New Delhi, November 10: Country’s largest lender State Bank of India (SBI) reported a 37.7% YoY drop in standalone net profit at Rs 1,581.55 crore for quarter ended September 30, 2017. The Bank had reported a profit of Rs 2,538.32 crore in the corresponding quarter last year. In Q1, SBI had reported a consolidated net profit of Rs 3,105.35 crore for the 3-month period ended June 30, the first quarterly result after merger of its associate subsidiaries and BMBL while it had reported a net profit of Rs 867.32 crore in the same quarter of last fiscal.
SBI’s net interest income (NII) at Rs 18,595 crore came in better than poll estimate of Rs 18,372 crore, a report by Economic Times said. It was also reported that the NII was up 5.57 per cent sequentially and 2.58 per cent on yearly basis. SBI also saw a 100.96 per cent QoQ and 57.85 per cent YoY growth in non-interest income at Rs 16,016 crore. ET reported that the net interest margin (NIM) for the merged domestic business fell to 2.59 per cent from 2.5 per cent in June quarter and 2.98 per cent in September quarter of last year.
The lender made Rs 16,175.20 crore worth of provisions for non-performing assets, which was higher than Rs 12,125.26 crore provisions it made in June quarter and Rs 7,669.66 crore provisions in the year-ago quarter. SBI had changed its accounting policy since April 1 with respect of booking of commission earned on issue of letter of credit and bank guarantees. The Bank said this led to lower income Rs 330.79 crore during the quarter.