State Bank of India quarterly profit rises on loan growth, stake sale gains
Strong business and retail lending in India support State Bank of India's earnings in the quarter ended Sept. 30. The country's largest lender by assets also benefits from a one-time gain tied to the sale of part of its stake in SBI Funds Management.
Highlights
- State Bank of India reports Q2 net profit of 230.38 billion rupees ($2.43 billion), up over 14% from last year.
- Net interest income rises 14.7% to 491.43 billion rupees, aided by strong credit demand and robust growth in both business and retail loans.
- SBI gains a one-time 72.88 billion rupees from selling nearly 6% stake in SBI Funds Management, supporting quarterly earnings.
Quarterly earnings and drivers
As reported by Reuters, State Bank of India posts a net profit of 230.38 billion rupees, or $2.43 billion, for its second quarter, up more than 14% from 201.60 billion rupees a year earlier.The lender's net interest income, the difference between interest earned on loans and paid on deposits, grows 14.7% year on year to 491.43 billion rupees in the quarter ended Sept. 30.
Earnings also get a lift from a nearly 6% stake sale in SBI Funds Management, including through a pre-IPO placement. The bank records a one-time gain of 72.88 billion rupees from the transaction during the quarter.
SBI also divests a 0.65% stake in NSE during its IPO, but says profit from that sale is credited to capital reserve rather than routed through the profit and loss account.
Credit demand and banking sector support
Credit growth at Indian banks remains strong in the September quarter, driven by lending to businesses and households. Business credit stays robust, including loans to small and medium enterprises, while retail demand remains resilient with support from housing and vehicle loans.Indian banks also raise nearly $133 billion through foreign currency deposits from non-resident Indians under a special Reserve Bank of India scheme. That boosts deposit growth and gives lenders additional funds to support loan expansion.
Our earlier article on the Centre’s disinvestment programme explained that most proceeds in recent years have come through market-linked routes such as ETFs, public issues and buybacks, while strategic sales have contributed only a small share. It also highlighted why the proposed IDBI Bank stake sale stands out, with the potential to materially lift disinvestment receipts and improve the government’s ability to meet annual targets.
Latest Company News News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
