SBI Serves up a Siz­zling Show in Q3, Net More Than Dou­bles

Bank says prob­lem loans have peaked, ex­pects credit growth to im­prove in next fis­cal

The Economic Times - - Markets: Beating Volatility - Our Bureau

Mumbai: Buoyed by healthy fees and trad­ing prof­its, the coun­try’s largest lender State Bank of In­dia (SBI) saw net profit zoom 134% to ₹ 2,610 crore for the third quar­ter. An­nounc­ing the re­sults, the PSU lender said prob­lem loans have peaked and it ex­pects credit growth to im­prove in the com­ing fis­cal year. The bank’s top brass hinted de­mand for loans would have gained mo­men­tum in third quar­ter if not for the sud­den de­mon­eti­sa­tion ex­er­cise. “We were ex­pect­ing de­mand pick-up to hap­pen by Q3 and that has not hap­pened. May be if there was no de­mon­eti­sa­tion done by the gover nment, there could be some de­mand pick-up that would have hap­pened. We have to wait for the de­mand pick-up to be ac­tu­ally vis­i­ble. At that point we can con­fi­dently say that the things are get­ting back on track,” said Arund­hati Bhat­tacharya, chair man of SBI. Weak loan de­mand slowed growth in net in­ter­est in­come which rose 7.7% to ₹ 14,752 crore. The bank’s loan book rose just about 4.8% on a year-on-year ba­sis to ₹ 14.2 lakh crore. Ho-

SBI: Re­port Card

up to

2,610 crore Weak loan in­come

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