SBI Q2 net profits dips 37.7 per cent, NII increases 5.57 per cent

Contrary to market expectations, India’s largest lender State Bank of India posted a 37.7 per cent year-on-year decline in its profit for the second quarter of FY18 on Friday. The net profit of the bank stood at Rs 1,581.55 crore for the corresponding quarter, as against Rs. 2,538.32 crore in the same quarter of the previous year. 
 
The state-run lender’s increased provisions largely affected the profits of the bank. The lender made provisions worth Rs 16,175.20 crore in the second quarter of FY17, as against Rs. 12,125.26 crore provisions in the previous quarter and Rs 7,669.66 crore provisions in the second quarter of the previous fiscal year. 
 
However, the bank’s net interest income improved, increasing by 5.57 per cent, as compared to the previous quarter and by 2.58 per cent on a yearly basis. On the other hand, the non-interest income of the bank grew by 100.96 per cent on a quarterly basis and by 57.85 per cent on a year-on-year basis. The total non-interest income of the bank stood at Rs 16,016 crore for the second quarter of FY18. 
 
On the stock market, the stock closed at Rs 333.20 on the BSE, up by 6.20 per cent  on Friday. The stock had hit an intra-day high of Rs 338.15 and an intra-day low of Rs 309.60 on the BSE. Meanwhile, S&P BSE Sensex closed at 33,314.56 level, up by 0.19 per cent and NSE Nifty50 closed at 10,321.75 level, a gain of 0.12 per cent on Friday.