Mumbai: State Bank of India reported better-than-expected profit as the nation’s largest lender set aside fewer provisions for non-performing loans.
The bank’s net income jumped 52% to Rs 45.7 billion ($610 million) for the three months to September, beating the Rs 36.9 billion average estimate of 11 analysts surveyed by Bloomberg.
SBI set aside Rs 101.2 billion in provisions for the period, compared with Rs 125 billion at the end of June and Rs 131.4 billion a year ago. Its bad loan ratio fell slightly to 5.28%, compared with 5.44% at the end of June.
The lender, which accounts for almost one quarter of loans in the nation’s banking sector, is a key indicator of the health of the Indian economy that’s projected to shrink the most in four decades this financial year.
Lenders in the world’s second-most populous country — like others globally — have been hit hard after a nationwide lockdown forced businesses to close, impacting demand for credit and borrowers’ ability to repay. Still, there are early signs of consumer-led recovery with banks seeing a pick up in retail loans ahead of the country’s festive season.
-Bloomberg
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