State-run lender State Bank of India (SBI) on Friday reported that its net profit for the second quarter dropped 35 percent on higher provisions for bad loans. The bank reported a net profit of Rs 2,538.32 crore for the July-September quarter as against net profit of Rs 3,879.07 crore for the same quarter in the previous fiscal.
The bank's asset quality worsened as gross non-performing assets increased to 7.14 percent from 6.94 percent in the previous quarter ended June 30, 2016. Net NPAs stood at 4.19 percent, up from 4.05 percent in the April-June quarter.
However, SBI reported a jump in its net interest income, or NII, which was Rs 14,437.46 crore in the most recent quarter, up 1.29 percent Rs 14,252.55 crore in the previous quarter.
The state-run bank's total income rose to Rs 50,742.99 crore for the second quarter that ended on September 30, 2016, when compared to Rs 46,854.81 crore for the same quarter in the last financial year, the bank said in its regulatory filing to the Bombay Stock Exchange.
Following the results, the SBI stock was trading at Rs 276.75 at around 2:52 p.m. on Friday, down 1.72 percent from its previous close.