Mumbai/IBNS: State Bank of India (SBI) reported a 68 percent year-on-year jump in net profit to Rs 14,205 crore for the quarter ended December 31, 2023, on account of a reduction in provisions and strong core income growth.

India’s largest lender had reported a net profit of Rs 8,431.9 crore in the corresponding period of the previous year.

Net Interest Income, calculated as interest earned over interest paid, soared 24 percent year-on-year to Rs 38,069 crore for the December quarter.

The interest income earned in Q3FY23 stood at Rs 86,616 crore against Rs 69,678 crore in the same quarter of the previous year.

The bank accounted for the impressive growth in its core income from its lending operations to the strong expansion in its loan book by 17.60 percent led by retail loans that grew by 18 percent year-on-year.

Its provisions reduced by 17 percent to Rs 5,760 crore in the December quarter against Rs 6,974 crore in the same period last year.

Loan loss provisioning, or provisions towards bad loans, dropped a big 49 percent to Rs 1,586 crore.

SBI’s asset quality improved significantly in the December quarter and its gross bad loan ratio dropped to 3.14 percent from 4.50 percent a year ago.

The bank reported fresh slippages that increased to Rs 3,098 crore in the December quarter, which was 2334 crore a year ago.

Special mention accounts that indicate initial signs of stress has come down—SMA 1 and 2 accounts that include due repayments for 30 days and more were down to Rs 4,747 crore from Rs 8,497 crore in the second quarter.