The country’s largest lender State Bank of India (SBI) turned the corner, registering a standalone net profit of Rs 2,312 crore for the quarter ended June 2019, against a net loss of Rs 4,875 crore during the same period a year before. Net profit was driven largely by higher noninterest income, reduction in bad loans and lower provisions. SBI’s total income surged to Rs 70,653 crore compared to Rs 65,493 crore.
The bank’s asset quality improved with gross NPAs (nonperforming assets) declining to 7.53 percent of total advances from 10.69 percent last year. In actual numbers, gross NPAs declined 21 percent at `1.68 lakh crore, while net NPAs dropped nearly 2 percent from 5.29 percent of total advances as on June 2018 to 3.07 percent as on June 2019.
ANDHRA BANK BACK IN BLACK IN JUNE QUARTER
New Delhi: State-owned Andhra Bank returned to profit in the first quarter ended June 30, 2019, by recording a standalone net profit of I51.56 crore as provisions for bad loans came down. The bank had registered a net loss of I539.83 crore in the same quarter last year
NESTLE PROFIT RISES TO L437.84 CRORE
New Delhi: On Friday, FMCG main Nestle India recorded a 10.83 percent rise in net profit to I437.84 crore for the second quarter ended June 30, driven by development in revenues and quantity. The company had reported a profit of I395.03 crore in the corresponding period of 2017-18.
The reduction in bad loans implies lesser provisions and contingencies, which fell drastically by 54 percent to `9,449 crore from Rs 19,499 crore last year. Even on a sequential basis, provisions plunged 43 percent from Rs 16,673 crore. According to SBI chairman Rajnish Kumar, slippages in agriculture were high during the quarter. “We are still hopeful that by March 2020, we will bring slippage ratio to 2 percent or below,” he explained.
Writer: Sakshi Gupta