SBI Q2 net profit up 31%

SBI Q2 net profit up 31%

State Bank of India reported 30.54 per cent increase in net profit for the second quarter ended September 30, 2014 at Rs 3,100 crore compared to Rs 2,375 crore in the same period last fiscal.

Net interest income (NII) during the second quarter grew 8.36 per cent to Rs 1,3275 crore compared to Rs 1,2251 crore in the second quarter of the previous fiscal.

“The NII and non interest income have grown well during the quarter as the expenses have been well controlled during the quarter with operating expenses only up 2.23 per cent in the second quarter,” SBI chairman Arundhati Bhattacharya said.

Gross non performing assets (NPAs) during the second quarter stood at 4.89 per cent compared to 5.64 per cent an year ago while net NPAs stood at 2.73 per cent compared to 2.91 per cent in the same quarter of the previous fiscal.

On outlook for interest rates, Bhattacharya said that the rates are unlikely to go up from current levels. “We do not expect interest rates to move up from current levels.

The weakness in CPI  will continue due to which upward bias in interest rates is unlikely,” Bhattacharya said. We expect interest rates to start trending downwards from the first quarter of next year, she added.

The chairman said that the bank is also looking at improving its ATM services.

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