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5 Nov, 2022 13:34

India's largest lender reaps record profit

The State Bank of India’s net profit surged by more than 70% on loan growth
India's largest lender reaps record profit

The State Bank of India (SBI), the country’s biggest lender, has seen a surge in quarterly net profit, the bank said in a press release on Saturday.

According to the statement, net profit soared by 73.93% year-on-year in June-September, to its “highest ever” figure of 132.65 billion rupees ($1.6 billion).

SBI’s net interest income also rose by 13% to 351.82 billion rupees, while operating profit increased by 16.82% year-on-year.

The bank’s asset quality has improved, with gross non-performing assets (NPA) falling to 3.52% from 3.91% in the previous quarter, while loan growth spiked by 19.93%.

Overall, according to data from the Indian Central Bank, national lenders saw a decade-high 17.95% year-on-year surge in credit demand in October.

Media reports say five of India’s six biggest banks have reported a rise in earnings for the latest quarter due to increased income from loans.

However, deposit growth in the country’s banks lagged behind at 9.63% during this period, and analysts warn it may lead to tighter liquidity in the banking system unless the situation does not change.

For more stories on economy & finance visit RT's business section

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