SBI shares jump nearly 7% after strong second-quarter earnings

Shares of State Bank Of India jumped nearly 7 per cent in early trade on Thursday after the company reported a 55.41 per cent rise in consolidated net profit for the second quarter ended September 30.

The stock rose by 6.71 per cent to Rs 220.95 on the BSE.

At the NSE, it gained 6.76 per cent to Rs 221.

The country's largest lender State Bank of India (SBI) on Wednesday reported a 55.41 per cent rise in consolidated net profit at Rs 5,245.88 crore for the second quarter ended September 30 on account of decline in bad loans.

The bank's net profit stood at Rs 3,375.40 crore in July-September quarter of the previous fiscal.

On a standalone basis, the bank's net profit rose nearly 52 per cent to Rs 4,574 crore driven by lower provisions and higher growth in net interest income. Its net profit stood at Rs 3,012 crore in the year-ago period.

Net interest income grew 14.56 per cent to Rs 28,181 crore during the quarter as against Rs 24,600 crore last year.

The bank's gross non-performing assets (NPAs) ratio stood at 5.28 per cent, as against 7.19 per cent a year ago.