SBI Profit Rises on Other Income; Assets Stable

India's largest lender, State Bank of India Ltd. reported results for the June quarter on Friday, August 8, which were higher on a year-on-year basis on the profitability front, but its core income was below expectations.

SBI reported a net profit of ₹19,160 crore, which is 15% higher than the same quarter last year, and also higher than the CNBC-TV18 poll estimate of ₹16,664 crore.

However, the profitability of the lender was aided by a higher other income component. Other income for the quarter increased to ₹17,345 crore from ₹11,162 crore last year.

Net Interest Income (NII) or core income for the quarter remained flat at ₹41,072.4, which is nearly the same as the previous year's figure of ₹41,126 crore, and marginally below the CNBC-TV18

poll figure of ₹41,650 crore.

Asset quality for the quarter remained stable. Gross NPA at the end of the June quarter stood at 1.83% from 1.82% last quarter, while Net NPA remained unchanged from the March quarter at 0.47%.

Shares of SBI fell to the day's low after the earnings announcement and are currently trading 1.2% lower at ₹795.35.