State Bank of India, India's largest lender, on Friday reported a 37.7 per cent YoY drop in standalone net profit at Rs 1,581.55 crore for quarter ended September 30, 2017. This was way short of Rs 2,700 crore profit forecast by analysts polled in an ET Now survey.

The state-run lender had reported a profit of Rs 2,538.32 crore in the corresponding quarter last year.

The lender made Rs 16,175.20 crore worth of provisions for non-performing assets, which was higher than Rs 12,125.26 crore provisions it made in June quarter and Rs 7,669.66 crore provisions in year-ago quarter.



Net interest income (NII) at Rs 18,595 crore came in better than ET Now's poll estimate of Rs 18,372 crore.

NII was up 5.57 per cent sequentially and 2.58 per cent on yearly basis. On the other hand, the bank saw a 100.96 per cent QoQ and 57.85 per cent YoY growth in non-interest income at Rs 16,016 crore.

Net interest margin (NIM) for the merged domestic business fell to 2.59 per cent from 2.5 per cent in June quarter and 2.98 per cent in September quarter of last year.



Asset quality though remained stable. Gross non-performing assets (GNPA) as percentage of gross advances stood inched lower to 9.83 per cent at the end of second quarter from 9.97 per cent in June quarter but rose on year-on-year basis. GNPA for the bank stood at 7.14 per cent in the year-ago quarter.

The bank has changed its accounting policy since April 1 with respect of booking of commission earned on issue of letter of credit and bank guarantees. This resulted in lower income of Rs 330.79 crore during the quarter, the bank said.

The bank said its provision coverage ratio as of September 30 stood at 65.10 per cent.