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State Bank of India Profit Rose on Higher Income, Lower Provisions

By Ben Otto


State Bank of India’s quarterly profit rose 9.1% on year, helped by higher income and a fall in provisions.

The Mumbai-based lender posted consolidated net profit of 161.00 billion rupees ($1.94 billion) in its fiscal second quarter, up from INR147.52 billion a year ago, it said Saturday.

Total income for the quarter ended Sept. 30 rose 26% on year to INR1.443 trillion, it said.

On a standalone basis, net interest income rose 12% on year to INR395.00 billion, while noninterest income rose 22% to INR107.91 billion. Operating profit fell 8.1% on year on a jump in expenses.

Total provisions fell 35% on year and 40% on quarter.

It said macroeconomic indicators appear buoyant, pointing to strong bank credit growth and forecasts for fiscal-year gross domestic product to expand 6.5%. Going forward, it added that “higher-for-longer rates might impact capital flows to emerging markets, including India.”


Write to Ben Otto at ben.otto@wsj.com


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