Allahabad Bank Q2 net rises 8 pc to Rs 70 cr

Allahabad Bank Q2 net rises 8 pc to Rs 70 cr

While SBI's profit fell on rising bad loans, the bank's asset quality has remarkably improved. On standalone basis, net profit plunged to Rs 1,582 crore from Rs 2,538.32 crore a year ago.

SBI, which accounts for more than a fifth of India's banking assets, said gross bad loans as a percentage of total loans fell to 9.83 per cent at the end of September from 9.97 per cent three months earlier.

Shares of SBI jumped 6.20 per cent to settle at Rs 333.20 on the BSE on Friday.

He further said fresh slippages in Q2 were at Rs 9,026 crore against Rs 26,249 crore in previous quarter.

On a consolidated basis, the bank's net profit for the quarter stood at Rs 1,952.30 crore from a loss of Rs 116.65 crore during the same quarter past year, the bank said in a filing with the Bombay Stock Exchange (BSE).

Similarly, net NPAs rose to 8.84 per cent of net loans, from 8.59 per cent.

Mumbai: State Bank on Friday reported a group net of Rs 1,840.43 crore for September quarter, boosted by the gains from the public offer in its life insurance arm and a very low base when it had a paltry Rs 20.70 crore of profit. Total income on consolidated basis rose to Rs 74,948.52 crore during the second quarter of the current fiscal, from Rs 72,918.4 crore in the same period of 2016-17. Net NPAs increased to Rs 97,896.29 crore against Rs 60,013.45 crore.

Income from non core business helped the bank making higher profits despite higher provisions and call fall in net interest margin to 2.37 per cent from 2.67 per cent a year back. The stock market reacted positively to the improvement in asset quality. The annualised slippage ratio declined to 1.85 per cent compared to 5.28 per cent during the June quarter.

Almost half of these came from the agriculture and small and medium enterprises accounts. A lot of them might be going to the National Company Law Tribunal as there are very few accounts that can be resolved outside, Kumar said.