The bank attributed the growth in net profit to robust growth in sale of investments and commissions. SBI’s total income in second quarter rose to Rs 13,658.22 crore from Rs 10,237 crore in the second quarter of last fiscal.
During the reporting quarter, the bank’s interest income grew to Rs 11,616.28 crore as against Rs 8,799.62 crore in the corresponding period during last fiscal. The interest expenses in second quarter rose sharply by 49 per cent to Rs 7,853.36 crore. As a consequence, the net interest income (NII) grew by just 6.28 per cent to Rs 3,762.64 crore in this quarter as against Rs 3,540.30 crore in the same period a year ago.

Deposit growth
The other income comprising items like sale of investments and commissions rose sharply by 42 per cent to Rs 2,041.94 crore from Rs 1,437.69 crore.

The bank’s deposits grew 23.31 per cent to Rs 4,84,114 crore from Rs 3,92,615 crore. However, share of low cost deposits (savings and current accounts) ratio slumped to 39.45 per cent due to higher mobilisation of term deposits.

The cost of funds moved up to 5.48 per cent from 4.51 per cent because of higher term deposit mobilisation and and the higher interest rates.