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SBI Q2 Results: Net Profit Surges 28% to ₹18,331 Crore
Last Updated: 8th November 2024 - 04:39 pm
State Bank of India (SBI), India's largest lender, has announced its financial results for the quarter ending September 2024. The bank reported a 28% increase in standalone net profit, reaching ₹18,331.4 crore compared to ₹14,330 crore in the same quarter last year. This strong performance was driven by higher other income and improved asset quality.
SBI Q2 Result Quick Insights
- Revenue: ₹41,620 crore, up by 5% YoY.
- Net Profit: ₹18,331 crore, marking a 28% rise from last year.
- Segment Performance: Strong growth driven by increased other income, which surged from ₹10,791 crore to ₹15,271 crore.
- Management's Take: “Our results reflect solid growth supported by enhanced income and improved asset quality,” stated SBI’s leadership. The outlook remains positive for upcoming quarters.
- Stock Reaction: Shares of SBI traded 1.4% lower postresults, closing at ₹847.75.
Management Commentary
SBI’s management attributed the improved performance to strategic growth in core segments and increased revenue from other income streams. The board has also approved the raising of ₹20,000 crore in longterm bonds through either a public issue or private placement within FY25 to support expansion initiatives.
Market Reaction post-quarter 2 result of SBI
Following the announcement, SBI stock price saw a mild dip of 1.4%, closing at ₹847.75 on November 8. In the past month, SBI shares had risen by around 10%, approaching their alltime high prior to the earnings release. The PSU Bank index, however, saw a bout of profit booking, with SBI and other constituents trading lower.
About SBI and Upcoming News
State Bank of India is the largest public sector bank in India, with a vast network of branches nationwide. Known for its robust performance, SBI’s improvement in asset quality this quarter is notable, as its gross NPA reduced to 2.13% from 2.21% in June 2024, while net NPA stood at 0.5%, better than anticipated by analysts. With approvals in place to raise significant funds through bonds, SBI is expected to continue its expansion and support infrastructure projects throughout the fiscal year.
This quarter’s results highlight SBI’s strategic approach to maintaining asset quality, steady revenue growth, and positioning for sustainable future development.
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