The country’s biggest lender State Bank of India on July 31 reported a standalone profit of Rs 4,189.34 crore for the quarter ended June 2020, a growth of 81.2 percent over a year-ago period driven by stake sale in life insurance business, but the provisions and lower non-interest income limited growth.
Net interest income, the difference between interest earned and interest expended, increased 16.1 percent to Rs 26,641.56 crore in June quarter compared to Rs 22,938.8 crore in year-ago period.
Profit as well as NII both were ahead of a CNBC-TV18 poll estimates of Rs 3,222.2 crore and Rs 23,940.3 crore respectively.
In June this year, SBI sold 2.1 percent equity stake in SBI Life Insurance Company via offer for sale route to comply with shareholding norms and raised Rs 1,539.73 crore.
The stock extended gains after earnings, trading 3.32 percent higher at Rs 192.75 on the BSE at the time of publishing this copy.
SBI share price fell 9 percent in June quarter and plunged 44 percent year-to-date amid fear of likely increase in asset quality concerns especially after the end of six-month moratorium on August 31.
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