Net profit reached 84.32 billion rupees ($1.13 billion) for the quarter ended Dec. 31, from 51.96 billion rupees a year earlier, beating analysts’ expectations of a profit of 80.94 billion rupees, according to Refinitiv IBES data.
Most Indian banks reported higher profits for the December quarter, thanks to improved lending in the final months of the year as coronavirus restrictions were lifted.
SBI said its domestic lending rose 6.47% year-on-year in the quarter, driven by strong growth in retail lending.
Total bad debt provisions and contingencies decreased by 33% year-on-year to Rs 69.74 billion.
The bank’s gross bad debt ratio, a measure of asset quality, fell to 4.5% from 4.90% a quarter earlier.
Net interest income rose 6.5% year-on-year, while net interest margin, a key indicator of a bank’s profitability, was 3.4%, up 6 basis points compared to the previous year.
($1 = 74.6400 Indian rupees)