INSUBCONTINENT EXCLUSIVE:
including earnings from the sale of part-stake in its life insurance venture, while corporate lending remained a laggard.
The bank forecast
that additional provisioning and thorough loan approval processes will ensure that it stays in a strong position in the future even during
turbulent times.
Investors welcomed the news, driving the stock up 7 per cent after fresh slippages and net bad loans fell amid the
provision coverage ratio rising sharply, indicating a cleaner balance sheet.
Its net profit rose to Rs 3,012 crore from Rs 945 crore a year
ago on the back of a one-time gain from the stake sale in SBI Life Insurance
A fall in bond yields is helping treasury gains and the thrust on retail lending is aiding growth at a time when demand for loans from the
crore from its 4.5 per cent stake sale in SBI Life
It made provisions for a failed power company with an outstanding of Rs 3,800 crore and a stressed nonbanking finance company (NBFC) with a
total outstanding of Rs 7,000 crore.
Operating profit, a key measure of performance, surged 31 per cent to Rs 18,199 crore
Corporate lending resulted in a pre-tax loss of Rs 6,265 crore
Pre-tax profit from retail lending fell marginally to Rs 4,807 crore.
The asset quality of the bank surprised on the positive side with
fresh slippages coming in at Rs 8,800 crore versus Rs 10,725 crore a year ago
It was at Rs 16,212 crore at the end of the June quarter
The gross NPA ratio fell 276 basis points to 7.19 per cent against 9.95 per cent in the same period last year
The net NPA ratio was at 2.79 per cent and the overall PCR ratio increased to 81.23 per cent
