The standalone (single) profit of the country’s largest public sector bank State Bank of India (SBI) in the second quarter of the current financial year has almost tripled to Rs 3,011.73 crore. The bank had a net profit of Rs 944.87 crore in the same quarter of the previous financial year.
The bank’s total income grew 3% to Rs 72,850.78 crore in the second quarter, from Rs 70,653.23 crore in the April-June quarter. The bank’s asset quality has improved in the second quarter of the current financial year and gross (gross) NPAs have come down to 7.19% of gross debt as on 30 September this year from 9.95% in the previous year.
Bad loans (net NPA) have come down to 2.79% as compared to total debt, as against 4.84% in the year-ago period. Shares of the company rose 7.19% to Rs 281.60 on Friday on the day of Dhanteras.
SBI’s stock climbed 7.19% on Friday. The bank’s stock closed at Rs 281.60, up 7.19% on the Bombay Stock Exchange. It had gained 8.10% to Rs 284 during the day’s trading. The Bank’s stock rose 7.56% to Rs 282.35 on the National Stock Exchange. The market capitalization of the bank rose by Rs 16,868.06 crore to Rs 2,51,317.06 crore amidst strong rally in the shares.
Brief history of SBI
The SBI became one of the 50 largest banks in the world after five associate banks merged into it on 1 April 2017. It was the largest merger in Indian banking history. After the merger, SBI has a total of 24,000 branches and about 59,000 ATMs. SBI has branches abroad, too; it has 198 offices in 37 countries.
The SBI had begun as the Bank of Calcutta, which was established in 1806. It was one of the oldest banks in the Indian subcontinent. During British India, the Bank of Calcutta and Bank of Madras were merged to form the Imperial Bank, which was changed to State Bank of India in 1955. The Central Bank of India RBI acquired the Imperial Bank on 1 July 1955.