The results come as consumer demand recovers during the Indian holiday season, although regulatory measures aimed at helping borrowers, including a one-time loan restructuring, are likely to slow the recovery of the banking sector.
Net profit in SBI increased to Rs 4,574 crore ($ 611.75 million) during the three months ending September 30, from Rs 3,012 crore a year earlier. Analysts had expected Mumbai-based SBI to report a profit of Rs 3,333 crore, according to data from Refinitiv.
Gross bad loans as a percentage of total loans, a measure of asset quality, fell to 5.28% from 5.44% in the June quarter, following a high court directive that banks should not recognize bad assets. until you issue orders in a case interest on delinquent loans.
Revenue from its treasury operations increased 22% to Rs 22,839 crore, while provisions for bad loans slipped 50%.
SBI shares, which have fallen nearly 40% so far this year, were trading 1.4% lower after results in a weak Mumbai market.
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