Its gross bad-loan ratio narrowed to 4.15 percent from 4.29 percent in June, in contrast to rivals Bank of Baroda and ICICI Bank Ltd., which reported increased ratios for the September quarter.
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Punjab National Bank on Friday reported 8% rise in standalone net profit to Rs 621.03 crore for the second quarter ended September 30, 2015-16.
According to the bank, the total income increased from Rs. 13,020.46 crore for the quarter ended September 30, 2014 to Rs. 13,701.93 crore for the quarter ended September 30, 2015.
Its non-interest income increased 35.58% to Rs 6,197 crore with major contributors being the profit on sale of investments and recovery in two accounts. Gross advances grew 10.31 per cent to Rs 13,70,701 crore.
Overall, SBI’s results were good and thanks to the earnings beat analysts may revise upwards their full year estimates thereby aiding valuations.
“This is a very decidedly taken decision to strengthen the provision coverage ratio; the bank could have otherwise made huge profits”. Retail advances rose to Rs 2,91,043 crore from Rs 2,49,259 crore a year ago.
In absolute terms, the bank added Rs. 413 crore to gross bad loans in July-September.
Aurobindo Pharma shares closed at Rs 813.25 apiece on BSE, down 0.87 per cent from previous close. During the quarter, the bank was able to refinance big power projects like Adani Power and Udipi Power.
Domestic net interest margins stood at 3.32 per cent as against 3.49 per cent, while whole bank NIM stood at 3.01 per cent, up 2 basis points year-on-year. Interest income in the period rose nine per cent from a year earlier, the lender’s filing showed.
The growth in its bottomline came on the back of the lender repatriating profits of Rs 485 crore from overseas along with higher treasury income and a growth in loan book.
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Despite continuing global economic slowdown, SRF, a multi-business entity engaged in the manufacture of chemical based industrial intermediates, posted 28 percent growth in its net profit after tax (PAT) to Rs. Also, since it was higher than the roughly 9.5 per cent industry growth, it indicates market share gains for SBI.
