SBI records the highest quarterly net rate of Rs.5,583 million in October-December
MUMBAI: SBI reported its highest quarterly net profit of Rs 5,583 million rupees, 41% more than the corresponding quarter of the previous year. Earnings were reinforced by a sharp jump in net interest income.
This was due in part to the recovery of Rs 11,000 million after the resolution of Essar's breach due to its sale to ArcelorMittal under the insolvency process.
The bank managed to increase its net interest income (NII) by 22% to Rs 22,779 million rupees despite the fact that the growth of loans was reduced to less than 7%. This was because the bank managed to limit the increase in interest expense to less than 1% despite growing by 10%.
“For the quarter, our net interest margin (NIM) was 3.59%. If we eliminate the impact of Essar Steel's recovery, the NIM would be 3.37%. We are keeping the cost of deposits very well and transmitting the benefit to the borrower, this is how we have managed to maintain our NIM, said the president.
Kumar said that in the current quarter, the bank anticipated the recovery of a large steel company and a textile company.