. 194 on the Bombay Stock Exchange.