State Bank of India Reports 10% Growth in Q1 Net Profit Amid Rising Provisions for Bad Loans

State-owned Bank of India reported a 10% growth in Q1 net profit to Rs 1,703 crore, influenced by increased provisions for bad loans. Core net interest income grew 6%, and deposit growth was 9.74%. Retail and agriculture loans saw over 20% growth, while MSME loans expanded by 13%.

State-owned Bank of India on Saturday reported a 10% growth in its June quarter net profit, reaching Rs 1,703 crore, as the bank dealt with increased provisions to tackle bad loans.

The previous year's net profit was Rs 1,551 crore.

Core net interest income rose 6% to Rs 6,275 crore, driven by a 16% jump in advances and a slight widening of the net interest margin to 3.07%. However, non-interest income declined to Rs 1,302 crore from Rs 1,462 crore in the same period.

Deposit growth during the quarter stood at 9.74%. Both retail and agricultural sectors saw loan growth of over 20%, and MSME book expanded by 13%. The gross non-performing assets ratio improved to 4.62%.

Provisions for bad assets surged to Rs 1,215 crore, up from Rs 776 crore last year, impacting overall earnings. The bank's overall capital adequacy ratio was 16.18%, with the core buffer level at 13.62%.